10 Best Artificial Intelligence Stocks of 2025
The best artificial intelligence (AI) stocks to watch and potentially invest in
for 2025 include a mix of well-established tech giants and high-growth
specialized companies.
Below is a brief overview of the state of AI, followed by a list of AI stocks that look promising for 2025.
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In 2025, companies like OpenAI will look to move AI's capabilities into increasingly complex tasks. Use cases for AI will expand across industries and into the personal computing space. Organizations that have invested in AI will attempt to quantify the business value of those investments.
How those business value questions resolve will influence the S&P 500. Stephen Wu, founding and managing partner of Carthage Capital Management, notes that nearly half of the S&P 500 is concentrated in tech stocks. "With AI expectations running high," Wu explains, "it's crucial for AI to continue meeting expectations or there may be severe consequences."
Spending on AI infrastructure will likely continue, but the pace and focus of that spending may change. TechInsights predicts a greater emphasis on cost efficiency over performance. This will pressure the dominant hardware providers to evolve to meet those changing priorities.
Taiwan Semiconductor makes semiconductors and related devices on contract for customers. The company has fabrication facilities in Taiwan, China, Japan and the U.S.
The Taiwanese chipmaker’s market cap has soared past the trillion-dollar threshold, making it the first Asian stock to hit this milestone since PetroChina’s brief stint in 2007. The company, which supplies chips to both Apple and Nvidia, raised its revenue growth forecast to 30% as AI chip demand shows no signs of cooling off.
TSM is the world's leading semiconductor foundry with an estimated market share of 61%, according to Statista. The closest competitor is Samsung, with 11% market share. TSM customers include leading chip designers that outsource manufacturing, such as Nvidia, AMD and Broadcom.
TSM has a long track record of performance and growth, built on technological expertise. The well-managed company is also critical to the AI infrastructure buildout. While Nvidia, Apple and AMD are designing the chips that will power the AI revolution, TSM is making them.
Why ASML
ASML is the dominant market share leader in photolithography machines for semiconductors. The company has long-term relationships with major chip foundries, including Taiwan Semiconductor, Intel and Samsung. Those foundries cannot easily switch to another provider since a tooling change would require expensive downtime.
ASML stock hit a high point in July 2024 and then fell 35%. Investors got nervous when the company announced a conservative guidance for next year. The dip creates a nice buying opportunity for a company that will be essential to semiconductor manufacturing for the foreseeable future.
Synopsys makes electronic design automation (EDA) software that supports the design, manufacture and testing of integrated circuits. Customers span several verticals, including automotive and semiconductor design.
Why SNPS
Synopsys has been a high-performing stock for years. Morningstar quantifies its 15-year total return at 23.7%, which outperforms peers in the software infrastructure industry.
The track record of performance is comforting, but it looks even better alongside Synopsys' current positioning. The company's product suite will support the AI revolution directly by enabling ongoing innovation in integrated circuit design and manufacturing. Synopsys is also in the process of acquiring engineering simulation provider Ansys (ANSS). The merger will expand Synopsys' market position and be accretive to revenue and earnings in 2025.
Why TER
Morningstar categorizes Teradyne as a wide-moat company, meaning it has a significant and enduring competitive advantage. The heart of that advantage is Teradyne's expertise in testing high-performance semiconductors, which is largely unmatched by competitors.
The company's testing solutions will be essential as semiconductors evolve to meet the performance and efficiency needs of more mature AI applications. In its third-quarter earnings release, Teradyne reported guidance-beating EPS—citing AI demand as a factor.
Teradyne also offers investors revenue diversification, strong margins and good financial discipline. Since 2020, the company has reduced its debt by more than $500 million.
Shutterstock licenses third-party graphics and images to corporations, broadcast companies, small and medium-sized businesses and individuals.
Below is a brief overview of the state of AI, followed by a list of AI stocks that look promising for 2025.
