The new year is here. While no one can predict exactly what will happen in 2024, it's a virtual certainty that artificial intelligence (AI) will continue to generate tons of excitement and shape big stock market moves.

As impressive as big leaps in AI technologies have been so far, this revolutionary tech movement is just heating up -- and investors could have once-in-a-generation opportunities to capitalize. If you're looking for top ways to profit from artificial intelligence in 2024, read on to see why two Motley Fool contributors believe investing in these magnificent stocks is a path to big wins.

Keith Noonan: CrowdStrike's (CRWD 0.74%) software helps prevent, detect, and respond to cyberattacks. While some companies have been scrambling to adopt artificial intelligence and machine learning (ML), these technologies have been at the heart of the cybersecurity specialist's operations for over a decade.

CrowdStrike's cloud-based cybersecurity platform collects and analyzes over 2 trillion data points daily and uses AI and ML to identify, categorize, and shut down threats. With bad actors increasingly using AI to launch and scale attacks, the protections CrowdStrike provides are becoming even more valuable to businesses and institutions.

Tailwinds are coming together to spur strong demand for the company's services, and it looks like the cybersecurity specialist is still at an early point in its long-term growth trajectory.

With guidance for roughly $3.05 billion in sales in its current fiscal year, which concludes at the end of this month, the company is targeting annual sales growth of roughly 36%. That's an impressive revenue expansion rate, but it has the company on track to capture just 4% of its $76 billion total addressable market (TAM) for the year.

The company's expansion opportunities are actually even more exciting than recent market share trends might suggest. In 2024, CrowdStrike estimates it will have a TAM of $100 billion. By 2028, the company sees its TAM jumping to $225 billion.

Not only is CrowdStrike gaining market share, but the size of its addressable market is also expanding at a rapid pace. With multiple positive catalysts at its back, I think CrowdStrike is poised to be one of the best AI stocks for 2024 and beyond.

Parkev Tatevosian: Meta Platforms (META 1.39%) is one of my favorite AI stocks for 2024. The social media giant transforming into a metaverse company is utilizing AI to surface content that users are most likely to find engaging. Of course, the more time people spend on one of Meta's apps, the more opportunity there is to show advertisements.

Already, Meta has dominated the social media landscape. The company grew the number of daily active people across its family of apps by 7% to reach 3.14 billion in the quarter that ended in September. That phenomenal sum benefits Meta from the network effect (the more people using Meta's apps, the more they want to use the app). It has all led to excellent business performance. Meta's revenue expanded from $41 billion in 2017 to $117 billion in 2022.

META PE Ratio (Forward 1y) data by YCharts. PE Ratio = price-to-earnings ratio.

Its operating income increased from $20 billion to $29 billion from 2017 to 2022. The profitability is a demonstration of the lucrative business model. Meta's users create content like images, videos, and comments on its platforms. Meta then shows advertisements to friends, family, and colleagues viewing that content.

It wouldn't surprise me if the business becomes even more profitable as Meta utilizes AI to surface content that keeps us on the platform incrementally longer. Fortunately for investors, at a forward price-to-earnings ratio of 20.6, Meta's stock is relatively cheap.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Noonan has positions in CrowdStrike. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Meta Platforms. The Motley Fool has a disclosure policy.

See more here:
2 Magnificent Artificial Intelligence (AI) Growth Stocks to Buy in 2024 - The Motley Fool

The advent of Artificial Intelligence (AI) in healthcare has led to a revolution in medical diagnostics, drug discovery, personalized medicine, and overall operational efficiency. Yet, the integration of AI in medicine is not without its challenges. As AI continues to permeate the healthcare landscape, questions around regulation, accountability for deadly mistakes, and ethical implications come to the fore.

AI systems, like humans, are not infallible. The risk of deadly mistakes raises concerns about accountability. If an AI system errs in diagnosing a disease or administering treatment, who should be held accountable? Is it the creators of the AI, the healthcare professionals using it, or the system itself?

Currently, the legal and ethical framework for holding AI accountable for medical errors is still under debate. This unresolved conundrum necessitates a thorough exploration of the ethical and legal implications of AI in healthcare, with a focus on developing clear guidelines and standards.

AI in healthcare must be developed and implemented in a manner that respects fundamental rights and regulations. Ensuring the technical robustness and reliability of AI systems is crucial. AI ethics also encompass privacy and surveillance, bias and discrimination, and transparency and accountability. Balancing AI capabilities with ethical principles and constraints is a pressing need.

