Artificial intelligence (AI) stocks have been making investors wealthy since November of 2022. That month, ChatGPT launched and created a hype train unlike anything else in recent memory. Since then, AI stocks have been rallying on the expectation that their AI investments will bear fruit. In this article, I will explore five AI stocks that could be millionaire makers in 2024.
Kinaxis
Kinaxis Inc (TSX: KXS) is one of Canada’s best known AI stocks. It manufactures supply chain software that helps people keep track of key supply chain metrics (e.g., inventory). It has been making this type of software since the 1980s. The software maker helps business owners forecast how many items they will need to purchase, among other things. Today, with AI, Kinaxis’ key processes are faster than ever, allowing business owners to access supply chain insights in mere seconds. As a result, its revenue grew at 14% year over year last quarter.
Open Text Corp
Open Text Corp (TSX: OTEX) is a Canadian text analytics company that uses AI to extract information from text. The enterprise software maker also uses AI to create text from scratch, similar to ChatGPT. It has dozens of different product offerings in this niche. It also offers content management systems (CMS), legal research services, and more. AI is woven into all of these product offerings. For example, in legal research, users can use AI to identify key facts that pertain to the case being studied. This is a very trendy and fast growing area of AI, so don’t be surprised if OTEX performs well.
NVIDIA
NVIDIA (NASDAQ: NVDA) is far and away the most important company in the AI industry. As the supplier of chips to OpenAI and all the other AI software developers, it is running away with the market. In its most recent quarter, NVIDIA’s revenue grew at more than 200% year over year. The chipmaker’s earnings grew even more than that. Thanks to its high performance graphics processing units (GPUs), NVIDIA has cornered the market on AI server technology. The stock’s performance – it’s up 2,000% in five years – speaks for itself.
Shopify
Shopify Inc (TSX: SHOP) is a Canadian ecommerce company that sells a website builder and payments platform. It is using AI to help vendors quickly write product descriptions. Using Shopify’s large language model (LLM), users can input a few basic points about their product and have it turned into a compelling product description that helps drive sales. Many ecommerce vendors are using these kinds of features, but Shopify is unique in having them built right into its own platform. Thanks to its investments in AI, Shopify is seeing renewed interest from investors, who seem to have abandoned it in 2022. Since its lows that year, the stock has risen 197%, making it one of the best performing Canadian tech stocks in recent years.
TSMC
Taiwan Semiconductor Manufacturing (NYSE: TSM), or ‘TSMC’ for short, is a Taiwanese computer chip manufacturer. Best known for being NVIDIA’s contract manufacturer, it also supplies the other big U.S. tech giants, as well as its fellow semiconductor companies. There are other companies that design and manufacture semiconductors, but only TSMC has a “laser focus” on the manufacturing side of things. This gives it more free capacity to focus on fulfilling client orders, when many of its competitors have their own chips to worry about. The biggest semiconductor manufacturer in the world, it gains from NVDA’s AI success without having that company’s steep price tag.