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State Of Artificial Intelligence In 2025
A McKinsey report characterizes 2023 as the year "the world discovered generative AI (gen AI)." 2024 is when businesses began realizing value from using gen AI. The rising adoption has sparked extreme demand for AI-capable computing power. Data centers, in turn, invested billions in hardware and software for powering, developing and training AI applications.In 2025, companies like OpenAI will look to move AI's capabilities into increasingly complex tasks. Use cases for AI will expand across industries and into the personal computing space. Organizations that have invested in AI will attempt to quantify the business value of those investments.
How those business value questions resolve will influence the S&P 500. Stephen Wu, founding and managing partner of Carthage Capital Management, notes that nearly half of the S&P 500 is concentrated in tech stocks. "With AI expectations running high," Wu explains, "it's crucial for AI to continue meeting expectations or there may be severe consequences."
Spending on AI infrastructure will likely continue, but the pace and focus of that spending may change. TechInsights predicts a greater emphasis on cost efficiency over performance. This will pressure the dominant hardware providers to evolve to meet those changing priorities.
Methodology Used For These AI Stock Picks
To capitalize on the trends, I sought out the best artificial intelligence stocks with acceptable valuations, profitable business models, positive outlooks and healthy debt levels. These are the screening criteria:- Direct involvement with or exposure to AI technology
- Price-to-earnings (PE) ratio below 55
- Gross margin above 50%
- EPS growth outlook for next year over 10%
- Debt-to-equity (DE) ratio below 1.
Top Artificial Intelligence (AI) Stocks To Buy In 2025
Based on recent analyses and market performance, here are some top AI
stocks:
1. Nvidia (NVDA)
- Stock price: $171.6 (as of July 22, 2025)
- PE ratio: 52
- Gross margin: 75.9%
- TTM EPS: $2.54
- EPS growth outlook for next year: 48.9%
- Debt/Equity ratio: 0.16
Nvidia Business Overview
Nvidia designs and sells high-performance semiconductors and related hardware and software. The company's hardware is used in AI-capable data centers, gaming applications, robotics and automotive applications.
Nvidia designs and sells high-performance semiconductors and related hardware and software. The company's hardware is used in AI-capable data centers, gaming applications, robotics and automotive applications.
- Leading chipmaker with advanced deep learning chips powering AI applications for major clients like Alphabet and Meta.
- Strong revenue growth (Q3 revenue $35.1B, up 94% YoY) and a wide economic moat.
- Analysts expect a potential upside of about 27% in the next 12 months.
- Nvidia is considered a foundational player in AI hardware (1, 5).
Why NVDA
For the last year, Nvidia has been showing the world what's possible in terms of monetizing AI. Leveraging its reputation and the extreme demand for AI-capable chips, Nvidia has nearly tripled its enterprise value to become one of the few $3 trillion companies in the world.
Nvidia's expertise and AI positioning are unrivaled. The question for investors is whether the growth opportunity is already built into NVDA's share price. The company's PE ratio is on the high side, but NVDA also has the highest EPS growth outlook and the second-highest gross margin among the stocks on this list. While the greatest gain potential for NVDA may have passed, the stock still has room to run.
For the last year, Nvidia has been showing the world what's possible in terms of monetizing AI. Leveraging its reputation and the extreme demand for AI-capable chips, Nvidia has nearly tripled its enterprise value to become one of the few $3 trillion companies in the world.
Nvidia's expertise and AI positioning are unrivaled. The question for investors is whether the growth opportunity is already built into NVDA's share price. The company's PE ratio is on the high side, but NVDA also has the highest EPS growth outlook and the second-highest gross margin among the stocks on this list. While the greatest gain potential for NVDA may have passed, the stock still has room to run.
- Final Recommendation: Buy (Gemini 2.5 Pro)
- Confidence Level: High
- Expected Timeframe: 12-24 months
2. Palantir Technologies (NASDAQ: PLTR)
- Focuses on AI-driven data analytics with strong government and commercial contracts.
- Q3 2024 revenue up 44% YoY, with raised full-year revenue guidance to $2.8 billion.
- One of the best-performing AI stocks with a 418% one-year return as of July 2025 (1, 2).
