Artificial intelligence (AI) continues to be the hot trend in technology and the main driver of the stock market. Companies large and small are racing to roll out new AI features for both consumers and businesses, monetizing their products and gaining market share in the process. The market for AI shows no signs of slowing down.
Bloomberg Intelligence forecasts that generative AI is likely to grow at a compound annual growth rate (CAGR) of 42% over the next decade. It is expected to become a $1.3 trillion industry worldwide. AI also has the promise to transform society as we know it. It can alter everything from the way we work and interact with one another to the entertainment we consume.
With so much at stake, it should come as no surprise that both established companies and start-ups are pulling out all the stops to get ahead in the AI race. Here are three AI stocks to turn $10,000 into $1 million in February 2024.
Nvidia (NVDA)
AI chipmaker Nvidia (NASDAQ:NVDA) reports its latest earnings on Feb. 21 and expectations could not be higher. Forecasts are calling for earnings per share (EPS) of $4.59, a more than 700% increase from the same quarter of last year. Some analysts are referring to the upcoming print as a make-or-break moment for the stock market. In a note to clients, Deutsche Bank said: “The most important event of the week may be Nvidia’s earnings…this will be very important for sentiment.”
As for helping investors get rich, NVDA stock is already up 50% this year, bringing its 12-month gain to 252%. Options trading activity indicates that Nvidia’s shares could rise a further 11% or more after its latest quarterly results, according to data from options analytics service ORATS. Nvidia’s market capitalization now stands at $1.8 trillion, surpassing both Amazon (NASDAQ:AMZN) and Google-parent company Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL).
Symbotic (SYM)
Now for a lesser known name. Symbotic (NASDAQ:SYM) is not a microchip or semiconductor maker but is an AI company all the same. Symbotic is a robotics warehouse automation company based in Massachusetts. It builds and operates robots and automated systems for warehouses using proprietary AI in its software. While SYM stock has pulled back since the start of this year, it comes after a blistering rally in 2023. In the last 12 months, the stock has risen 155% and it is up 312% since going public in 2022.
A few weeks ago, the company reported earnings that topped its own forecasts. Symbotic announced $14 million in adjusted EBITDA on revenue of $368 million. The company’s sales were up 79% from a year earlier. Symbotic had forecast earnings of $11 million on sales of $350 million. It was the company’s second quarter in a row of adjusted profitability, which is a good sign for the future. Should Symbotic continue reporting strong sales and profits, it likely won’t be long until its stock is rallying again.
Alphabet (GOOG)(GOOGL)
Still out front in the global AI race is Alphabet. The company remains all-in on AI, recently rebranding its main AI chatbot as “Gemini” and replacing the former name “Bard.” Google’s parent said it is making the change to be consistent with the name of its large-language learning models that are used to train AI applications. The name Bard was originally unveiled with the beta launch of Alphabet’s first AI chatbot in March 2023.
Along with the rebrand, Alphabet announced it is launching a new mobile version of its chatbot as well as a premium paid-subscription version called “Gemini Advanced.” Alphabet is among the first companies to start monetizing its AI offerings. Alphabet executives said they are working towards building an advanced AI assistant for both consumers and businesses. Gemini Advanced is priced at $19.99 a month, including two terabytes of cloud storage that can be shared among family members.
Alphabet is cascading its AI capabilities across its suite of office products, including Gmail, Docs, Slides, Sheets, and Meet. GOOGL stock has gained 53% in the last 12 months. A $10,000 investment in Alphabet’s stock on the date of its 2004 initial public offering (IPO) would be worth more than $300,000 today.
On the date of publication, Joel Baglole held long positions in NVDA and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.