The artificial intelligence (AI) market exploded last year after the launch of OpenAI’s ChatGPT reignited interest in the technology. Companies across tech pivoted their businesses to the budding sector in an effort to take their slice of a $200 billion pie.
The AI market is developing rapidly. Data from Grand View Research projects it to expand at a compound annual growth rate (CAGR) of 37% through 2030 and hit a valuation nearing $2 trillion. As a result, it’s not surprising that investors have flocked to the industry. Excitement over AI saw the Nasdaq-100 Technology Sector index rise 67% in 2023, creating more than a few millionaires along the way.
The market has shown no signs of slowing. AI can potentially boost many areas, from cloud computing to e-commerce, consumer products, autonomous vehicles, video games, and more. As a result, it’s not too late to invest in AI and enjoy significant gains from its development over the long term.
Here are three millionaire-maker AI stocks to buy this April.
1. Nvidia
It shouldn’t be too surprising to see Nvidia (NASDAQ: NVDA) on this list after the company cornered the market on AI chips last year. In 2023, Nvidia snapped up an estimated 90% market share in AI graphics processing units (GPUs), the chips necessary to train and run AI models.
Nvidia’s years of dominance in GPUs allowed it to get a headstart in AI over many of its competitors, leading its stock to rise 214% over the last year alongside soaring earnings.
In its most recent quarter (the fourth quarter of fiscal 2024, which ended in January), the company’s revenue increased by 265% year over year to $22 billion. Operating income jumped 983% to nearly $14 billion. This monster growth was primarily due to a 409% increase in data center revenue, reflecting a spike in AI GPU sales.
The vast potential of AI suggests chip demand will continue rising, and Nvidia will likely continue seeing major gains from the industry.
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NVDA Price to Free Cash Flow Chart
Meanwhile, the chart above shows Nvidia’s price-to-free-cash-flow ratio and price-to-earnings (P/E) ratio…
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