Artificial intelligence (AI) continues to be a hot investment theme. And for good reason – in the years ahead the technology is going to reshape nearly every industry. Looking for the best AI stocks to buy for 2025? Here are three technology companies that are at the heart of the AI revolution.
Nvidia
Nvidia (NVDA:NASDAQ) has been one of the best-performing AI stocks over the last two years. And I expect it to have another strong year in 2025.
Currently, Big Tech companies such as Microsoft, Alphabet, Meta, and Tesla are spending billions of dollars on AI chips in an effort to get an edge in the AI race. And they’re all buying Nvidia’s products.
Meanwhile, Nvidia has just launched its new ‘Blackwell’ chip. This chip is far superior to previous generations of Nvidia chips and CEO Jensen Huang has said that demand for it is ‘insane’.
Zooming in on Nvidia’s financials, the stock is not particularly expensive today. For the year ending 31 January 2026, Wall Street expects the company’s earnings per share (EPS) to rise 50% year on year to $4.43. That puts the stock on a price-to-earnings (P/E) ratio of 34 and a price-to-earnings-to-growth (PEG) ratio of just 0.7 at today’s share price of $150. A PEG ratio under one generally suggests that a stock is cheap.
Personally, I believe Nvidia stock can hit $200 this year (33% upside from here). But I don’t expect it to rise in a straight line – there is likely to be some share price volatility along the way.
Amazon
Amazon (AMZN:NASDAQ) is another tech company I like for AI exposure in 2025. It has been making some big moves in the space recently.
For example, in December, it launched Amazon Nova – a new generation of foundational models. This suite of AI products is designed to help customers build innovative applications and solve complex problems.
Additionally, it revealed its new Trainium3 AI chips. The company plans to position these chips – which are very powerful – as a cost-effective alternative to Nvidia’s GPUs.
Amazon stock has had a good run over the last six months. However, if we zoom out and look at performance over the last three years, it has lagged other Big Tech stocks such as Microsoft and Alphabet significantly.
This leads me to believe that there’s a good chance that it will play catch up in 2025. There are no guarantees it will, of course, but it’s worth noting that at present, Amazon’s valuation (forward-looking P/E ratio of 37) is near historical lows.
Snowflake
Finally, I also like Snowflake (SNOW:NYSE) for 2025. It’s a more under-the-radar AI stock.
Snowflake is a Software-as-a-Service (SaaS) company that specialises in cloud-based data storage and data analytics. I expect it to generate strong growth this year as businesses move to explore the potential of AI (if a company wants to employ AI the first step is to get their data right).
It’s worth pointing out that in November, Snowflake lifted its FY2025 (the year ending 31 January 2025) product revenue forecast, which suggests that demand for its data storage and analytics services is high. It also announced an AI partnership with Anthropic to enhance its cloud services.
Now, this AI stock is more speculative than the first two I highlighted. Currently, Snowflake’s profits are still quite small and as a result the company’s P/E ratio is high.
Yet for FY2026, the company is forecast to generate revenue and earnings growth of 23% and 39% respectively. So, the high valuation here could be justified.
Edward Sheldon has positions in Nvidia, Amazon, Microsoft, Alphabet, and Snowflake
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
You can contact Ed at edward@goodmoneyguide.com