- Final Recommendation: Hold (Gemini 2.5 Pro)
- Confidence Level: Medium
- Expected Timeframe: 6–12 months
- Rationale for Recommendation: Palantir is executing exceptionally well, with a compelling growth story powered by the AI revolution. However, the current astronomical valuation leaves very little room for error. A "Hold" recommendation reflects the balance between the company's outstanding fundamental performance and the significant risks associated with its high valuation multiples. We will be closely monitoring the company's ability to sustain its torrid growth rate and expand its profitability in the coming quarters to reassess our position.
3. Taiwan Semiconductor (TSM)
- Stock price: $238
- PE ratio: 32
- Gross margin: 54.5%
- TTM EPS: $6.24
- EPS growth outlook for next year: 29.5%
- D/E ratio: 0.26.
Taiwan Semiconductor makes semiconductors and related devices on contract for customers. The company has fabrication facilities in Taiwan, China, Japan and the U.S.
Why TSM
TSM is the world's leading semiconductor foundry with an estimated market share of 61%, according to Statista. The closest competitor is Samsung, with 11% market share. TSM customers include leading chip designers that outsource manufacturing, such as Nvidia, AMD and Broadcom.
TSM has a long track record of performance and growth, built on technological expertise. The well-managed company is also critical to the AI infrastructure buildout. While Nvidia, Apple and AMD are designing the chips that will power the AI revolution, TSM is making them.
4. ASML Holding N.V. (ASML)
- Stock price: $716.79
- PE ratio: 38
- Gross margin: 51.2%
- TTM EPS: $19.14
- EPS growth outlook for next year: 27.6%
- D/E ratio: 0.29.
ASML Holding N.V. Business Overview
ASML Holding is a Dutch company that makes photolithography systems and related services. Photolithography uses light to transfer a pattern to another surface. The process is used with silicon wafers to make semiconductors.
ASML Holding is a Dutch company that makes photolithography systems and related services. Photolithography uses light to transfer a pattern to another surface. The process is used with silicon wafers to make semiconductors.
Why ASML
ASML is the dominant market share leader in photolithography machines for semiconductors. The company has long-term relationships with major chip foundries, including Taiwan Semiconductor, Intel and Samsung. Those foundries cannot easily switch to another provider since a tooling change would require expensive downtime.
ASML stock hit a high point in July 2024 and then fell 35%. Investors got nervous when the company announced a conservative guidance for next year. The dip creates a nice buying opportunity for a company that will be essential to semiconductor manufacturing for the foreseeable future.
5. Synopsys (SNPS)
- Stock price: $504.13
- PE ratio: 54Gross margin: 81.4%
- TTM EPS: $9.25
- EPS growth outlook for next year: 15.8%
- D/E ratio: 0.08
Synopsys makes electronic design automation (EDA) software that supports the design, manufacture and testing of integrated circuits. Customers span several verticals, including automotive and semiconductor design.
Why SNPS
Synopsys has been a high-performing stock for years. Morningstar quantifies its 15-year total return at 23.7%, which outperforms peers in the software infrastructure industry.
The track record of performance is comforting, but it looks even better alongside Synopsys' current positioning. The company's product suite will support the AI revolution directly by enabling ongoing innovation in integrated circuit design and manufacturing. Synopsys is also in the process of acquiring engineering simulation provider Ansys (ANSS). The merger will expand Synopsys' market position and be accretive to revenue and earnings in 2025.
6. Teradyne (TER)
- Stock price: $123.42
- PE ratio: 39
- Gross margin: 57.9%
- TTM EPS: $3.15
- EPS growth outlook for next year: 34.4%
- D/E ratio: 0.03
Teradyne Business Overview
Teradyne makes automated test equipment for semiconductors, electronic systems and wireless devices. The company also offers robotics equipment and technology.
Teradyne makes automated test equipment for semiconductors, electronic systems and wireless devices. The company also offers robotics equipment and technology.
Why TER
Morningstar categorizes Teradyne as a wide-moat company, meaning it has a significant and enduring competitive advantage. The heart of that advantage is Teradyne's expertise in testing high-performance semiconductors, which is largely unmatched by competitors.
The company's testing solutions will be essential as semiconductors evolve to meet the performance and efficiency needs of more mature AI applications. In its third-quarter earnings release, Teradyne reported guidance-beating EPS—citing AI demand as a factor.
