Investing in AI Stocks: A Comprehensive Guide to the Future of Technology

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 AI is used

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.

Top AI stocks

Seven AI stocks to buy in 2025

Companies 1 - 4

1. Nvidia

Leading graphics processing unit (GPU) company Nvidia (NVDA 0.86%) 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.

GPU chips, which were once used primarily for rendering video games, support both phases well. Nvidia's ambitions have gone beyond GPUs, as the company now aims to build AI factories or data centers full of Nvidia components to run AI applications and programming.

Nvidia's data center business makes up the vast majority of the company's revenue, thanks to the emergence of generative AI. Because it sells the building blocks for AI infrastructure, Nvidia became the first major company to see a significant revenue boost from AI.

Revenue surged through 2023 and 2024, and the stock has soared as well. It's been the most valuable company in the world on several occasions and was No. 1 in October 2025. It also became the first company to reach a market cap of $4 trillion. In 2024, full-year revenue jumped 114% to $130.5 billion, driven by the surge in data center demand. Growth has been strong in 2025 as well.

Nvidia's chips are popular for running demanding workloads that applications like large language models (LLMs) require. The pure-play chip stock is now selling its new Blackwell platform, which major cloud infrastructure services are deploying in 2025, and demand is outstripping supply.

Self-driving cars and "physical AI" are other areas of focus. Nvidia develops hardware and software platforms that can power driver-assistance features and fully autonomous driving, which could be a significant source of revenue if that industry takes off. Automotive revenue accounts for only a small fraction of the company's revenue, but that could change.

With Tesla (TSLA 2.58%) having launched its robotaxi network in Austin, the autonomous vehicle race appears to be heating up, which should be good news for the semiconductor sector.

A self-driving car must process massive amounts of data from multiple sensors and cameras in real time, detect objects such as pedestrians and other vehicles, and make complex decisions. They require tremendous computing power, which is exactly what Nvidia's platform delivers.

Its professional visualization segment, which includes its Omniverse, also has potential in AI. Nvidia's chipsets could someday be supplanted by more specialized processors designed for AI, but the company is in an enviable position for now.

2. Alphabet

Alphabet (GOOGL 0.82%) 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.

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 that 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 (MSFT 0.5%) 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

CoreWeave (CRWV -3.44%), 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, and it counts customers like Nvidia, OpenAI, Meta Platforms, and Microsoft as part of its core customer base. Nvidia and OpenAI are both investors in the company.

CoreWeave has grown at an incredible pace over the last three years, going from generating almost no revenue in 2022 to $1.9 billion in 2024. Between 2022 and 2024, revenue grew by more than 100 times.

CoreWeave's business is risky since Microsoft accounts for 62% of its revenue as of 2024, meaning the business would suffer significantly if Microsoft were to pull back its spending on the platform. In its first-quarter 2025 report, CoreWeave said that no single company accounted for more than half of its backlog, a sign that its customer concentration is improving.

The company announced plans for a $6 billion data center in July. It's also acquiring Core Scientific (CORZ -3.41%), which will bulk up its AI infrastructure with 1.3 gigawatts (GW) in power capacity.

If you're looking for direct exposure to AI, CoreWeave is a good option, as essentially all its revenue is driven by demand for computing power to run generative AI programs. However, the stock is risky. CoreWeave has a high debt burden, large capital expenditures, and is deeply unprofitable on a generally accepted accounting principles (GAAP) basis.

Companies 5 - 7

5. Meta Platforms

Unlike the other big tech companies on this list, Meta Platforms (META 0.82%) 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

As one of the world's biggest software companies, Adobe (ADBE 1.3%) 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.

It has 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 (BABA 1.15%) may have more exposure to AI than nearly any other tech company. However, as a Chinese tech company, it doesn't get as much attention as its American counterparts.

Among the ways it's harnessing AI is a family of large language models called Qwen, and it has rebuilt its cloud computing platform around AI, enabling customers to utilize large language models and other AI technologies. Alibaba is also using AI to enhance its AI platform, automating tasks like product listings, as well as making recommendations and product search easier. It plans to invest more than $50 billion in AI infrastructure, opening new data centers around the world.

Alibaba has put the earlier concerns about the tech backlash from Beijing behind it, but consumer demand in China remains sluggish. Still, Alibaba trades at a considerable discount to its American peers, and it enjoys a similar competitive advantage relative to China that tech giants like those of the "Magnificent Seven" enjoy.

Machine learning

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 0.11%) 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

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

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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