the new year is starting so you're probably seeing a lot of videos on the top stocks for 2024 but they're mostly filled with random companies or cherry-picked Price charts this video is a little different every stock on my list works together so that I'm holding all the winners in a few huge markets that are growing fast thanks to AI which is the best way to get rich without getting lucky your time is valuable so let's get right into it first things first I'm not here to keep you hostage here's the full list of stocks that
I'll be covering and there are times stamp so that you can jump to different sections but let me quickly point out a few things before you do I'm not a financial adviser my background is an electrical engineering and data science and I have about 10 years of Industry experience using AI to solve real world problems that's why every stock on this list involves Ai and I'm sharing my research for educational purposes only this isn't supposed to be the ultimate stock list it's more of a solid foundation for my portfolio in 2024 and Beyond if I
want to buy more great companies like met platforms or Tesla stock down the road I will and I'll explain why I didn't put them on the list in a minute also I only buy stocks when they drop below my price targets research tells me what to buy but price targets tell me when so if you want to see those I'll leave a survey Link in the description below for you it only takes about 20 seconds and your responses help me understand how to add the most value and finally there's a lot of ground to cover
so I'll keep everything at a pretty high level my entire Channel focuses on the science behind the stocks so if there's a specific company that interests you you can probably find a video where I cover it in more detail with all that out of the way let's dive into the list in my opinion the foundation of every good long-term portfolio starts with a fund the advice that I always hear is to put a little money in the market every month which usually means the S&P 500 the S&P 500 Index is a basket of stocks from
the 500 biggest public companies in the United States and the bigger the company the more of the basket that stock takes up but 500 companies is a lot so the S&P grows slow and steady even when the biggest companies are ripping for example the top five companies in the index are Apple Microsoft Amazon Nvidia and Google all five of these companies went up by more than 50% this past year and Nvidia actually went up by almost 250% but the S&P went up by just 25% on the other hand the NASDAQ 100 index went up by
55% the NASDAQ has three big advantages over the S&P in my opinion first it tracks 100 companies instead of 500 100 is still a lot of diversification but not so much that the index can't make big moves second it doesn't hold companies from the financial sector like commercial or investment Banks as a result it holds more Tech focused companies that can benefit from this massive AI boom and third the NASDAQ 100 can hold non- us companies like asml a company that's based in the Netherlands that makes the massive machines that chip makers like Intel Samsung
and tsmc buy to make the most advanced chips on the planet those are just some of the reasons that the NASDAQ 100 almost doubled the gains of the S&P 500 over the last 5 years and why that performance Gap could get even bigger as AI keeps stacking advantages for its early adopters the trade-off for this performance is more volatility but even that's a good thing for long-term investors since higher highs mean better returns and lower lows mean bigger discounts on the best run compan companes on the planet companies like apple Microsoft Amazon broadcom meta platforms
Tesla Nvidia and Google which together account for over 40% of the NASDAQ 100 by weight that's why I didn't include meta platforms or Tesla on my list they're already near the top of this fund instead I'm adding even more Microsoft Google and Amazon because they own a whopping 65% of the global cloud services Market combined this is what I mean about owning all the winners in a given Market no matter who wins I win no luck needed and all three of these companies are investing billions of dollars to build the infrastructure for the world's Advanced
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over to climatize doar slts yoou or click my link in the description below and use my code TS y you1 to invest your first $5 on them what a cool opportunity so Microsoft Google and Amazon own a combined 2third of the global market for cloud services and millions of businesses pay them each year to do things like store and secure their company's data host mobile and web applications use their Computing clusters and access a wide variety of AI and machine learning tools here's why I think these cloud service providers won't get disrupted anytime soon except
maybe by each other first it would cost a business way more to build even a tiny fraction of these services for themselves instead of just using a cloud CL service provider and second these Services run on top of massive Global networks of data centers and that Hardware infrastructure is also incredibly expensive to research develop deploy maintain and upgrade over time a recent study showed that Amazon has spent over $100 billion on AWS from when it was launched to the end of 2021 around half of which was spent in Just 2 years let me put it
like this if Amazon web services was its own country today it would have around the 50th biggest National budget in the world that's not so easy to compete with is it and that's just AWS Microsoft and Google are spending billions on Azure and Google Cloud as well and who are they spending that money with well the next two companies on the list are Nvidia and AMD which dominate the market for data center gpus also called accelerators gpus are currently the main kind of processor for AI applications like chat GPT Nvidia currently has a massive 92%
market share for Data Center gpus and AMD is their only direct competition with around 4% of the market the reason I spend so much time researching Nvidia is to understand how long they can defend this massive lead the Enterprise accelerator Market is expected to have a 24% compound annual growth rate for almost the next decade so even if AMD never catches Nvidia they're the only other possible winner and they should at least grow as the market does now is also probably a good time to explain the green and blue checks on my table green means
that a company is a market leader Microsoft Google and Amazon dominate cloud services and data centers so they have green check marks in those columns Nvidia also has its own set of data centers and supercomputing services but they're much less widely used so I gave Nvidia a blue check on the flip side Microsoft Google and Amazon all build their own data center chips but they don't really compete with nvidias or amds they actually don't even sell them to other compan companies instead they send easier workloads to their own chips and they use nvidia's and amd's
