Computers excel at crunching numbers but struggle with tasks that many people do with ease, like language processing, visual perception, object manipulation, reasoning, planning, and learning. Artificial intelligence (AI), including its offshoots of deep learning and machine learning, uses computers to perform tasks that typically require human intelligence, such as language generation and facial recognition.
AI stocks are publicly traded companies that develop or employ AI technology as part of their business. AI stocks span sectors such as semiconductors, software, robotics, and even beyond technology, representing companies that are using AI in ways that set them apart from their peers.
How do companies use artificial intelligence?
Companies use AI in a number of ways. Keep reading to see some of the biggest ones below.
- Machine learning: Training a machine using vast amounts of data so it can make inferences from data it hasn't seen.
- Robotics: Machines that can move and act without human intervention
- Generative AI: Creating text, images, and video, typically in response to a prompt from a human.
- Autonomous vehicles: Cars that can drive without human assistance.
- Neural networks: A kind of AI that attempts to mimic the human brain. It's a fundamental technology for AI skills like natural language processing, image recognition, and predictive analytics, and it also forms the basis of deep learning.
- Agentic AI: Agents based on artificial intelligence that can carry out work tasks such as customer service without being prompted.
Seven AI stocks to buy in 2025
1. Nvidia
NASDAQ: NVDA
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2. Alphabet
NASDAQ: GOOGL
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NASDAQ: MSFT
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Microsoft (MSFT +0.56%) has gotten lots of buzz lately, thanks to its partnership with OpenAI. The tech giant began investing in the tech start-up in 2019 and invested another $10 billion in OpenAI following the launch of ChatGPT.
Microsoft has incorporated GPT features across its product portfolio, including its Azure cloud infrastructure service, Edge web browser, Office productivity software suite, and Copilot for Microsoft 365. Azure OpenAI has seen a particularly strong uptake, now counting more than 65% of the Fortune 500 as customers.
CEO Satya Nadella has repeatedly said that he sees AI as the next major computing platform. The reported $13 billion investment in OpenAI is a sign of the company's conviction in AI and its belief that it needs to lead that transition or be left behind, as it was with mobile.
More recently, Microsoft has begun diversifying away from OpenAI. It has been adding both internal and third-party models to products like Microsoft 365 Copilot and Azure, including DeepSeek's R1.
The long-term implications for its relationship with OpenAI are unclear, but Microsoft seems to think it's wise to hedge its bets in the AI race. The relationship continues to evolve, but Microsoft sees the start-up's technology as critical for its AI strategy.
Microsoft is harnessing the power of AI in other ways, too, including the use of automated clinical documentation in healthcare to reduce paperwork and administrative needs. It's also using Azure to allow customers to build custom AI tools. It launched Azure AI Foundry in November 2024, enabling its customers to create and manage AI apps and agents. As of April 2025, developers at more than 70,000 companies were using it.
4. CoreWeave
NASDAQ: CRWV
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NASDAQ: META
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Unlike the other big tech companies on this list, Meta Platforms (META +0.64%) doesn't have a cloud computing business, but it's investing just as much in AI as peers like Alphabet. Meta AI, the company's chatbot, is available on its apps (e.g., Facebook, Instagram, and WhatsApp) and had 1 billion monthly active users as of May 2025. Meta continues to update its Llama large language model, which is now up to Llama 4.
It's also allowing its advertisers to use AI creative tools for things like background and video generation and ad copy. AI is involved in ad targeting as well, and the company aims to fully automate advertising with AI by 2026.
Additionally, the company is incorporating AI into its hardware division, including its Ray-Ban smart glasses, which offer a built-in camera, open-ear audio, and a range of hands-free features. Its Meta Quest headsets are also connected to Meta AI, allowing users to tap into the power of AI through the devices.
In June, it acquired 49% of data-labeling specialist Scale AI for $14.8 billion and brought Scale CEO Alexandr Wang on to run an AI research lab at Meta. The tech giant has also made a number of smaller acquisitions in AI. Management sees AI at the core of its business and driving its transformation across areas such as advertising, experiences, and devices.
6. Adobe
NASDAQ: ADBE
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Machine learning stocks
All the stocks above use machine learning technologies. However, if you're looking for even more options, here are two others worth considering:
Palantir
Palantir (PLTR +2.28%) has been one of the top-performing AI stocks. The company provides cloud software and specializes in data fusion that helps its customers gain important insights by connecting disparate pieces of information hidden within data.
It also launched its AI Platform (AIP) in 2023, which has helped accelerate its growth. Palantir deploys machine learning models on top of data foundations and continuously improves them to ensure they become more useful.
Tesla
Tesla is best known for its electric vehicles (EVs). CEO Elon Musk sees AI as the future of the company. Machine learning and neural networks are very much at the center of the company's autonomous vehicle and Optimus autonomous robot projects.
Tesla introduced its driverless Cybercab in October 2024, and the company hopes to begin producing the vehicles by 2026. It launched its robotaxi network in June, though with just a handful of vehicles, and Musk envisions an expansion to other cities in the near future. Musk has said Tesla's automation technology could make it the most valuable company in the world.
Deep learning stocks
Deep learning is a subset of machine learning that uses artificial neural networks inspired by the human brain. It's the most advanced kind of AI and is crucial in technologies such as self-driving cars. Deep learning is advancing in areas such as preventive healthcare, where predictive algorithms are necessary. It differs from machine learning in that it doesn't require human input.
Nvidia is among the companies closely associated with deep learning. Its GPU chips use deep learning to power data centers and enable autonomous driving and cloud computing, among other functions.
Alphabet has exposure to deep learning through a number of its businesses, including its autonomous vehicle start-up, Waymo. It also owns DeepMind, a deep learning platform that can diagnose eye diseases, predict the shapes of proteins, and accelerate the scientific discovery process.
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Pros and cons of investing in AI stocks
Investing in AI stocks has gotten popular given the growth in the sector. Let's take a look at the pros and cons related to these stocks.
Pros of investing in AI stocks
- There's a lot of growth potential.
- Momentum is building.
- Valuations still look reasonable.
- The technology could be as disruptive as the internet.
Cons of investing in AI stocks
- A bubble could be forming in AI.
- It's unclear if the capex spending is justified.
- AI stocks are getting riskier as they get more expensive.
- Most new technologies experience a crash at some point.
AI is a growth business
According to International Data Corporation, the global artificial intelligence market is expected to grow from $235 billion in 2024 to more than $631 billion in 2028. While the AI market is already large and continues to grow rapidly, plenty of companies can still profit from AI. Although picking stocks in a growth industry comes with a lot of uncertainty, these top AI stocks are all worth considering.
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