Investing in artificial intelligence (AI) stocks has become increasingly popular in recent years as the technology continues to revolutionize various industries. According to Evercore ISI, there are certain stocks that are leading the charge in the AI revolution and are worth considering for long-term investment. These companies are considered to be “enablers” of the broader AI trend and have implemented the technology to strengthen their competitive advantages.
To compile their list of “AI revolutionaries,” Evercore analyzed companies within the Russell 1000 whose executives frequently mentioned AI on call transcripts in 2023. Additionally, the firm looked for companies with growing earnings estimates for 2024 and a price-to-earnings growth ratio that is discounted compared to the overall Russell 1000 index. These criteria are important indicators of long-term outperformance in the AI sector.
Among the top AI stocks identified by Evercore ISI is Nvidia, a chip giant that has seen significant growth in 2024. With AI mentions on transcripts surpassing other companies, Nvidia’s earnings estimates have also been revised upwards by more than 20% this year. The recent 10-for-1 stock split has further fueled growth expectations for Nvidia, making it a standout investment opportunity in the AI space.
Meta Platforms, the parent company of social media giant Facebook, is another AI stock worth considering. Despite facing revenue forecast challenges, Meta is doubling down on AI with increased capital expenditures. CEO Mark Zuckerberg has expressed confidence in the company’s ability to scale and monetize AI projects effectively, presenting a compelling investment case for Meta Platforms.
Alphabet, the parent company of Google, is also on Evercore’s list of top AI stocks. With a strong suite of AI products, including its large language model Gemini and Vertex AI for enterprise companies, Alphabet has shown robust growth in 2024. The company’s recent financial performance indicates a strong foundation for continued success in the AI sector.
As the AI revolution continues to unfold, investors have a unique opportunity to capitalize on the growth potential of leading AI stocks. Companies like Nvidia, Meta Platforms, and Alphabet are at the forefront of innovation in the AI space, making them attractive investment options for those looking to benefit from the ongoing technological advancements. By carefully evaluating the criteria set forth by Evercore ISI and considering the long-term prospects of these AI companies, investors can position themselves for success in the evolving landscape of artificial intelligence.