Investing in AI: Top Stocks to Watch for 2025
Investors should take notice: artificial intelligence (AI) isn’t just a trend for 2024; it will remain a significant focus in 2025. A careful review of portfolios is advisable to ensure proper access to this revolutionary technology, marking the most significant change since the internet’s inception.
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AI: A Central Theme for Key Tech Players
Meta Platforms (NASDAQ: META), Salesforce (NYSE: CRM), and Nvidia (NASDAQ: NVDA) are at the forefront of AI innovation. These industry giants boast extensive resources, enabling them to compete effectively against numerous start-ups in the AI sector.
Meta is advancing generative AI with its open-source model, Llama. By opting to share its AI model publicly, Meta attracts a large user base, thereby enhancing the data fed into the model. This strategy provides Meta with a crucial edge, enabling the company to develop one of the leading AI frameworks available.
On the other hand, Salesforce focuses on enhancing its existing customer relationship management (CRM) systems through AI. With features like Agentforce, users can create AI agents for various functions, including marketing and customer support. Historically managed by humans, these roles may see a shift towards AI-assisted operations, driving significant value.
Nvidia is crucial for AI developments due to its high-performance graphics processing units (GPUs), which are essential for training AI models. Nvidia has witnessed considerable growth in 2023 and 2024, with analysts predicting a remarkable 51% revenue increase for fiscal year 2026, ending January 2026. This trend indicates continued robust spending in AI technology.
Moreover, Nvidia is expanding its production of the next-generation GPU architecture, Blackwell, noted for providing quadruple the training performance compared to the previous Hopper architecture. Thus, Nvidia remains a top investment for those looking at 2025.
Valuing Growth: Affordable Stock Options
When examined through the lens of price-to-forward earnings, these stocks present appealing pricing relative to their growth potential.
META PE Ratio (Forward) data by YCharts
Meta stands out as the most reasonably priced stock on this list. With a forward earnings valuation of 24 times, it presents an attractive option compared to the Nasdaq-100’s 26.4 ratio, indicating it is a solid investment choice among big tech peers.
While Salesforce’s stock is relatively more expensive, its potential growth from AI innovation is noteworthy. The company could gain significantly via AI agents, particularly since its growth is projected at only 9% this year. With a current profit margin of 16%, maximizing profitability presents considerable room for improvement.
Nvidia, though the highest priced at 48 times forward earnings, is experiencing the most substantial growth. Its revenue growth is anticipated to reach 50% this year, justifying the investment despite the premium cost. As the stock price has declined from its all-time high, now presents an opportune moment for investors.
Overall, 2025 looks optimistic for these three stocks, making them compelling purchases to consider this January.
A Second Chance at a Promising Investment
Have you ever felt like you missed out on investing in top-performing stocks? Here’s your chance to correct that notion.
Our expert analysts occasionally issue a “Double Down” stock recommendation for companies poised for growth. If you fear missing your window of opportunity, now might be the ideal time to invest. Historical data demonstrates compelling returns:
- Nvidia: An investment of $1,000 in 2009 would be worth $363,307!*
- Apple: A $1,000 investment made in 2008 would have grown to $45,963!*
- Netflix: Investing $1,000 in 2004 would have reached $471,880!*
Currently, we are suggesting “Double Down” alerts for three outstanding companies, and opportunities like this don’t come around often.
See 3 “Double Down” stocks »
*Stock Advisor returns as of January 6, 2025
Randi Zuckerberg, a former director for market development and spokesperson for Facebook, and sibling of Mark Zuckerberg, is a board member at The Motley Fool. Keithen Drury holds shares in Nvidia and Salesforce. The Motley Fool recommends Meta Platforms, Nvidia, and Salesforce as part of its investment strategy. The Motley Fool subscribes to a disclosure policy.
The views and opinions expressed in this article are those of the author and do not reflect those of Nasdaq, Inc.
