Nvidia, Meta, Microsoft, and Amazon are among the top stock picks for 2024, according to prominent hedge fund manager and Satori Fund founder Dan Niles. Niles believes that the earnings potential of these companies will drive their stock performance in 2024, as reported by CNBC.

He anticipates a shift this year, where earnings will play a more significant role in stock market performance. Despite negative estimate revisions for Apple Inc, Tesla Inc, and Alphabet Inc, Niles’ four picks continue to see analysts raise forecasts.

Analysts have raised EPS expectations for the four stocks by an average of 50% since the end of last year. In contrast, estimates have remained nearly flat for Google, Tesla, and Apple. This trend has resulted in substantial stock price increases for Nvidia, Meta, Microsoft, and Amazon.

Niles added, “There’s no way you can say this is a bubble from a valuation perspective, or from a time perspective, because it took five years for that internet bubble to build, and we’re only one year and a quarter into the ‘AI bubble’ if you want to call it so. I think we have a lot more room to go.”

The rise of Nvidia, Meta, Microsoft, and Amazon is not coincidental. Meta’s investment in Nvidia’s AI chips is set to reshape the tech landscape, making Nvidia a leader in AI chip production. This investment, led by Meta’s Chief Scientist Yann LeCun, highlights the crucial role of GPUs in advancing AI.

Futhermore, Nvidia’s stock has recently surpassed Tesla’s as the most popular among retail investors, indicating a significant shift in investor sentiment. This shift is notable as Nvidia’s stock has surged by 60% year-to-date, while Tesla’s has seen an 18% decline.