In the vast landscape of today’s markets, artificial intelligence (AI) is reshaping investment strategies. Therefore, AI stock picks are as relevant as ever. AI’s ability to analyze extensive datasets and discern patterns gives it a unique edge. In essence, it makes it an incredibly valuable research tool.
Recently, I harnessed the prowess of Chat-GPT to generate some fresh stock ideas for 2024 that could deliver triple-digit returns. My first prompt was the following:
“Kindly conduct an in-depth exploration of the current dynamics and trends characterizing the United States stock market as of February 2024.”
Once it had all the information it needed about the U.S. stock market situation, I asked a follow-up prompt,
“Based on this, suggest 7 stocks that could generate triple-digit returns this year.”
While the quest for triple-digit returns is ambitious, the AI-driven analysis yielded intriguing prospects. Here’s a look into the three stocks that, according to AI predictions, stand on the brink of multi-bagger returns.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) fortifies its 80% dominance in the PC software landscape. In fact, its stock mirrors this prowess, climbing 53% over the past year.
The unveiling of Copilot within Microsoft 365 is a bound in the AI realm. It potentially scripts a new era in the company’s growth narrative. This leap is particularly timely, aligning with forecasts of a PC market revival.
Moreover, the strategic enhancements in Dynamics 365 and Power Platform sharpens the edge in supply chain management and project operations. It dovetails seamlessly with this momentum, knitting AI more intricately into the operational fabric of businesses.
Furthermore, MSFT’s revenues swelled by 18% year over year (YOY) to crest at $62 billion, eclipsing expectations by $888.2 million. Notably, Azure cloud revenues soared by 30% YOYr, reflecting Microsoft’s assertive strides in AI integration across its offerings. TipRanks analysts assign a strong buy rating on Microsoft. Further, they envision a 16% upside, a testament to the tech titan’s unwavering ascent.
Meta Platforms (META)
Meta Platforms (NASDAQ:META), the titan behind household names like Facebook, WhatsApp, and Instagram, has been charting an ambitious trajectory. It boasts a stellar 144.9% surge over the past year.
In a strategic pivot, CEO Mark Zuckerberg recently unveiled plans to fuel Meta’s momentum by integrating cutting-edge AI. Further, this bold move is marked by a hefty investment in Nvidia’s (NASDAQ:NVDA) prowess. Specifically, Meta secured 350,000 H100 graphics cards. This initiative is about vision. Meta joins the elite race for Artificial General Intelligence (AGI), a pursuit shared by luminaries like OpenAI and Google’s Deep Mind.
Financially, Meta’s revenues bloomed to $40.11 billion, a 24.7% uptick YOY, comfortably surpassing expectations by $940.6 million. The full-year revenue reached a hefty $134.9 billion, marking a solid 16% growth. The net income skyrocketed by an astounding 201%, translating into a robust $14.01 billion. TipRanks analysts catch onto this upbeat rhythm, assigning META a strong buy and eyeing a promising 12% ascent in its market trajectory.
Verastem (VSTM)
Verastem (NASDAQ:VSTM), an oncology trailblazer, has been riding a wave of momentum. Its stock is surging 46% over the past year.
Also, the company’s strategic alliance with GenFleet showcases its ambition. It is setting its sights on an early 2024 investigational new drug submission in China. Moreover, its dynamic pursuit of clinical trials includes the pivotal RAMP 301 Phase 3 for recurrent LGSOC. Hence, this demonstrates a robust commitment to innovation and patient care.
Further bolstering its credentials, the FDA’s Breakthrough Therapy designation for its avutometinib and defactinib combo underscores the company’s potential to reshape cancer treatment. It did experience a surge in third-quarter 2023 expenses due to collaboration costs and intensified research efforts. Yet, VSTM remains financially robust. It has a substantial $165.7 million cash reserve and earnings that have bested expectations by 15 cents.
Additionally, TipRanks analysts rate Verastem a strong buy, seeing a robust 130.36% upside potential. These endorsements and advancements of VSTM position it as a pivotal player in oncology, shaping the sector’s future.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.