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3 No-Brainer Artificial Intelligence (AI) Stocks to Buy for 2025 With $200 Right Now

AInvestMonday, Jan 6, 2025 6:55 am ET
6min read


As the artificial intelligence (AI) revolution continues to gain momentum, investors are looking for ways to capitalize on the growing demand for AI technologies. With a plethora of AI stocks available, it can be challenging to identify the best opportunities. In this article, we will highlight three no-brainer AI stocks that are well-positioned to benefit from the AI boom and are currently trading at attractive valuations. With just $200, you can start building a diversified AI portfolio today.

1. NVIDIA Corporation (NVDA)
NVIDIA is a leading provider of graphics processing units (GPUs) and AI hardware, with a strong presence in the gaming, data center, and AI markets. The company's GPUs are widely used in AI applications, and its recent acquisition of Mellanox Technologies has expanded its reach into the data center market.

NVIDIA's strong financial performance and high return on equity (ROE) and return on assets (ROA) make it an attractive investment option. The company's revenue growth rate of 1.224 in 2024 and its high P/E ratio of 57.102768 indicate that investors expect significant future growth. Additionally, NVIDIA's strong analyst recommendations, with 54 analysts rating the stock as a strong buy, further validate its long-term growth potential.




2. Microsoft Corporation (MSFT)
Microsoft is a dominant player in the software industry, with a strong presence in productivity and business processes, intelligent cloud, and more personal computing segments. The company's products, such as Office, Dynamics, and Azure, are widely used and have a significant market share.

Microsoft's strong financial performance and high ROE and ROA make it another attractive AI stock. The company's revenue growth rate, though lower than NVIDIA's, is still positive at 0.16. Its high P/E ratio of 34.958714 and forward P/E ratio of 28.186071 suggest that investors expect strong future growth. Additionally, Microsoft's strong buy rating from 49 analysts indicates that many analysts believe in the company's long-term growth potential.




3. C3.ai (AI)
C3.ai is a smaller AI software business that is well-positioned to benefit from the growing demand for AI solutions. The company's strategic relationships with cloud hyperscalers, such as Microsoft, Amazon, and Alphabet, as well as consulting firms like Booz Allen Hamilton and Capgemini, have helped it broaden its end markets.

C3.ai's revenue growth rate has nearly tripled in the past year, and its top line is now growing at about the same rate as Palantir's. While the company is still a cash-burning operation, its strong partnerships and growing revenue make it an attractive investment opportunity. However, given its higher risk profile, investors should consider allocating a smaller portion of their portfolio to C3.ai.




In conclusion, NVIDIA, Microsoft, and C3.ai are three no-brainer AI stocks that are well-positioned to benefit from the growing demand for AI technologies. With their strong financial performance, attractive valuations, and positive analyst recommendations, these companies offer investors an excellent opportunity to capitalize on the AI revolution. By investing $200 in each of these stocks, you can start building a diversified AI portfolio today. However, it is essential to do your due diligence and not rely solely on the information provided in this article. Always apply independent thinking and consider seeking advice from a financial professional before making 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.