Best AI Stocks to Watch or Invest in Right Now
Written by
Rudri Patel
Edited by
Joe Evans
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Artificial intelligence isn’t just a buzzword — it’s rapidly becoming one of the most transformative forces across every major industry. From self-driving cars and robotics to customer service automation and advanced data analysis, AI is revolutionizing how companies operate.
If you’re wondering what the best AI stocks are to invest in right now, you’re not alone. Investors across all experience levels are eyeing this sector for long-term growth.
Let’s break down the top AI stocks to watch in 2025, key trends shaping the space and how to get started.
Best AI Stocks
Here’s a list of the six best AI stocks for May 2025:Â
| Stock | Ticker | Market Cap | Dividend Yield | Current Share Price | P/E |
|---|---|---|---|---|---|
| NVIDIA | NVDA | Â $2.79 Trillion | Â .03% | $111.61 | 38.97 |
| Alphabet | GOOGL | $1.99 Trillion | .51% | $161.30 | 19.80 |
| Upstart Holdings, Inc. | UPST |  $95.07 Million | 0% | $47.69 |  NA |
| International Business Machines | IBM | $228.21 Billion | 2.745% | $239.66 | 23.96 |
| Microsoft | MSFT | $3.24 Trillion | .76% | $425 | 33.72 |
| Micron | MU | $90.21 Billion | .57% | $77.77 | 15.76 |
All of these options above would be great options for the forward-thinking investor. Gartner Inc. predicted that AI-driven machines would account for a whopping 20% of the global workforce and 40% of all economic productivity by as early as 2028. Get in early while you can!
Why Invest in AI Stocks?
AI stocks are a good way to diversify your portfolio especially since there is an interest in developing this tech in all sectors. Here are some of the advantages of investing in AI stocks:
- Widespread adoption: AI is everywhere. From tools like ChatGPT to self-driving cars to composing email, AI is embedded in many day-to-day transactions.Â
- High growth potential: AI is transforming various sectors including health care, retail and financing with the potential for multimillion-dollar growth.
- Government investment: The government is funding many AI initiatives in several companies.Â
AI Stocks vs. Other Investment Options
How do AI stocks compare to other investments? Check out this chart that compares AI with other investment options.Â
| Investment Type | Pros | Cons |
|---|---|---|
| AI Stocks | -High growth -Long-term growth potential -Broad exposure across several industries |
-High volatility -Strong chance of disruption risk -Regulatory uncertainty |
| Index Funds (S&P 500) | -Low cost -Strong historical returns -Less risk compared to AI stocks |
-Not necessarily on cutting edge of tech -Slower growth |
| Bonds | -Lower risk -Stable, steady income |
-Lower growth potential -Sensitive to interest rate |
| Crypto | –High growth potential -Emerging asset class |
-Extreme high risk -High volatility |
| -Not necessarily on cutting-edge tech -Slower growth |
-Steady income -Inflation hedge  |
-Speculative -Regulatory concerns   |
Risks of Investing in AI Stocks
Like any investment, there are risks associated with AI stocks. These risks include the following:Â
- Regulation uncertainty: AI is still a pretty new technology, so expect to see more government regulation. Concerns over data piracy, algorithms and national security can cause disruption with an AI stock.
- Concentrated on a few big players: AI is focused on a few major players like Alphabet and Google. Smaller players may become obsolete or be left behind.Â
- Overvaluation and hype: Many AI stocks trade at higher price-to-earning P/E ratios, which creates the risk of market bubbles and sharp corrections.Â
Trends Shaping AI Stocks
Here are some of the trends that are shaping AI stocks.
- AI has become a game changer: AI technology is seen in almost every industry, whether it be in tech, finance or health care. This boom is expected to continue and will drive growth.
- High valuation prediction: The AI market is expected to hit $15 trillion in 2030. Revenue will be generated by hardware, software and automation.Â
- Companies are investing in AI: Many companies are looking to see how AI can improve their bottom line. These companies are implementing chatbots, automation and predictive analytics.Â
How to Buy AI Stocks
Here’s how to move forward with buying AI stocks:
- Step 1: Choose a brokerage platform – Choose a platform that allows you to buy AI stocks.
- Step 2: Do your research – Make certain you do your research on AI stocks. Speak to a financial planner if you feel the need.
- Step 3: Find the company ticker – Locate the company ticker on the platform.Â
- Step 4: Decide how much you want to invest – You may want to evaluate your full portfolio before investing.Â
- Step 5: Place the trade – Click buy and select the number of shares you’d like to purchase.Â
Final Take to GO: Should You Invest in AI Stocks?
The AI revolution is well underway, and the companies leading the charge may become the tech giants of tomorrow — or already are. While the road may be volatile, the long-term potential is hard to ignore.
Whether you’re just starting or looking to expand your portfolio, investing in some of the best AI stocks or ETFs could position you well for future gains.
Want to take the next step? Compare brokerages, explore ETF options or revisit your investing strategy with our smart investor’s checklist.
FAQs About AI Stocks
Here are the answers to some of the most frequently asked questions about the best AI stocks:- What are the best AI stocks for beginners?Â
- NVIDIA (NVDA), Microsoft (MSFT) and Alphabet (GOOGL) are good beginner stocks to invest in. Â
- Should I invest in AI stocks in 2025?Â
- It appears the AI sector continues to show robust growth. Many tech companies are investing in AI applications.
- Which AI stocks pay dividends?
- IBM and Intel pay dividends.
- Are AI stocks good for long-term growth?Â
- AI stocks are considered good for long-term growth because of the advancements and investments that companies are making. However, market volatility and regulatory moves can impact the profitability of an AI stock.Â
Information is accurate as of May 8, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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