My Top 5 Artificial Intelligence Stocks to Buy for 2025

The buzz surrounding artificial intelligence (AI) has significantly boosted the stock market, and this enthusiasm appears to continue as we move into 2025. The technology is still in its infancy, with many companies actively investing in data centers and AI platforms. Importantly, there is still a lot of progress to be made.

Nvidia (NVDA) stands out as a prime example of this trend. CEO Jensen Huang has pointed out that there are approximately $1 trillion worth of outdated computers that need upgrading to support accelerated computing. Moreover, the actual implementation of AI to enhance business efficiency and innovate groundbreaking products is just beginning. This indicates vast potential for revenue growth driven by AI, suggesting that 2025 could be another prosperous year for AI stocks. Let's delve into the top five AI stocks worth considering now.

1. Nvidia

Nvidia merits mention as a leading name in AI chips for several reasons. Despite concerns from some investors about a potential slowdown in growth following an 800% increase over the past two years, the future looks promising. Nvidia has established itself as the leader in AI chips, creating an extensive ecosystem of products and services while committing to continual innovation. A significant factor in its favor is the launch of its new Blackwell architecture.

Furthermore, we are entering a new growth phase in AI known as agentic AI, where AI is used to perform complex, multi-step tasks. Nvidia equips developers with the tools needed to create these AI agents, and thus, the company is well-positioned to support its clients throughout their AI journey—from model training to real-world applications.

2. SoundHound AI

SoundHound AI (SOUN) focuses on voice AI technology, particularly its acclaimed system that translates voice directly into meaning, skipping the usual text conversion. This has helped SoundHound achieve impressive growth recently, reporting an astounding 89% revenue increase in the recent quarter. The company is targeting a substantial total addressable market estimated at $140 billion.

Notably, just a year ago, automotive customers accounted for about 90% of revenues. However, the most recent report showcased five industries contributing 5% to 25% of revenue each, indicating that SoundHound is diversifying its client base across multiple sectors.

Additionally, SoundHound may gain from the ongoing boom in AI agents, providing businesses in healthcare, insurance, and travel with improved efficiency gains—like optimizing appointment scheduling or answering inquiries. Although the shares of SoundHound have enjoyed a rise, the potential for further growth remains strong.

3. Amazon

If you are looking for a low-risk investment in AI, Amazon (AMZN) is a sound choice. The company’s success does not hinge solely on AI, having shown consistent growth over the years, even before the AI trend took off. Amazon thrives in two rapidly developing sectors: e-commerce and cloud computing, both of which promise substantial long-term prospects.

Moreover, Amazon's strategic investments in AI contribute to enhancing its operational efficiency, particularly in warehousing, alongside its AI products and services offered through Amazon Web Services (AWS). This investment has helped AWS achieve a remarkable $110 billion annualized revenue run rate. While Amazon might not present opportunities for triple-digit returns, it is a solid, profitable entity likely to facilitate steady wealth growth for investors.

4. Meta Platforms

Meta Platforms (META) has made significant investments in AI while not relying entirely on it for revenue. Most of its income emanates from advertising, as advertisers flock to Meta’s popular social media platforms including Facebook, Instagram, WhatsApp, and Messenger.

Through this robust advertising revenue stream, Meta has consistently generated billions, allowing for shareholder dividends. How does AI fit into all of this? Meta has developed its own large language model (LLM), designed to back its internal AI assistants and offer it as an open-source tool.

Meta's vision includes providing AI assistants for all users, which could enhance engagement on its social media platforms, subsequently attracting more advertisers. Additionally, investments in AI might lead to innovative products and services in the future, positioning Meta as a potential leader in the AI space.

5. Palantir Technologies

Palantir Technologies (PLTR) experienced a remarkable 2024, achieving its highest profit margin, joining the S&P 500, and seeing its shares jump by 340%. However, the stock may still have room for further expansion, especially in the long term.

Palantir’s business model focuses on helping clients aggregate and leverage their data more effectively. Although it started with government contracts, it has seen a surge in revenue from commercial customers, with the number of U.S. commercial clients growing from 14 to about 300 in four years.

Moreover, the introduction of its Artificial Intelligence Platform (AIP) over a year ago has seen significant demand. The combination of growing commercial clients and increased interest in AIP is likely to boost revenues going forward, which may contribute to higher share prices for Palantir in 2025 and beyond.

AI, Stocks, Investments