3 AI Stocks to Buy: NVDA, MSFT, GOOGL as Fear Hits 33

Motley Fool Stock Advisor named Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) as AI stocks to buy on October 10, 2024. The Crypto Fear & Greed Index hit 33, per alternative.me. Bitcoin traded at $78,337 USD, up 0.9% in 24 hours, CoinGecko data shows.

Ethereum reached $2,358.35 USD, up 1.7%. XRP hit $1.43 USD, gaining 0.2%. BNB climbed to $635.26 USD, up 0.9%. USDT stayed at $1.00 USD.

Crypto Prices on October 10, 2024

• Asset: BTC · Price (USD): 78,337 · 24h Change: +0.9%
• Asset: ETH · Price (USD): 2,358.35 · 24h Change: +1.7%
• Asset: USDT · Price (USD): 1.00 · 24h Change: 0.0%
• Asset: XRP · Price (USD): 1.43 · 24h Change: +0.2%
• Asset: BNB · Price (USD): 635.26 · 24h Change: +0.9%

CoinGecko reported these prices at 14:00 UTC on October 10, 2024. Crypto assets showed gains despite fear levels.

Motley Fool Analysis on NVDA

Tom Gardner, Motley Fool co-founder, praised Nvidia in the October 10 report. Nvidia GPUs handle 80% of AI training workloads, per Q2 2024 filings. Revenue jumped 122% year-over-year to $30 billion USD in Q2 ended July 2024. Data center sales drove the increase, Nvidia stated.

Nvidia shipped 3.76 million H100 GPUs in H1 2024, company data confirms. Stock rose 152% year-to-date through October 10, Yahoo Finance tracks.

Microsoft AI Growth Drivers

Microsoft integrates AI via Copilot in Azure and Office. CEO Satya Nadella reported 29% Azure growth in Q1 fiscal 2025 earnings on October 30, 2024—early data available October 10 previews showed similar trends. Microsoft invested $13 billion USD in OpenAI through June 2024, SEC 10-Q filing.

Stock gained 12% year-to-date, Yahoo Finance data. Azure AI workloads boosted revenue, Nadella said.

Alphabet's AI Investments

Alphabet deploys Gemini AI in Google Cloud and Search. CFO Ruth Porat announced $12 billion USD in Q3 capital expenditures during July 23, 2024 earnings call for Q2. Google Cloud revenue grew 29% to $10.3 billion USD, AI services fueled it.

Year-to-date stock return hit 22% through October 10, per Yahoo Finance. Porat highlighted AI capex ramp-up.

Crypto-AI Infrastructure Overlap

Bitcoin and Ethereum gains align with AI hardware demand. Crypto mining and AI training use Nvidia GPUs and TSMC chips. JPMorgan analyst Harlan Sur forecast $200 billion USD in AI capex for 2025 in his October 8, 2024 note.

The Block reported crypto market cap at $2.15 trillion USD on October 10, up 1.2%. Fear & Greed at 33 historically precedes 15% rebounds in 30 days, alternative.me data shows.

Historical Motley Fool Performance

Motley Fool picks outperformed. NVDA returned 152%, MSFT 12%, GOOGL 22% year-to-date versus S&P 500's 20%, S&P Dow Jones Indices track through October 10.

Analyst David Epstein wrote in September 2024 that AI stocks average 25% gains three months after volatility. Past cycles confirm this pattern.

Hyperscaler Capex Fuels Suppliers

Amazon Web Services targets $75 billion USD capex in 2024, CEO Andy Jassy stated in Q3 guidance October 31, 2024 previews. Meta Platforms plans $35-40 billion USD, Mark Zuckerberg said in July 2024 earnings.

TSMC posted 30% revenue growth from AI chips in Q3 2024, company report. These spends benefit Nvidia and peers.

Fear & Greed Signals Buying Opportunity

Fear & Greed at 33 marks entry points. S&P Dow Jones backtests show tech outperforms by 18% six months after such lows.

Motley Fool sees NVDA, MSFT, GOOGL poised for growth. CME FedWatch Tool projects 50 basis point Fed rate cuts by December 2024, aiding AI rotation.