An intriguing shift is underway, especially following the retail trading frenzy of 2021. Emerging platforms captured the imagination of savvy investors. These rising stars in the social media stocks arena are not just riding the wave of existing trends. They are also at the forefront of innovating new ones.
The role of platforms, including Reddit, in democratizing stock trading is particularly noteworthy. They provide individual investors the access to real-time information and collaborative insights. So, these platforms have significantly influenced stock market dynamics. GameStop remains a prime example of online communities swaying stock prices, challenging the long-established norms of Wall Street.
Therefore, let’s delve into three of the top social media stocks that offer robust upside potential ahead.
Nvidia (NVDA)
Artificial intelligence (AI) has been a dominant 2023 theme and promises to continue its influence over the long haul. Nvidia (NASDAQ:NVDA) stands at the forefront of this trend, making it an outstanding investment choice in the AI sphere.
Moreover, the discussion around AI stocks frequently revolves around Nvidia, and for good reason. Currently, Nvidia is not only the largest player in this arena but also the most reputed, showing no signs of decelerating. The company’s supremacy in the AI space is further reinforced by the growing demand for its H100 chips.
The demand for AI and high-performance computing chips saw a major surge in the third quarter. In fact, Nvidia sold over half a million of its H100 chips for these applications. Further, analysts expect Nvidia and its sales to project a continued robust performance. They anticipate that the firm will again exceed the sale of 500,000 H100 chips in the fourth quarter.
Thus, NVDA’s relentless progress makes it a compelling choice for investors looking to capitalize on the ongoing AI revolution.
DTE Energy (DTE)
Detroit-based DTE Energy (NYSE:DTE) is a $22.6 billion market cap utility giant making major strides in Michigan’s energy sector. Predominantly an electricity provider, DTE serves millions in Southeastern Michigan. Their variety of operations spans power generation, industrial projects, fuel transport, and energy marketing.
Recently, DTE raised its quarterly dividend by approximately 7%, signaling robust financial health and a commitment to rewarding shareholders. For 2024, the company forecasts operating earnings per share of $6.54 to $6.83. This is driven by increased sales from its electric, gas, renewable energy, and energy trading segments. Also, the projection aligns with DTE’s ambitious long-term growth target of 6% to 8% in operating EPS through 2028.
Furthermore, DTE plans a significant $2 billion increase in its five-year utility capital spending, totaling around $25 billion. This investment is set to enhance and expand its utility infrastructure. Additionally, DTE is advancing in carbon capture and storage projects in the Midwest, planning to invest $80 million to $100 million.
Microsoft (MSFT)
Finally, Microsoft (NASDAQ:MSFT) continues to outshine the market. Its primary strategic $10 billion investment in OpenAI marks it as a key player in the AI sphere.
Moreover, its AI advancements significantly fuel its cloud-computing arm, Azure, which is a major driver of revenue and earnings. This was evident in the first quarter of fiscal 2024. Specifically, MSFT saw a 13% year-over-year (YOY) revenue growth to $56.5 billion and a 27% surge in net income to $22.3 billion. Beyond cloud services, Microsoft’s AI ventures include Copilot, an innovative AI assistant. The bot integrates within Microsoft Office products, demonstrating the firm’s commitment to embedding AI across its offerings.
Wall Street analysts are bullish on Microsoft heading into 2024. In fact, they label it a top pick despite more than a 50% gain in 2023. And, they anticipate further growth as Microsoft’s AI investments start to impact its financials significantly. MSFT’s strong performance in cloud computing, gaming, and AI, combined with its robust earnings, makes it a compelling investment choice for the coming year.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
