Artificial intelligence (AI) was a market-driving theme last 12 months, with AI stocks helping the S&P 500, the Nasdaq, and the Dow Jones Industrial Average each soar within the double digits. Firms selling AI tools and services saw earnings climb — and investors piled into these players. The initial wave of AI growth was all about this constructing out of infrastructure and the training of models to unravel tomorrow’s complex problems.
Now, within the early days of 2025, there’s reason to be optimistic about one other great 12 months for AI because the infrastructure buildout continues. Nvidia (NASDAQ: NVDA) CEO Jensen Huang has said about $1 trillion of computers worldwide have to be upgraded for accelerated computing, and that does not occur overnight. On top of this, 2025 often is the 12 months of agentic AI, or the AI agents that may reason, develop an answer for an issue, and apply it. This and other real-world applications may very well be transformative for firms and industries.
The good news is, you do not have to speculate a fortune in 2025 to potentially win on this top growth area. Listed below are the very best AI stocks through which to speculate about $500 this 12 months.
Nvidia has been the star of the AI market thus far — and it’s well positioned to maintain that success going. The corporate is present in every stage of AI development, from the chips to power the training of models to the software to use AI to the needs of companies and organizations all over the world.
Because of this, Nvidia’s double-digit and triple-digit revenue growth probably has much further to go. To make the story even brighter, the AI leader is solidly committed to innovation, promising to update its graphics processing units (GPUs) on an annual basis. This could make it very difficult for rivals to beat Nvidia — by the point they catch up, Nvidia already is launching a recent product.
Speaking of recent products, the corporate is in the midst of a very important launch immediately. Its Blackwell architecture has seen “staggering” demand, based on the corporate, and can usher in billions of dollars in revenue in its first months of commercialization. So Nvidia stock may very well be heading for an additional eye-popping gain in 2025.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the least expensive of the “Magnificent Seven” technology stocks which have driven market gains in recent times. The stock trades for 21x forward earnings estimates, a bargain considering its long track record of earnings growth and solid future prospects.
You almost certainly know Alphabet best through its Google Search, probably the most used web search platform worldwide. Promoting across Google equals billions of dollars in revenue for Alphabet every quarter.
But Alphabet is also constructing strengths in AI, which helps one other income — Google Cloud — to quickly grow. Recently, Google Cloud passed the milestone of $10 billion in quarterly revenue and $1 billion in quarterly operating income.
The service sells AI tools to customers, supported by its own large language model (LLM) Gemini. Alphabet is also using AI to make Google Search even higher and help advertisers reach the very best audience for his or her products. All of this might equal a giant win for Alphabet — and its investors — within the AI boom.
Amazon (NASDAQ: AMZN), like Alphabet, is benefiting from AI in two ways. The e-commerce giant is a user of AI to enhance its operations and sells AI services and products through its cloud computing business, Amazon Web Services (AWS).
As you most likely know, Amazon is a huge in e-commerce — and the corporate’s investment in AI could help this billion-dollar business generate much more profit over time. Amazon is applying AI tools to make its success process more efficient — for instance, by designing the very best delivery route to save lots of money and time.
AWS already has demonstrated success in AI, reaching a $110 annualized revenue run rate last 12 months. AWS is specializing in every “layer” of AI — from offering customers a wide selection of chips to power their projects to a completely managed service featuring LLMs to customize. Amazon is also present in the realm of apps and recently launched Project Amelia, an AI agent for sellers on its e-commerce platform.
Amazon is ready to profit from the subsequent wave of AI growth, making it a great bet for 2025.
Ever feel such as you missed the boat in buying probably the most successful stocks? Then you definately’ll wish to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock advice for firms that they think are about to pop. In the event you’re apprehensive you’ve already missed your likelihood to speculate, now’s the very best time to purchase before it’s too late. And the numbers speak for themselves:
Nvidia: should you invested $1,000 once we doubled down in 2009, you’d have $353,272!*
Apple: should you invested $1,000 once we doubled down in 2008, you’d have $45,049!*
Netflix: should you invested $1,000 once we doubled down in 2004, you’d have $457,459!*
Without delay, we’re issuing “Double Down” alerts for 3 incredible firms, and there is probably not one other likelihood like this anytime soon.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Idiot’s board of directors. Adria Cimino has positions in Amazon. The Motley Idiot has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Idiot has a disclosure policy.