Have $20,000? These AI Stocks Could Be Bargain Buys for 2024 and Beyond
A surge in artificial intelligence (AI) last year led to a rally in the tech market. The Nasdaq-100 Technology Sector index has climbed 81% since the start of 2023, driven primarily by excitement over AI. While the bull run has benefited current investors, it has also raised the price of entry for new ones, as the stocks of many of the world's leading tech giants are trading at a premium.
It can be difficult to figure out when a stock is a good buy, but investors can start by looking at its price-to-earnings ratio (P/E) and comparing it to the P/E of competitors. The ratio is calculated by dividing a company's stock price by its earnings per share, and lower is considered better.
AI superstar Nvidia's (NASDAQ: NVDA) P/E sits at 56. With Advanced Micro Devices' P/E at 181 and Intel's at 96, Nvidia looks like a bargain. Meanwhile, Nvidia keeps succeeding with its majority market share in AI chips, and its stock looks like a no-brainer way to invest in AI right now.
Source Fool.com
