Navigating The AI Market: Top Stocks To Watch In 2024

Not limited to tech giants like Microsoft (MSFT) and ServiceNow (NOW), the AI revolution is propelling lesser-known players into the spotlight. Tradingbiz analyst Rahul Nambiampurath sheds light on this phenomenon, emphasizing that 2024 has seen AI adoption become akin to a tide lifting all boats.

Navigating The AI Market: Top Stocks To Watch In 2024

“While the outperformance of NVIDIA in 2024 doesn’t require any validation, the dark horses have been stocks like Medtronic and Stryker, highlighting the role of AI adoption in healthcare,” mentions Rahul.

Promising AI-Driven Stocks

MSFT, NVIDIA, and ServiceNow are some of the better-known players in the AI space and might have a limited amount of steam left in them, especially in the long run. Notably, Palantir Technologies (PLTR), Intuitive Surgical (ISRG), and Darktrace (DARK.F) have shown notable year-to-date performances. Moreover, companies like Martin Marietta (MLM), XPO Logistics (XPO), and Axon Enterprise (AXON) are capturing investor attention due to their AI initiatives, reflecting substantial gains in their stock prices.

Despite fluctuations in stock performance compared to 2023 levels, the underlying AI adoption remains a key driver of investor interest in these companies.

Underrated Players

Rahul believes that Darktrace PLC is among the more underrated players to flash buy signals. The company uses AI for threat detection, making it a credible low-cost stock for investors. Besides Darktrade, Martin Marietta (MLM) is also trading strong, despite hailing from the Construction and Materials Industry.

MLM chart: TradingView

MLM aims to use predictive analytics, automated processes, and market intelligence to make a compelling case to investors. Chart-wise., MLM is flashing a strong buy signal, courtesy of the shrinking Bollinger bands. A breach above the upper trendline of the ascending wedge can push the prices towards the $648 mark.

XPO daily chart: TradingView

Seaport Research has also hiked the price expectation of MLM to 670 from 520, a level that aligns with Rahul’s analysis.

Besides MLM, XPO looks poised for a surge to $140+, driven by Rahul’s analysis and Brian Ossenbeck’s — Analyst J.P. Morgan — assessment. XPO Logistics is using AI to optimize its supply chain management system.