Regulating medical AI is a complex task. Policymakers need to address the ethical and practical challenges in AI implementation to secure improved global healthcare outcomes. A case in point is the California AI Accountability Act introduced by State Sen. Bill Dodd. This Act aims to advance safeguards and consumer protections, requiring state agencies to notify users when they are interacting with an AI. It also encourages the private sector to adhere to these rights and safeguards, emphasizing AI education and building AI competency in the workforce.

AI has transformative potential in medicine, with a significant impact on diagnostic pathology, and dermatopathology in particular. However, realizing this potential requires ongoing research, collaboration, and regulatory dialogue. Challenges include the necessity for high-quality standardized data, interoperability between AI systems and healthcare databases, and the ongoing training of healthcare professionals.

AI in medicine is not just about technological advancements; its about making these advancements accessible to all, not just the wealthy. Closing the technology literacy, affordability, and health access gaps requires collaboration between public and private organizations. Ensuring that AI-enabled healthcare is accessible to everyone is a shared responsibility and crucial to realizing the full potential of AI in medicine.

In conclusion, while AI holds immense promise for revolutionizing healthcare, it also presents significant ethical and regulatory challenges. It is essential to address these challenges head-on, as we navigate the crossroads of AI in medicine, to ensure the safe and effective use of this technology.

Continued here:
Challenges of Artificial Intelligence in Healthcare: Ethical and Regulatory Considerations - Medriva

The one-two punch of decades-high inflation and rapidly rising interest rates weighed on the stock market in 2022, resulting in its worst performance in over a decade -- but things are looking up. After a precipitous drop of 35% in 2022, the Nasdaq Composite has bounded forward, gaining 44% in 2023.

Students who look to the past know the market probably has further upside potential. As far back as 1972 -- the first full year of trading for the tech-centric index -- in each year after a bear market rebound, the Nasdaq has returned 19%, on average, which suggests the current rally has room to run. To be clear, there are no guarantees in investing, but the potential for the current rally to continue has history on its side.

Furthermore, there's strong evidence that the catalyst for this year's rally has been the rebirth of investor interest in artificial intelligence (AI). Let's look at two stocks well-positioned to benefit from the growing number of applications and the surge of interest in AI.

Image source: Getty Images.

There are plenty of reasons investors should consider adding Alphabet (GOOGL -0.48%) (GOOG -0.47%) to their portfolio. It's one of a rare group of companies that dominates more than one industry and is a strong contender in another.

First, there's the matter of internet search, and while rivals have tried to unseat Google for years, it has become the gold standard, controlling 92% of the market. The secret sauce that has powered the relevancy of its results is the AI algorithms Google has spent decades creating and refining, giving the company a seemingly insurmountable lead. Alphabet has plans to extend its dominance by juicing its flagship search with generative AI capabilities.

The genius in Alphabet's strategy is using its dominance in search as a funnel for digital advertising, which has put it atop the industry. Google accounted for 30% of global digital ad sales in 2022, according to data compiled by online industry publication Digiday -- and there's little question it will continue to lead the pack once the final figures are in for 2023. The company has gone further, providing a suite of generative AI tools that help online advertisers create more customized and effective marketing campaigns.

Alphabet is also a strong contender in the area of cloud computing, thanks to Google Cloud. Not only is the company one of the "Big Three" cloud infrastructure providers, but over the past few years it has also been the fastest-growing of the three. Furthermore, cloud computing offers arguably the perfect venue for providing AI services to customers.

Alphabet also has extensive reach in the consumer market, thanks to its portfolio products -- nine in all -- that have more than 1 billion users each. The list includes Search, Android, Chrome, Gmail, Google Drive, Maps, Google Play Store, YouTube, and Photos. Google is leveraging that reach by integrating AI into a broad cross-section of its offerings, with more on the way.

Taken together, Alphabet's extensive network of interconnected products and services provides a springboard for its AI ambitions, which is likely to pay dividends for years to come.

Last but certainly not least, Alphabet stock is historically cheap. At roughly 5 times next year's sales, it's selling at a historical discount to its five-year average price-to-sales ratio of 6. Considering the multiple catalysts that could push Alphabet stock higher, don't expect this discounted price to last.

Speaking of extensive reach, Amazon (AMZN 0.46%) is another company that caters to both consumer and business customers. Much like Alphabet, Amazon boasts two industry-leading offerings and is a strong contender in a third, giving the company a broad customer base that will benefit from its AI aspirations.

When it comes to e-commerce, Amazon is head and shoulders above the competition, generating roughly 38% of all online retail sales in the U.S. in 2022, more than its next 14 rivals combined, according to online data provider Statista.

