With All Eyes on Nvidia and Artificial Intelligence (AI), This ETF Can Help You Turn $300 Per Month Into $259,000 Without Lifting a Finger - The Stock Market News (2024)

FAQs

What stocks will benefit most from AI? ›

While Nvidia does not physically manufacture semiconductors, the company is a large consumer of them and primarily buys its chips from Taiwan Semiconductor Manufacturing Company (TSM). The largest semiconductor ETF to hold NVDA stock is the VanEck Semiconductor ETF (SMH), which has an allocation weight of 20.7%.

Best Performing AI Stocks. Symbotic (SYM). MicroStrategy (MSTR). Nvidia (NVDA).

No. 1 AI stock to buy: Nvidia

Nvidia's growth is breathtaking. Its revenue rocketed 126% to $61 billion in its 2024 fiscal year, which ended on Jan. 28. That helped to drive its net profits higher by a dazzling 286% to $32 billion. The market for AI chips is projected to grow rapidly in the coming years.

Nvidia Stock Tops Buy Point

Chart patterns are good ways of telling when to buy or sell a stock. Nvidia's chart shows the stock topped the 922.20 buy point from a handle Wednesday. The stock is in buy range to 968.31. According to IBD MarketSurge, the stock has an alternative buy point at 974.

S&P 500 ETFs can be an easy way to add diversification to a portfolio. If you're looking to make a long-term bet on the potential of AI technology, then you may be content to just buy an AI ETF with a market order and hold it long-term.

These coded algorithms are quite accurate in their predictions of stocks. Asset management companies deploying AI have been recording accuracy of more than 80% while predicting stock price movements. Comparatively, algorithms have also been found to deliver high efficiency at lower costs.

As NVDA stock has surged, this ETF has had a return for the year of over 175% (as of March 31, 2024), and a one-year return of 488% (source: Bloomberg).

Which American funds own Nvidia? ›

According to the estimates of 60 analysts covering Nvidia, the stock's median one-year price target is $970. That's close to its current stock price of $962. However, it is worth noting that 88% of the analysts covering Nvidia still rate the stock as a buy.

Apple (AAPL 0.78%) is by far the biggest AI holding for Buffett. Berkshire Hathaway's stake in the tech giant is worth roughly $156.9 billion.

Nvidia Corporation (NVDA)

NVDA is the best-performing AI stock over the past year. Earnings per share, or EPS, had a big leap higher in 2023, and analysts project strong EPS growth going forward. It has the highest forecasted 5-year EPS growth on the list.

“For a more targeted approach to AI, I recommend ETFs over individual stocks to reduce the risk of single-company investments. If someone is set on investing in individual AI companies, they should only invest an amount they can afford to lose and not gamble their retirement.”

For example, you can use AI to analyze historical stock data to detect trends and patterns that will enable you to develop more effective trading strategies. And AI can also generate predictions about future stock prices so you can make better decisions about which stocks to buy.

Pharmaceuticals and life sciences, along with banking, media and technology, are among the sectors with the greatest immediate opportunities for value creation, according to the research which considers six strategic viewpoints and 20 value drivers.