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.
- 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.
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.
Seven AI stocks to buy in 2025
1. Nvidia
Leading graphics processing unit (GPU) company Nvidia has taken advantage of the AI boom, with its GPUs becoming the de facto standard in data centers worldwide. Generative AI's training phase demands a lot of computing power. The phase that follows, the inference phase, typically requires less.
NASDAQ: NVDA
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2. Alphabet
Alphabet has been preparing for the AI revolution for years, acquiring the AI research lab DeepMind in 2014. It's also among the leaders in autonomous vehicles through its Waymo subsidiary, which is now ferrying passengers in its driverless cars in cities such as San Francisco and Phoenix.
NASDAQ: GOOGL
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Alphabet launched Gemini -- its own AI chatbot and the latest iteration in its competition with ChatGPT -- which some see as a threat to Google Search. So far, concerns about a challenge to its search dominance seem to have been overblown, as Alphabet's ad revenue continues to grow steadily.
The company said its Gemini 2.5 has been "widely recognized as the best model in the industry." New features, such as AI assistant and AI mode, have helped Google Search defend its market share against AI-based challenges.
With information at the heart of its business, it's unsurprising that the company has prioritized AI. It's rolled out AI tools for Google Cloud and Google Workspace, including a generative AI assistant that helps write emails. Even its customer acquisition strategy in the cloud is based around AI -- the company has targeted AI start-ups for its cloud infrastructure service.
AI also plays a role in improving its search engine and YouTube, where it can pinpoint a relevant section of a video and direct users straight to it. Finally, Alphabet is ramping up spending on capital expenditures, with plans to allocate $75 billion to AI infrastructure and related needs in 2025.
3. Microsoft
Microsoft 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.
NASDAQ: MSFT
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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 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. OpenAI's recent restructuring formalized both companies' ability to form other partnerships and solidified Microsoft's stake in the company at 27%, or $135 billion.
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. By early 2025, developers at more than 70,000 companies were using it.
4. CoreWeave
CoreWeave, which had its initial public offering (IPO) in March 2025, may be the closest thing to a pure-play AI stock on the market, and it launched the first major AI IPO. Its cloud infrastructure platform was designed specifically for AI, counting customers like Nvidia, OpenAI, Meta Platforms, and Microsoft as part of its core customer base. Nvidia and OpenAI are both investors in the company.
NASDAQ: CRWV
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NASDAQ: META
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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
As one of the world's biggest software companies, Adobe rose to prominence with software tools like Photoshop, Illustrator, and Premiere, which now make up part of its Creative Cloud. The company, which caters to digital media creators and others, has tapped into AI to make its products more useful and powerful.
NASDAQ: ADBE
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It launched Firefly, a generative AI tool that complements its users' creativity, rather than trying to replace it. For example, it has not trained Firefly on customer content, and it prohibits third parties from training on customer content hosted on its servers. Over 18 billion images have been generated with Firefly since its launch.
It has also introduced an agentic AI product with a wide variety of agents to help marketing, analytics, and operations teams be more productive. Adobe's growth has slowed in recent years, but the company will remain a titan in creative software and figures to be a major player in AI for teams in design, marketing, analytics, and other areas.
7. Alibaba
Alibaba may have more exposure to AI than nearly any other tech company. However, as a Chinese tech company, it receives less attention than its American counterparts. Among the ways it's harnessing AI is a family of large language models called Qwen. It has rebuilt its cloud computing platform around AI, enabling customers to utilize large language models and other AI technologies.
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:
- There's a lot of growth potential.
- Momentum is building.
- Valuations still look reasonable.
- The technology could be as disruptive as the internet.
Cons:
- A bubble could be forming in AI.
- It's unclear whether the capex spending is justified.
- AI stocks are getting riskier as they grow more expensive.
- Most new technologies experience a crash at some point.
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