While competitors have made headway over the past couple of years, Amazon is working to cement its dominance by offering generative AI tools that increase the relevance of its recommendations, improve the accuracy of product reviews, and help sellers write more compelling product descriptions.

As a pioneer in cloud computing, Amazon Web Services (AWS) maintains its lead in cloud infrastructure services, with a market share of roughly 31%, according to cloud data provider Canalys. This advantage gives the company a captive audience and target demographic for its AI services.

Another area that's becoming increasingly important to Amazon is digital advertising, which has generated roughly $44 billion in revenue over the trailing-12-month period, up 22%. This feat is particularly remarkable considering the economic headwinds and the industry-wide slowdown in the space.

Amazon is the third-largest digital advertiser, behind just Alphabet and Meta Platforms, and its ad revenue will get a boost this year from the "limited advertising" that will be the default for Prime Video beginning in early 2024.

Each of Amazon's three biggest businesses will benefit from its foray into AI, but perhaps none more than cloud computing. The company recently introduced Amazon Bedrock, which allows AWS customers to choose from a growing number of available AI models. The platform also helps cloud users customized generative AI applications from the ground up, by integrating proprietary user data, making the apps even more useful.

Yet for all this potential, Amazon is historically cheap, selling for just 2 times forward sales, a discount to its five-year average of 3.5. This situation gives shrewd investors the opportunity to buy shares on sale before Amazon's ongoing rally runs higher.

AI made headlines in 2023, but most experts concur that there's likely to be much more to come, though the size of the opportunity is a matter of much debate.

Analysts at Morgan Stanley and Goldman Sachs provide two of the more conservative estimates, suggesting AI will generate incremental spending of $6 trillion and $7 trillion, respectively, by the end of the decade. Cathie Wood of Ark Investment Management believes those numbers are far to low, suggesting AI software alone will produce $14 trillion in spending by 2030.

Whatever the case may be, given their resources and history of capitalizing on AI, Amazon and Alphabet offer established, industry-leading businesses and all the potential upside AI has to offer.

Read more:
History Says the Nasdaq Will Surge in 2024: 2 Artificial Intelligence (AI) Growth Stocks to Buy Before It Does - The Motley Fool

It isn't a stretch to say that artificial intelligence (AI) helped to propel the market to terrific gains in 2023. Before the release of ChatGPT and the rush to invest in generative AI, Wall Street was buzzing with worry over inflation, interest rates, and a recession that hasn't materialized. The tone changed quickly, and markets are near record highs.

How much will companies invest in AI in 2024? Nvidia (NVDA 2.29%) and Amazon (AMZN 0.46%) will be excellent barometers. Here's why.

At the heart of Nvidia's recent success is its high-performance graphic processing units (GPUs) and data-accelerating software. These products are crucial for generative AI and other machine learning (ML) applications that require tons of data to be processed in the blink of an eye. This is why Nvidia's quarterly data-center sales have risen 450% since the fourth quarter of fiscal 2022 to $14.5 billion in fiscal Q3 2024, ended Oct. 29, 2023.

The infographic below helps illustrate the story.

The two areas that illustrate the most about AI demand are data-center revenue and operating income.

Data centers provide the infrastructure needed for AI software to function. When Nvidia's data-center revenue is skyrocketing, investors know that companies are investing heavily. The $14.5 billion produced in fiscal Q3 2024 is nearly as much as the $15 billion produced in the entire fiscal 2023 year.

Nvidia generated $10.4 billion in operating income last quarter, a 57% operating margin. This is an astronomical increase over its 16% operating margin in fiscal 2023 and 37% in fiscal 2022. This means that the demand for Nvidia's products is so strong that Nvidia can set the price in the market.

If these metrics persist, you will know that companies are opening their checkbooks to invest in AI.

Nvidia stock rose nearly 240% in 2023 on the back of these results. The stock trades near its all-time high and with a forward price-to-earnings (P/E) ratio of 40 (compared to Microsoft'sforward P/E of 34, for instance). The valuation is steep; however, it can come down quickly if the company continues on its current trajectory.

Amazon stock also had a terrific 2023, posting gains of about 80%. However, one concern investors voiced was the significant slowdown in growth for Amazon Web Services (AWS).

As depicted below, AWS revenue growth peaked in 2021 at 37% and fell to just 10% over the trailing 12 months as of Q3.

Data source: Amazon. Chart by the author.

