Best AI Stocks for November 2024

These are the top AI stocks based on best value, fastest growth, and most momentum

Reviewed by Charlene Rhinehart

October brought significant developments in the artificial intelligence (AI) landscape. On Oct. 24, the Biden Administration issued a national security memorandum emphasizing the importance of
maintaining U.S. leadership in AI development, attracting global AI talent, and expanding infrastructure to support AI capabilities.

This announcement followed Amazon’s (AMZN) disclosure of three new agreements to support nuclear power generation for its cloud applications. These developments underscore both the growing influence of AI in policymaking and the critical power infrastructure required to support an AI-driven future.

Below, we explore the best AI stocks for November 2024, considering those with the best value,
fastest growth, and most momentum. Data are current as of Oct. 26, 2024.

Best Value AI Stocks

Value investing is a strategy based on the principle that some stocks trade at prices that are below their intrinsic value. Investors able to identify these stocks, usually through analysis of fundamental metrics, may be primed for a return on their investment when the market corrects the mispricing and the stocks rise. One such metric is the price-to-earnings (P/E) ratio. Lower P/E ratios are generally considered to be signs of a more attractively valued company since it is valued at less than its fundamental value.

• Yiren Digital Ltd.: Yiren Digital Ltd. is an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Yiren Digital’s AI-powered customer service utilizes advanced technologies like large language models and speech recognition to deliver personalized, efficient service in industries such as finance and corporate training.
• Consensus Cloud Solutions, Inc.: Consensus Cloud Solutions is a global leader in digital cloud fax technology, offering AI-driven solutions that automate workflows and enhance operational efficiency. Consensus serves around 850,000 customers worldwide, offering secure communication and digital signature solutions across various industries, such as healthcare, government, and financial services.
• Trimble, Inc.: Trimble provides technology solutions that increase productivity and sustainability across industries like construction, agriculture, and transportation. Trimble focuses on using AI to enhance automation, precision, and data analysis across industries like construction and agriculture. 

Fastest-Growing AI Stocks

Investors often evaluate growth stocks based on revenue and earnings per share (EPS), as these are key measures of a company’s performance. Looking at only one of these two factors, however, can leave your search susceptible to temporary phenomena, including tax law changes or one-off gains.

We aim for a more balanced screen of AI growth stocks by looking at the most recent year-over-year percentage growth for both revenue and EPS, giving each equal weighting. We also exclude companies with growth rates in either category of 1,000% or more on the grounds that these are likely outliers.

• InterDigital, Inc.: InterDigital is a global research and development company specializing in wireless, video, and AI technologies. The company is developing AI and machine learning solutions to optimize wireless systems for 5G and creating deep learning-based video compression. The company is also exploring quantum computing to enhance future wireless network capabilities.
• Innodata, Inc.: Innodata is a global data engineering company that provides AI-enabled software platforms and managed services for data annotation—the process of labeling or tagging data such as text and images to make it understandable for machine learning models and improve their prediction accuracy. For its second quarter 2024, the company reported $32.6 million in revenue, a 66% increase year-over-year, and raised its guidance to 60% or more revenue growth for 2024.
• Applied Digital Corporation.: Applied Digital is a U.S.-based provider of advanced digital infrastructure, designed to support high-performance computing (HPC) and AI-driven applications. For its first quarter 2025, Applied Digital announced revenue growth of 67% over first quarter 2024, and said it had secured a $160 million investment from institutional and accredited investors.

AI Stocks With the Most Momentum

Momentum investing is based on the principle that stocks that have increased at a faster rate compared with the market or their peers are likely to continue on that trajectory, at least in the short term, as long as there aren’t fundamental changes to those companies’ operations or the broader industry.

Below, we look at the AI stocks that have provided the highest total return in the last 12 months.

• TeraWulf, Inc.: TeraWulf owns and operates eco-friendly, vertically integrated bitcoin mining facilities in the U.S. The company primarily uses nuclear and hydro energy, aiming for 100% zero-carbon energy in its operations. In August, TeraWulf mined 184 bitcoins, achieving an average production rate of 5.9 coins per day.
• Aurora Innovation, Inc.: Aurora Innovation develops self-driving technology to make transportation safer, more accessible, and more efficient. Its Aurora Driver system is designed for various vehicles, including trucks and ride-hailing cars. The company currently has partnerships with FedEx, Toyota, and Uber Freight, and is expecting a commercial launch by the end of the year.
• SoundHound AI, Inc.: SoundHound’s proprietary technology offers fast, accurate voice recognition across various industries, including automotive, TV, Internet of Things (IoT), and customer service. SoundHound’s Chat AI integrates generative AI to power millions of products, processing billions of interactions annually for top-tier businesses. The company announced significant developments in the second quarter of this year, expanding business partnerships with major automotive manufacturers and restaurant chains, while also acquiring a leading AI enterprise software company.

Advantages

• Broad applications

• Fast-moving innovation

• Popular trend

Disadvantages

• Industry uncertainty

• Untested companies

• Dangers of AI

Advantages of AI Stocks

Broad applications: AI has transformed—or has the potential to transform—a host of different industries and sectors. Companies positioned as leaders within the AI space could be well-positioned to benefit from widespread adoption and a broad, diverse customer base.

Fast-moving innovation: AI is at the forefront of innovation today, with both major tech firms and smaller up-and-coming companies working diligently to advance this technology. This means that the potential for breakthrough success may be huge as the industry continues to evolve.

Popularity: As of mid-2024, AI is still one of the most talked-about trends in technology. Interest in this space is very high, meaning that investors could be poised to benefit from tremendous momentum with the right investments.

Disadvantages of AI Stocks

Industry uncertainty: Although AI has been in existence for decades, it is only in the last several years that technological developments have brought this field into the mainstream. With changes and advancements happening incredibly quickly, it can be difficult for even the most knowledgeable investors to keep pace with what is happening in the industry. For instance, this means it could be easy for investors to get caught up in the hype surrounding a particular company after the ideal time to purchase that company’s stock.

Untested companies: While many of the major tech firms are involved in AI, other AI companies have little history and foundation for investors to consider when selecting investments. These companies may pose a greater risk than more stable, time-tested firms.

Dangers of AI: Leaders in computer science and related fields have warned of the potential dangers associated with AI. As the field continues to expand and change, public opinion, regulations, and other factors may change and have the potential to impact AI stocks in unexpected ways.

The Bottom Line

AI stocks present investors with the opportunity to tap into one of the most popular—and potentially most revolutionary—technology trends today. With companies across virtually all industries and sectors exploring ways to integrate AI into their operations, firms that are focused on the hardware and software required to run AI programs stand to benefit. But there are significant risks to investing in AI stocks, including the uncertain future of the industry and the potential dangers of AI technology itself.

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As of the date this article was written, the author does not own any of the above securities.