The Potential of the AI Industry 2024: Focus on Applied Materials

The AI sector remains highly dynamic and is expected to see significant growth in various sectors in 2024. The focus is on generative AI, which already experienced exponential growth in 2023 and could potentially unlock trillions of dollars as companies transition from pilot projects to broader implementation. This development indicates that 2024 will be a pivotal year for AI, as companies aim to utilize the technologies more comprehensively to boost efficiency, reduce costs, and drive innovation. The market for generative AI is predicted to grow rapidly and could see an annual increase of approximately 60% by 2028, leading to a market valuation of around 37 billion dollars. The AI revolution is already transforming workflows worldwide through automation, data analysis, and enhanced predictive capabilities. Significant growth is particularly expected in the healthcare sector, as AI drives innovations in genomics, drug discovery, and personalized medicine. By 2030, this market could grow to around 188 billion dollars. Edge computing is also expected to see substantial developments in 2024, as real-time data processing becomes increasingly critical for AI applications. This technology, which processes data closer to the source, could reduce latency and improve the performance of AI systems, especially in areas like autonomous driving, IoT, and industrial automation. These trends highlight the growing importance of a robust semiconductor supply chain, especially as global trade conflicts and geopolitical events impact the availability of critical components like chips. Experts also emphasize the importance of ethical considerations and responsible AI as the technologies become more deeply embedded in society. The need for clearer regulatory frameworks and guidelines will increase to ensure that AI is developed and deployed responsibly. Applied Materials is well-positioned to benefit from the AI boom. The company supplies technology giants like Intel, Apple, and Samsung with essential products and forecasts a revenue of 27 billion dollars for the fiscal year 2024. Additionally, financial metrics show stability with a revenue growth of 5.5% and an increase in adjusted operating profits by 7.4%. JPMorgan analyst Harlan Sur recently raised the stock's price target to 250 dollars and maintained an overweight rating. Applied Materials ranks 15th on our list of currently trending AI stocks. While we recognize the growth potential of Applied Materials, we believe that other AI stocks might offer more promising returns within a shorter timeframe. For more information on more cost-effective yet promising AI stocks, please refer to our report.