October has been a pivotal month for the artificial intelligence (AI) sector with significant developments. On October 24th, the Biden Administration issued a national security memorandum highlighting the importance of U.S. leadership in AI development, attracting global AI talent, and expanding infrastructure to support AI capabilities. This announcement came after Amazon’s disclosure of three new agreements to support nuclear power generation for its cloud applications, emphasizing the growing influence of AI in policymaking and the critical power infrastructure needed for an AI-driven future.
As we look ahead to November 2024, we explore the best AI stocks considering value, growth, and momentum. Data is current as of October 26, 2024. **Best Value AI Stocks** Value investing is a strategy based on identifying stocks that trade at prices below their intrinsic value. This is often done through analysis of fundamental metrics such as the price-to-earnings (P/E) ratio, with lower ratios indicating more attractively valued companies. **Best Value AI Stocks** Price ($) | Market Capitalization ($B) | 12-Month Trailing P/E Ratio — | — | — Yiren Digital Ltd. (YRD) | 5.7 | 0.49 | 1.8 Consensus Cloud Solutions, Inc. (CCSI) | 20.2 | 0.39 | 4.3 Trimble Inc. (TRMB) | 60.9 | 14.9 | 10 **Yiren Digital Ltd.**: An advanced AI-powered platform providing financial and lifestyle services in China. Yiren Digital utilizes technologies like large language models and speech recognition for personalized, efficient service in finance and corporate training. **Consensus Cloud Solutions, Inc.**: A global leader in digital cloud fax technology, offering AI-driven solutions for automating workflows and enhancing operational efficiency, serving around 850,000 customers worldwide across various industries. **Trimble, Inc.**: Provides technology solutions to increase productivity and sustainability in industries like construction, agriculture, and transportation, with a focus on AI for automation, precision, and data analysis. **Fastest-Growing AI Stocks** Growth stocks are evaluated based on revenue and earnings per share (EPS), key measures of a company’s performance. A balanced approach considers year-over-year percentage growth for both revenue and EPS.We exclude companies with growth rates in either category of 1,000% or more as these are likely outliers.
Fastest-Growing AI Stocks: Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%) InterDigital, Inc (IDCC) 147 3.7399 120 Innodata, Inc. (INOD) 20.3 0.599 86 Applied Digital Corporation (APLD) 81.77 567 Source: TradingView InterDigital, Inc.: InterDigital is a global research and development company specializing in wireless, video, and AI technologies. It is developing AI and machine learning solutions to optimize wireless systems for 5G and creating deep learning-based video compression. The company is also exploring quantum computing to enhance future wireless network capabilities. Innodata, Inc.: Innodata is a global data engineering company that provides AI-enabled software platforms and managed services for data annotation. This is the process of labeling or tagging data such as text and images to make it understandable for machine learning models and improve their prediction accuracy. For its second quarter 2024, the company reported $32.6 million in revenue, a 66% increase year-over-year, and raised its guidance to 60% or more revenue growth for 2024. Applied Digital Corporation.: Applied Digital is a U.S.-based provider of advanced digital infrastructure, designed to support high-performance computing (HPC) and AI-driven applications. For its first quarter 2025, Applied Digital announced revenue growth of 67% over first quarter 2024, and said it had secured a $160 million investment from institutional and accredited investors. AI Stocks With the Most Momentum: Momentum investing is based on the principle that stocks that have increased at a faster rate compared with the market or their peers are likely to continue on that trajectory, at least in the short term, as long as there aren’t fundamental changes to those companies’ operations or the broader industry. Below, we look at the AI stocks that have provided the highest total return in the last 12 months. AI Stocks With the Most Momentum Price ($) Market Cap ($B) 12-Month Trailing Total Return (%) TeraWulf, Inc. (WULF) 6.4 2.44 50 Aurora Innovation, Inc. (AUR) 6.4 10.82 66 SoundHound AI, Inc. (SOUN) 5.2 1.92 24 Source: TradingView TeraWulf, Inc.: TeraWulf owns and operates eco-friendly, vertically integrated bitcoin mining facilities in the U.S. The company primarily uses nuclear and hydro energy, aiming for 100% zero-carbon energy in its operations. In August, TeraWulf mined 184 bitcoins, achieving an average production rate of 5.9 coins per day. Aurora Innovation, Inc.: Aurora Innovation develops self-driving technology to make transportation safer, more accessible, and more efficient. Its Aurora Driver system is designed for various vehicles, including trucks and ride-hailing cars. The company currently has partnerships with FedEx, Toyota, and Uber Freight, and is expecting a commercial launch by the end of the year. SoundHound AI, Inc.: SoundHound’s proprietary technology offers fast, accurate voice recognition across various industries, including automotive, TV, Internet of Things (IoT), and customer service.SoundHound’s Chat AI has integrated generative AI to power millions of products, processing billions of interactions annually for top-tier businesses. In the second quarter of this year, the company made significant strides by expanding business partnerships with major automotive manufacturers and restaurant chains, and also acquiring a leading AI enterprise software company. Advantages of Investing in AI Stocks: 1. Broad applications: AI has the potential to transform a variety of industries and sectors. Companies at the forefront of AI could benefit from widespread adoption and a diverse customer base. 2. Fast-moving innovation: AI is a leader in today’s innovation, with both major tech firms and smaller companies advancing the technology. This could lead to significant breakthroughs as the industry evolves. 3. Popularity: As of mid-2024, AI remains one of the most discussed trends in technology, with high interest levels, positioning investors to benefit from strong momentum. Disadvantages of AI Stocks: 1. Industry uncertainty: AI has only recently entered the mainstream, with rapid changes making it challenging for investors to keep pace. This could lead to investment in hype rather than substance. 2. Untested companies: While established tech firms are involved in AI, many AI companies lack a solid history, posing a higher risk compared to more stable, established firms. 3. Dangers of AI: Experts warn of potential dangers associated with AI. As the field expands, public opinion, regulations, and other factors could impact AI stocks unexpectedly. The Bottom Line: AI stocks offer investors the chance to invest in a popular and potentially revolutionary technology trend. Companies focused on AI hardware and software could benefit as industries integrate AI. However, there are significant risks, including industry uncertainty and the inherent dangers of AI technology. The comments, opinions, and analyses expressed are for informational purposes only.
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