AI's 2024 Stars: Still Room for Growth, Analysts Say

Coherent (COHR) and GE Vernova (GEV), two prominent AI-related stocks, have been standout performers in 2024. As the AI revolution continues, these companies are poised for further growth, according to analysts. Here's a closer look at these AI winners and the opportunities they present.

Coherent, a specialist in materials, optoelectronic components, and laser systems, has gained a significant edge in the AI landscape. Its optical circuit switches for AI data centers have driven intense demand for its offerings, with the company's earnings power underestimated by Wall Street. Jefferies analyst George Notter recently initiated coverage of COHR with a buy rating and a $135 price target, suggesting more room for shares to run after their triple-digit rally this year. COHR stock has surged 159% YTD, reaching a new high in 2024.



GE Vernova, an energy spinoff of General Electric, has also made a splash in the AI scene. The company offers AI and machine learning software to automate the inspection and monitoring of industrial assets, streamlining maintenance and reducing downtime. This AI-driven approach has been instrumental in GEV's success, contributing to its 188% stock surge since its April debut. Analysts predict big earnings growth for the company next year, as its AI capabilities help manage the massive energy demand from big technology companies building out AI infrastructure.



Both Coherent and GE Vernova present promising AI-related opportunities in the upcoming years. As AI adoption continues to surge, these companies' unique offerings will remain in high demand. Investors should closely monitor these stocks and the broader AI landscape for continued growth prospects.

In conclusion, the AI revolution has created significant opportunities for companies like Coherent and GE Vernova. With analysts predicting further growth, these stocks remain attractive investments in the AI space. As the AI landscape evolves, investors should stay informed about these and other AI-related stocks to capitalize on emerging trends and opportunities.