Artificial intelligence (AI) continues to drive technology stocks higher, a trend that hasn't let up much since early 2023.
But this is not a case of hype with little substance; the top AI stocks are walking the walk, putting up impressive business results that show that the AI boom is not just real, but it's still going strong.
These Fool.com contributors remain fascinated with Meta Platforms (META -2.99%), ASML (ASML -0.55%), and Alphabet (GOOGL -1.45%) (GOOG -1.51%), three winners that could continue to outperform for at least the rest of 2025.
Here is what you need to know about each stock right now.
Image source: Getty Images.
Meta Platforms is an obvious buy after a standout Q2 performance
Justin Pope (Meta Platforms): Just when I thought that Meta Platforms might be running out of steam, the company releases a blowout second-quarter earnings report that should have investors feeling giddy.
It is becoming increasingly clear to investors how strong the core business is at Meta Platforms. The company's apps, including Facebook, Instagram, WhatsApp, Messenger, and Threads, continue to add users. Meta's daily active users increased by 6% year over year to a whopping 3.48 billion in Q2 2025.
At the same time, ad pricing grew by 9% year over year. As a result, Meta Platforms enjoyed 22% year-over-year revenue growth, and the company's net income surged by 36% versus the same quarter a year ago.
This strength continues to show how vital artificial intelligence can be for Meta Platforms. On the one hand, it can utilize AI to automate aspects of its core advertising business and boost efficiency and profitability -- Meta's operating margin surged 5 percentage points from a year ago. On the other hand, AI represents a new frontier beyond smartphones, marked by Meta's expansion and investments in smart glasses.
Meta recently traded at 27 times 2025 earnings estimates, and analysts expected it to grow by an average of over 16% annually over the next three to five years. However, Wall Street may need to quickly adjust its estimates to account for Meta's building momentum, which speaks volumes about what the company is capable of moving forward.
Meta Platforms continues to raise the bar, which makes the stock a table-pounding buy as investors try to figure out just what its ceiling might be in this emerging golden age of AI.
Temporary headwinds could be a buying opportunity in this chip manufacturer
Will Healy (ASML): One AI stock that could finish strong in 2025 is ASML. It's not a household name, but it plays a critical role in AI.
ASML leads the industry in extreme ultraviolet lithography (EUV), the technology needed to make the world's most advanced chips. However, despite growing demand for AI-driven technology, it has experienced some significant headwinds.
In recent months, companies like Intel have delayed or canceled foundry construction projects. ASML's market niche leaves it with only a small number of customers, so delays or lost customers will likely impact its financials significantly.
Moreover, China-based Huawei has improved its EUV technology. That poses a possible competitive threat to an industry that ASML has dominated.
However, Grand View Research expects the global AI market to reach a size of $1.8 trillion by 2030, amounting to a compound annual growth rate (CAGR) of 36% in that time! That will almost certainly increase the demand for AI chips, meaning the market will need more EUV machines from ASML.
ASML's recent financial performance reflects that CAGR. It reported net sales of 15.4 billion euros ($17.8 billion) in the first half of 2025, a 34% yearly increase. The company also kept expense growth in check -- net income of over 4.6 billion euros ($5.4 billion) surged 66% higher over the same period.
Still, analysts expect slowdowns to soon affect ASML's financials. Revenue projections for Q3 call for net sales between 7.4 billion and 7.9 billion euros, which would amount to just a 2% increase at the midpoint. Analysts projections confirm a slowdown is coming with 2025 revenue expected to slow to 14%. That deceleration has weighed on results, and the stock is down by nearly 20% over the last year.
Nonetheless, investors may be overlooking ASML's 26 earnings multiple, an unusually low level since its five-year average P/E ratio is 42. As more investors notice the discounted valuation and take its long-term growth prospects into account, it could attract bargain hunters, setting the stock up for a comeback.
Alphabet's cloud services business is on fire
Jake Lerch (Alphabet): My choice is Alphabet.
When Alphabet reported its second-quarter earnings results (for the three months ending on June 30, 2025) a couple of weeks ago, two items stood out to me.
First off, the company reported year-over-year revenue growth of 14%, beating most analyst expectations. That's important because there has been a sense among analysts that the artificial intelligence (AI) revolution could really hurt Alphabet's golden goose: its Google Search business.
The theory is that Google Search usage will drop off as more people turn to ChatGPT and other AI-powered chatbots for answers. In turn, Google's ad rates will drop, and Alphabet's revenue growth will suffer.
It could happen -- but it isn't happening yet. In fact, ad revenue increased by about 10%. In other words, Google Search is doing just fine.
Second, Alphabet reported that its cloud services business is red-hot. Google Cloud -- the third-largest cloud services provider behind Amazon and Microsoft -- reported revenue growth of 32%. Crucially, Alphabet's management chalked up the excellent performance to the AI boom. Ironically, one of the customers that has recently signed up to use Google Cloud is none other than OpenAI, the company behind ChatGPT.
So, with its ad business performing decently and its cloud business performing nicely, all is well with Alphabet. And the company has other irons in the fire. Its Waymo subsidiary is one of the first companies bringing autonomous vehicles to the public, and its Quantum AI lab remains hard at work trying to revolutionize the very nature of computing.
Alphabet's near-term and long-term prospects continue to look bright. Investors looking for an AI stock that could perform well in 2025 and beyond should consider it now.
