Best AI Stocks to Invest in Now: Buy Dell and Amazon for Future Growth
2 Top Artificial Intelligence (AI) Stocks to Buy Right Now
Source: Motley Fool
Market Overview
Expanding AI Market
- Projected growth of the AI market to nearly $2 trillion.
- Rapid development of hyperscale data centers essential for AI growth.
Top Stock Picks
Dell Technologies (NYSE: DELL)
- Market Cap: $93 billion
- Current Price: $127.59 (as of Nov 29, 2024)
- Growth Potential: Significant opportunity in AI infrastructure, with a $124 billion addressable market by 2027.
- Record revenue of $11.6 billion in its Infrastructure Solutions Group, showing a 38% growth.
- Analyst price targets are raised, suggesting a bullish outlook.
- Strong dividend and share buyback support.
Amazon (NASDAQ: AMZN)
- Key Segment: Amazon Web Services (AWS), responsible for 60% of operating income.
- Current Developments: Construction of a new $11 billion data center in Indiana.
- Market Position: Stock trading below five-year averages, presenting a unique buying opportunity.
Investment Strategies
Risk Mitigation Techniques
- Dollar-Cost Averaging: Gradually invest to manage volatility.
- Buy-the-Dip Strategy: Capitalize on market corrections to enhance investment potential.
Conclusion
In conclusion, consider adding Dell and Amazon to your portfolio as they capitalize on the rapid growth of the AI sector. Both companies are well-positioned to benefit from the increasing demand for data processing and infrastructure solutions.
