Considered one of the largest themes within the stock market in 2024 was artificial intelligence (AI), which is showing signs of becoming a breakthrough technology. That said, AI still appears to be within the early innings, with 2025 still promising a number of opportunities within the sector.
Let us take a look at three AI stocks to purchase this month.
Nvidia(NASDAQ: NVDA) has arguably been the largest winner from AI, as its revenue absolutely skyrocketed the past two years. In fiscal yr 2024, led to January of last yr, its revenue grew 125%, while in fiscal yr 2025, its revenue is about to greater than double once more.
The corporate’s graphic processing units (GPUs) are the backbone of the AI infrastructure build-out attributable to GPUs’ impressive processing speed, which is required to handle large language model (LLM) training and AI inference. Meanwhile, it amassed a whopping 90% market share within the GPU space over rival Advanced Micro Devices attributable to its superior software platform CUDA, which incorporates developer tools and micro-libraries that easily allow its chips to be programmed to handle various AI-related tasks.
Spending on AI infrastructure only continues to speed up, as LLMs need increasingly more computing power to be trained on. Meanwhile, Nvidia’s largest customer Microsoft(NASDAQ: MSFT) announced it will spend around $80 billion this calendar yr on AI data centers.
Typically, about half that spending goes toward servers with GPUs. By comparison, for its last fiscal yr led to June, Microsoft spent $44.5 billion in capital expenditures (capex). With other large customers also ramping up capex spending on AI infrastructure this yr, Nvidia still has a number of growth ahead.
Despite its strong stock performance, Nvidia trades at a forward price-to-earnings ratio (P/E) of about 31.5, based on 2025 analyst estimates, and a price/earnings-to-growth ratio (PEG) of 0.98. A PEG under 1 is mostly view as undervalued, and growth stocks will often trade with PEGs well above 1.
Image source: Getty Images.
Microsoft is planning to spend big on AI infrastructure this yr, and for good reason. The corporate’s cloud computing unit Azure has been a giant AI winner, showing revenue growth of 33% last quarter, while its Azure OpenAI usage doubled up to now six months. Azure is a consumption model, and customers are using its services to assist built out their very own AI agents and applications. This can also be resulting in more usage of its data and analytics services.
While Azure has been showing strong growth, it may very well be much more robust if not for capability constraints. It has already forecast that Azure revenue will begin to speed up within the second half of its fiscal yr as more capability comes on from past capex spending. Meanwhile, it’s pouring a ton of cash into constructing out data centers internationally to attempt to sustain with demand.
Along with cloud computing, the corporate also has a giant opportunity on the AI software side with its AI assistant copilots for its Microsoft 365 suite of productivity tools. For $30 a month per enterprise use, Microsoft provides AI copilots for its number of productivity tools that may do things like organize and prioritize emails, create PowerPoint presentations using only natural language, and even use the Python programming language in Excel using only natural language prompts. These AI copilots can save employees a number of time and needs to be a giant growth driver for the corporate moving forward.
Trading at a P/E of 32.5 current fiscal yr estimates, the stock in all fairness valued.
Salesforce(NYSE: CRM) is trying to grow to be the leader in agentic AI, which is believed to be the following evolution of AI beyond generative AI. With generative AI, users can create content via a prompt, reminiscent of asking ChatGPT to create a vacation itinerary. Agentic AI would take that to the following level by going out by itself and booking every thing needed for that vacation, reminiscent of flights, hotels, dinner reservations, and tour guides.
Long the leader in customer relationship management (CRM) software, the corporate launched its agentic AI platform Agentforce in October, with an improved version announced in mid-December. The platform offers a wide range of out-of-the-box agents that users can customize through its no-code and low-code tools, while customers will give you the chance to construct their very own agents from scratch as well. Out-of-the-box agents can be found in such areas as sales, marketing, recruiting, and customer support, amongst others.
Salesforce has seen early rapid adoption of Agentforce, with the corporate saying in early December that it had closed 200 teams, while in mid-December it said it had closed greater than 1,000. It has projected it is going to have 1 billion Agentforce AI agents deployed by the tip of its fiscal 2026 (ending January 2026). Agentforce is a consumption product that costs $2 per conversation, so this can be a big opportunity moving forward for the corporate.
The stock currently trades at an affordable value of 29 times fiscal 2026 earnings and a PEG of 0.8.
Before you purchase stock in Nvidia, consider this:
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Consider when Nvidia made this list on April 15, 2005… for those who invested $1,000 on the time of our advice, you’d have $832,928!*
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Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Idiot has positions in and recommends Advanced Micro Devices, Microsoft, Nvidia, and Salesforce. The Motley Idiot recommends the next options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure policy.