3 Artificial Intelligence (AI) Stocks That Will Lead the New Bull Market

It’s official: A new bull market is here. And part of the reason for that is the rise of artificial intelligence (AI).

This roundtable panel of Motley Fool contributors agrees that AI stocks will lead this new bull market. But will the AI stocks that led the market out of the doldrums and toward the recent highs be the same stocks that will carry the bull market forward? Or will new AI stocks emerge as market leaders? See why Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Nvidia (NASDAQ: NVDA) are top picks now.

Amazon stands to benefit from the growth of AI

Jake Lerch (Amazon): I think 2024 will see a massive transformation for AI, and that’s why I’m picking Amazon as the AI stock that will lead this new bull market.

In short, the commercialization of AI is just starting. Relatively few AI products are available right now, but that’s changing rapidly. Microsoft is now offering AI-powered Copilot features in its Office software, CrowdStrike‘s security modules utilize machine learning to prevent hacking, and Adobe has several multimedia tools that use generative AI. Countless other AI-driven products will soon be available for retail and enterprise customers.

Amazon, the world’s largest cloud services provider and the world’s largest e-commerce company, should benefit in several ways:

1. Cloud spending could accelerate as businesses ramp up spending on generative AI, which runs on the cloud. And, crucially, cloud spending is one of Amazon’s fastest-growing revenue sources.

2. E-commerce spending could get a boost from the rise of AI-driven digital marketing, known as programmatic advertising, which helps advertisers serve better and more targeted ads. More e-commerce spending should lead to higher revenue for Amazon.

3. Robotics innovations could lead to massive cost savings. Amazon is already America’s second-largest employer, with over 1.5 million employees. However, it already uses over 750,000 robots in its sprawling warehouse network. Expect…