Best AI Stock to Buy: Top Picks for Traders
Artificial intelligence is catching all the eye. The technology is changing how the world functions. Now, you don’t need to go on Google to get your query resolved; AI such as Chat GPT or Deep Seek can do it. That’s not it; AI can automate most of your tasks or at least assist you.
The massive popularity of AI has given rise to AI stocks. Value investors see significant potential and growth for AI stocks. If you are also a trader looking for the best AI stock to buy, then here we will look at the top options, with the pros and cons of AI stock trading. So let’s get started.
What are AI Stocks?
AI Stocks refer to the stocks of companies that develop AI-based technologies, software or bots. These products are capable of doing most of the tasks automatically. It includes content generation, graphic design, chat support, data analysis, and operational tasks.
People have started integrating AI in performing their day-to-day tasks. As a result, the sector is expected to see huge growth in the upcoming years. Traders or investors looking for opportunities are including AI stocks in their portfolios.
A quick glance
The stocks of Alphabet Inc., Nvidia, InterDigital, Taiwan Semiconductor, Microsoft and Palantir Technologies are the best investments.
Spacex, Tesla, and DeepMind Technologies are some popular investments of Elon Musk.
Alphabet Inc
Nvidia
Taiwan Semiconductor
Microsoft
Palantir Technologies
Best AI Stocks to Buy Now
With the advancement of AI technologies, the number of companies dealing in AI products is also increasing. As a result, selecting a few AI options for trading is quite difficult. Here is a list of top AI companies to invest in that will help you in the selection of stocks:
Alphabet Inc
Alphabe Inc.’s stocks are among the top, especially for short-term trading strategies. Companies keep introducing AI technologies. Recently, when an Apple executive said that the company is considering AI chatbots, its stock fell by 7%. So, its stocks are most sensitive to such updates, and traders can take advantage of them.
Alphabet is a parent company of mega platforms such as Google, Chrome, YouTube, Android, and others. The company integrates AI and MI into its products and services.
Intel Corporation
Intel’s INTC got second place on our list of top AI stocks. The company manufactures computer products such as chips, software, processors, semiconductors, etc. Intel is ahead in AI integration. This year, the companies have introduced Edge AI suites, open edge platforms, and edge AI suites, making them suitable for AI stock traders.
Nvidia
When you talk about AI stocks, NVIDIA must be included in the list. While writing, the stock is trending 15% below compared to the previous year. China’s Deepseek is the major reason for NVIDIA’s decline.
However, it’s still the best option. The fact that the company sold $115 billion worth of chips in the last year. That is much more than its rivals. Also, the company is leading the revenue game in the semiconductor industry.
Taiwan Semiconductor
TSM is a leading name in chip and semiconductor development. It is amongst the highly returning AI stocks; it has seen a rise of 22% compared to last year.
In April 2025, Taiwan Semiconductor stocks saw a significant rise after the news that AI demand is set to increase surfaced. At the time of writing, the price is trending near $177, which is less than Microsoft and more than NVDIA, making it suitable for traders with decent capital.
Microsoft
When you talk about AI stocks, how can you forget Microsoft’s most popular stock? It’s a second-leading cloud development service, and its technologies, like Azure Clouds, are amongst the most prominent.
As per data, the tech giant has invested a massive amount in generative AI integration. At the time of writing, the stock is trending near $437, which looks like a big amount, but the returns make it worth it.
Palantir Technologies
If you are a trader with limited capital, then you must buy Palantir Technologies’ stocks. The value of one stock of the company hovers near $119 USD, which is less compared to the above options.
It is a data-analysed and AI software-based company that has seen huge growth. Recently, it has even surpassed Salesforce in company valuation. That’s not it; on May 8, 2025, it has even secured a place in the top US technology companies.
Advantages of AI Stocks Trading
- Artificial intelligence and machine learning have wide acceptance. Whether in healthcare, finance, communication, or any other AI-based technologies, people are increasingly using AI. Different industries are adopting AI on a large scale, reflecting that it has huge future potential.
- When you are choosing any of the best artificial intelligence stocks to buy, as we have discussed above, the profit potential is high. Traders dreaming of making significant money can surely consider them.
- AI is a continuously evolving market; on a daily basis, we see the arrival of AI technologies and new inventions. AI has become a significant part of the news market. Such news directly impacts artificial intelligence stocks, giving birth to multiple trading and investment opportunities.
- AI-based stocks are highly volatile, which means that the stock prices saw significant fluctuations even in a short period. So, whether you are a short-term trader or long-term investor, they are ideal to add to your portfolio.
Disadvantages of AI Stocks Trading
- Undoubtedly, Artificial intelligence stocks can give you good profit. However, with profit, the risk of losing a significant amount is also present with AI stocks.
- The profitability of AI stocks also depends on the right selection. Proper analysis of companies is a must before trading in AI stocks. These days, the number of AI-based companies is increasing, but not all are profitable for trading.
- We have discussed the most popular artificial intelligence stocks to buy now. However, trading or investing in any of the leading stocks requires good capital and not every trader has it.
Wrapping Up
Artificial intelligence is a great choice to take your stock investing or trading career ahead. They are suitable for diverse strategies, provide you with global exposure and give you considerable returns.
However, be vigilant while selecting the best AI Stock to buy in 2025. Even the greatest stock is not ideal if it does not match your capital, time frame and risk management criteria. So, conduct proper research to select the suitable one.
Also, if you want more actionable insights or strategies to start your AI trading, you can join us. Market Investopedia is a leading platform for getting diverse market knowledge and trading assistance. Feel free to connect.