History Shows Nasdaq Will Soar This Year: Top Artificial Intelligence (AI) Growth Stocks I Should Buy Before It Rally

this Nasdaq Index The index has had a great year so far, with 2024 just months away. Technology stocks that dominate the index are soaring as investors favor growth and innovative products such as artificial intelligence (AI) stocks and chip design companies. Cloud computing players. This pushed the index to a new all-time high, confirming that it has reached bull market territory.

And if history is any guide, the NASDAQ index’s winning streak may not be over yet. Over the past six stock market gains, dating back to 1990, the Nasdaq has gained an average of 64% in the previous two years of positive performance. It’s up about 43% last year and 8% so far this year — so if it follows historical patterns, the Nasdaq could soar this year. Here are my top AI growth stocks to buy before…

Amazon

Amazon (NASDAQ: AMZN) With shares up 20% so far this year, this top stock may just be getting started.That’s because Amazon is the ideal choice Artificial Intelligence Stocks Worth Buying: The company is using the technology to improve its e-commerce operations and also sells artificial intelligence products and services to cloud computing service customers through its Amazon Web Services (AWS) unit. Therefore, it benefits from artificial intelligence in two ways.

Amazon, for example, uses artificial intelligence to help it streamline fulfillment center operations and choose the shortest delivery routes, which is critical because it lowers the company’s service costs.

AWS has made it a priority to address AI needs at every level, so it provides customers with the basics, such as chips for training and inference programs, as well as fully managed services that enable them to use large language models (LLMs) on their own AWS, the world’s leading cloud service provider, has built a large audience and is preparing to launch artificial intelligence projects.

So it’s clear that over time, artificial intelligence is likely to have a significant impact on Amazon’s profit growth by streamlining e-commerce processes, reducing costs, and boosting AWS revenue.

The story continues

Today, Amazon stock price increased 43 times forward profit forecastThat looks like a fair price for a growth stock — especially one with solid profitability and a compelling artificial intelligence strategy.

Intel

Intel (NASDAQ: INTC) It’s been a struggle to keep up with the artificial intelligence race, but the tide may have turned lately. The chip company late last year launched a series of artificial intelligence products that could boost its competitiveness and drive a new era of growth. One example is that the Intel Core Ultra mobile processor series is a key step in ushering in the era of artificial intelligence PCs – these are high-power computers that can perform many artificial intelligence tasks.

Intel also released the latest Intel Xeon processor series with artificial intelligence acceleration capabilities and the Gaudi 3 artificial intelligence accelerator.I don’t think these innovations will threaten the chip market giants Nvidialeadership position, but that’s okay. Given the opportunity—the artificial intelligence market is expected to top $1 trillion by the end of this decade—there’s room for more than one company to carve out market share and revenue. Intel may be crediting one of these for its new and upcoming innovations.

On top of that, Intel’s move to open its manufacturing network to other companies, with the goal of becoming the world’s second-largest foundry by 2030, could accelerate growth. It’s a big bet, but one that could pay off in a big way down the road. Intel has secured commitments from four customers for its 18A process and signed five advanced packaging agreements.

Intel shares trade at 29 times forward earnings, which is quite cheap considering the company’s artificial intelligence and foundry prospects and analysts’ forecasts of double-digit annual growth over the next five years. So Intel may be ripe for a rebound, making now the ideal time to join the tech giant.

Should you invest $1,000 in Amazon right now?

Before buying Amazon stock, consider the following factors:

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John Mackey is the former CEO of Amazon subsidiary Whole Foods Market and a board member of The Motley Fool. Adria Cimino The Motley Fool holds positions in and recommends Amazon and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 Intel calls, long January 2025 $45 Intel calls, and short May 2024 $474 calls on Intel. Motley Fool has a disclosure policy.

History Shows Nasdaq Will Soar This Year: Top Artificial Intelligence (AI) Growth Stocks I Should Buy Before It Rally Originally published by The Motley Fool