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Top AI Stocks to Invest in 2025 – From Infrastructure to Applications

Artificial Intelligence (AI) has been a buzzword in the tech industry for quite some time now. With its potential to revolutionize various industries and improve efficiency, AI has become a hot topic for investors. According to a report by Grand View Research, the global AI market is expected to reach $733.7 billion by 2027, growing at a CAGR of 42.2%. This growth is driven by the increasing adoption of AI in various sectors such as healthcare, finance, retail, and more.

Investing in AI stocks can be a lucrative opportunity for investors looking for long-term growth. However, with so many companies claiming to be AI-driven, it can be challenging to identify the top AI stocks to invest in. In this article, we will discuss the top AI stocks that are poised for growth in 2025, from infrastructure to applications.

AI Infrastructure Stocks

AI infrastructure refers to the hardware and software components that are required to build and deploy AI applications. These include processors, storage, networking, and software tools. As the demand for AI continues to grow, the need for robust and efficient infrastructure is also increasing. Here are the top AI infrastructure stocks to consider for investment:

1. NVIDIA Corporation (NVDA)

NVIDIA is a leading player in the AI infrastructure market, with its GPUs being widely used for AI training and inference. The company’s GPUs are known for their high performance and energy efficiency, making them ideal for AI workloads. NVIDIA’s data center segment, which includes its AI products, has been the primary driver of its revenue growth in recent years. In the first quarter of 2021, the company’s data center revenue grew by 79% year-over-year, reaching $2.05 billion.

NVIDIA’s AI infrastructure business is expected to continue its growth trajectory in the coming years, driven by the increasing adoption of AI in various industries. The company’s recent acquisition of Arm Holdings, a leading semiconductor company, is also expected to strengthen its position in the AI market. With a strong financial performance and a dominant position in the AI infrastructure market, NVIDIA is a top AI stock to consider for investment.

2. Intel Corporation (INTC)

Intel is another major player in the AI infrastructure market, with its CPUs being widely used for AI workloads. The company’s AI products include its Xeon processors, which are designed for high-performance computing and AI applications. In addition, Intel’s acquisition of Habana Labs, an AI chipmaker, has further strengthened its position in the AI market.

Intel’s data-centric businesses, which include its AI products, have been the primary driver of its revenue growth in recent years. In the first quarter of 2021, the company’s data-centric revenue grew by 20% year-over-year, reaching $19.7 billion. With its strong financial performance and a diverse portfolio of AI products, Intel is a top AI stock to consider for investment.

AI Software Stocks

AI software refers to the applications and tools that use AI algorithms to perform specific tasks. These include natural language processing, computer vision, and machine learning. As the demand for AI applications continues to grow, the market for AI software is also expected to witness significant growth. Here are the top AI software stocks to consider for investment:

1. Alphabet Inc. (GOOGL)

Alphabet, the parent company of Google, is a major player in the AI software market. The company’s AI products include Google Cloud AI, which offers a range of AI tools and services for developers and businesses. Google’s AI capabilities are also integrated into its popular products such as Google Search, Google Assistant, and Google Maps.

Alphabet’s revenue from its cloud segment, which includes its AI products, has been growing steadily in recent years. In the first quarter of 2021, the company’s cloud revenue grew by 46% year-over-year, reaching $4.05 billion. With its strong AI capabilities and a dominant position in the tech industry, Alphabet is a top AI stock to consider for investment.

2. Microsoft Corporation (MSFT)

Microsoft is another major player in the AI software market, with its Azure AI platform offering a range of AI tools and services. The company’s AI capabilities are also integrated into its popular products such as Microsoft Office and Bing. In addition, Microsoft’s recent acquisition of Nuance Communications, a leading provider of conversational AI and speech recognition software, has further strengthened its position in the AI market.

Microsoft’s revenue from its Intelligent Cloud segment, which includes its AI products, has been growing consistently in recent years. In the first quarter of 2021, the company’s Intelligent Cloud revenue grew by 23% year-over-year, reaching $15.1 billion. With its strong financial performance and a diverse portfolio of AI products, Microsoft is a top AI stock to consider for investment.

AI Applications Stocks

AI applications refer to the use of AI technology to perform specific tasks in various industries. These include healthcare, finance, retail, and more. As the adoption of AI applications continues to grow, the market for AI applications is also expected to witness significant growth. Here are the top AI applications stocks to consider for investment:

1. Amazon.com, Inc. (AMZN)

Amazon is a major player in the AI applications market, with its AI capabilities being integrated into its popular products such as Amazon Alexa and Amazon Prime. The company’s AI technology is also used in its e-commerce operations to improve customer experience and increase efficiency.

Amazon’s revenue from its cloud segment, which includes its AI products, has been growing consistently in recent years. In the first quarter of 2021, the company’s cloud revenue grew by 32% year-over-year, reaching $13.5 billion. With its strong AI capabilities and a dominant position in the e-commerce industry, Amazon is a top AI stock to consider for investment.

2. Salesforce.com, Inc. (CRM)

Salesforce is a major player in the AI applications market, with its AI capabilities being integrated into its popular products such as Salesforce Einstein. The company’s AI technology is also used in its customer relationship management (CRM) software to improve sales and marketing processes.

Salesforce’s revenue from its Sales Cloud segment, which includes its AI products, has been growing consistently in recent years. In the first quarter of 2021, the company’s Sales Cloud revenue grew by 13% year-over-year, reaching $1.4 billion. With its strong AI capabilities and a dominant position in the CRM market, Salesforce is a top AI stock to consider for investment.

Conclusion

AI is a rapidly growing market with immense potential for long-term growth. As the demand for AI continues to increase, investing in AI companies, particularly the application layer AI companies, could be a great idea for retail investors who don’t want to miss the growth opportunity.

Top AI stocks to invest in 2025 – from infrastructure to applications

Table of Contents

Top AI Stocks to Invest in 2025 – From Infrastructure to Applications