7 Best AI Stocks to Buy in 2025: Investor’s Guide

While computers excel at calculation, they historically struggle with tasks most humans perform easily: language processing, visual recognition, object manipulation, reasoning, planning, and learning.

Artificial Intelligence (AI), including fields like Deep Learning and Machine Learning, enables computers to perform tasks—such as language generation and facial recognition—that typically require human intelligence.

AI Stocks are publicly traded companies that either develop or extensively use AI technology as a core part of their business. These stocks span sectors like semiconductors, software, robotics, and even beyond technology, representing companies leveraging AI for a crucial competitive advantage.

How Companies Utilize Artificial Intelligence

Companies are using AI in a variety of ways. Some of the largest applications include:

Machine Learning (ML): Training a machine using vast amounts of data to draw conclusions from unseen data.
Robotics: Machines capable of movement and action without human intervention.
Generative AI: Creating text, images, or videos in response to a human prompt.
Autonomous Vehicles: Cars capable of driving without human assistance.
Neural Networks: AI that attempts to mimic the human brain, forming the foundation for Deep Learning.
Agentic AI: AI-powered agents that can execute multi-step business actions, such as customer service workflows, without constant prompting.

The AI Industry is a Growing Business

According to the International Data Corporation (IDC), the global AI market is projected to grow from $235 billion in 2024 to over $631 billion by 2028.

While the AI market is already enormous and continues to grow rapidly, many companies stand to gain significant future profits from AI. Although stock picking in a rapidly expanding industry can be uncertain, the following top AI stocks should be considered for investment in 2025.

Top 7 AI Stocks to Buy in 2025

1. Nvidia ($NVDA)

The leading Graphics Processing Unit (GPU) company, Nvidia, has capitalized on the AI sector’s growth, with its GPUs becoming the standard for data centers worldwide. Generative AI’s training phase requires immense computational power, and the subsequent inference phase requires slightly less. GPU chips, once primarily for video games, support both phases well.

AI Infrastructure Leader: Nvidia sells the foundational building blocks for AI infrastructure. The emergence of Generative AI has made Nvidia’s Data Center business its main revenue source, making it the first major company to see significant revenue growth from AI.
Growth and Valuation: Following massive revenue hikes in 2023 and 2024, Nvidia briefly became the world’s most valuable company and the first to hit a $5 trillion market capitalization in October 2025.
Future Focus: The company is selling its new Blackwell Platform and is focused on Self-driving cars (Self-driving cars require massive computational power to process real-time sensor data, which the Nvidia platform provides) and “Physical AI,” developing hardware and software platforms for fully autonomous driving systems.

2. Alphabet ($GOOGL)

Alphabet (Google’s parent company) has been preparing for the AI revolution for years, acquiring the DeepMind AI research lab in 2014 and leading the autonomous vehicle space through its Waymo subsidiary.

Gemini AI: Alphabet introduced Gemini, its most powerful AI chatbot, which is highly regarded in the industry and helps defend Google Search’s market share against AI challenges.
Deep Integration: AI is central to its business, improving Google Search and YouTube. Its customer acquisition strategy in Google Cloud is AI-centric, targeting AI start-ups for its infrastructure.
Capital Investment: Alphabet is scaling up its Capital Expenditures, planning to allocate $75 billion in 2025 toward AI infrastructure and related needs.

3. Microsoft ($MSFT)

Microsoft has garnered the most recent attention due to its partnership with OpenAI (ChatGPT’s creator). Microsoft invested $13 billion in the start-up and has integrated GPT functionalities across its entire portfolio: Azure Cloud, Edge browser, Office Suite, and Copilot for Microsoft 365.

AI Platform Strategy: CEO Satya Nadella views AI as the next major computing platform. The investment signals Microsoft’s belief in AI and its need to lead this transformation.
Azure AI Foundry: Microsoft launched Azure AI Foundry in November 2024, allowing customers to create and manage AI apps and Agents, with over 70,000 developers using it by early 2025.

