AI stocks are about to heat up. Let’s be very clear: the best is yet to come. That’s why now is the time to position for the AI boom of 2024. Our guide Top AI & Robotics Stocks Selection should be of invaluable help. It is available in the research area of our website.
The above mentioned report contains a selection of 20 AI & Robotics stocks. We conclude our research with the 6 best AI stocks for 2024.
The economic importance of AI & Robotics companies
AI and robotics companies are key players in driving economic growth and innovation. Their impact spans across various sectors.
These technologies aren’t just about automation; they’re about revolutionizing processes, enabling predictive analytics, and creating intelligent systems that can adapt and learn. The economic importance lies in the efficiency gains, cost reductions, and new revenue streams that AI and robotics bring to businesses.
The application of AI across firms and industries is expected to increase productivity and consumer reach, with a positive and significant impact on long-run economic growth.
That’s why we prefer to use the term PRODUCTIVITY MEGA CYCLE as opposed to AI BOOM.
AI & Robotics growth: the numbers
Artificial intelligence is expected to significantly contribute to economic growth. According to a report by McKinsey, generative AI could enable labor productivity growth of 0.1 to 0.6 percent annually through 2040, potentially compensating for declining employment growth and enabling overall economic growth.
Another study by Goldman Sachs Research suggests that generative AI has the potential to raise global GDP by 7% and lift productivity growth. It is estimated that AI could increase US productivity growth by 1.5 percentage points, with a measurable impact on US GDP expected to start in 2027.
AI & Robotics: Sector trend & leading indicators
Before looking at our stock selection, we want to have a look at the high level trend and leading indicators. We look at 2 sector ETF’s and two top stocks that are leading the way in the AI boom.
Global X Robotics & AI ETF, which has a balanced mix between stocks engaged in robotics as well as AI, has clearly a very powerful chart, among the strongest we currently track.
Global X AI & Technology ETF went up exactly to its 25% retracement level. This ETF has more exposure to companies in the AI space, including giants like Nvidia.
Moreover, in this blog post AI & Robotics Stocks – Why AI Investors Must Be Wary Of January 5th, 2024 we identified January 5th, 2024 as a decisive date. You can see on the chart what happened on that given day: a successful ‘test’ of the bullish pattern. This is very, very bullish!
We think of Microsoft as a leading indicator for AI stocks. It shows a secular breakout!
Nvidia is also a leading indicator for the AI space, although it is focused on semiconductors. It confirmed a secular breakout in January of 2024.
Conclusion: AI & Robotics leading indicators are wildly bullish. This means that we can pick a few leveraged plays, we believe there is tons of upside potential in this space.
Top 3 AI stocks in 2024
Note: we do not mention the symbols in this article simply to respect our premium members. We focus on the educational part, i.e. chart analysis and common findings across charts in the AI space.
This is our top pick. This company enables and integrates AI generated software code. The chat is one of the strongest bullish reversals we have seen in a while. Its share price should double in 2024.
This company support enterprise operations through Artificial Intelligence. The chart is an absolute beauty, in our top list since almost a year.
This robotics stock is about to start an acceleration phase, higher obviously. The long term consolidation has a shape of cup-and-handle type reversal. Whatever the specifics, it is a strongly bullish reversal.
3 runner-ups: AI & Robotics stocks about to break out
The first runner-up is about to break out (50% retracement level, purple line). This is a wildly bullish setup, with 100% upside potential, as soon as the current 18-monthresistance level is cleared (to the upside).
This AI focused stock is about to complete its consolidation, it will resolve higher, clearly.
This third runner-up could have qualified as a confirmed breakout, although we believe it might back-test its breakout level the coming days and week(s).
Bullish reversals create a super bullish profile
What stands out when looking at the selection of the 6 best AI & Robotics stocks? The bullish nature of their reversals!
Let’s put it this way: these reversals are all, consistently, strongly bullish. They paint a very clear picture when combined with our leading indicators (sector ETF’s, Nvidia, Microsoft).
The consistency we have found across these charts as well as the bullish nature of the charts paint a very bullish profile of the sector.
We are highly confident that our selection of 6 stocks will do unusually well in 2024.
Positioning for the AI boom
Now is a pivotal moment for investors to position themselves strategically for the AI boom that is anticipated in 2024. To guide investors, our comprehensive report (below) is an invaluable resource. Located in the research area of our website, this report outlines a selection of 20 AI & Robotics stocks, with a focused analysis that results in identifying the 6 best AI stocks poised for success in 2024.
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