The artificial intelligence story is just heating up.
According to Jensen Huang, founder and CEO of Nvidia (NASDAQ:NVDA), “AI will be mainstream in every application for every industry. Placing an AI supercomputer on the desks of every data scientist, AI researcher and student empowers them to engage and shape the age of AI.”
Even better, according to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030.
Key Points About This Article
- Some of the hottest tech stocks to buy for 2025 can be found in artificial intelligence.
- According to Jensen Huang, founder and CEO of NVIDIA, “AI will be mainstream in every application for every industry.
- We also have to consider that thanks to artificial intelligence, data center infrastructure demand is through the roof.
- 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.
Plus, according to a new IBM (NYSE:IBM) study, “retail and consumer products companies surveyed say they plan to allocate an average of 3.32% of their revenue to AI—equivalent to $33.2 million annually for a $1 billion company,” as noted by an IBM press release.
Also, thanks to artificial intelligence, data center infrastructure demand is through the roof. According to Synergy Research Group, “Total data center infrastructure equipment revenues probably reached $282B in 2024, and hyperscale data center capacity is expected to triple by 2030. The artificial intelligence (AI) boom has led to massive demand for high-powered graphics processing units (GPUs), which in turn has led to major investments in data centers to support those chips.”
All of which continue to make tech stocks standout investments for 2025, including:
Nvidia
Analysts at Bank of America reiterated a buy rating on Nvidia with a price target of $190 a share with the company’s keynote presentation at the Consumer Electronics Show (CES).
Among the significant announcements from Nvidia at CES 2025 was the introduction of Cosmos foundation models, designed to generate realistic videos for training robots and self-driving cars at a lower cost than traditional data collection methods.
The company also launched its RTX 50 series gaming chips, and its first desktop computer, which is designed for computer programmers.
Advanced Micro Devices
Advanced Micro Devices (NASDAQ:AMD) has also been explosive.
At CES 2025, AMD announced its new Ryzen AI Max, additional Ryzen AI 300, and Ryzen AI 200 central processing units (CPUs) for AI PCs, as well as high-powered chips for gaming desktops and laptops and handheld gaming systems.
Helping, analysts at Northland Securities say AMD is a great opportunity, and named the tech stock as one of its top picks for the new year.
“We expect AMD to continue to gain share in AI GPUs, server CPUs, and PC clients as headwinds from the embedded and gaming segments abate. AMD is winning share in AI based on its roadmap and TCO. AMD has better products for server and client CPUs. The PC refresh cycle will likely be much stronger than currently expected. We think there is significantly more upside to CY25 than risks,” added Northland Securities, as quoted by TipRanks.com.
C3.ai
Since bottoming out in September at about $18.85, C3.ai (NYSE:AI) raced to a high of $45.08. Now back to $32.42 thanks to a broad market pullback, it’s again a buy on weakness.
Helping, the company “had an outstanding quarter with strong top- and bottom-line performance to mark our seventh consecutive quarter of accelerating revenue growth,” said CEO Thomas Siebel. “It is difficult to overstate the potential of the Microsoft–C3 AI strategic alliance. By establishing C3 AI as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine, we’re making it easy for businesses to adopt and deploy C3 AI applications. This is an inflection point for Enterprise AI, driving growth.”
Even better, the company just raised its full-year guidance. It now expects fiscal 2025 revenue to be between $378 million and $398 million, which is up from its prior range of $370 million to $395 million. Analysts were looking for $382.6 million. For the third quarter, C3.ai expects to see revenue of between $95.5 million and $100.5 million. The midpoint is above analyst expectations of $97.5 million.
Artificial Intelligence & Technology ETF
We can also look at ETFs like the Artificial Intelligence & Technology ETF (NASDAQ:AIQ).
With an expense ratio of 0.68%, the AIQ ETF invests in “companies that potentially stand to benefit from the further development and utilization of artificial intelligence (AI) technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data,” as noted by GlobalXETFs.com.
Some of its top holdings include Tesla, Broadcom, Nvidia, IBM, Amazon, Salesforce and Meta Platforms to name a few of its 84 holdings.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.