Stocks have risen this year, with S&P 500 up 15% year-to-date. The index is on track to outperform last year’s growth, with the S&P 500 up 13% over the same period (January to June) in 2023.
Wall Street has become particularly bullish on technology stocks thanks to advances in areas such as artificial intelligence (AI). The same was true this time last year. However, the main difference is that we have now seen several quarters of tangible results that prove that AI actually increases profits for several companies and is a profitable business.
But there’s more to technology than AI. The industry spans countless sectors that will likely allow it to grow for decades to come. Therefore, it might make sense to invest heavily in companies with exposure to AI and other technology areas. Innovative organizations that lead critical sectors of the industry could generate major long-term gains as the technology market grows.
So, you’re looking to invest $50,000 in the stock market? Here are two of the best stocks money can buy in 2024 (and ones worth buying with even a smaller investment).
1.Nvidia
NvidiaIt is (NASDAQ:NVDA) activity has exploded in the past year as it has become a leader in AI. Its chips have become the industry benchmark, coveted by developers around the world. As a result, the company’s shares are up 196% year-over-year, primarily due to excitement about AI. However, as a leading chipmaker, Nvidia holds positions in several markets outside of AI, which could still drive its business for years to come.
Before the recent AI boom, Nvidia was best known for its leading role in gaming. The company was one of the first to sell graphics processing units (GPUs) for the consumer market, which gamers use to custom build high-powered gaming PCs. Nvidia’s success in the industry has given it the financial resources to diversify into other technology sectors such as data centers, gaming consoles, consumer products, self-driving cars and AI.
Interest in artificial intelligence began to pick up early last year. However, Nvidia was already a promising growth stock long before that, with its share price up 338% in the five years to 2023. Artificial intelligence has only strengthened Nvidia’s prospects and value as a long-term investment.
In the first quarter of 2025 (ending April 2024), Nvidia’s revenue soared 262% year over year, driven primarily by a 427% increase in its data center segment (accounting for increased AI GPU sales). However, the company also saw encouraging growth in the gaming and automotive sectors, where revenue increased 18% and 11%.
The automotive segment includes revenue from chips supplied to leading companies in autonomous driving technology. The market is still in its infancy but could be a major growth catalyst as demand for chips increases in line with the industry’s expansion.
In addition to its considerable growth potential in the tech sector, Nvidia’s price-to-earnings-to-growth ratio is less than 1, indicating that its stock remains a worthwhile investment despite its recent growth. At its current position, a $25,000 investment would lock in about 201 shares of Nvidia stock, significantly more than it did just a few months ago, thanks to a recent stock split.
At this price, the company is a real “buy” this year for long-term investors.
2. Amazon
Like Nvidia, Amazon (NASDAQ:AMZN) has significantly expanded its reach in the field of technology. Since its founding in 1994, Amazon has ventured into and ultimately dominated several industries, including e-commerce, video streaming, and cloud computing.
It seems as if the company can do no wrong, with strong management and ample financial resources that allow it to grow and overcome unexpected obstacles. As a result, its stock is an attractive option as it continues to push into retail and expand its roles in AI and digital advertising.
In the first quarter of 2024, Amazon’s revenue grew 13% year-over-year. The company has enjoyed a massive increase in operating profit, which more than tripled since last year to $15 billion thanks to the growth of its retail segments and its highly profitable cloud platform , Amazon Web Services (AWS).
Additionally, the quarter marked a hot start for the company, with revenue from advertising services jumping 24% after the introduction of ads on its Prime Video streaming service. Amazon has a competitive advantage in the industry with a leading market share in streaming. This could allow it to dominate the developing streaming advertising market in the coming years, further diversifying Amazon’s business.
An investment of $25,000 would buy approximately 130 shares of Amazon stock at its current price. The company’s stock has soared more than 100% over the past five years, but could surpass that figure as it continues to expand into AI and other technology areas. Like Nvidia, Amazon’s PEG is also below 1, making its stock too interesting to ignore in 2024.
Should You Invest $1,000 in Nvidia Right Now?
Before buying Nvidia stock, consider this:
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
Best Stocks to Invest $50,000 In 2024 was originally published by The Motley Fool
