AI Stocks to Watch in 2025: Top Picks from an Analyst Who Nailed 2024

As we step into 2025, investors are eager to identify the next big opportunities in the tech sector. Last year, AI stocks were the talk of the town, with many analysts predicting their bullish run. One such analyst, Daniel Ives from Wedbush Securities, accurately forecasted the AI Revolution and its impact on tech stocks in 2024. Now, he shares his top AI stock picks for 2025, which could be poised for significant growth.



NVIDIA Corporation (NVDA)
NVIDIA, the leading AI chipmaker, is expected to continue its dominance in 2025. The company's advanced graphics processing units (GPUs) are integral to AI applications across various sectors, such as data centers, autonomous vehicles, and AI research. NVIDIA's next-generation GPU, Blackwell, is expected to gain significant market share in 2025, contributing to its growth. As of January 2, 2025, NVIDIA's stock price is $134.29, reflecting a slight decrease of 2.09% from the previous close. However, analysts project continued growth for NVIDIA, citing its dominance in AI chip development and integration across various sectors.

Microsoft Corporation (MSFT)
Microsoft has solidified its position in the AI landscape through substantial investments and strategic partnerships. The company's collaboration with OpenAI and the integration of AI capabilities into its Azure cloud services have been pivotal in its AI strategy. In 2024, Microsoft's market valuation reached $3.1 trillion, reflecting its robust AI initiatives. As of January 2, 2025, Microsoft's stock price stands at $421.50, showing a modest decline of 0.83% from the previous close. With AI projected to drive significant capital expenditures exceeding $2 trillion over the next three years, Microsoft's comprehensive AI ecosystem positions it favorably for sustained growth.

Alphabet Inc. (GOOGL)
Alphabet, Google's parent company, has been a pioneer in AI through its subsidiaries like DeepMind and its extensive AI research initiatives. The company's AI advancements span various applications, including natural language processing and autonomous technologies. In 2024, Alphabet's market valuation reached approximately $2.3 trillion, underscoring its significant presence in the tech industry. As of January 2, 2025, Alphabet's stock price is $189.30, reflecting a decrease of 0.99% from the previous close. Alphabet's continuous innovation in AI and its integration across its product and service offerings make it a compelling consideration for investors.

Meta Platforms Inc. (META)
Meta Platforms, formerly Facebook, has been integrating AI to enhance user experiences across its social media platforms and to develop new technologies for the metaverse. The company's AI initiatives aim to improve content recommendations, advertising efficiency, and virtual reality experiences. As of January 2, 2025, Meta's stock price is $585.51, showing a decline of 0.96% from the previous close. Meta's commitment to AI-driven innovation positions it as a significant player in the evolving digital landscape.

Advanced Micro Devices Inc. (AMD)
AMD has emerged as a formidable competitor in the AI hardware market, developing advanced processors and GPUs tailored for AI workloads. The company's focus on high-performance computing solutions has enabled it to capture a growing share of the AI market. As of January 2, 2025, AMD's stock price stands at $120.79, reflecting a decrease of 1.32% from the previous close. Analysts anticipate that AMD's advancements in AI hardware will contribute to its growth in the coming years.

Tesla Inc. (TSLA)
Tesla's integration of AI extends beyond autonomous driving to include manufacturing processes and energy solutions. The company's Full Self-Driving (FSD) technology relies heavily on AI to navigate complex driving scenarios. As of January 2, 2025, Tesla's stock price is $403.84, showing a decline of 3.26% from the previous close. Tesla's ongoing AI developments in the automotive industry make it a noteworthy consideration for investors interested in AI applications within transportation.

International Business Machines Corp. (IBM)
IBM has a longstanding history in AI, with its Watson platform being utilized across various industries for data analysis and decision support. The company's focus on AI-driven enterprise solutions continues to evolve, addressing complex business challenges. As of January 2, 2025, IBM's stock price stands at $219.83, reflecting a slight decrease of 0.12% from the previous close. IBM's expertise in AI for business applications positions it as a stable investment in the AI sector.

Oracle Corporation (ORCL)
Oracle has been integrating AI into its cloud services and enterprise software solutions, aiming to enhance data management and business analytics capabilities. The company's AI-driven applications assist organizations in optimizing operations and decision-making processes. As of January 2, 2025, Oracle's stock price is $166.64, showing a decrease of 0.12% from the previous close. Oracle's commitment to AI integration within its cloud services and enterprise software solutions positions it as a strong contender in the AI sector.



In conclusion, investors looking for top AI stock picks in 2025 should consider the insights from Daniel Ives, who accurately predicted the AI Revolution in 2024. NVIDIA, Microsoft, Alphabet, Meta Platforms, AMD, Tesla, IBM, and Oracle are all well-positioned to capitalize on the growing AI market in 2025. As the AI Revolution continues to unfold, these companies are poised to deliver significant returns for investors who capitalize on their growth potential.