What Are the Best AI Stocks in February 2024? Our Top 3 Picks – InvestorPlace

Investing in AI stocks is thrilling, especially now in February 2024. Furthermore, the best AI stocks come from companies leading the way in new ideas. This is making tech that could really shake up our lives and jobs.

These industry-leading companies show they can cater to enterprises and professionals demanding AI tech. This sets them up nicely for more success in the future. They have an edge in one way or another, whether that be having thousands of AI patents or owning a technology that is needed to run AI.

As such, they offer a promising opportunity for investors looking for AI stocks to invest in now.

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Nvidia Corporation (NASDAQ:NVDA) is a key player in AI thanks to its GPUs. For instance, the A100 and the ultra-modern H100 Tensor Core GPU have become foundational in training advanced artificial intelligence models.

The H100 uses high-level AI innovation in the form of Hopper architecture, which has the scalability and computing efficiency needed for huge AI workloads. This functionality has come with a huge demand for this tech from government organizations, cloud services, and more. Thats good news for Nvidia stocks!

Theres competition in any industry, and Nvidia has companies like Advanced Micro Devices (NASDAQ:AMD) angling for a market share. However, Nvidias commitment to pushing out next-gen tech is keeping it in the lead.

August 2023 saw the release of the Hopper GH200, with active deliveries set to start in Q2 2024. Theres also the Black GB200 in the works, offering faster, more accurate training of sophisticated AI models.

Nvidias position on the list of best AI stocks for February 2024 is not just because of its hardware offerings. The company also has CUDA, a computing software thats becoming the go-to for developers working on training enterprise-level AI models.

Although Nvidia stock has surged by more than 40% since the beginning of the year, it remains one of the best AI stocks. Analysts expect EPS growth of 268% in FY2024 and 68% in FY2025.

Last month, NVIDIA announced it would hold a conference call on February 21 to discuss its financial results for the fourth quarter and fiscal year 2024. In the last quarter, the semiconductor giant reported earnings of $3.92 per share, with revenue of $18.12 billion.

With exciting product cycles to come and increasing AI adoption in varied industries, NVIDIA and its stocks are well-positioned to capitalize on AIs growth.

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The top AI stocks in February show great promise for companies doing the futuristic work of shifting enterprise AI usage from the experimentation stage to active implementation. One company helping its clients adopt AI technology is Accenture plc (NYSE:ACN). In 2023, it announced a $3 billion investment in its AI division to assist customers in leveraging AI for enhanced business productivity.

This company is witnessing a huge demand for its services and is poised to capitalize on this opportunity. Accenture is a market leader in AI, with up to 1,450 AI patents and many more pending applications. Accenture is also leveraging its market-leading expertise to help clients in varied industries use AI to scale their operations.

The biggest selling point for Accenture is its specialized services, which revolve around personalization in generative AI. Through these services, Accenture is pushing the frontier, giving enterprises in manufacturing, retail, and other fields the power to modify foundational models as needed. It also offer a proprietary switchboard technology that combines various generative AI models to fit unique enterprise operational needs.

AI may be a dream for many. However, for Accenture, that dream is now. The last fiscal year saw $300 million in sales from generative AI. This year, it already managed $450 million in bookings.

If numbers are to be believedand in the investment world, they areAccenture stocks are set for a massive bull run.

Alongside the impressive sales numbers, the company is set to double the number of AI specialists it employs to 80,000. With only 12% of global companies able to harness AI capabilities, Accenture is likely to play a major role in disrupting the global business landscape through generative AI.

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IBM Corporation (NYSE:IBM) is one of the biggest players providing cloud and quantum computing solutions. Also, its further advances are within AI, creating some of the most powerful AI systems like Watson, which are used across different industries, functions, and practicesbe it data analysis, human language understanding, or decision-making.

IBM surprised experts by predicting a better-than-expected growth of around 5% in its sales for 2024, not counting changes in currency value. It also expects to have about $12 billion in free cash flow this year, which is impressive.

IBM said more customers using AI systems boosted the demand for its software and services. Some top experts also pointed out that IBMs estimate of having $12 billion in cash for 2024 stands out, especially since they had thought it would be between $11 billion and $11.5 billion.

It has a price-earnings ratio of 18.3, which analysts think investors can take advantage of now. Hence, the companys excellent future and good value make IBM one of the best AI stocks to keep in view in February 2024.

On the date of publication, Joel Lim 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 theInvestorPlace.comPublishing Guidelines.

Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.

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What Are the Best AI Stocks in February 2024? Our Top 3 Picks - InvestorPlace