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AI stocks: what to expect in 2024-25The fourth industrial revolution, powered by AI, is only just getting started. So, if you haven't invested yet, you have not missed the boat…and while we explain this, we’re also going to point out the AI features that make moomoo the best platform to use!A quick recap on why you should pay attention to the AI sector
- This year alone, AI stocks have shot up in value, from Nvidia to Super Micro Computer, with ASX-listed Droneshield up a ridiculous 476% (January 2 to July 11, 2024).
- Moomoo’s industry heatmap shows the semiconductor category jumped about 77% in value in the past year.
- We think it’s likely there’s more of this growth ahead as some of the world's biggest companies, including Meta and Google, pledged a $US140 billion spend on AI this year.
Sectors to watch: AI is impacting more than AIThe first sector to watch is the AI-aligned stocks: semiconductors (such as Broadcom), IT companies (such as Microsoft), as they’re the principal beneficiaries of the AI market surge.But others closely follow. Energy in particular deserves attention. Clean energy, especially uranium is needed to power AI data centres, while fossil fuels are rising.Keep in mind that AI chips are having a 'tip of the iceberg moment', with demand set to broaden to industries such as healthcare, agriculture and staples!Stocks to watch: focus on qualitySo what’s a quick guide to quality? Use the moomoo app to check earnings per share and revenue estimates (as well as other financial indicators), as it is earnings and earnings upgrades that drive share price growth.
- There’s no escaping NVIDIA. It controls 90% of the global GPU market. It's the only mega cap in the world with forward revenue growth of 98%, largely derived from the world's biggest companies.
- Taiwan Semiconductor Manufacturing Company is the world's leading foundry business that works with all major chip and IT companies
- Locally, Droneshield has had astounding growth, and Megaport remains one to watch.
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