12 AI Stocks Ready to Skyrocket: One Could Surpass Nvidia with 130% Gains!

Investors should always keep their eyes on the horizon for emerging opportunities, and Arm Holdings (NASDAQ: ARM) is shaping up to be the next massive AI stock. This semiconductor giant has been capturing Wall Street’s attention since its recent IPO in September 2023. Just as Nvidia (NASDAQ: NVDA) became the benchmark for AI stocks, Arm is touted to follow a similar meteoric rise, thanks to its dominant presence in mobile CPUs and its expanding footprint in cloud computing and consumer electronics.

A Meteoric Rise

Since going public, Arm’s shares have already doubled, igniting excitement among investors. Morgan Stanley analyst Lee Simpson is particularly bullish, projecting a dizzying bull-case price target of $300 per share, indicating a 130% upside from current levels. Now that’s a figure that can turn heads. This projection is fueled by Arm’s strategic positioning in several high-growth sectors.

Arm Holdings (ARM): Could This Be the Next Nvidia with 130% Upside?

Arm sets itself apart with a unique business model focused on licensing intellectual property (IP) rather than chip manufacturing. This allows other companies to build custom chips using Arm’s designs while Arm collects licensing fees and royalties. This strategy has given Arm a commanding foothold in multiple markets.

Dominance in Mobile

Arm’s influence in mobile device CPUs is nearly unparalleled. A staggering 99% of smartphones and 67% of other mobile devices use Arm-based processors, ensuring a steady stream of royalty revenue and providing a solid financial foundation.

Expanding Horizons: Cloud Computing and Consumer Electronics

Beyond mobile, Arm is making significant inroads into cloud computing and consumer electronics, winning marquee clients like Apple, Microsoft, Amazon Web Services, Google Cloud, and Meta Platforms. Companies like Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD) have traditionally led these markets, but Arm’s growing market share signals a shifting landscape.

Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at The Motley Fool 

Apple (NASDAQ: AAPL): Apple’s use of Arm-based processors in iPhones and MacBooks boosts Arm’s royalty revenue.

Nvidia Corporation (NVDA): Analysts Predict 24.1% Additional Upside

Past Performance and Market Cap

Nvidia’s stock is the gold standard for AI semiconductor success. Since the launch of ChatGPT in November 2022, Nvidia’s value has ballooned by an astonishing 750%. This surge is underpinned by Nvidia’s dominance in data center accelerators, vital components for deploying AI technologies. However, with Nvidia’s market cap approaching $3 trillion, the potential for further explosive growth is becoming limited. As a result, many investors are starting to look for the next big thing — enter Arm Holdings.

Analyst Ratings and Forecasts for Nvidia (NVDA)

Summary of Analysts’ Outlook: Analysts are overwhelmingly bullish on Nvidia, with 24 out of 34 analysts rating the stock as “Buy” or “Overweight.” The average price target suggests a significant potential gain of 24.1% from the current price. Analysts are optimistic about Nvidia’s leadership in the GPU market, its growing presence in artificial intelligence, and its expanding data center business.

Intel Corporation (INTC): Investing in Tomorrow’s Tech Today

Market Penetration and Growth Prospects

Intel Corporation (NASDAQ: INTC) has long been a leader in the semiconductor industry. Recently, Intel has been focusing on diversifying its portfolio, investing significantly in artificial intelligence, autonomous driving, and 5G technology. These efforts aim to drive future growth and solidify Intel’s position in the evolving tech landscape.

Analyst Ratings and Forecasts for Intel (INTC)

Summary of Analysts’ Outlook: Analysts have a positive outlook on Intel Corporation, with a consensus rating of Overweight. The average price target of $63.41 suggests a potential gain of 14.1% from the current price. Most analysts believe that Intel’s efforts to diversify its business, including its investments in AI, autonomous driving, and 5G, will drive growth in the future.

Advanced Micro Devices (AMD): Poised for a 24.1% Upside

Strong Performance in CPUs and GPUs

Advanced Micro Devices (NASDAQ: AMD) has shown impressive growth in the CPU and GPU markets. The company’s prowess in these areas, coupled with its expanding presence in the cloud and data center segments, makes it a significant player in the tech industry.

