2 Top Artificial Intelligence Stocks to Buy in January

Group 1: Qualcomm - Qualcomm has advanced AI in its chipsets with the Snapdragon 8 Gen 3 and the upcoming Snapdragon 8 Gen 4, potentially leading to a new upgrade cycle [3] - The company generated $39 billion in revenue for fiscal 2024, a 9% increase year-over-year, with net income rising by 40% to $10 billion [4] - Qualcomm anticipates lost business from Apple in its fiscal 2025 estimates, which may lead to upside surprises for its stock [5] - Analysts forecast revenue growth to remain around 9% for fiscal 2025, with Qualcomm's P/E ratio at 17, suggesting potential for multiple expansion compared to peers [13] Group 2: Alphabet - Alphabet, the parent company of Google, has significant resources with $93 billion in liquidity, down from $111 billion at the end of 2023, and is investing in R&D and dividends [7] - The company generated $62 billion in free cash flow in the first nine months of 2024, providing flexibility for continued innovation [9] - Alphabet's P/E ratio of 25 is the lowest among the "Magnificent Seven" stocks, indicating potential for valuation improvement as investors recognize its capabilities beyond Google Search [17] - The release of the Willow quantum computing chip addresses key obstacles in quantum technology, potentially enhancing AI capabilities [15][16]