The Nasdaq hit a new record high recently, and the good times may be far from over. History shows us that over the past 10 periods of annual market declines — dating back to the early 1970s — the index always has climbed for at least two consecutive years afterward. And on all but one occasion, the index posted a double-digit increase during its second year of gains. If this trend continues, the Nasdaq, heading for a 7.4% increase so far, is set to climb higher in 2024.
And the stocks that have led the gains and could continue leading the movement are artificial intelligence (AI) players. Investors are excited about this high-growth, high-potential technology. AI may make game-changing moves — like bringing lifesaving drugs to patients more quickly — and could save companies and individuals money and time as it completes tasks and solves problems.
That’s why right now is the perfect time to get in on potential AI powerhouses. Let’s check out two AI stocks to buy hand over fist before the Nasdaq soars higher.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) is benefiting from AI in two ways. The company uses AI across its e-commerce business to streamline operations and improve the customer experience. And Amazon sells AI solutions to customers through Amazon Web Services (AWS), its cloud computing business.
In e-commerce, Amazon’s AI will help you choose a product based on your buying history, and AI is helping the company choose the best delivery routes for packages. These and other AI efforts should keep customers coming back and boost Amazon’s profitability.
As for AWS, the service offers everything from chips for customers to train their own AI models to a fully managed service that allows customers to customize the most popular large language models (LLMs) to suit their needs. AWS customers can access the company’s own lower-cost chips, as well as the fastest, highest-performing chips and services from AI chip market leader Nvidia (NASDAQ: NVDA).
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All of this could make Amazon one of the winners of a potential AI revolution. And…
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