Amidst the whirlwind of the stock market’s ebbs and flows this year, with technology stocks at the helm, the surge in interest surrounding emerging sectors like artificial intelligence (AI) has been undeniable. The S&P 500 has seen a robust 15% climb year to date, propelled by this fervor.
While stalwarts such as Nvidia and Amazon have basked in the spotlight for their AI prowess, two alternative gems are quietly waiting to be unearthed, offering promising investment possibilities in the AI and tech domains.
1. Intel
Intel (NASDAQ: INTC) shareholders have weathered a storm in 2024, with the company’s stock plummeting by 38% since the year’s dawn. Various challenges, from a downturn in the personal computer (PC) market to macroeconomic hurdles and fierce competition, have marred Intel’s trajectory. Skepticism loomed large over the company’s revival prospects, but recent restructuring hints at a potential upswing, making it a compelling buy before the opportunity slips away.
The first quarter of 2024 saw Intel’s revenue surge by 9% year over year, amounting to $13 billion, marking a turnaround from a 36% revenue slump in Q1 2023.
Furthermore, Intel’s foray into AI shows promise. The data center and AI segment enjoyed a 5% revenue boost annually, accompanied by over a 2000% surge in operating income. Intel’s unveiling of new AI chips like the Gaudi 3 accelerator and Xeon 6 processors is a testament to the company’s commitment to AI innovation.
Significantly, Intel’s aggressive expansion in chip manufacturing, reinforced by its burgeoning foundry business, positions it to seize a lucrative stance in the AI realm. With investments in chip plants across the United States amidst surging AI chip demand, Intel’s strategic moves fortify its long-term standing.
2. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) might have taken a back seat in the limelight this year compared to tech juggernauts like Amazon and Microsoft. Despite grappling with challenges in its AI technology and standing as the third-largest player in the cloud market, Alphabet remains a tech powerhouse trading at a discounted rate compared to its peers, rendering it a compelling purchase.
Alphabet’s Q1 2024 financial results dazzled investors, with a 15% uptick in revenue year over year to $81 billion, surpassing Wall Street’s expectations. The digital-ad sales from Google Services surged by 14%, while Google Cloud witnessed a 28% revenue leap, outshining Microsoft’s Azure and Amazon Web Services in cloud expansion during the quarter.
With robust offerings such as Android, YouTube, and a plethora of Google products amplifying its advertising reach, Alphabet is positioned to leverage its vast user base to bolster its AI products. Despite lagging behind in certain AI segments, Alphabet’s financial prowess and brand loyalty prime it for long-term success.
Considering the data depicting Alphabet as a more attractively valued stock compared to heavyweights like Amazon and Microsoft, its upward momentum since the year’s start underlines its investment appeal.
Should you invest $1,000 in Intel right now?
Before diving into Intel’s stock, ponder this:
The Motley Fool Stock Advisor team has pinpointed the top 10 stocks for investors to seize today, with Intel notching the list. The stocks identified hold the potential for substantial returns in the foreseeable future.
Reflecting on past success stories, such as Nvidia‘s inclusion in the list back in April 2005, signifies the colossal returns that strategic investments can yield over time.
As Stock Advisor continues to outshine the S&P 500 returns since 2002, a treasure trove of insights and stock picks awaits investors, guiding them towards financial prosperity.
*Stock Advisor returns as of June 24, 2024
