Accroding to the latest stock market data, Artificial intelligence (AI) chatbot applications like ChatGPT, Claude, and Gemini are revolutionizing various industries by interpreting and generating text, images, videos, and even computer code. However, the backbone of these AI applications lies in advanced semiconductor technology housed in data centres.
Top Al Stocks :
Nvidia CEO Jensen Huang predicts a doubling of the current $1 trillion data centre infrastructure investment over the next five years due to AI’s expansion. This growth presents a significant opportunity for chip giants such as Nvidia, Advanced Micro Devices (AMD), and Micron Technology. Each of these companies stands to benefit from the AI boom, making them compelling options for investors.
The Top 10 tech stocks
| Company | Ticker Symbol | Performance in 2024 |
| Super Micro Computer | SMCI | 255.3% |
| NVIDIA | NVDA | 82.5% |
| Micron | MU | 38.1% |
| Western Digital | WDC | 30.3% |
| Applied Materials | AMAT | 27.2% |
| Juniper Networks | JNPR | 25.7% |
| Lam Research | LRCX | 24.0% |
| Arista Networks | ANET | 23.1% |
| Advanced Micro Devices | AMD | 22.4% |
| Trimble | TRMB | 21.0% |
The worst-performing stocks in March 2024:
| Company | Ticker Symbol | Performance in 2024 |
| Adobe | ADBE | -15.4% |
| Intel | INTC | -12.1% |
| ON Semiconductor | ON | -11.9% |
| Apple | AAPL | -10.9% |
| Enphase Energy | ENPH | -8.4% |
Data as of March 29, 2024
1.Super Micro Computer
Super Micro Computer (NASDAQ: SMCI), also known as Supermicro, stands out as a major beneficiary of the AI surge. Specializing in servers and storage equipment tailored for AI applications, the company’s shares skyrocketed by over 800% in the past year, establishing it as a dominant force in AI hardware. Notably, revenue surged by 103% in its fiscal second quarter, with management anticipating further acceleration, forecasting a robust 101% to 107% revenue growth for the full fiscal year.
While facing supply constraints, Supermicro’s growth trajectory could have been even steeper. CEO Charles Liang noted the persistent gap between demand and supply, underscoring the company’s potential to scale further with ample supply. Bolstering its position, Supermicro maintains a close partnership with Nvidia, leveraging its GPUs, which underpin the AI revolution, given Nvidia’s dominance in the data centre GPU market.
Benefiting from geographic proximity and collaborative efforts, Supermicro and Nvidia engineers collaborate to design server systems tailored to diverse customer needs, fostering a competitive edge. Renowned for its extensive customization options and rapid product launches, Supermicro trades at a reasonable price-to-earnings ratio of under 50, with a market cap of $59 billion. Should it sustain its leadership in AI servers, the stock’s potential to multiply investor wealth is significant, potentially turning $250,000 into $1 million in the years ahead.
Why you may choose Super Micro Computer ?
- Exceptional Performance: The stock surged by 255.3% in 2024.
- Robust Revenue Growth: Revenue increased by 103% in the fiscal second quarter.
- Leadership in AI Hardware: Super Micro Computer is a leader in AI hardware, experiencing soaring demand.
- Strategic Partnerships: Close collaboration with Nvidia contributes to product innovation and market success.
- Customization and Speed-to-Market: Known for offering tailored solutions with rapid deployment.
- Reasonable Valuation: Despite strong performance, the stock maintains a reasonable price-to-earnings ratio.
2.Nvidia
Nvidia used to make most of its money from gaming, but now it’s making a lot from selling GPUs for data centres. In 2024, these data centre sales went up by a huge 217% to $47.5 billion. This year, in 2025, they’re expecting even more growth.
Their H100 GPU is super popular for AI work. Big tech companies like Amazon, Oracle, and Meta Platforms are buying it in big amounts. Now, Nvidia is getting ready to sell more of its new H200 GPU, which is faster and uses less energy. This saves money for the people who run data centres.
Looking ahead, everyone’s excited about Nvidia’s new Blackwell architecture. This will make their next chips way faster. They plan to start selling the Blackwell B200 GPUs next year, which will be 15 times faster than the H100. Financial experts think Nvidia’s total sales will jump by 81% to a huge $110 billion this year. Even though their stock went up by 240% in the last year, they still have room to grow.
Why you may choose NVIDIA ?
- Diverse Revenue Streams: While historically known for gaming, Nvidia has diversified into data centre GPUs, which have seen explosive growth. This diversification reduces reliance on any single market segment.
- Strong Financial Performance: In fiscal 2024, Nvidia’s data centre revenue surged by 217%, reaching $47.5 billion. Analysts expect total revenue to soar by 81% to a record $110 billion in the current fiscal year, indicating robust financial health.
- Dominance in AI Hardware: Nvidia’s GPUs, particularly the H100 and upcoming H200, are highly sought-after for AI workloads. Its Blackwell architecture promises even faster chips, positioning Nvidia as a leader in AI hardware.
- Strategic Partnerships: Nvidia has partnerships with tech giants like Amazon, Oracle, and Meta Platforms, underscoring its strong market position and customer demand.
- Innovation: Nvidia continues to innovate with advancements like the H200 GPU, which offers double the inference speed and 50% less energy consumption than its predecessor, driving efficiency and cost savings for data centre operators.
- Growth Potential: Despite a 240% gain in its stock over the last 12 months, analysts see further upside potential, driven by continued growth in data centre revenue and expansion into new markets.
Overall, Nvidia’s strong financial performance, dominance in AI hardware, strategic partnerships, innovation, and growth potential make it an attractive choice for investors seeking exposure to the booming AI and tech sectors.
3.Micron
Micron doesn’t garner the same level of attention as Nvidia and AMD because its focus lies in the production of memory (DRAM) and storage (NAND) chips, which lack the glamour associated with GPUs. Nevertheless, memory plays a vital role in optimizing the performance of every GPU.
Nvidia opted for Micron’s latest HBM3E (high-bandwidth memory) data centre solution to power its new H200 GPU. This decision was straightforward due to its 30% lower power consumption compared to competing HBM hardware, rendering it a more cost-efficient choice. Micron is presently undergoing testing of a new HBM3E product, boasting 50% more memory per GPU, thereby enabling Nvidia’s customers to expedite the launch of their AI models.
Micron’s entire HBM inventory for 2024 is already fully allocated, with much of its 2025 stock similarly accounted for. Parallel to AMD, Micron’s prospects in AI are broadening beyond the confines of the data center. The demand for AI-enabled chipsets in new personal computers necessitates 80% more DRAM content, proving advantageous for Micron’s business. Furthermore, modern smartphones integrated with AI chips require double the amount of DRAM compared to conventional devices. Notably, Samsung’s latest Galaxy S24, featuring an array of AI functionalities, is powered by Micron’s hardware.
During the fiscal 2024 second quarter (ending Feb. 29), Micron experienced a substantial 57% year-over-year revenue surge. Additionally, the company achieved a net income of $793 million, signalling a return to profitability following a period of grappling with challenges stemming from chip oversupply.
Looking ahead, Micron anticipates accelerated revenue growth of 76% in the upcoming fiscal 2024 third quarter (ending June 1). Although Micron’s stock currently commands an all-time high, it remains more economically priced compared to both Nvidia and AMD. Consequently, this presents a compelling opportunity for investors to explore.
Bottom line
Tracking the hottest tech stocks is a good way to find out what the market likes, but if you want to go out and invest in some of these names, it’s important that you research the business and understand what you’re actually buying. And you’re under no obligation to buy anything you don’t like. As legendary investor Warren Buffett once said, “The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.”