Teradyne also offers investors revenue diversification, strong margins and good financial discipline. Since 2020, the company has reduced its debt by more than $500 million.
7. Shutterstock (SSTK)
- Stock price: $31.90
- PE ratio: 31
- Gross margin: 58.4%
- TTM EPS: $1.02
- EPS growth outlook for next year: 13.0%
- D/E ratio: 0.58
Shutterstock licenses third-party graphics and images to corporations, broadcast companies, small and medium-sized businesses and individuals.
Why SSTK
Shutterstock recently completed the acquisition of competitor Envato. Envato expands Shutterstock's offering with a subscription for unlimited downloads—formerly a gap in the SSTK's product suite. The company is also seeing organic momentum, with improvements in content performance and growth in its Data, Distribution, and Services segment.
As of the third-quarter earnings release, Shutterstock's data business had grown 40% year to date. This is how Shutterstock benefits from the AI buildout. The company currently has about two dozen deals licensing its content to train generative AI tools. As of August 2024, those deals were cumulatively worth $238 million.
Shutterstock recently completed the acquisition of competitor Envato. Envato expands Shutterstock's offering with a subscription for unlimited downloads—formerly a gap in the SSTK's product suite. The company is also seeing organic momentum, with improvements in content performance and growth in its Data, Distribution, and Services segment.
As of the third-quarter earnings release, Shutterstock's data business had grown 40% year to date. This is how Shutterstock benefits from the AI buildout. The company currently has about two dozen deals licensing its content to train generative AI tools. As of August 2024, those deals were cumulatively worth $238 million.
8. Broadcom Inc (NASDAQ: AVGO)
- Specializes in semiconductors and infrastructure software critical for AI data management.
- Q3 revenue driven by AI demand, expected to reach $12 billion by year-end.
- Strong buy rating with a 23.6% upside target (1).
9. Advanced Micro Devices (AMD) (NASDAQ: AMD)
- Semiconductor company advancing AI workloads with new 3-D V-Cache technology.
- Q3 revenue up 18% YoY to $6.8 billion, though recent guidance has tempered sentiment.
- Analysts see a 35% upside potential over the next year (1).
10. Snowflake (NYSE: SNOW)
- Cloud computing and AI company simplifying data analysis with natural language tools.
- Q3 revenue up 28% YoY, with a strong customer base and product cohesion.
- Strong buy rating with modest upside potential (1).
Other notable AI stocks with strong recent performance
- Quantum Computing Inc (QUBT) with an extraordinary 2846% one-year return.
- Applovin Corp (APP), has also delivered substantial gains (2).
- Cerence Inc (CRNC), has also delivered substantial gains (2).
- Alphabet (GOOGL) is highlighted as undervalued with strong AI prospects.
- Microsoft (MSFT) has one of the most AI exposure and are considered solid AI investments.
Bottom Line
AI will be a driving force in the financial markets in 2025. Well-run, high-margin, adaptable businesses that support the development, training and deployment of AI applications are well-positioned for growth as the technology evolves.
In summary, Nvidia, Palantir, TSM, ASML, AMD, Broadcom and Snowflake are among the best AI stocks to watch in 2025, combining strong fundamentals, growth potential, and significant roles in the AI ecosystem. Additionally, investors may consider high-growth smaller AI firms and major tech giants like Alphabet and Microsoft for diversified AI exposure (1, 2, 3).
: Investing in AI stocks carries risks due to market volatility and rapid technological changes. It's advisable to conduct thorough research or consult a financial advisor before investing.
Disclaimer
The information presented in this article is intended for general informational purposes only and should not be construed as professional financial, investment, or medical advice. The revenue figures, company rankings, and projections are based on publicly available data, company reports, and industry estimates as of 2025. All currency conversions, where applicable, are based on annual average exchange rates.
While efforts have been made to ensure the accuracy and timeliness of the information, One Day Advisor and the article’s authors do not guarantee the completeness, reliability, or suitability of the content for any particular purpose. Readers are encouraged to verify details independently and consult qualified professionals before making any business, investment, or healthcare decisions based on the information provided.
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