Best AI Stocks to Invest in 2025

[ Tortola, March 3, 2025] – Best AI Stocks to Invest in 2025, as the artificial intelligence (AI) revolution accelerates, investors are looking for the best opportunities to capitalize on this transformative technology. With AI driving innovation across industries such as cloud computing, healthcare, finance, and automation, certain stocks stand out as prime investment opportunities for 2025.

Artificial intelligence technology, for all the people talking about it, is still in its early stages. While a handful of technology names seem to dominate the space currently, investors looking to invest in AI may be wondering which companies are likely to do better as the field evolves.

Other investors are clearly eager to jump in despite uncertainty. Excitement around the possibilities in AI helped AI stocks pull ahead of the market in the first half of 2024, and a lull in the summer was followed by an autumn rebound. The Artificial Intelligence Index returned 37.00% for the year, versus 24.09% for the broad-based US Market Index as of Dec. 31, 2024.

To find the best AI stocks, we look to the Next Generation Artificial Intelligence Index. The AI stocks on this list are among the index’s top constituents, and they all earned Ratings) of 4 or 5 stars, as of Jan. 14, 2025, which means they’re undervalued.

Top AI Stocks to Watch in 2025

Industry analysts and market experts have identified key companies that are well-positioned to benefit from the ongoing advancements in AI technology. These companies are leading the charge in AI development, providing solutions that enhance automation, data processing, and machine learning capabilities.

1. NVIDIA Corporation (NASDAQ: NVDA)

Votan Rating: 5 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: High
Industry: Semiconductors
NVIDIA remains a dominant force in AI, thanks to its cutting-edge GPUs and AI-driven software innovations. With increasing demand for AI computing power, NVIDIA is expected to continue its strong growth trajectory.

2. Microsoft Corporation (NASDAQ: MSFT)

Votan Rating: 4 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: Medium
Industry: Software—Infrastructure
Microsoft has established a leading AI portfolio with offerings like OpenAI, which is home to ChatGPT. Last year, revenue growth estimates and profitability assumptions for Microsoft were raised based on consistent performance and a solid outlook. This AI stock is priced at a 15% discount to our fair value estimate of $490 per share.

“Microsoft is also shifting its traditional on-premises products to become cloud-based SaaS solutions. Critical applications include LinkedIn, Office 365, Dynamics 365, and the Power platform, with these moves now beyond the halfway point and no longer a financial drag. Office 365 retains its virtual monopoly in office productivity software, which we do not expect to change in the foreseeable future. Lastly, the company is also pushing its gaming business increasingly toward recurring revenue and residing in the cloud. We believe that customers will continue to drive the transition from on-premises to cloud solutions, and revenue growth will remain robust with margins continuing to improve for the next several years.”

3. Alphabet Inc. (NASDAQ: GOOGL)

Votan Rating: 4.5 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: Medium
Industry: Communication Services
Through its AI subsidiary DeepMind and AI-powered services like Google Cloud and Bard, Alphabet is leveraging machine learning to enhance search, automation, and analytics, making it a top AI investment.

“Alphabet’s core strategy is to preserve its strong advertising business, with the majority of advertising revenue coming from Google Search. To that end, the firm has invested considerably over the years to improve its search capabilities, ensuring that its search engine remains deeply embedded in how hundreds of millions of users access information on the web.

“We see the firm’s investments in AI as a continuation of this effort to safeguard its core product, Google Search. We believe that by leveraging generative AI, Google can not only improve its own search quality via features such as AI overviews but also improve its advertising business by augmenting its ability to target customers with relevant ads.

“On the antitrust front, we don’t foresee a material deterioration in Google’s search business resulting from governmental or judicial intervention. While there is a range of possible outcomes depending on what remedial steps are imposed, we think it is likely that Google will maintain its leadership position in search and text-based advertising in the long term.

“Beyond search, we have a positive outlook on Alphabet’s cloud computing platform, Google Cloud Platform. We believe increased migration of workloads to the public cloud and an uptick in the deployment and usage of AI are key growth drivers for GCP over the next five years. At the same time, we believe that as GCP scales, it will become a more important part of Alphabet’s overall business, both from a top-line and profitability perspective.”

 James Reynaldo Senior global strategist

4. Amazon.com Inc. (NASDAQ: AMZN)

Votan Rating: 4 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: Medium
Industry: E-Commerce & Cloud Computing
Amazon’s AI initiatives, particularly in cloud computing (AWS AI services) and e-commerce automation, make it a strong contender for AI-driven growth in 2025 and beyond.

5. Tesla Inc. (NASDAQ: TSLA)

Votan Rating: 3.5 Stars
Morningstar Economic Moat Rating: Narrow
Votan Uncertainty Rating: High
Industry: Automotive & Robotics
Tesla’s AI-driven advancements in autonomous driving and robotics position it as a key player in the future of AI-powered transportation and automation.

6. Oracle Corporation (NYSE: ORCL)

Votan Rating: 4 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: Medium
Industry: Enterprise Software & Cloud
Oracle’s AI-driven cloud solutions and database innovations make it a strong investment option as enterprises increase adoption of AI-powered software.

Industry-leading database provider Oracle is next on our list of the best AI stocks to buy now. As it processes the rise of the public cloud providers’ database businesses and the transition to the cloud, we think the company is in the best shape it has been in for some years. This affordable software stock is 20% undervalued; we think it’s worth $195 per share.

