3 AI Stock Winners That Are Riding the Tech Sector Turbulence

As the second half of the year begins, investors may be wondering whether the same themes that performed best in the first half of the year will continue to perform. Undoubtedly, AI chip stocks will continue to stand out as exciting growth bets for investors looking to play the tech revolution.

Given the likelihood that artificial intelligence (Artificial intelligence) the boom will last for years, it’s probably a bit too early to get rid of the biggest gains in AI just because the first half of the year saw a slight increase in volatility.

Indeed, to gain long-term benefits from AI, investors will have to face volatility. Not just weekly, but perhaps quarterly.

Staying invested in the top AI stocks will have its fair share of turbulence along the way. An example of this is the odd 15-20% correction like the one it recently experienced Nvidia (NASDAQ:NVDA). A near halving of stocks can be expected if fear becomes the dominant emotion on Wall Street.

Either way, let’s take a look at three stocks that have weathered the recent tech market turmoil and are poised to continue their good run in the second half of 2024.

Apple (AAPL)

Despite an exceptionally strong finish to the second half, Apple (NASDAQ:AAPL) shares continued to lag behind results Nasdaq100 since the beginning of the year (Every year). With an explosive first day of the second half, with AAPL shares up nearly 5% on July 1, Apple could be positioned to lead the tech pack higher.

Today, AAPL stock hit a new all-time high of $220 per share, while NVDA stock is down more than 8% after hitting a snag in June. Indeed, Nvidia was in the driver’s seat on tech and AI in the first half. In the second half of the year, I believe Apple has better, perhaps less appreciated catalysts. And they could fuel growth in the second half of the year that could be the peak for the Magnificent Seven.

It’s not just about the upcoming AI features in iOS 18 and the positive impact it will have on iPhone sales. Apple seems to be catching a break in China for a change. A recent Bloomberg report noted that iPhone shipments were up 40% in May. The previous discounts seem to be working to a large extent.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is another tech titan that has weathered a little turbulence with aplomb. MSFT shares hit new highs of $458.79 a share, with June’s turbulence barely affecting the $3.4 trillion tech and AI giant.

Wedbush analyst Dan Ives believes that Microsoft (and Nvidia) are driving the AI ​​revolution. He’s certainly not wrong. These two AI stocks are currently at the top of their class.

Ives believes that Microsoft is driving a “Bugatti” (a really, really fast car) at “100 miles per hour” in the AI ​​race, while most of its competitors are driving much slower cars. Ives specifically noted that Amazon (NASDAQ:AMZN) drives an ordinary “minivan.” It’s an interesting analogy that tells the story of current developments in artificial intelligence.

As artificial intelligence supercharges Azure’s cloud business, Amazon may struggle to stay on top of the cloud. Amazon Web Services (AWS) has doubled the value of startup loans, which may suggest concerns about Microsoft’s cloud momentum. In any case, Microsoft seems unstoppable and perhaps still reasonably affordable, even when the latest price-to-earnings ratio (P/E) this ratio is approximately 40.

Hewlett Packard Enterprises (HPE)

Hewlett Packard Enterprises (NYSE:HPE) the company’s shares remain high after turbulence at the end of June.

HPE stock is up more than 18% over the past month, marking an impressive end to a first half in which HPE was up nearly 25%. The stock is just 3% off its all-time highs, just below $22 a share. It could be worth watching an underrated AI beneficiary as the market faces critical tests in the second half of the year.

As investors increasingly focus on data centers, HPE stock seems as timely as it is cheap. The stock is trading at just 15.45 times P/E, a bargain for a company that could soon feel the full force of the AI ​​tailwind.

Indeed, HP Enterprises’ partnership with Nvidia could pay big dividends as enterprise customers look to buy into the new “Nvidia AI Computing by HPE” service. The HPE-Nvidia partnership is a huge deal that could accelerate HPE’s growth by putting it on the AI ​​fast track.

On the date of publication, Joey Frenette owned shares of Apple and Microsoft. The opinions expressed in this article are the author’s own and subject to InvestorPlace.com Publication Guidelines.

On the date of publication of this article, the editor in charge did not hold (directly or indirectly) any interests in the securities referred to in this article.