3 AI Stocks That Will Make Investors Very Happy in 2024

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Artificial intelligence (AI) is still the prominent buzzword in the news today. While many investors have been raking in profits from AI stocks, others are on the hunt for the next company to soar. However, it’s no easy feat as many AI stocks are all hype and no substance, leading to violent corrections and investor losses. 

Despite these risks, no one can deny that AI is a technological leap that presents an opportunity for hefty returns. If you can separate the wheat from the chaff, you’ll find great candidates. But you’ll need to time your entry, ensuring you’re not buying at the top. 

So let’s look at three AI stocks currently experiencing a slight price dip but still have the potential to rise in 2024. 

To get this list, I screened for the following criteria:

  • Negative quarter-to-date (QTD) price percent change (not exceeding -20%).
  • Year-to-date (YTD) price percent change above 25%.
  • AI stocks trading at $5 and above to minimize volatility.

The combination of negative QTD and positive YTD price performance allows us to identify companies on pause from their current uptrend. 

The following list is sorted based on the change in the stock’s YTD price, in percent, from highest to lowest.

Super Micro Computer (SMCI)

In this photo illustration, the Super Micro Computer, Inc. (SMCI) logo seen displayed on a smartphone screen

Source: rafapress /

As a specialist in application-optimized servers used by enterprises, Super Micro Computer (NASDAQ:SMCI) stands at the forefront of the AI revolution. 

Even though the company isn’t the same size as enterprise giants like Dell Technologies (NYSE:DELL), it makes up for its long-standing partnership with Nvidia (NASDAQ:NVDA) as a dedicated provider of AI servers. Supermicro recently announced the expansion of its edge computing portfolio, which will help hasten IoT and Edge AI workloads with a new generation of embedded solutions.

SMCI’s FY 23 results saw record highs, with revenue increasing by 37% YOY, reaching $7.12 billion. Earnings per share also improved significantly, reaching $12.09 from last year’s $5.54. 

President and CEO Charles Liang says the company “continue[s] to see unprecedented demand for AI and other advanced applications requiring optimized rack-scale solutions.”

Indeed, the ravenous demand for AI servers will likely drive revenue higher, with the company expecting net sales to end between $9.5 billion and $10.5 billion. 

SMCI stock is down 11% QTD but up nearly 210% YTD. This slight dip in price might mark a temporary pullback where investors can buy shares before its bull run continues. 

SoundHound AI (SOUN)

In this photo illustration, the SoundHound logo seen displayed on a smartphone. SOUN stock

Source: rafapress /

SoundHound AI (NASDAQ:SOUN) offers AI-powered voice and speech recognition technology, allowing businesses to provide their customers with conversational experiences. 

SoundHound’s Houndify platform uses advanced AI and engineering to help different brands build conversational assistants. The company has also collaborated with several companies, like Nvidia, for in-vehicle AI, and Perplexity to enhance SoundHound Chat AI.

SoundHound’s FY 23 financials saw a commendable 47% year-over-year (YOY) increase in revenue, reaching $45.9 million. While the company still operates at a net loss, the bottom line has improved somewhat. Losses per share ended at 40 cents compared to 74 cents last year. This 46% improvement marks another double-digit growth on an important financial metric. 

Additionally, SoundHound is confident it will continue to grow in 2024, with a mid-point revenue outlook of $70 million. This represents more than 50% growth YOY. 

SOUN stock is currently down 13% QTD, but up 143% YTD, meaning investors could get in on the action before the stock gaps up once again. 

Palantir Technologies (PLTR)

Palantir (PLTR) logo in a smartphone with a series of stock charts on the background.

Source: Spyro the Dragon /

Palantir Technologies (NYSE:PLTR) specializes in counter-terrorist and investigative software that leverages AI for investigation and pattern identification. The company is currently joining forces with Oracle (NYSE:ORCL) to provide secure cloud and AI solutions to power governments and businesses worldwide.

Palantir’s FY 23 report saw a string of double-digit wins. Revenue increased by 17% year over year, reaching $2.23 billion. This impressive increase is backed by strong international and U.S. commercial sales, which grew 20% and 36%, respectively. Earnings also saw an impressive turnaround from an 18-cent loss in 2022 to a 9-cent per share gain. 

In a letter to shareholders, CEO Alex Karp states the “business is now growing at a scale and pace that even our most ardent advocates would have been hard-pressed to say was likely, or even possible.” 

Guidance for 2024 also looks encouraging. The outlook on U.S. commercial revenue points to a 45% increase in FY 24. If the latest quarter’s numbers are anything to go by, then Palantir is well on its way to exceeding its full-year targets. 

As for PLTR stock, it’s down 8% QTD but up 26% YTD. 

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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