As in 2023, investors were once again captivated by the potential of artificial intelligence (AI) in 2024. But not every stock has benefited. Sure, Nvidia and Broadcom have had great years, but not every AI beneficiary was as fortunate.

The S&P 500 (SNPINDEX: ^GSPC) is up 28% this year, which is almost triple its average annual gain going back to 1957. Technology stocks are leading the S&P higher at the moment, but those operating in the artificial intelligence (AI) space are generating particularly strong gains.

Palantir Technologies (PLTR) showcases this possibility. As a market darling in artificial intelligence and data analytics, the stock has quadrupled year-to-date. Its sky-high valuation makes investors wonder whether the price is fair or a bubble.

One of the prominent stocks driven by artificial intelligence (AI) is Palantir Technologies ( PLTR 8.54%). From a low of around $6 per share at the height of the 2022 bear market, the SaaS stock 's AI tools have driven a more than 12-fold gain in the stock in two years.

Market researcher IDC forecasts that global AI-related spending could hit $337 billion next year and jump to a whopping $749 billion by 2028. As a result, technology companies selling AI-related hardware and software should ideally witness healthy growth in their businesses next year.

Palantir ( PLTR 8.54%) has quickly emerged as a top artificial intelligence (AI) stock pick for many investors. The stock has more than quadrupled in 2024 and has a huge following.