Artificial intelligence (AI) promises to be a game-changing technology. And while only time will tell where the race to artificial general intelligence (AGI) ultimately takes us (big names in AI see the milestone being achieved by 2030), it’s not hard to imagine that the most aggressive spenders on the effort will have the best shot at monetization.
In this piece, we’ll check out three tech companies continuing to spend heavily on AI efforts. While their impressive AI plans could bring forth more investment inflows in 2025, investors should pay special attention to the distinct advantages that certain firms possess. At the end of the day, the firm that will benefit most from the AI revolution may not be the one that writes the most checks.
Indeed, some heavy AI spenders are positioned to get a better bang for their buck than others. Beyond just the figures committed to being invested, I’d pay careful attention to a firm’s closeness with users, the quality of their data sets, and the caliber of talent.
Here are three tech titans poised to continue making big splashes on the AI front as the focus shifts on the path to AGI, something that an OpenAI employee believes has already been achieved. Whether or not the finish line has been passed behind closed doors, the following firms, I believe, are worth stashing on the radar for the new year.
Key Points About This Article
- Look for the Magnificent Seven tech giants to keep spending very heavily on AI in 2025 and beyond.
- Perhaps more firms are poised to enjoy their own “Nvidia moments” as agentic AI and the race to AGI intensifies.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Nvidia
Nvidia (NASDAQ:NVDA) officially fell into correction territory on Monday, with shares now down just over 11%. Undoubtedly, it seems like momentum chasers are ditching NVDA shares for Broadcom (NASDAQ:AVGO) after last week’s 43% surge. Going into 2025, Broadcom’s continued gains shouldn’t detract from Nvidia. In fact, Bernstein analysts seem to think the two AI titans can both move higher from here. The investment company has both companies as its top semi picks for 2025.
Notably, Bernstein’s Stacy Rasgon thinks Broadcom is experiencing an “Nvidia moment.” As exciting as it is to be a Broadcom shareholder these days, I still think it’s a mistake to dump Nvidia as it enters the year of Blackwell.
Mr. Rasgon thinks investors have to be in the name as the “Blackwell product cycle” kicks off. I couldn’t agree more. It seems like the market is underestimating the amount of gas Nvidia still has left in the tank. Should Blackwell fly off shelves as expected, the Blackwell boom may catalyze Nvidia’s run to the $4 trillion market cap milestone.
Alphabet
Alphabet (NASDAQ:GOOG) is another Magnificent Seven AI-spending heavyweight that investors should keep tabs on in 2025. Aside from Gemini, which recently launched its second version, Alphabet’s Waymo autonomous vehicle subsidiary and Google Quantum AI division show tremendous long-term growth promise.
Indeed, it’s not hard to imagine that many excited investors are bidding GOOG stock higher following the release of its breakthrough quantum-computing chip, Willow.
Though some may think it’s too early in the game to get excited about the firm’s quantum prospects, I do think it’s a mistake to discount the extremely long-term potential behind the Google Quantum AI business. Indeed, the only thing more exciting than AI is quantum AI. Even after gaining another 3.5% on Monday’s session, GOOG stock still looks like one of the cheapest AI heavyweights on the market, with shares going for 26.25 times trailing price-to-earnings (P/E).
Meta Platforms
Meta Platforms (NASDAQ:META) is the social-media giant making some serious noise in AI of late. The company behind Llama recently pulled the curtain on a new type of model named Meta Motivo, which has the ability to control digital agents.
Undoubtedly, with all the talk about AI agents or agentic AI, investors should look to follow such developments closely. For now, it’s hard to gauge how much of a game-changer Motivo can be. Arguably, I think the market may still be discounting Meta’s potential to continue running higher as agents become the new AI terminology that moves the needle.
In a prior piece, I noted the possibility that Meta could surpass Nvidia in market cap in a few years. If Meta gets agents right and Nvidia struggles to retain its significant GPU market share, perhaps things could get very interesting as the AGI finish line gradually falls into sight.
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