The Best Performing AI Stocks of 2024

In partnership with

The AI Investing Pulse

December 26th, 2024

In this week’s edition:

1. Analysis - The best performing AI stocks of 2024

2. Stock Ideas - 11 trending AI stocks on latest news and ratings

3. News - Analyst unveils bold Apple stock price forecast for 2025

4. Startups - Meet 5 AI startups raising more than US$100 Million In 2024

5. Trends - Quantum leap: AI’s new frontier? Discover what lies ahead 

6. Other News - MIT technology review’s best-performing stories of 2024 

The Best Performing AI Stocks of 2024

2024 has been an extraordinary year for AI, brimming with innovation, transformative advancements, and substantial investment.

In this week’s newsletter, we spotlight the best performing companies in each category of the AI stack from our own AI stock list, showcasing the standout leaders of the year so far.

To make sense of this fast moving and complex field, we liken the AI stack to a "car," with each layer playing a vital role in ensuring best performance. By visualising AI in this way, it becomes easier to understand the key components and how they work together to drive the AI revolution forward.

Top Performers by Category

Performance YTD as of 25/12/24 - Finviz.com

1. Hardware, Infrastructure & Power - “Engine & Chassis”

Powers AI systems by combining hardware, computational power, and energy management.

• Celestica (CLS): 233% – A leader in hardware manufacturing, delivering top-notch AI infrastructure solutions.

• Nvidia (NVDA): 182% - Excels in high-performance GPUs that power the majority of AI applications globally.

• Vertiv (VRT): 147% – Excels in innovative cooling and power management for AI data centres.

• Coherent (COHR): 129% – Pushes the boundaries of laser and optical technologies for AI and telecommunications.

2. Data & Connectivity - “Fuel & Roads”

Ensures smooth data flow through integration and high-performance networking.

• Broadcom (AVGO): 115% – Drives seamless AI data processing with advanced connectivity technologies.

• Arista Networks (ANET): 95% – Powers hyperscale AI systems with exceptional networking solutions.

• Marvell Technology (MRVL): 92% – Pioneers cutting-edge data infrastructure for AI workloads.

• Oracle (ORCL): 62% - Excels in AI-driven cloud solutions and enterprise software, enabling seamless integration for businesses.

3. AI Development & Applications - “Car Type & Driver Usage”

Represents the types of AI models built (the car type) and how they are applied in real-world scenarios (driver usage).

• SoundHound (SOUN): 855% – Leads the charge in voice AI, offering groundbreaking innovations.

• Palantir (PLTR): 384% - Provides industry leading AI platforms for data analytics and decision making, widely adopted across sectors.

• Lemonade (LMND): 156% – Reinvents the insurance industry with AI-driven automation.

• Spotify (SPOT): 146% – Transforms music streaming with personalised AI recommendations.

4. Security, Compliance & Sustainability - “Seatbelt & Safety”

Keeps AI systems secure and environmentally sustainable.

• Fortinet (FTNT): 66% - Excels in providing AI-integrated cybersecurity solutions tailored to protect enterprise networks.

• CyberArk (CYBR): 46% – Fortifies AI systems with advanced access management tools.

• CrowdStrike (CRWD): 43% – Sets the standard in enterprise cybersecurity, powered by AI.

• Palo Alto Networks (PANW): 29% – Innovates AI-driven threat detection and prevention solutions.

2024 has proven to be a landmark year for AI, with remarkable advancements reshaping industries worldwide. From enhancing infrastructure and connectivity to delivering transformative real-world applications, the progress and speed have been incredible.

As we look ahead to 2025, the spotlight turns to making AI investments pay off, ensuring these groundbreaking innovations translate into measurable success. 2025 could be the year that shifts focus from hardware to software, opening opportunities in emerging frontiers like quantum computing and AI agents. These technologies promise to push the boundaries even further, heralding an exciting new year in the AI space.

Stay tuned for more insights, as next week, we’ll review the industry perspectives on the AI stocks to watch in 2025.

TOP AI STOCKS

TOP AI ETFs

WEEKLY AI STOCKS IDEAS

11 trending AI stocks on latest news and ratings - InsiderMonkey

1 top quantum computing stock to watch - The Motely Fool

AI STOCKS & ETFs NEWS 

Analyst unveils bold Apple stock price forecast for 2025 - TheStreet - Apple stock just hit a record. Here’s what could be next for the iPhone maker.

Mark Zuckerberg went all in on Meta's AI strategy this year. - Money Report - Meta's all-encompassing approach to AI has led analysts to predict more success but the pressure will build in 2025.

The future of Tesla: is AI steering stock prices? - Lanoticiadigital - Tesla’s stock has shown signs of both resilience and vulnerability, prompting a closer examination of influencing factors beyond traditional market dynamics.

AI STARTUPS

Meet five AI startups raising more than US$100 Million In 2024 - Jumpstart - AI startups are cashing in big as venture capital bets on the future.

AI startups attracted 25% of Europe’s VC funding- TechCrunch - Venture funding into Europe is heading for a flat year but this may obfuscate the fact that European AI startups are thriving.

Next big thing for robotics startups? Focusing on software for AI integration - Technical.ly - That approach can also help attract VC funding, Damon Henry said on the Founding Philly podcast.

AI TRENDS

Quantum leap: AI’s new frontier? Discover what lies ahead - Jomfruland - Now, an emerging synergy could redefine their capabilities: quantum AI. This innovation merges AI with quantum computing, a groundbreaking technology that promises unparalleled speed and efficiency.

Technology sector outlook for 2025 - Fidelity - The outlook for the sector in 2025 and beyond may be bright, as tech companies continue to innovate and digitisation and automation become increasingly important in our lives.

What’s next for AI and tech? Key trends to watch in 2025 - The Edge - 2025 is the year CEOs and boards will approach AI with clear-eyed utility, not just awe or fear.

OTHER

Here are MIT technology review’s best-performing stories of 2024 - MIT - From cataloguing the year’s biggest breakthroughs in emerging technology to exploring the far future, 2024 kept us busy.

AI and the human brain: holding on to our humanity- Wharton - Envision a society where knowledge can be directly uploaded into our minds, rendering the traditional, time-consuming learning process obsolete.

How to make money using AI: 17 Ideas - Shopify - As AI transforms industries with new avenues for innovation, learn more about AI and how to make money using AI applications in a variety of effective ways.

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_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice.}