My Top 2 Artificial Intelligence (AI) Stocks for 2025 (Hint: Nvidia Is Not One of Them)

As the artificial intelligence (AI) revolution continues to gain momentum, investors are eager to identify the best stocks to capitalize on this burgeoning market. While Nvidia (NVDA) has been a dominant player in the AI chip market, there are other companies poised to benefit from the AI boom. In this article, we will explore two top AI stocks for 2025 that are not Nvidia.



1. Broadcom (AVGO): The ASIC specialist

Broadcom is a leading provider of application-specific integrated circuits (ASICs), which are custom chips designed to perform specific tasks. ASICs are more energy-efficient and adept at tackling the tasks they are designed to do, making them ideal for AI workloads. Broadcom's ASICs, known as XPUs, are used by cloud computing giants to power their data centers.

Broadcom's addressable market for AI is expected to reach a range of $60 billion to $90 billion in fiscal 2027, up from $12.2 billion in the recently concluded fiscal 2024. This growth is driven by the expanding AI customer base, with Broadcom supplying its custom AI chips to three cloud hyperscale customers who are on track to deploy one million of its custom AI chip clusters over the next three years. Additionally, Broadcom has been selected by two additional hyperscalers for advanced development of next-generation AI XPUs.

Broadcom's price/earnings-to-growth ratio (PEG ratio) stands at just 0.7, indicating that the stock is undervalued with respect to the earnings growth that it is expected to deliver. This makes Broadcom an attractive option for growth investors, even after the impressive 108% gains it has delivered in the past year.



1. Snowflake (SNOW): The AI-focused data platform

Snowflake gives customers an avenue to consolidate their data into a single platform, enabling them to build generative AI apps, gain insights into their data, or solve business-related challenges by applying AI to that data. Snowflake's Cortex AI platform is showing significant adoption, with over 3,200 of its customers already using its AI and machine learning (ML) features.



Snowflake has a huge addressable market to tap in 2025, as IDC is expecting a big chunk of AI spending to go toward embedding AI capabilities in businesses' operations. The good part is that Snowflake's AI-focused solutions are already gaining healthy traction among customers, positioning the company well for growth in the AI market.



In conclusion, while Nvidia has been a dominant player in the AI chip market, investors should consider other companies poised to benefit from the AI boom. Broadcom and Snowflake stand out as top AI stocks for 2025, with their unique offerings and market positions. As the AI revolution continues to unfold, these companies are well-positioned to capitalize on the growing demand for AI technologies.