Our Top 3 AI Stock Recommendations for Big-Time Gains (2024)

Artificial intelligence (AI) has been a hot topic for quite some time. With the promise of enhancing productivity, efficiency and daily life, it’s no wonder the topic has so much interest. Market experts also weigh its potential to grow and transform various industries. Marketing, retail, healthcare, transportation, education, agriculture, manufacturing — you name it, AI can be used in it. That’s why investors are scrambling to look for the top AI stocks to ride that wave up.

Today, I’ll cover three of the top AI stocks that experts recommend as great buys with potential life-changing gains. To create this list, I screened the market using the following criteria:

• A Strong Buy rating from analysts
• Coverage by at least eight analysts
• Strong revenue growth in the last full fiscal year

Then, I sorted the list based on the highest to lowest revenue growth. Here are the results.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is the unquestioned superstar of the AI boom and fully deserves the top spot on any AI stocks list. Through the strength of its proprietary GPU technology, the company has created endless applications for generative AI, which has significantly boosted data center sales.

And the fun doesn’t stop there. Nvidia recently partnered with Mistral AI to develop its own AI model. The “Mistral NeMo 12B” allows developers to customize and deploy enterprise applications to support multilingual tasks, summarization, coding and chatbot support.

Nvidia’s Q1’25 revenue topped all that came before it, reaching $26.0 billion and growing 262% year-over-year (YOY). This strong growth was driven by, as expected, the data center segment, which was up 427%. To top it all off, net income rose by 628%.

That was in line with FY’24’s performance, in which revenue increased by 126% and net income by 581%.

The company is extremely bullish about its growth in the near and long term. “The next industrial revolution has begun,” said CEO and Founder Jensen Huang. “companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.”

Thirty-nine experts continue to rate NVDA stock as a Strong Buy on average, and it’s no wonder. Indeed, it belongs at the top of everyone’s AI stocks to buy list.

Vertiv Holdings (VRT)

Vertiv Holdings (NYSE:VRT) is a global leader in critical infrastructure and continuity solutions. As a digital infrastructure technology company, Vertiv offers customized solutions for various customers and is a solutions advisor. The company is part of the Nvidia Partner Network program, which highlights its power and cooling solutions expertise. Vertiv also announced a strategic partnership with Ballard (NASDAQ:BLDP) to support alternative energy use in data centers and address the soaring increase in global data usage.

Vertiv reported a strong end to 2023, with net sales reaching $6.86 billion and growing 21% YOY. That led to exceptional 505% bottom-line growth, from 20 cents per share the previous year to $1.21.

According to its latest quarterly filing, Vertiv raised its full-year 2024 guidance and expects net sales growth of 12% and a significant increase in operating profit. Its noteworthy performance and optimism have earned it a Strong Buy rating from 11 Wall Street analysts. If you want a strong contender for the AI boom, now is the time to check out VRT stock.

ServiceNow (NOW)

Companies are transforming their processes to align with the digital age and improve efficiency (otherwise, they’d go the way of the dodo). This transformation has spotlighted firms like ServiceNow (NYSE:NOW).

ServiceNow is a digital workflow company that utilizes AI and machine learning in its cloud-based solutions to help digitize and unify customers’ workflows. With a robust portfolio of service offerings, ServiceNow has recently entered the P&C claims management market. Its financial services operations solution has been recognized as a leader in the space.

“ServiceNow closed out the year with another outstanding quarter,” said Chairman and CEO Bill McDermott, referring to the 2023 report. “Generative AI is injecting new fuel into our already high‑performing engine.” The company reported a 24% YOY growth in revenue for 2023, driven by solid growth in its subscription business. Meanwhile, net income per share increased by a massive 427%, from $1.61 to $8.48.

“ServiceNow’s intelligent platform for end‑to‑end digital transformation is driving massive leaps in productivity and explosive growth,” said McDermott. “This is a breakthrough moment.”

Thirty-four analysts rate NOW stock as a Strong Buy, making it one of the top AI stocks right now.

On the date of publication, Rick Orford held long positions in NOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.