As the third quarter of 2024 unfolds, investors are looking for opportunities that will likely yield significant profits in the coming months.
The stock market offers these opportunities due to the wide range of available equities. Some stocks have shown significant growth and will likely deliver profits in the year’s final quarter.
In this context, the following are two stocks that could turn a modest investment of $100 into $1,000 for Q4 2024.
Nvidia (NASDAQ: NVDA)
Nvidia (NASDAQ: NVDA) has been at the forefront of the artificial intelligence (AI) revolution, with its graphics processing units (GPUs) being the backbone of several applications.
According to analysts’ estimates, the company is expected to deliver robust Q2 2024 results, with earnings and revenue likely to be more than analysts over the year. This strong performance has led many analysts to maintain a ‘buy’ rating for the stock, with some targeting a potential high of $150 post-earnings.
Indeed, the company retains bullish sentiment despite the immense pressure to meet high market expectations, especially after a recent market pullback that saw NVDA’s stock price dip significantly.
Despite these concerns, Nvidia’s long-term prospects remain bright. The company’s leadership in AI and its dominant position in the semiconductor market make it a strong contender for continued growth. If Nvidia can deliver on its earnings and maintain its momentum, the stock could see significant gains by the end of the year.
At the time of reporting, Nvidia was trading at $129 with year-to-date gains of about 170%.
NVDA YTD price chart. Source: Finbold
Palantir (NYSE: PLTR)
While Nvidia grabs headlines, Palantir (NYSE: PLTR) is quietly positioning itself as a critical player in the AI space. The company, known for its data analytics platforms, has been making significant strides in commercializing its AI capabilities. Palantir’s Artificial Intelligence Platform (AIP) has seen explosive demand.
Notably, Palantir’s U.S. commercial revenue surged 70% last year, driven by demand for AI solutions. Despite its relatively small market cap compared to Nvidia, some analysts see Palantir as an ideal AI stock option, with one-year price targets as high as $35 per share.
However, the stock is not without risks. Palantir’s heavy reliance on government contracts makes it vulnerable to shifts in government spending priorities. Yet, the company’s increasing focus on commercial clients could mitigate this risk and drive significant growth in the coming quarters.
By the close of markets on August 23, PLTR was trading at $31.78, gaining 91% year-to-date.
Conclusion
Both Nvidia and Palantir offer compelling opportunities for investors looking to multiply their investments in Q4 2024. With its strong AI leadership, Nvidia could see significant gains if it meets or exceeds market expectations in its upcoming earnings report.
On the other hand, while riskier due to its government contract exposure, Palantir offers massive upside potential as it expands its AI offerings.
Nevertheless, investors should understand that multiplying an investment by ten is not guaranteed and not usual. Highly capitalized stocks like Nvidia and Palantir are also expected to move less aggressively than small-caps.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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