AI and Tech Stocks Poised for Gains in 2024 After Bear Market Rebound
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The Nasdaq has historically rallied around 19% on average the year after a bear market rebound, suggesting potential for gains in 2024.
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Generative AI was a key driver of market gains in 2023; two AI stocks well-positioned for growth are Microsoft and Nvidia.
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Microsoft has invested heavily in AI like ChatGPT and Copilot to boost productivity and Azure Cloud growth.
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Nvidia pivoted its business from gaming chips to data center AI processors, with booming 350% revenue growth over 2 years.
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Both Microsoft and Nvidia seem reasonably valued despite strong growth, with PEG ratios under 1 for Nvidia and forward P/E of 36 for Microsoft.