Stock prices have risen this year, with the S&P 500 up 15% year to date. The index is on track to outperform last year’s growth, as the S&P 500 rose 13% over the same period (January to June) in 2023.
Wall Street has become particularly bullish on tech stocks thanks to developments in areas such as artificial intelligence (AI). That was also true last year. The main difference, however, is that there are now several quarters of tangible results proving that AI is really boosting the profits of various companies and is a worthy endeavor.
However, technology is much more than AI. The industry includes numerous sectors that are likely to keep it growing for decades to come. As a result, it could be a good idea to invest significantly in companies exposed to AI and other technological areas. Innovative organizations leading critical parts of the industry can make big gains in the long term as the technology market grows.
So, are you planning to invest $50,000 in the stock market? Here are two of the best stocks you can buy with money in 2024 (and that are even worth buying with a smaller investment).
1. Nvidia
Nvidia‘S (NASDAQ: NVDA) business has exploded in the past year as it has become a leader in AI. The chips have become the gold standard in the industry, coveted by developers worldwide. As a result, the company’s share price is up 196% year-over-year, driven mainly by enthusiasm about AI. However, as a leading chipmaker, Nvidia has positions in multiple markets outside of AI that could further drive the business for years to come.
Before the recent boom in AI, Nvidia was best known for its prominent role in gaming. The company was among the first to sell consumer graphics processing units (GPUs), which gamers use to build custom, powerful gaming PCs. Nvidia’s success in the industry gave it the financial resources to expand into other technology sectors, including data centers, gaming consoles, consumer products, self-driving cars and AI.
The surge in interest in AI began early last year. But Nvidia was already a promising growth stock long before that, with its share price rising 338% in the five years through 2023. AI has only bolstered Nvidia’s prospects and value as a long-term investment.
In the first quarter of 2025 (ending April 2024), Nvidia’s revenue increased 262% year over year, driven primarily by a 427% increase in the data center segment (representing an increase in AI GPU sales). However, the company also saw encouraging growth in gaming and automotive, where revenue increased 18% and 11%.
The automotive segment includes revenue from chips supplied to companies leading in self-driving technology. The market is still in its infancy, but could be a major growth catalyst as demand for chips rises alongside the growing industry.
In addition to the huge growth potential in the technology sector, Nvidia’s price-to-earnings-growth (PEG) ratio is less than 1, indicating that the stock remains a valuable player despite recent growth. At its current position, a $25,000 investment would yield about 201 shares of Nvidia — significantly more than a few months ago, thanks to a recent stock split.
At this price, the company is a bargain this year for investors with a long-term view.
2. Amazon
Just like Nvidia, Amazon (NASDAQ: AMZN) has significantly expanded its reach into technology. Since its founding in 1994, Amazon has ventured into and eventually dominated multiple sectors, including e-commerce, video streaming, and cloud computing.
It’s as if the company can do no wrong, with solid leadership and vast financial resources allowing it to expand and overcome unexpected hurdles. As a result, the stock is an attractive option as it continues to make gains in retail and develops its role in AI and digital advertising.
In the first quarter of 2024, Amazon’s revenue rose 13% year over year. The company enjoyed huge gains in operating income, which more than tripled to $15 billion since last year thanks to growth in its retail segments and the highly profitable cloud platform Amazon Web Services (AWS).
Additionally, the quarter marked a burgeoning business for the company, with ad services revenue rising 24% following the introduction of ads on its Prime Video streaming service. Amazon has a competitive advantage in the industry with a leading market share in streaming. This could allow it to dominate the developing streaming advertising market in the coming years, further diversifying Amazon’s business.
A $25,000 investment would buy approximately 130 shares of Amazon stock at the current price. The company’s shares are up more than 100% in the past five years, but could surpass that figure as the company continues to expand in AI and other areas of technology. Like Nvidia, Amazon’s PEG is also less than 1, making the stock simply too good to pass up in 2024.
Should you invest $1,000 in Nvidia now?
Before buying Nvidia stock, consider the following:
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
The Best Stocks to Invest $50,000 in 2024 was originally published by The Motley Fool
