Here's the 3 best ASX artificial intelligence (AI) shares of FY24

These three names were clear standouts in FY24.

| More on:
A human-like robot checks out market performance on a laptop, indicating the rise of AI shares.

image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

FY24 was a banner year for ASX artificial intelligence (AI) shares — and not just in Australia. AI was a global phenomenon as stock market indices around the world were also driven by large investments in AI shares that could potentially shape our future.

Here in Australia, companies like Dicker Data Ltd (ASX: DDR), Life360 Inc (ASX: 360), and Megaport Ltd (ASX: MP1) are leading the pack in very interesting ways.

These companies have not only delivered impressive financial performance but also positioned themselves at the forefront of AI technology integration and innovation.

Here's a closer look at the top 3 ASX AI shares in FY24, based on share price movement.

ASX AI shares perform in FY24

Dicker Data Ltd (ASX: DDR)

Dicker Data comes in at third place on the list of top ASX AI shares. Investors started buying Dicker Data shares at the start of FY24 when the stock was priced at $8.20 apiece. The ASX AI share secured an 18% gain as the FY24 year came to a close.

It shot to highs of $12.25 by December before consolidating gradually towards its current level, trading at $10.21 apiece at the close on Monday.

Dicker Data made its mark in the AI space by strategically distributing AI-capable hardware and software. The company facilitates the "AI transition" for numerous businesses by supplying critical tech components from top manufacturers.

In FY24, Dicker Data enhanced its position through key partnerships and an expanded product range that supports companies implementing AI.

Goldman Sachs rates the stock a buy with a $9.86 price target, implying a 3.5% upside potential.

Megaport Ltd (ASX: MP1)

Second on the list of ASX AI shares in focus today is Megaport. Its share price hit a high of $15.39 in March as investors went on a feeding frenzy for shares in the AI sector.

Over the 12 months to June 28, Megaport rallied from $7.22 per share to $11.22 apiece, eclipsing a total gain of 55%. Shares in Megaport closed on Monday trading at $11.17.

Like the other two ASX AI shares, Megaport has unique exposure to AI. The company offers a Network as a Service (NaaS) model that is crucial for businesses adopting new technologies.

In its most recent quarterly update, the ASX AI share grew sales 30% year over year, fueled by increasing demand for its services.

With plans to enter new markets and upgrade its platform, Megaport might be poised for further growth in FY25. Citi thinks so, recently rating Megaport a buy with a $16.05 per share price target.

After its FY24 run, the stock now trades at a price-to-earnings ratio (P/E) of more than 192.59 times.

Life360 Inc (ASX: 360)

In first place — and the top-performing ASX AI share in terms of share price – is Life360. In FY24, Life360 showed that AI can enhance safety and connectivity for families worldwide through its mobile app of the same name.

As a reminder, the company's AI tools provide real-time location updates, safety alerts while driving, and rapid emergency responses, securing a place in the lives of millions.

The ASX AI share finished the financial year at $16.37 apiece after starting the period at $7.60 – a more than 115% jump.

Most of this came in the second half of the year, as seen in the chart below. The Life360 share price closed at $16.05.

This reflected a year of significant growth driven by its AI innovations in personal security.

Life360's revenues were up 15% year over year in Q1 due to a jump in premium subscriptions. It booked US$78.2 million at the tip line, with the expansion of its safety features said to have drawn more users but also sharply cut churn rates.

Bell Potter rates the stock a buy with a $17.75 price target.

ASX AI shares in focus

It's no secret investors are focused on ASX AI shares as emerging technologies sprout in the space. Investment returns have been stellar, but there could be plenty of speculation in the mix as well.

As always, remember to conduct your own due diligence.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, and Megaport. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on AI Stocks

A happy family of four on holidays stand on a jetty and cheer.
AI Stocks

Should I buy Life360 shares to profit from the AI stock surge?

Is now the time to enter after such a strong advance?

Read more »

A female soldier flies a drone using hand-held controls.
Technology Shares

DroneShield shares dive another 19%! Time to pounce?

With DroneShield shares getting hammered again today, do I think it’s time to buy?

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
AI Stocks

Here's the outlook for 3 ASX artificial intelligence (AI) shares in FY25

Could it be another bumper year?

Read more »

appen share price
ETFs

Why this ASX ETF is one of the best ways to invest in artificial intelligence (AI)

This could be one of the easiest ways to invest in AI on the ASX.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
AI Stocks

The AI money flow: Why you can't afford to miss stocks like Nvidia and this rising ASX 200 tech stock

Not all ASX tech companies will benefit from AI, but I think this one could keep soaring higher.

Read more »

People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22
AI Stocks

Brainchip share price tumbles 40% in the past year. What's next?

Brainchip shares have had a topsy-turvy year. So, what’s next for this speculative ASX AI technology stock?

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
AI Stocks

2 'pick and shovel' ASX stocks to cash in on the AI megatrend

The AI boom is finding many ASX beneficiaries.

Read more »

A woman works on an openface tech wall, indicating share price movement for ASX tech shares
AI Stocks

Top ASX AI stocks to buy in June 2024

AI beneficiaries can come in all shapes and sizes!

Read more »