Stocks have been on the rise this year, with the S&P 500 up 15% year to date. The index is on track to outperform last year's growth, as the S&P 500 rose 13% over the same period (January to June) in 2023.
Wall Street has grown particularly bullish about tech stocks thanks to advances in fields like artificial intelligence (AI). The same was true this time last year. However, the key difference is there have now been several quarters of tangible results that prove AI is truly boosting earnings for several companies and is a worthy venture.
However, tech is a lot more than AI. The industry covers countless sectors that will likely keep it expanding for decades. As a result, it could be a good idea to make a considerable investment in companies with exposure to AI and other areas of tech. Innovative organizations that lead critical parts of the industry could deliver major gains over the long term as the tech market expands.
So, are you looking to invest $50,000 in the stock market? Here are two of the best stocks that money can buy in 2024 (and are even worth buying with a smaller investment).
1. Nvidia
Nvidia 's (NASDAQ: NVDA) business has exploded over the last year as it has become a leader in AI . Its chips have become the gold standard in the industry, coveted by developers worldwide. As a result, the company's stock is up 196% year over year, driven primarily by excitement over AI. However, as a leading chipmaker, Nvidia has positions in multiple markets outside of AI that could further boost its business for years.
Before the recent boom in AI, Nvidia was best known for its prominent 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 gave it the financial resources to branch out to other tech sectors like data centers, game consoles, consumer products, self-driving cars, and AI.
Increased interest in AI kicked off at the start of last year. However, Nvidia was a promising growth stock long before that, with its share price rising 338% in the five years leading up to 2023. AI has only strengthened Nvidia's outlook and worth as a long-term investment.
In the first quarter of 2025 (ending April 2024), Nvidia's revenue climbed 262% year over year, fueled mainly by a 427% increase in its data center segment (representing a rise in AI GPU sales). However, the company also saw encouraging growth in gaming and automotive, where revenue rose 18% and 11%.
The automotive segment includes income from chips supplied to companies leading the way in self-driving technology. The market is still in its infancy but could be a major growth catalyst as chip demand rises alongside the expanding industry.
In addition to massive growth potential across tech, Nvidia's price/earnings-to-growth ratio (PEG) is less than 1, indicating its stock remains a value play despite recent growth. At its current position, an investment of $25,000 would secure roughly 201 shares in Nvidia -- significantly more than a few months ago, thanks to a recent stock split.
At this price, the company is screaming buy this year for long-term-minded investors.
2. Amazon
Like Nvidia, Amazon (NASDAQ: AMZN) has significantly expanded its reach in tech. Since its founding in 1994, Amazon has ventured into and eventually dominated multiple industries, including e-commerce, video streaming, and cloud computing .
It's as if the company can do no wrong, with solid leadership and vast financial resources that allow it to expand and overcome unexpected hurdles. As a result, its stock is a compelling option as it continues to see gains in retail and develops its roles in AI and digital ads.
In the first quarter of 2024, Amazon's revenue popped 13% year over year. The company profited from massive gains in operating income, more than tripling since last year to $15 billion thanks to growth in its retail segments and highly profitable cloud platform, Amazon Web Services (AWS).
Moreover, the quarter signaled a budding business 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 edge 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.
A $25,000 investment would buy roughly 130 shares in Amazon at its current price. The company's stock has climbed more than 100% over the last five years but could outperform that figure as it continues to expand in AI and other areas of tech. Like Nvidia, Amazon's PEG is also less than 1, making its stock just too good to pass up in 2024.
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 in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy .
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