Artificial Intelligence

Nvidia to Meta: Best Artificial Intelligence Stocks to Buy Today

Nvidia to Meta: Best Artificial Intelligence Stocks to Invest

Sumedha Sen

As artificial intelligence continues to evolve, the stocks of Nvidia and Meta continue to boom providing extensive investment opportunities to investors looking to invest. With the rapid growth of artificial intelligence (AI), investors are increasingly looking for stocks that provide exposure to this game-changing technology. The tech giants, Nvidia and Meta are at the forefront of the AI landscape and their growth in the future. Here, in this article, we will be exploring how and why Nvidia and Meta are considered the best artificial intelligence stocks to buy today. Nvidia and Meta have made some remarkable developments in the industry of artificial intelligence.

Nvidia: Leading the AI Revolution

Nvidia has firmly established itself as a global leader in AI, leveraging its cutting-edge graphics processing units (GPUs) to power a wide range of AI applications, from autonomous vehicles to data centers and gaming. Let's delve into the key metrics and factors driving Nvidia's stock performance:

Stock Price Analysis:

1. Current Price:

Nvidia's current stock price stands at $877, representing the most recent valuation of the company's shares in the stock market. This figure reflects the culmination of various factors, including investor sentiment, market conditions, and the company's performance.

2. Change:

The change in Nvidia's stock price indicates the difference between its current price and the previous day's closing price. In this instance, Nvidia's stock has experienced a notable increase of $51.42, or 6.22%, showcasing significant positive movement within a single trading session.

3. Open:

The opening price denotes the initial price at which Nvidia's stock was traded when the market opened for the day. At $905.61, this figure provides an early indication of investor sentiment and sets the tone for trading activity throughout the day.

4. Previous Close:

Nvidia's previous close refers to the price at which its stock concluded trading on the preceding trading day. At $904.98, this serves as a reference point for evaluating the day's price movements and assessing overall market sentiment.

5. 52 Week High:

The 52-week high represents the highest price at which Nvidia's stock has traded over the past year. With a high of $974.00, this metric offers insight into the stock's historical performance and potential peaks in valuation.

6. 52 Week Low:

Conversely, the 52-week low signifies the lowest price at which Nvidia's stock has traded over the past year. At $280.46, this metric provides context regarding the stock's lowest valuation points and potential troughs in performance. Nvidia's stock has experienced significant growth, reflecting investor confidence in the company's ability to capitalize on the expanding AI market. Despite fluctuations, Nvidia's stock price remains resilient, with strong momentum driving it toward new highs.

Financial Performance:

TTM EPS: 2.36 (-38.70% YoY)

TTM PE: 376.16 (High PE)

Market Cap: $2,219.33 Billion

Dividend Yield: 0.06%

While Nvidia's earnings per share (EPS) may have experienced a decline year-over-year, the company's robust market capitalization and dividend yield underscore its financial stability and long-term growth potential. With a high price-to-earnings (PE) ratio, Nvidia's stock reflects investor confidence in its future earnings growth.

Investment Outlook:

Nvidia's strategic focus on AI, coupled with its diversified product portfolio and strong financials, positions it as a top contender in the AI space. As demand for AI-powered technologies continues to soar, Nvidia is well-positioned to capitalize on emerging opportunities, making it an attractive investment choice for those bullish on AI. So, Nvidia is considered the best artificial intelligence stocks to buy today.

Meta: Harnessing AI for Social Connectivity

Formerly known as Facebook, Meta has been at the forefront of leveraging AI to enhance social connectivity and user experiences across its platforms, including Facebook, Instagram, and WhatsApp. Let's examine the key metrics and factors shaping Meta's stock performance:

Stock Price Analysis:

1. Current Price:

The current price of the stock refers to the most recent trading price at which the stock was transacted. In this case, the current price of the stock is $443.

2. Change:

The change represents the difference between the current price and the previous day's closing price. It provides insight into the direction and magnitude of price movements.

3. Open:

The opening price refers to the price at which the first transaction of the trading day occurred. It serves as a reference point for assessing price movements throughout the trading session. In this case, the stock opened at $470.99.

