1 Artificial Intelligence (AI) Stock to Buy Hand Over Fist Before It Does

Artificial intelligence (AI) might just be the hottest-ticket item in the stock market right now. Euphoria surrounding the technology sent the Nasdaq Composite soaring over 40% last year. Moreover, megacap tech enterprises such as the “Magnificent Seven” have contributed greatly to the S&P 500‘s new record highs.

Among the Magnificent Seven stocks, Microsoft and Nvidia often find themselves at the center of media coverage — and for good reason. Microsoft is a major investor in ChatGPT developer OpenAI. Meanwhile, demand for Nvidia’s graphics processing units (GPUs) is unprecedented as applications in quantum computing and machine learning skyrocket.

One company that I see as overlooked is e-commerce and cloud computing specialist Amazon (NASDAQ: AMZN). The company has made some interesting investments in AI. But slowing growth in its cloud segment coupled with a strained macroeconomy have some investors wary of the company’s prospects.

Let’s dig into why 2024 might be a good year for Amazon investors. More importantly, taking a thorough look at the company’s position in the AI landscape may shed some light on why Amazon should not be discounted relative to its peers.

The Nasdaq could be headed higher

The Nasdaq Composite index has been around for a little over 50 years. In that time frame, it has only produced negative annual returns 14 times.

Over the last two decades, however, the Nasdaq has only dropped by 30% or more on three occasions: 2002, 2008, and 2022. Keep in mind that 2008 was a difficult period in financial history, as it marked the beginning of the Great Recession. Additionally, 2022 was perhaps equally as debilitating for investors due to rampant inflation. But over the last couple of years, the Federal Reserve has swiftly taken action — increasing interest rates in an effort to curb rising inflation.

One thing that 2002 and 2008 share in common is that following steep declines, the Nasdaq rebounded sharply in consecutive years thereafter. Between 2003…