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The Nasdaq Composite returned 12.3% annually over the last two decades.
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Nvidia GPUs are the industry standard in accelerating AI workloads.
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Atlassian is a leader in generative AI tools for work management software.
The Nasdaq Composite (NASDAQINDEX: ^IXIC) advanced 930% over the last two decades, compounding at 12.3% annually. That period covers a broad range of economic conditions, so investors can expect similar returns during the next decade. That is particularly true because the Nasdaq is heavily weighted toward technology stocks, where artificial intelligence (AI) promises to be a massive tailwind.
Most Wall Street analysts currently see buying opportunities in Nvidia (NASDAQ: NVDA) and Atlassian (NASDAQ: TEAM), as detailed below:
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Among 65 analysts, Nvidia has a median target price of $212 per share. That implies 26% upside from its current share price of $168.
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Among 33 analysts, Atlassian has a median target price of $250 per share. That implies 45% upside from its current share price of $172.
Here's what investors should know about these artificial intelligence stocks.
Nvidia is the semiconductor company that invented the graphics processing unit (GPU), a chip that has become synonymous with artificial intelligence. While CPUs run operating systems and software, GPUs accelerate complex tasks like rendering graphics, training machine learning models, and running AI inference workloads. Nvidia is the dominant supplier of AI accelerators with more than 80% market share.
The company is well positioned to hold its position as the gold standard in AI infrastructure as physical AI technologies like autonomous robots and self-driving vehicles become increasingly popular. Nvidia not only designs data center GPUs and embedded processors to handle AI on devices, but also provides pretrained models and software tools that assist developers in writing applications.
CEO Jensen Huang told attendees at the GTC conference earlier this year, "We build technology that almost every self-driving car company uses." For instance, Tesla employs Nvidia GPUs to train AI models for its robotaxis. Alphabet's Waymo and Amazon's Zoox use Nvidia hardware and software to train models in data centers, but also to power decision-making in robotaxis.
Similarly, Nvidia Isaac is a platform that brings together code libraries, pretrained models, and frameworks to support the development of autonomous robots, including humanoid robots, manipulator arms, and industrial mobile robots. Amazon uses those tools to build fulfillment center robots, and most companies developing humanoid robots also use some combination of those tools, according to Morgan Stanley.