2 Stocks Might Generate Generational Wealth (Part-1) 

The S&P 500 index has gained 9% in 2024, which is fantastic news for investors as the first quarter winds down. More importantly, good results from index leaders suggest the stock market will rise this year.

Naturally, experts have been boosting their S&P 500 end-of-year projections. Bank of America now predicts the S&P 500 to reach 5,400 by 2024, up from 5,000. Golden Sachs raised its projection to 5,200 last month from 4,700 in December, but the index is already over that level, so the investment bank may have to boost it again.

Nvidia, The Trade Desk, and Micron Technology will benefit from this stock market boom. A strong catalyst might help all three companies maintain impressive growth in 2024 and beyond. Let's examine why all three stocks should rise this year.

1. Nvidia Currently, Nvidia stock has gained 87% in 2024. It can yet make significant gains this year because to its ambitious product road map, which should help it maintain its supremacy in the lucrative AI chip industry.

Nvidia predicts data centers will spend $250 billion this year on GPUs and other enhanced computer processors. This addressable income opportunity in data centers is expanding 25% annually, says CEO Jensen Huang. In fiscal 2024 (ending January), Nvidia sold $47.5 billion in data center CPUs.

In fiscal 2024, this segment revenue tripled. Huang believes the company's data center sector has a lot of development potential, especially since it has a 95% market share in the AI chip industry. Nvidia's next-generation Blackwell AI GPUs may help it keep its market dominance later this year. The new chips are four times quicker than Hopper processors for AI training and 30 times faster for AI inference.

New graphics cards are expected to cost between $30,000 and $40,000, up from the H100's $20,000 to $30,000. Since these chips cost $6,000 to build, Nvidia should benefit from its next-generation AI chips.

All of this explains why 10 analysts boosted their fiscal year earnings prediction last month. The company expects $22.73 per share in earnings, up from $12.96 last year. Due to its better pricing power, Nvidia stock is likely to rise in 2024, therefore it's a good idea to buy it now at 35 times forward profits, a discount to its five-year average of 39.

2. Trade Desk The Trade Desk stock is up 21% this year and could rise even more in 2024. Due to greater digital advertising spending and programmatic advertising usage, the company is growing faster.

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