4. CoreWeave ($CWVE)

CoreWeave, which went public in March 2025 (the first major AI IPO), is perhaps the closest thing to an AI-exclusive stock on the market. Its Cloud Infrastructure Platform is designed purely for AI.

Explosive Growth: Revenue grew from negligible in 2022 to $1.9 billion in 2024 (over a 100x increase).
AI-Driven Revenue: Nearly all its revenue is driven by the computational power demand of running Generative AI programs, making it a good choice for direct AI exposure.
Risk: The stock is risky due to high debt, large capital expenditures, and unprofitability based on GAAP principles. However, increasing customer diversification suggests improving stability.

5. Meta Platforms ($META)

Unlike other major tech companies, Meta does not have a Cloud business but is aggressively investing in AI.

Meta AI: Its proprietary chatbot, Meta AI, reached 100 billion monthly users in May 2025, integrated directly into Facebook, Instagram, and WhatsApp.
Advertising Automation: Meta provides AI-driven creative tools (for backgrounds, video, and text) for advertisers and aims to fully automate its entire ad targeting system with AI by 2026.
Hardware Integration: Meta is integrating AI into its hardware, including Ray-Ban smart glasses and Meta Quest headsets, linking them with Meta AI for various functions.

6. Adobe ($ADBE)

Adobe, a global software leader known for Creative Cloud (Photoshop, Illustrator, etc.), is heavily integrating AI to enhance its products.

Firefly: Its Generative AI image system, Firefly, is designed to augment, not replace, user creativity. Firefly has generated over 20 billion images and is trained ethically without using customer content on their servers.
Agentic AI: Adobe also introduced an Agentic AI system designed to boost the performance of Marketing, Analytics, and Operations teams. Adobe remains a major leader in creative software and a key driver of AI technology in design and marketing.

7. Alibaba ($BABA)

While less covered than its US counterparts, Alibaba is deeply involved in the AI sector, applying it in multiple ways across its vast operations.

Qwen LLMs: Alibaba developed the Qwen Large Language Models, which drive its AI initiatives.
Cloud Restructuring: The entire Alibaba Cloud platform has been restructured to be AI-centric, allowing users easy access to Qwen and other AI technologies.
E-commerce AI: AI optimizes its E-commerce platform by automating product listings, providing user recommendations, and simplifying product search.
Investment: Alibaba plans to invest over $50 billion in AI infrastructure and is collaborating with companies like Nvidia on Physical AI projects.

Specialized AI Stock Categories

Beyond the top 7, certain companies specialize in key AI subfields:

Machine Learning Stocks:
- Palantir ($PLTR): Excels in Data Fusion and provides Cloud software that helps users find crucial insights hidden in disparate data sets. Its AI Platform (AIP), introduced in 2023, is accelerating its growth.
- Tesla ($TSLA): Its focus on Autonomous Vehicles (Cybercab, Robotaxi Network) and the Optimus robot project relies heavily on Machine Learning and Neural Networks.
Deep Learning Stocks:
- Nvidia and Alphabet are also key Deep Learning players. Nvidia’s GPUs power Deep Learning data centers, and Alphabet’s Waymo and DeepMind platform (used for predicting protein shapes and accelerating scientific discovery) utilize this advanced AI technology.

Also Read: Personal Loan: Understanding the Minimum Income Requirement

Investing in AI Stocks: A Simple Guide

For those interested in buying shares of AI companies, here are the simple steps from an investment perspective:

Log In to Brokerage App: Access your preferred brokerage app or website.
Search for the Stock: Use the search bar to enter the company name or its Ticker Symbol (e.g., NVDA, GOOGL, MSFT) to find the trading page.
Decide on Quantity: Determine the number of shares to purchase based on your investment goals and capital.
Choose Order Type: Select a Market Order (to buy immediately at the current price) or a Limit Order (to set a maximum price you are willing to pay).
Submit the Order: Review the details for accuracy and confirm the order to buy.
Verify Purchase: Check your portfolio to ensure the transaction was completed as expected and adjust your strategy if necessary.