3 super AI stocks to consider for 2024

Artificial Intelligence is likely to be a dominant theme in the stock market again this year. Here, Ed Sheldon highlights three AI stocks he likes for 2024.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Google office headquarters

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Artificial intelligence (AI) was the hottest investment theme of 2023. Thanks to interest in generative AI (ie ChatGPT), many tech stocks rocketed. Given the ongoing developments in this space, I suspect AI will be a dominant theme again this year. With that in mind, here are three stocks to consider buying for 2024.


Amazon (NASDAQ: AMZN) is a mega-cap tech stock that hasn’t really received much attention on the AI front. But make no mistake, it’s a major player.

Amazon has used AI across its business for many years. From personalising shopping experiences to automating warehouse processes, it has employed the technology in many ways.

But now it is taking things up a notch, with the release of some exciting new products and features. One example there is ‘Amazon Q’. This is a generative AI-powered assistant specifically for businesses.

Another example is the recent roll out of AI-powered image generation (see pic below) for companies that sell on its platform. This is designed to help brands deliver a better visual experience for customers.

Source: Amazon

Now, Amazon isn’t a cheap stock. Currently, it has a forward-looking P/E ratio of about 40. This adds risk.

I’m comfortable with the valuation however. This stock has always traded at a high earnings multiple and that hasn’t stopped it delivering blockbuster returns in the past.


In 2023, Google owner Alphabet (NASDAQ:GOOG) was often seen as a bit of an ‘also ran’ in the AI race. That’s because Microsoft-owned ChatGPT stole the show.

The race is far from over however, and I expect Alphabet to fight back in 2024.

Recently, the company released ‘Gemini’ – its rival to ChatGPT 4. This is very powerful technology (it’s the first model to outperform human experts on Massive Multitask Language Understanding (MMLU)).

Meanwhile, Google is in the process of rolling out AI features across its suite of apps (Gmail, Search, Maps, etc). These should make life easier for users going forward.

The risk here is that ‘ChatGPT’ has become a bit of a verb. This could present ongoing challenges for Alphabet.

With the stock trading on a P/E ratio of just over 20 though (compared to 33 for Microsoft), I like the risk/reward setup as we start 2024.

London Stock Exchange Group

Finally, a UK stock – London Stock Exchange Group (LSE: LSEG).

Now, this company may seem like an odd pick for AI exposure. But here me out. Thanks to its acquisition of Refinitiv a few years ago, LSEG is now one of the biggest players in the financial data space (it sells data to banks, investment managers, hedge funds, etc).

And recently it teamed up with tech powerhouse Microsoft to develop customised generative AI models for banks. The aim of these models is to help firms get more insights out of their data.

LSEG has said customers will begin to see the benefits of the Microsoft partnership in 2024. So I think we could hear about some exciting AI developments in the near future.

There is some valuation risk here. Currently, the stock has a P/E ratio of about 25. I don’t think that’s a crazy multiple however, given the company’s shift towards data and AI.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon has positions in Alphabet, Amazon, London Stock Exchange Group Plc, and Microsoft. The Motley Fool UK has recommended Alphabet, Amazon, and Microsoft. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

This FTSE 250 stock is up 30% in July! Should I buy it now?

This FTSE 250 technology stock has seen its share price rise by 30% already in July. Roland Head asks if…

Read more »

Investing Articles

Forget Rolls-Royce shares! I’d rather buy this FTSE stock

Despite Rolls-Royce (LSE: RR.) shares faring well in recent times, our writer explains why she would prefer to buy this…

Read more »

Investing Articles

Rio Tinto’s share price slumps following production update! Time to buy in?

Poor production news has pulled Rio Tinto's share price sharply lower again. Is the FTSE 100 mining stock now too…

Read more »

Investing Articles

Could investing £20,000 in a Stocks and Shares ISA make me a millionaire?

Ben McPoland takes a look at how many years it might take to grow a £20k Stocks and Shares ISA…

Read more »

Investing Articles

Are these 2 dividend stocks no-brainer buys for a winning portfolio?

Sumayya Mansoor takes a closer look at these dividend stocks to see if they can help her build wealth through…

Read more »

Investing Articles

Does a 35% price drop make Trufin one of the best AIM shares to buy now?

The Trufin share price has just fallen by over a third after Lloyds terminated a contract. Does this make it…

Read more »

Investing Articles

4% yield and 45% growth in 12 months forecasted! I love this passive income investment

Our author says this passive income investment is significantly undervalued with a generous dividend yield. It's at the top of…

Read more »

Woman sneaker shoe and Arrow on street with copy space background
Investing Articles

£5,000 in savings? Here’s how I’d start investing in FTSE shares today

Based on his own experiences, Paul Summers reflects on the steps he'd take if he wanted to begin investing in…

Read more »