Artificial intelligence (AI) stocks have been among the strongest performers of 2024, with the semiconductor giant Nvidia (NASDAQ: NVDA) arguably taking the lead with an 189.67% year-to-date (YTD) rally to $139.53.
Despite the upsurge – and the latest downturn – causing some anxiety about a possible bubble and other headwinds emerging from factors such as inflation, there is a general expectation the sector will continue performing well in the new year.
For this reason, Finbold decided to examine which AI stocks might be the best investments for 2025.
Picks for you
Amazon (NASDAQ: AMZN)
Though still mostly seen as an e-commerce giant, Amazon’s (NASDAQ: AMZN) cloud computing, data center, and AI business has been on the ascendance in 2024, with many expecting the trend to continue in 2025.
Furthermore, a compounding effect could emerge for the big tech firm as advancements in AI could further improve the efficiency of the e-commerce section and bolster programs such as drone delivery services.
Finally, though AMZN stock’s YTD 50.95% rise to $226.33 is nothing to scoff at, it didn’t raise as big a danger of overvaluation as for some of the other popular AI companies.
Advanced Micro Devices (NASDAQ: AMD)
Though not as pressured as Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD) stock nonetheless underperformed in 2024, especially given its prominence in the otherwise strong semiconductor industry.
Still, between the YTD performance – a 10.06% decline to $124.63 – and the exceeding Wall Street analyst bullishness – AMD shares have one of the biggest forecasted upsides among major companies – investors might have a golden ‘buy the dip’ opportunity to purchase an AI stock that could regain upward momentum in 2025.
Taiwan Semiconductor Manufacturing (NYSE: TSM)
Though it didn’t pass entirely under the radar – and despite its 101.35% surge to $204.44 in 2024 is no laughing matter – Taiwan Semiconductor Manufacturing (NYSE: TSM) shares could be a particularly strong AI stock prick in 2025 as well.
Indeed, the firm’s importance for the semiconductor industry – and, by extension, for the artificial intelligence boom – can’t be overstated as Taiwan is responsible for well over 50% of the global microchip production, and TSMC itself holds the lion’s share of this manufacturing.
Featured image via Shutterstock
