Nvidia stock has been an incredible performer, but keep an eye out for other hot AI stocks that could share in the excitement
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As one of the hottest AI stocks. Nvidia(NASDAQ:NVDA) The epic rally continues. Many investors may be wondering where Puck will go next in the field of artificial intelligence (A.I.) scene. At this rate, it may not be long before the AI chip giant becomes a $3 trillion company. With only a handful of companies larger than the company remaining, how much room does the company have left?
In any case, AI will not only benefit the world’s leading graphics processing unit (GPU) manufacturers. Many companies across industries are investing heavily in AI capabilities. And today, it’s hard to imagine a technology company without an AI strategy. But for now, it’s still unclear when AI will start impacting revenue and how long the growth will continue.
In this article, we highlight three hot AI stocks that could be hot this year.
Super microcomputer (SMCI)
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super microcomputer (NASDAQ:SMCI) This year has been brutally hot, with temperatures up more than 240% year-to-date. These are insane gains, and the company has outperformed the mighty Nvidia recently, but SMCI stock has gotten too hot for most investors to handle.
Recently, Barclays pointed out that the overwhelming speed with which supermicrocomputers were brought to market may be the source of the company’s “strongest moat.”
Make no mistake, the super microcomputer stock looks like Nvidia’s recent consolidation. Data centers have complex issues that Super Micro has addressed better than many of its competitors (customization, resource-saving designs, liquid cooling technology), but he’s willing to bet on a stock that has more than tripled in value in a matter of months. I feel embarrassed.
There’s no doubting the company’s ability to support the latest Nvidia Blackwell B200 chips, but there’s already a lot of hope instilled in the stock price. Anything less can result in wild ups and downs considering perfection.
Reddit (RDDT)
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reddit (NASDAQ:RDDT) went public last week with great fanfare and was down about 9% on Friday after closing big on its debut day. This is more than just a popular forum for discussing specific topics. Reddit is an interesting source of information on the web that many AI-based search engines may crawl to learn a little bit from a human perspective.
While this kind of perspective can come from a variety of social media platforms, Reddit seems to have the perfect formula for soliciting useful information that AI models can use when answering user questions. Additionally, the company plans to improve its platform by incorporating AI tools for personalization and enhanced content moderation.
Sam Altman, OpenAI’s chief executive and one of the biggest AI visionaries, is also reportedly an early investor in the company, giving the public an idea of what kind of growth the company is capable of. The growth potential of AI cannot be overlooked as we are trying to show people. Due to the early IPO heat, RDDT stock is a little too hot for me. Therefore, I would like to look for further rebound before considering an entry.
Apple (AAPL)
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The Department of Justice (DoJ) lawsuit over allegations of “monopoly power” is still fresh in our minds. apple (NASDAQ:AAPL) Many stock investors seem distracted from the company’s long-term strategy. Almost a quarter into this year, Apple is still arguably the company among the Magnificent Seven with the least clear AI gaming plans.
That’s one thing, and more specific details could add more life to the stock. For now, Apple is on the back foot through his 2024. And without an AI strategy that can only be described as “groundbreaking,” it’s unclear whether the company will be able to finish 2024 in the black. Perhaps the breakthrough lies in the new Vision Pro headset’s AI capabilities. There is certainly no doubt about that.
With Nvidia’s Omniverse coming to the Vision Pro, investors in AAPL stock could add yet another catalyst to their bullish situation as spatial computing devices look to enter the enterprise world.
Omniverse for Vision Pro is a big deal, much bigger than the Justice Department lawsuit, and it could prove to be nothing but a thorn in the side for the company for years to come.
On the date of publication, Joey Frenette owned Apple stock. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
