Wall Street Expects 2 AI Stocks to Return at Least 50% in 2024

By Trey Thoelcke Published Mar 25, 9:40AM EDT

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Wall Street Expects 2 AI Stocks to Return at Least 50% in 2024 — © Laurence Dutton / Getty Images

Enthusiasm about the prospects for artificial intelligence (AI) remains a significant driver for many stocks, including several of the Magnificent Seven. The question for investors who have been cautious about what could have been a fad, or those who are simply late to the party, is whether it is now too late to jump on board. Have all the profits in AI stocks already been made?

Truth is, there may still be opportunities. Take for example Ambarella Inc. (NASDAQ: AMBA) and Cyngn Inc. (NASDAQ: CYN). Both automotive technology stocks have been in retreat in the past year. Yet, analysts anticipate strong rebounds for both of them in the next 12 months. So what’s up here? Let’s have a look.

Ambarella

AI features for automobiles and more.

This edge AI and fabless semiconductor design company focuses on low-power, high-definition, and Ultra HD video compression, image processing, and computer vision processors. Its products include video security, advanced driver assistance, electronic mirror, drive recorder, driver or cabin monitoring, autonomous driving, and other robotics applications, including those used for the Internet of Things.

The company expanded its partnership with infrastructure services provider Quanta earlier this year, and more recently it posted a narrower-than-expected quarterly net loss.

Past-Year Price Change	Target Price	Est. One-Year Gain
−35.3%	$74.33	50.7%

Shares are down about 19% year to date and are well down from an all-time high above $200. The analyst’s consensus price target is less than the 52-week high. However, hitting the high price target of $90 would be a gain of over 82% for the stock. Just four of 10 analysts who cover stock have Buy ratings, but there are no Sell ratings.

Cyngn

Autonomous vehicle technology.

This autonomous vehicle (AV) technology company engages in the development of driving software that can be deployed on multiple vehicle types in various environments. Its offerings include an internal tool suite and infrastructure that facilitate AI and machine learning training to enhance algorithms and models, and it provides a simulation framework to ensure that data collected in the field can be effectively applied. The company has at least 19 patents for its AV technologies, as well as partnerships with Nvidia and Rivian. (Check out some other artificial intelligence stocks under $10.)

Past-Year Price Change	Target Price	Est. One-Year Gain
−88.1%	$2.70	1,700.0%

Despite how much the share price of this penny stock is down in the past year, it is actually up more than 3% this year, thanks largely to a rally following a business update in January. Analysts see more room for shares to run, as their mean price target would be a 52-week high. The $3 high price target would be a gain of 1,900% for the stock. The consensus recommendation is to buy shares.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.