chips to process the harder ones that's why Nvidia and AMD have green check marks for AI chips while the cloud providers have blue ones and the NASDAQ gets blue check marks across the board since it holds at least some companies in every major Tech Market as you can see these checks are not an exact science I'm just trying to show you a lot of high level information at once and there's a lot more to each of these companies than I can cover in a single video all right here 's a quick bonus stock to consider
Intel has over a 70% market share for data center CPUs even though AI is Shifting the world towards gpus CPUs are still the main kind of data center processor today Intel's biggest competitor here is AMD which owns the other roughly 30% of this Market I didn't put Intel on my list because it's already near the top of the NASDAQ 100 and it's currently way above my price Target after going up 50% over the last 2 months anyway between Nvidia and AMD and the three big cloud service providers I can own the entire data center GPU
market and not worry about who's winning at any given time and if I add Intel into the mix I would own the entire CPU Market as well so now with just five or six stocks I'm virtually guaranteed to be holding the winners of multiple quickly growing markets no luck required by the way the global artificial intelligence Market is forecasted to 15x over the next 10 years which is a compound annual growth rate of almost 37% for the next decade that means all of the hardware companies and cloud service providers that I've covered so far should
also grow fast even if their market shares just stay the same the third part of the AI Market is software obviously software includes a lot of different things so I picked a couple of example categories just so you can get the idea the first category that I picked is cyber security since the global Cloud security Market is forecasted to more than 7x in size over the next decade which is is a growth rate of over 22% per year and just like software cyber security includes many different things like identity and access management data loss prevention
event management disaster recovery and a lot more than what's shown on this one chart I'm also not a cyber security expert but I do think this Market will grow even faster than predicted because as AI keeps evolving there will be way more cyber threats in general new kinds of malware and hacking techniques more devices apps and data that needs securing and more rules and regulation on what counts as secure in the first place so I looked for cyber security companies that have high earnings growth and are Market leaders specifically in identity and access management and
data loss prevention since those appear to be the biggest chunks of the global Cloud security Market that's how I landed on poo Alto networks and fortunet crowd strike and zscaler are two other cyber security companies that are also in the NASDAQ 100 but I didn't add them to this list because they both recently had company insiders selling shares and and they were either unprofitable or barely profitable for the most recent quarter none of that makes them bad companies but I'm being super picky here since this list is all about building a solid foundation for a
long-term stock portfolio and of course Microsoft Google and Amazon have a wide range of cloud Security Services as well but they're not as specialized and they only work within their own ecosystems that's why they got blue checks and that brings me to paler and uipath which are both Enterprise software companies paler makes high powered platforms that give huge Enterprises a real-time view of their data and help them optimize their operations paler platforms tend to focus on high-risk and highly regulated markets like National Security heavy Industries medical and international transport users can even send commands to
assets under their control directly from within the platform for example a power company can monitor and rotate a wind turbine a logistics company can reroute its trucks and a commander can retask military units in real time which just goes to show how much some of the biggest governments and companies on the planet trust paler platforms with their most sensitive data because of that paler Solutions need to be incredibly accurate fast and secure which is a big challenge for most aib based tools today my other pick here is uipath a company that makes software robots to
emulate and automate work done by humans uipath uses different kinds of AI like computer vision and natural language processing to let people create pretty robust automations for example they can use computer vision to find and push a button on a web page even if that web Page's layout changes over time or the robot can crawl through tons of emails retrieve data and enter it into a wide variety of other applications or it can send invoices to large numbers of customers who need them in completely different formats these are all processes that every company has to
deal with so UI paaths Market is pretty massive I chose both paler and uipath for a few key reasons first I I have personal experience with them both I used paler Foundry for about half a year and I use uipath in my day-to-day business so I have a pretty good understanding of the quality of their products and who their main competitors actually are the bad news is that paler and uipath are both seeing more competition from Tech giants that are adding AI to many of their services like Microsoft and Amazon but the good news is
that those companies are already at the top of this list so I win no matter which company ends up on top no lock requ ired the other reason that I picked paler and uipath is that they're flexible and fast as AI keeps evolving both companies have released new tools that their customers love for example paler stood up their artificial intelligence platform AIP just months after chat GPT was released and it's now their most demanded platform and uipath built a chat GPT integration to securely extract information from long documents for use in larger workflows which makes
it way faster and simpler to automate many different processes and as we enter the era of AI I think the market will reward companies that are fast and flexible which is why it's the last column on my table whether a company focuses on one market like cyber security or it has its hands in every market like the tech Giants companies will need to keep up with the state-of-the-art or get disrupted by those who can I know this video is a little long but I wanted to be thorough since the whole idea is to build a
solid foundation for a portfolio in 2024 and Beyond and to me that means focusing on fast growing markets and finding all the winners by understanding the science behind the stocks that's the best way to get rich without getting lucky so if you feel I've earned it consider hitting the like button and subscribing to the channel that lets me know to put out more research like this either way thanks for watching and until next time this is ticker symbol U my name is Alex reminding you that the best investment you can make is in you
