Artificial intelligence (AI) is expected to play a major role in the evolution of the Fourth Industrial Revolution. Driven by advancements in AI, robotics, the Internet of Things (IoT), biotechnology and quantum computing, among other things, the Fourth Industrial Revolution is characterized by the fusion of technologies that integrate the physical, digital and biological worlds.(1)
Given that the future of technology is widely believed to be heavily influenced by AI, investing in AI stocks is compelling. It’s a rapidly growing field with significant potential for innovation, efficiency improvements and competitive advantages across various industries.
If you want to invest in companies with a competitive edge, market demand and growth potential, AI is proving itself a favourite among investors so far this year.
So here are some of the top AI stocks to consider.
10 of the best AI stocks
The AI sector is dynamic, with new innovations reshaping the landscape. We’ve crafted a list of 10 of the bets AI stocks by screening across diverse sectors and industries, highlighting AI-related companies.
| Stock | Sector | Industry | 1-year return | Market cap | Buy on Moomoo |
|---|---|---|---|---|---|
| Palantir Technologies (PLTR) | Technology | Software – Infrastructure | 108.74% | $399.2 billion (USD) | |
| KLA Corp (KLAC) | Technology | Semiconductor Equipment & Materials | 119.52% | $195.7 billion (USD) | |
| Nova (NVMI) | Technology | Semiconductor Equipment & Materials | 101.69% | $13.7 billion (USD) | |
| Innodata Inc (INOD) | Technology | Information Technology Services | 75.18% | $1.9 billion (USD) | |
| Nvidia Corporation (NVDA) | Technology | Semiconductors | 44.56% | $4.3 trillion (USD) | |
| Microsoft Corp (MSFT) | Technology | Software – Infrastructure | 5.16% | $3.4 trillion (USD) | |
| Meta Platforms (META) | Communication Services | Internet Content & Information | -0.29% | $1.5 trillion (USD) | |
| Broadcom (AVGO) | Technology | Semiconductors | 56.66% | $1.5 trillion (USD) | |
| Cisco Systems (CSCO) | Technology | Communication Equipment | 29.58% | $289.8 billion (USD) | |
| Analog Devices (ADI) | Technology | Semiconductors | 45.10% | $149.6 billion (USD) |
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What are AI stocks?
AI stocks are shares of companies that develop, deploy or significantly benefit from artificial intelligence technologies. These companies may build core AI systems like machine learning platforms, natural language processing engines or computer vision tools, or provide the hardware and infrastructure that power AI applications — such as advanced semiconductors and cloud computing networks.
AI stocks may also include businesses that integrate AI to transform their industries, from healthcare and finance to manufacturing and retail. Whether enabling automation, improving data analysis or powering intelligent software, these companies are positioned to grow as AI adoption accelerates across the global economy.
Detailed breakdown of some of the best AI stocks
- Palantir Technologies (PLTR)
- KLA Corp (KLAC)
- Nova (NVMI)
- Innodata Inc (INOD)
- Nvidia Corporation (NVDA)
- Microsoft Corp (MSFT)
- Meta Platforms (META)
- Broadcom (AVGO)
- Cisco Systems (CSCO)
- Analog Devices (ADI)
Palantir Technologies (PLTR.NASDAQ)
Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally.
Palantir Technologies is headquartered in USA and is traded on the NASDAQ under the ticker symbol PLTR. At the last market close, its share price was $167.47 with a trading volume of 22,777,164.
| YTD performance | 603.52% |
| Market cap | $399.2 billion |
| Revenue | $3.9 billion |
| Earnings per Share (EPS) | $0.44 |
| Return on Equity (ROE) | 19.50% |
| Price-to-Earnings Ratio (P/E) | 380.61 |
| Net Profit Margin | 28.11% |
| Operating Margin | 33.30% |
Palantir Technologies stock chart (NASDAQ: PLTR)
This chart tracks Palantir Technologies stock price performance over time.KLA-Tencor Corporation (KLAC.NASDAQ)
KLA Corporation, together with its subsidiaries, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. The company operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.