AWS makes money like a power or gas company -- customers pay for what they use. Many companies cut their data usage budgets for 2023 in preparation for a recession. Because of this, Amazon needed to work with customers to lower their costs. Amazon did this, sacrificing sales in 2023 but developing customer loyalty for the long haul.

Companies may begin to spend more on data as they develop AI and ML software. AWS growth may increase, which will be a boon for Amazon's shareholders.

As shown below, Amazon's stock remains historically undervalued on a price-to-sales (P/S) and price-to-operating-cash-flow basis despite its tremendous run in 2023.

AMZN PS Ratio data by YCharts

The valuation and strong chance that AWS growth will accelerate make Amazon a compelling stock for long-term investors.

AI exploded onto the scene in the past year, and there are many things investors need to consider. For a start, tech investors should closely monitor the results of these two tech titans.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bradley Guichard has positions in Amazon and Nvidia and has the following options: long September 2024 $630 calls on Nvidia. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

See the rest here:
Tech Titans: 2 Top Artificial Intelligence (AI) Stocks to Watch Heading Into 2024 - The Motley Fool

Angle down icon An icon in the shape of an angle pointing down. Shyam Sankar, the CTO of Palantir. Getty Images

Developments in AI defense tech are moving forward quickly as global tensions escalate, and Silicon Valley leaders hope that innovations in the field could help deter future conflicts.

Business Insider has identified the top 100 people who make AI intelligent. Here are our picks for defense tech.

Bedingfield became the CEO of Epirus in late 2022 after serving as the company's CFO and COO. Bedingfield was previously the CFO and chief accounting officer at the defense giant Northrop Grumman. Epirus is developing a system that uses high-power microwaves to knock out drone swarms. It recently won a Navy research grant with the University of Oklahoma's Advanced Radar Research Center to use AI modeling and other techniques to extend the range of these systems.

Boyd is a Marine veteran and a former Army officer. He was also the director of AI-enabled warfighting-capability development at the Pentagon's Joint Artificial Intelligence Center. As a visiting fellow at the Hoover Institution, he studies the rise of automation and autonomy in military systems and how the adoption of emerging technology affects military, economic, and social stability.

Fisher leads the Defense Advanced Research Project Agency's Information Innovation Office and oversees most of the agency's AI research and development, including the AI Forward Initiative, which conducts AI research for national-security missions. DARPA has dedicated over $2 billion to AI research since 2018 to create new national-security capabilities and mitigate threats AI systems could pose. Fisher is also an adjunct computer-science professor at Tufts University and was previously the department's chair. She has conducted research on the theory and practice of programming languages and preventing generative-AI security risks.

As an intelligence officer, Hamrick, the president of Vannevar Labs, spent seven years working on counterterrorism missions, including embedding with the US military overseas. She saw intelligence officers manually sifting through masses of information, often in other languages or in hard-to-access formats. Vannevar's Decrypt service uses machine learning, computer vision, and other AI technologies to automate and speed up data collection and analysis. The startup focuses on national security and strategic competition with nation-states. "Decrypt collects overseas information that would otherwise be hard for military teams to access directly in areas around the world that are increasingly contested," she said in a recent interview.

Rinderer is the chief technology officer of the cybersecurity startup Shift5. Rinderer previously led the federal technology business at the cybersecurity startup Tanium and was one of its earliest employees. He has also worked for Intel and the US Navy. Shift5 builds cybersecurity software for military weapons systems, aviation, and trains and can collect and analyze data for operations, maintenance, and cybersecurity. It then uses machine learning to detect anomalies, hunt threats, and identify suspicious behaviors. Shift5 has raised over $105 million in funding, including an $83 million round this year that Insight Partners and Moore Strategic Ventures.

Sankar joined Palantir in 2006 as one of the company's early employees. Before that, he worked at the money-transfer startup Xoom. He's also been a director at Ginkgo Bioworks and recently became the chair of that biotech company. At Palantir, Sankar was the COO for 16 years and took on the CTO role in January. The company is deploying large language models and other AI for defense customers with strict data-access and control requirements.

Serafini is the CEO of HawkEye 360, a startup that develops satellites and technology for space-based radio-frequency collection, mapping, and analytics. He's also a venture partner at Shield Capital, which invests in early-stage tech companies supporting national security. Previously, Serafini served in the US Army and has been a leader at companies including Percipient Networks and Allied Minds. HawkEye 360 is investing in AI and machine learning to better analyze the radio-frequency data it collects for communication, navigation, and threat identification. It has raised over $360 million from backers including BlackRock, Insight Partners, and Alumni Ventures.

Read the original post:
The top 7 people in AI defense tech - Business Insider