icon
icon
icon
icon
Upgrade
icon

2 Top Artificial Intelligence Stocks to Buy in January

AInvestWednesday, Jan 1, 2025 5:27 am ET
6min read


As we step into the new year, investors are looking for promising opportunities in the tech sector. Artificial Intelligence (AI) is one area that continues to gain traction, with significant growth potential. Here are two top AI stocks to consider adding to your portfolio in January:

1. NVIDIA Corporation (NVDA)

NVIDIA is a leading player in the AI processing market, thanks to its powerful graphics processing units (GPUs). The company's GPUs are widely used in AI processing, data centers, and gaming. As the demand for AI continues to grow, so does the need for NVIDIA's products.

* Strong Financial Performance: NVIDIA has consistently delivered strong financial results. In its most recent quarter, the company reported revenue of $26.66 billion, up 16% year-over-year. Its earnings per share (EPS) were $1.32, up 34% from the same period last year.
* Growing AI Market: The global AI market is expected to reach $190.61 billion by 2025, growing at a CAGR of 33.1% during the forecast period (2019-2025). NVIDIA is well-positioned to capitalize on this growth.
* Innovative Products: NVIDIA continues to innovate and release new products to meet the growing demand for AI processing power. The company's upcoming Blackwell processors are expected to further boost its AI capabilities.




2. Microsoft Corporation (MSFT)

Microsoft is another strong player in the AI space, with a focus on cloud-based AI services. The company's Azure Cloud is one of the fastest-growing cloud infrastructure providers, and its AI offerings are gaining traction in the market.

* AI Integration: Microsoft has integrated AI into its productivity suite with Copilot, which is expected to generate significant incremental revenue by 2027. The company is also working to bring down the cost of adopting AI and develop AI agents focused on mission-critical issues.
* Growing Cloud Market: The global cloud computing market is expected to reach $1.3 trillion by 2026, growing at a CAGR of 14.9% during the forecast period (2021-2026). Microsoft's Azure Cloud is well-positioned to capitalize on this growth.
* Strong Financial Performance: Microsoft has also delivered strong financial results. In its most recent quarter, the company reported revenue of $53.22 billion, up 18% year-over-year. Its EPS were $2.48, up 14% from the same period last year.




Both NVIDIA and Microsoft offer compelling opportunities for investors looking to capitalize on the growing AI market. Their strong financial performance, innovative products, and well-positioned strategies make them attractive options for long-term growth. As always, it's essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.