Anticipated Victors: The Two AI Businesses Likely to Yield the Most Profits by 2025
AI-driven stocks have played a significant role in propelling the stock market higher, with the S&P 500 notching its second consecutive year of double-digit gains. This trend shows no signs of slowing, as the AI market is still in its Early days. Infrastructure development and real-world application of AI are just getting started, making it an excellent time to invest in AI stocks.
Investing in AI stocks can build your portfolio and potentially yield returns this year. You should consider companies that contribute to the AI build-out and have the potential to benefit from the rise of AI implementation. Based on this criterion, two AI stocks are poised to lead the way by 2025.
1. Nvidia (NVDA)
Admittedly, some might argue that Nvidia has already reached unprecedented heights in the AI boom. However, its forward earnings estimates of 30 times are a testament to its growth potential. As the world's leading AI chip designer, Nvidia boasts an impressive clientele, including tech giant companies reliant on Nvidia's cutting-edge innovations.
Demand for Nvidia's latest Blackwell architecture has outpaced supply, with the company using words such as "insane" and "staggering" to describe the situation. This hyper demand indicates strong revenue growth for Nvidia in the near future, further driving share price growth.
Moreover, Nvidia's commitment to annual chip innovations and expansion of its product portfolio suggests a resilient presence throughout the growth of AI. When paired with its leadership in the AI chip market, this bodes well for Nvidia's share performance, positioning it as a candidate for significant returns in 2025.
2. Amazon (AMZN)
The association between Amazon and AI might tend to focus on shopping or cloud computing, but a closer examination reveals its impressive AI growth story. Amazon utilizes AI in various capacities, from optimizing its delivery routes to predicting product demand, thereby improving its overall efficiency.
In the cloud computing sector, Amazon Web Services (AWS) has opened up a world of AI opportunities through its diverse product offerings – from premium chips to customizable AI agents. AWS is also a valuable resource for businesses looking to adopt AI in their day-to-day operations.
Amazon's impressive growth trajectory is underscored by the unit's $115 billion annual revenue run rate, which is primarily driven by its cloud computing business. Strikingly, the stock's P/E ratio of 34 is significantly lower than a few months ago, highlighting a worthwhile investment opportunity.
As AI continues to evolve and find wider application in the business world, Amazon is well-positioned to capitalize on its strategic AI investments and dominance in cloud computing, making it an appealing target for 2025 AI stock growth.
Sources:
- Investopedia
- Nasdaq.com
- Statista
- World Bank
- The predicted growth potential of AI-driven stocks like Nvidia (NVDA) is evident in its forward earnings estimates of 30 times, making it an attractive investment opportunity even in 2025.
- The high demand for Nvidia's latest Blackwell architecture and its commitment to annual chip innovations indicates strong revenue growth, potentially driving significant share price growth in the coming years.
- In the realm of finance and AI, companies like Amazon (AMZN) are leveraging AI in various ways, such as optimizing delivery routes and predicting product demand, which could contribute to substantial stock growth by 2025.
- With a lower P/E ratio than a few months ago and a significant annual revenue run rate driven by cloud computing, Amazon's strategic AI investments and dominance in the industry position it as a highly-anticipated AI stock for growth in 2025.