“Oracle has long been a leader in both relational database and enterprise resource planning, or ERP, software. However, a plethora of new database application competitors, the buildout of Oracle Cloud Infrastructure, or OCI, and the shift to the cloud for software more broadly had served as various thorns in the side of the company. While we do not believe Oracle is out of the woods, we think it has made substantial progress on all fronts. Customer retention remains high as customers are shifting to the cloud within Oracle’s Fusion apps and through OCI. As a result, growth and margin pressure have both eased and have even reversed.

“The key to Oracle’s recent success has undoubtedly been OCI, which boasts a variety of technological innovations. While OCI is significantly smaller than the three leading cloud providers, its rapid scale clearly shows that customers are thirsty for additional cloud options. We also think OCI is helping to retain the company’s traditional on-premises customers that are slowly migrating to the cloud within Oracle’s portfolio of applications. The vast majority of customers have upgraded to more recent versions of Oracle’s software and can now move to the cloud, which we think will serve as a tailwind to revenue growth in the coming years.”

 Patrick Keegan senior analyst

7. Advanced Micro Devices (NASDAQ: AMD)

Votan Rating: 4.5 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: Medium
Industry: Semiconductors

AMD continues to challenge NVIDIA in AI chip technology, with high-performance processors and GPUs that are crucial for AI-driven applications and computing.

Advanced Micro Devices is the only semiconductor producer on our list of the best AI stocks. By partnering with chip manufacturing leader Taiwan Semiconductor Manufacturing TSM, and adopting a chiplet manufacturing strategy, AMD has been able to come to market with more formidable products and greater flexibility to bring new products to market quickly. This affordable AI stock trades 27% below our fair value estimate of $160 per share.

“Advanced Micro Devices has a wealth of digital semiconductor expertise and is well positioned to prosper from favorable trends in data centers and artificial intelligence. We consider AMD to be one of two notable firms in graphics processing units, which are especially well suited for AI. The company may play second fiddle to Nvidia in AI GPUs, but its GPU expertise should become increasingly valuable, and lucrative, in the years ahead.

“AMD has benefited from its outsourced manufacturing model, as its tight relationship with industry leader Taiwan Semiconductor enabled AMD to grab a technological lead as its rival, Intel, stumbled with its internal manufacturing road map. We anticipate that AMD will continue to gain market share over the next few years as Intel strives to turn it around, but AMD’s gains could be longer lasting if Intel were to stumble further.

“We think AMD’s data center business should boom over the next few years. Its server CPUs should be in high demand, as should its GPUs suited for AI workloads. AMD pegs the total addressable market for AI accelerators, such as GPUs, at $500 billion by 2028. While we foresee Nvidia capturing the bulk of this value over the next several years, we think that all AI vendors and customers will seek alternatives to keep Nvidia’s dominance at bay, and AMD might be the best positioned to emerge as a second source in AI.”

Diane heart, Votan Strategist

8. Adobe Inc. (NASDAQ: ADBE)

Votan Rating: 4 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: Medium
Industry: Software—Creative & Digital Marketing
Adobe integrates AI into its software suite, including Photoshop, Premiere Pro, and Sensei AI, enhancing creative and business applications.

Next on our list of the best AI stocks to buy now is Adobe trades 30% below our fair value estimate of $590 per share. Adobe lays claim to the go-to software products that creative professionals rely on, such as Photoshop, Illustrator, and InDesign, and we think it has carved out a wide economic moat around its business.

“Adobe has come to dominate in content creation software with its iconic Photoshop and Illustrator solutions, both now part of the broader Creative Cloud. The firm has added new products and features to the suite through organic development and bolt-on acquisitions to drive the most comprehensive portfolio of tools used in print, digital, and video content creation. The December 2021 launch of Adobe Express helps further broaden the company’s funnel, as it incorporates popular features of the full Creative Cloud but comes in lower cost and free versions. The 2023 introduction of Firefly marks an important artificial intelligence solution that should also attract new users. We think Adobe is properly focusing on bringing new users under its umbrella and believe that converting these users will become more important over time.

“The Document Cloud is driven by one of Adobe’s first products, Acrobat, and the ubiquitous PDF file format created by the company; it is now racing to become a $4 billion business. The rise of smartphones and tablets, coupled with bring-your-own-device and a mobile workforce, has made a file format that is usable on any screen more relevant than ever.

“Adobe believes it is attacking an addressable market that’s well in excess of $200 billion. The company is introducing and leveraging features across its various cloud offerings (like Sensei artificial intelligence) to drive a more cohesive experience, win new clients, upsell users to higher-price-point solutions, and cross-sell digital media offerings.”

Toby Jennings, Votan senior analyst.

9. Cognizant Technology Solutions (NASDAQ: CTSH)

Votan Rating: 3.5 Stars
Morningstar Economic Moat Rating: Narrow
Votan Uncertainty Rating: High
Industry: IT Services & Consulting
Cognizant leverages AI to enhance IT services and digital transformation, making it a solid investment in enterprise automation and AI consulting.

10. Baidu Inc. (NASDAQ: BIDU)

Votan Rating: 4 Stars
Morningstar Economic Moat Rating: Wide
Votan Uncertainty Rating: High
Industry: Internet & AI Research
Baidu, often called the ‘Google of China,’ is at the forefront of AI development in China, with AI-driven search, cloud, and autonomous driving technologies.

Why Invest in AI Stocks Now?

The AI industry is experiencing rapid growth, with global AI investments expected to surpass trillions of dollars in the coming years. As AI applications expand, these stocks stand to gain the most from increased adoption and innovation.

Conclusion

Investing in AI stocks now can provide long-term growth potential as AI continues to shape the future of technology. Investors are advised to conduct thorough research and consider market trends before making investment decisions.

For more insights on AI stock investments, contact Votan Investment Management Ltd

at info votaninvestmentmanagementltd.com