Some fun facts about artificial intelligence: the global market for AI is forecast to reach $1.85 trillion by 2030. About one in four dollars invested in U.S. start-ups during 2023 went to AI-related companies. AI technologies are expected to create 12 million more jobs than they replace. Netflix (NASDAQ:NFLX) is using AI to recommend content on its streaming platform and says the technology is already saving it $1 billion per year.
Clearly, AI is the hot area of the technology sector right now and is likely to dominate for many years to come. Given the massive impact that AI is expected to have, it should come as no surprise that companies are pulling out all the stops to develop, adopt and employ the technology for their benefit and the benefit of their customers.
Here are the three best AI stocks to buy for 100% returns by 2030: June edition.
Apple (AAPL)
Suddenly Apple (NASDAQ:AAPL) is an AI company. News of the company’s long-awaited AI strategy, which management calls “Apple Intelligence,” sent AAPL stock soaring 12% higher in only a few days. Investors and, in particular, analysts are excited by Apple’s plans for a revamped Siri digital assistant that incorporates AI and will be prominently featured on future versions of the iPhone.
The company and its shareholders hope that new AI features will prompt consumers to upgrade to next-generation iPhones, leading to a sales supercycle. This is important as Apple still gets half of its annual revenue from iPhone sales, and those sales have been sliding lower amid rising competition in markets such as China. The new AI features will only be available on the latest iPhones, starting with the iPhone 15 Pro.
AAPL stock is up 16% this year.
Dell Technologies (DELL)
Shares of Dell Technologies (NYSE:DELL) took a beating after the company’s most recent financial results showed that it’s not yet earning much money from its AI server sales. However, those concerns overlook the fact that demand and orders for the company’s servers are surging. Dell also has a big opportunity ahead of it with AI-enabled laptop computers.
When releasing its first-quarter financial results, Dell’s management team noted that shipments of its AI-optimized servers rose more than 100% sequentially to $1.7 billion. The company’s backlog of orders for AI servers increased 30% during Q1 to $3.8 billion from $2.9 billion at the end of the previous quarter. Dell said AI server sales rose 42% year-over-year to $5.5 billion and demand is growing.
This doesn’t even include Dell’s expected sales growth as consumers upgrade to AI-enabled computers in coming years. While down 25% since its last print, DELL stock is up 76% year to date.
Nvidia (NVDA)
Is any concern more important to the global AI race than Nvidia (NASDAQ:NVDA)? The company supplies roughly three-quarters (75%) of all the microchips and processors that enable AI applications and models worldwide. This has led to cataclysmic growth at the chipmaker, sending its stock skyrocketing. So far in 2024, NVDA stock is up 160%. The share price continued to rally after Nvidia completed a 10-for-1 stock split.
Nvidia’s market capitalization is now above $3 trillion and rising. However, the share price is more affordable after the stock split, making it possible for retail investors to take a position. Going forward, Nvidia’s dominance will likely continue as the company rolls out new AI chips, each more powerful than the last. The chips are designed to keep Nvidia one step ahead of its competitors and maintain its dominant role in the AI sector.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.