The artificial intelligence (AI) industry has been rapidly expanding, and finding cheap AI stocks to invest in can be a beneficial strategy for investors looking to capitalize on this growing market. In this article, we will discuss some of the cheap AI stocks to consider buying in 2024.
According to the PwC Emerging Technology Survey, more companies are integrating generative AI into their businesses after the successful launch of ChatGPT. The AI industry performed well in 2023, with the Magnificent 7 stocks, including Meta Platforms, Inc. (META) and NVIDIA Corporation (NVDA), outperforming the S&P 493 by a significant margin. Analysts like Goldman Sachs’ David Kostin are optimistic about the continued growth of AI stocks in 2024.
Aside from big tech companies, various AI companies across different sectors have also benefitted from the rise of AI technology. For example, Rocket Companies, Inc. (RKT) uses AI for mortgage banking, underwriting, and servicing, while Equinix, Inc. (EQIX) stands to benefit from the potential growth in AI computer facilities.
The impact of AI on the labor market is a topic of concern, with reports suggesting that AI could potentially replace human labor in many areas. The IMF highlights that nearly 40% of global jobs are exposed to AI, with wealthier countries better equipped to adopt AI technology.
Investors looking for entry points in the AI market may consider investing in cheap AI stocks like Rekor Systems, Inc. (REKR), Symbotic Inc. (SYM), and AeroVironment, Inc. (AVAV). To identify these stocks, we analyzed 30 companies trading on NYSE and NASDAQ that directly benefit from AI growth and chose the stocks with the highest average analyst price target upside as of February 23.
In our list of 11 cheap AI stocks to buy in 2024, some notable mentions include:
– Advanced Micro Devices, Inc. (AMD) with an average analyst price target upside of 11.40%
– Apple Inc. (AAPL) with an average analyst price target upside of 12.95%
– Alphabet Inc. (GOOGL) with an average analyst price target upside of 14.33%
– Microsoft Corporation (MSFT) with an average analyst price target upside of 14.44%
– Synaptics Incorporated (SYNA) with an average analyst price target upside of 17.66%
– Adobe Inc. (ADBE) with an average analyst price target upside of 18.07%
These companies are actively working to leverage AI technology in their products and services, making them attractive investment opportunities in the AI sector. As the AI industry continues to evolve, investors can benefit from identifying and investing in promising AI stocks that show potential for growth and innovation.