Analyst Ratings and Forecasts for AMD

Summary of Analysts’ Outlook: Analysts have a bullish outlook on AMD, with a consensus “Overweight” rating, indicating a “Buy” recommendation. The average price target of $134.41 suggests a potential gain of 24.1% from the current price. This optimism is likely driven by AMD’s strong performance in the CPU and GPU markets, as well as its growing presence in the cloud and data center segments.

Apple Inc. (AAPL): AI and Innovation Drive 14.1% Potential Gains

Expansion in AI and Services

Apple (NASDAQ: AAPL) continues to leverage its strong brand loyalty and expanding services segment to drive growth. Apple’s integration of Arm-based processors in its iPhones and MacBooks also opens new avenues for growth through enhanced AI capabilities.

Analyst Ratings and Forecasts for Apple (AAPL)

Summary of Analysts’ Outlook: Analysts are overwhelmingly bullish on Apple, with a strong consensus rating of Overweight (Buy). The average price target of $174.41 implies a potential gain of 14.1% from the current price. This optimism is likely driven by Apple’s strong brand loyalty, growing services segment, and expected growth in emerging markets.

Microsoft Corporation (MSFT): Cloud and AI Make It a Must-Have Stock

Strong Cloud Business and AI Integration

Microsoft (NASDAQ: MSFT) has fortified its position in the tech segment through its robust cloud computing division. Products such as Azure and Dynamics 365 have seen increased demand, and the company’s dominant role in productivity software continues to fuel its growth.

Analyst Ratings and Forecasts for Microsoft (MSFT)

Summary of Analysts’ Outlook: Analysts have a positive outlook on Microsoft Corporation, with a consensus rating of Overweight (Buy). The average price target of $343.14 suggests a potential gain of 14.1% from the current stock price. This indicates that analysts expect the stock to continue its upward trend, driven by the company’s strong cloud computing business, growing demand for its Azure and Dynamics 365 services, and its dominant position in the productivity software market.

Amazon (AMZN): AI Could Propel This Stock to 24.1% Gains

Leading Cloud Services and Expanding AI Capabilities

Amazon (NASDAQ: AMZN) remains a dominant force in e-commerce and cloud computing. With the company’s increased focus on AI and machine learning, Amazon continues to pioneer new segments and innovate across its business lines.

Analyst Ratings and Forecasts for Amazon (AMZN)

Summary of Analysts’ Outlook: Analysts have an overwhelmingly positive outlook on Amazon, with 44 out of 44 ratings being either a Buy or Overweight. The average price target of $3,444.44 suggests a potential gain of 24.1% from the current price. Analysts praise Amazon’s dominant position in e-commerce, its growing cloud computing business, and its increasing focus on artificial intelligence and machine learning.

Alphabet (GOOGL): Tech Titan With 24.1% Potential Gains

Innovations That Drive Growth

Alphabet (NASDAQ: GOOGL), through its subsidiary Google, continues to push the boundaries of technology and AI. With a stronghold on internet services and expanding forays into AI, Alphabet remains a top contender in the tech world.

Analyst Ratings and Forecasts for Alphabet (GOOGL)

Summary of Analysts’ Outlook: Analysts have a bullish outlook on Alphabet, with a consensus rating of Overweight (Buy). The average price target of $3,344.14 implies a potential gain of 24.1% from the current price. This suggests that analysts believe the stock has upside potential and is a good investment opportunity.

Meta Platforms (META): AI Boom Makes This a Stock to Watch

AI and Advertising Revenue Driving Growth

Meta Platforms Inc. (NASDAQ: META) continues to leverage its expansive user base and strong brand recognition to drive growth. The company’s increasing AI capabilities and revenue from its core advertising business are key growth drivers.

Analyst Ratings and Forecasts for Meta Platforms (META)

Summary of Analysts’ Outlook: Analysts have a positive outlook on Meta Platforms Inc., with a consensus rating of Overweight. The average price target of $243.14 suggests a potential gain of 23.1% from the current price. This optimism is likely driven by the company’s strong brand recognition, growing user base, and increasing revenue from its core advertising business.