Investing in AI: Top Stocks for Future Growth
The artificial intelligence (AI) revolution is set to transform the global economy in significant ways. According to recent research from McKinsey & Co, generative AI could generate an additional $2.6 trillion to $4.4 trillion in annual value across 63 different applications. This potential could double if AI is integrated into current software systems.
As this economic shift unfolds, market valuations reflect the growing importance of AI technologies. Major tech companies heavily invested in AI have seen their market capitalizations rise sharply. For instance, Nvidia (NASDAQ: NVDA), a key player in AI computing, has provided over 2,000% returns to its shareholders in just five years.
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Investors looking to benefit from the growth of AI should consider the following five stocks, each poised for success into 2025 and beyond.
Image source: Getty Images.
1. Leading the Charge in High-Performance Computing
Applied Digital Corporation (NASDAQ: APLD) is at the forefront of high-performance computing with its advanced digital infrastructure. Recently, the company announced a pivotal $5 billion funding partnership with Macquarie Asset Management to bolster its expansion efforts.
This partnership equips Applied Digital with essential funding to fuel ambitious plans. The initial phase will channel $900 million into building a 400-megawatt facility at its Ellendale campus, catering to the growing demand for AI processing power. This infusion positions Applied Digital to take full advantage of the AI computing boom.
2. Innovating Autonomous Delivery
Serve Robotics Inc. (NASDAQ: SERV) is changing the game in sidewalk delivery through its state-of-the-art robotics platform. The latest version of their system integrates advanced AI capabilities powered by Nvidia’s technology.
A major partnership with Uber and plans to roll out 2,000 new delivery units in 2025 highlight Serve’s momentum in the market. With its focus on speed, range, and safety, this robotics leader is well-positioned to capture a significant share of the autonomous delivery sector, making it a stock worth considering for growth-oriented investors.
3. Merging Nuclear Innovation with AI
Oklo Inc. (NYSE: OKLO) is addressing the energy needs of AI infrastructure with its next-generation nuclear solutions. A recent agreement with data center operator Switch to provide 12 gigawatts of clean energy showcases the strong market demand for Oklo’s innovative technologies.
Oklo’s cutting-edge nuclear reactor designs aim to meet the escalating power requirements of AI data centers. With a site-use permit from the Department of Energy and strategic commercial partnerships, Oklo is laying the groundwork for future growth in clean energy. This early-stage player presents a unique investment opportunity at the intersection of nuclear power and AI infrastructure.
4. Dominating the AI Enterprise Space
Alphabet Inc. (NASDAQ: GOOG) is expanding its AI capabilities in retail through the deployment of autonomous AI agents. These agents facilitate product searches, recommendations, and customer inquiries for online retailers.
Through partnerships with e-commerce leaders such as Shopify and BigCommerce, Alphabet extends its AI solutions to millions of online vendors. By processing billions of shopping interactions each day, their advanced machine-learning algorithms continuously enhance product discovery and customer support performance.
Alphabet’s position within e-commerce makes it a key player in the retail sector’s AI transformation, marking its stock as a critical addition for investors interested in the rise of intelligent technologies.
5. Comprehensive Approach to AI Development
Tesla Inc. (NASDAQ: TSLA) is taking a holistic approach to AI by investing in custom AI chips, the Dojo supercomputer, and the Optimus humanoid robot platform designed to enhance manufacturing processes.
Tesla’s extensive integration of AI hardware and software creates strong competitive advantages. The company’s vast real-world driving data and proprietary training frameworks are expected to accelerate the advancements in autonomous vehicles and humanoid robotics.
In summary, Tesla’s combination of AI expertise, manufacturing efficiencies, and innovative robotics presents it as a cornerstone investment in autonomous systems and human-AI collaboration.
Seeing the Bigger Picture
The AI revolution creates a significant investment opportunity. These firms provide broad exposure across the AI value chain, from foundational infrastructure to practical applications. Their robust market positions and promising growth outlook make them attractive candidates for investors looking to tap into AI’s burgeoning potential.
Is Applied Digital a Good Investment for $1,000?
Before considering an investment in Applied Digital, keep this in mind:
The Motley Fool Stock Advisor analyst team has identified what they believe are the 10 best stocks to invest in now, and Applied Digital did not make the list. The other selected stocks have high potential for growth in the coming years.
Reflect on when Nvidia was recommended on April 15, 2005… if you had invested $1,000 then, it would be worth $807,495!*
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*Stock Advisor returns as of January 13, 2025
Suzanne Frey, an executive at Alphabet, serves on the board of The Motley Fool. George Budwell holds positions in Nvidia and Serve Robotics. The Motley Fool holds positions in and recommends Alphabet, Nvidia, Serve Robotics, Shopify, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