4. Previous Close:

The previous close represents the price at which the stock ended trading on the previous trading day. It serves as a reference point for assessing the day's price movements. For example, the previous close was $472.71.

5. 52 Week High:

The 52-week high is the highest price at which the stock has traded over the past 52 weeks (one year). It provides insight into the stock's historical performance and potential price ceilings. In this case, the 52-week high for the stock is $531.49.

6. 52 Week Low:

The 52-week low is the lowest price at which the stock has traded over the past 52 weeks. It provides insight into the stock's historical performance and potential price floors. For example, the 52-week low for the stock is $231.45.

Meta's stock has exhibited resilience amidst market fluctuations, reflecting its dominant position in the social media landscape and its strategic focus on AI-driven innovations. While the stock may have faced challenges, its long-term growth trajectory remains intact.

Financial Performance:

TTM EPS (Trailing Twelve Months Earnings Per Share):

TTM EPS refers to the earnings per share of a company over the trailing twelve-month period, which is calculated by dividing the company's total earnings over the past year by the average number of shares outstanding.

For example: Meta's TTM EPS is $8.06, representing the company's earnings per share over the past year.

The metric is accompanied by a percentage value indicating the year-over-year (YoY) change, which in this case is -37.83%. This signifies that Meta's earnings per share have decreased by approximately 37.83% compared to the previous year.

A decline in TTM EPS could be attributed to various factors such as increased expenses, changes in revenue, or one-time charges.

2. TTM PE (Trailing Twelve Months Price-to-Earnings Ratio):

TTM PE ratio is a valuation metric calculated by dividing the current market price of a company's stock by its earnings per share over the trailing twelve months. For example: Meta's TTM PE ratio is 59.00 which indicates that investors are willing to pay approximately 59 times the company's earnings per share to acquire its stock.

A high TTM PE ratio suggests that the stock may be relatively expensive compared to its earnings, indicating that investors have high expectations for future growth. However, it's essential to compare the TTM PE ratio with industry peers and historical averages to gain a better understanding of its significance.

3. Market Cap (Market Capitalization):

Market capitalization refers to the total value of a company's outstanding shares, calculated by multiplying the current market price of the stock by the total number of outstanding shares. For example, Meta's market capitalization is $1,212.24 billion, indicating the total value of the company's equity as determined by the stock market. Market capitalization provides investors with insights into the size and scale of a company, with larger market caps often associated with more established and stable companies.

4. Dividend Yield:

The dividend yield is a financial ratio calculated by dividing the annual dividend per share by the current market price per share and expressing the result as a percentage. In the case of Meta, the dividend yield is not provided, indicated by a dash (-). This suggests that Meta does not currently pay dividends to its shareholders. The dividend yield is essential for income-seeking investors as it indicates the return generated from dividends relative to the stock price. Companies that do not pay dividends may opt to reinvest profits back into the business for growth initiatives or share buybacks.

Despite a decline in earnings per share year-over-year, Meta's solid market capitalization and absence of dividend yield highlight its commitment to reinvesting in growth initiatives, including AI research and development. With a relatively high price-to-earnings ratio, Meta's stock reflects investor optimism about its future growth prospects.

Investment Outlook:

As Meta continues to harness the power of AI to drive innovation and enhance user engagement across its platforms, the company remains a compelling investment opportunity for those bullish on the intersection of technology and social connectivity. With a strong foundation and a clear vision for the future, Meta is well-positioned to deliver sustained growth and value creation for investors. So, Meta is considered the best artificial intelligence stocks to buy today

In an era defined by technological disruption, investing in AI stocks offers a unique opportunity to gain exposure to transformative technologies that are shaping the future. With Nvidia and Meta is considered the best artificial intelligence stocks to buy today, leading the charge in their respective domains, investors have the chance to capitalize on the immense potential of AI and position themselves for long-term success in the ever-evolving digital landscape. As always, thorough research and careful consideration of individual investment goals and risk tolerance are essential before making any investment decisions.

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