KLA-Tencor Corporation is headquartered in USA and is traded on the NASDAQ under the ticker symbol KLAC. At the last market close, its share price was $1,543.03 with a trading volume of 1,260,150.
| YTD performance | 477.14% |
| Market cap | $195.7 billion |
| Revenue | $12.5 billion |
| Earnings per Share (EPS) | $31.80 |
| Return on Equity (ROE) | 99.17% |
| Price-to-Earnings Ratio (P/E) | 46.74 |
| Net Profit Margin | 33.83% |
| Operating Margin | 41.66% |
KLA-Tencor Corporation stock chart (NASDAQ: KLAC)
This chart tracks KLA-Tencor Corporation stock price performance over time.Nova (NVMI.NASDAQ)
Nova Ltd. engages in the design, development, production, and sale of process control systems used in the manufacture of semiconductors in Taiwan, the United States, China, Korea, and internationally.
Nova is headquartered in USA and is traded on the NASDAQ under the ticker symbol NVMI. At the last market close, its share price was $462.06 with a trading volume of 215,084.
| YTD performance | 557.04% |
| Market cap | $13.7 billion |
| Revenue | $852.7 million |
| Earnings per Share (EPS) | $7.69 |
| Return on Equity (ROE) | 23.58% |
| Price-to-Earnings Ratio (P/E) | 60.21 |
| Net Profit Margin | 28.73% |
| Operating Margin | 28.43% |
Nova stock chart (NASDAQ: NVMI)
This chart tracks Nova stock price performance over time.Innodata (INOD.NASDAQ)
Innodata Inc. operates as a data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally.
Innodata is headquartered in USA and is traded on the NASDAQ under the ticker symbol INOD. At the last market close, its share price was $59.44 with a trading volume of 808,203.
| YTD performance | 1015.33% |
| Market cap | $1.9 billion |
| Revenue | $238.5 million |
| Earnings per Share (EPS) | $0.99 |
| Return on Equity (ROE) | 46.66% |
| Price-to-Earnings Ratio (P/E) | 60.12 |
| Net Profit Margin | 14.11% |
| Operating Margin | 18.80% |
Innodata stock chart (NASDAQ: INOD)
This chart tracks Innodata stock price performance over time.NVIDIA Corporation (NVDA.NASDAQ)
NVIDIA Corporation, a computing infrastructure company, provides graphics and compute and networking solutions in the United States, Singapore, Taiwan, China, Hong Kong, and internationally. The Compute & Networking segment includes its Data Centre accelerated computing platforms and artificial intelligence solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms; and DGX Cloud computing services.
NVIDIA Corporation is headquartered in USA and is traded on the NASDAQ under the ticker symbol NVDA. At the last market close, its share price was $186.47 with a trading volume of 124,799,649.
| YTD performance | -64.29% |
| Market cap | $4.3 trillion |
| Revenue | $187.1 billion |
| Earnings per Share (EPS) | $4.04 |
| Return on Equity (ROE) | 107.36% |
| Price-to-Earnings Ratio (P/E) | 44.08 |
| Net Profit Margin | 53.01% |
| Operating Margin | 63.17% |
NVIDIA Corporation stock chart (NASDAQ: NVDA)
This chart tracks NVIDIA Corporation stock price performance over time.Microsoft Corporation (MSFT.NASDAQ)
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Windows Commercial, Power BI, Exchange, SharePoint, Microsoft Teams, Security and Compliance, and Copilot; Microsoft 365 Commercial products, such as Windows Commercial on-premises and Office licensed services; Microsoft 365 Consumer products and cloud services, such as Microsoft 365 Consumer subscriptions, Office licensed on-premises, and other consumer services; LinkedIn; Dynamics products and cloud services, such as Dynamics 365, cloud-based applications, and on-premises ERP and CRM applications.
Microsoft Corporation is headquartered in USA and is traded on the NASDAQ under the ticker symbol MSFT. At the last market close, its share price was $470.28 with a trading volume of 29,291,235.
| YTD performance | 109.1% |
| Market cap | $3.4 trillion |
| Revenue | $293.8 billion |
| Earnings per Share (EPS) | $14.04 |
| Return on Equity (ROE) | 32.24% |
| Price-to-Earnings Ratio (P/E) | 32.37 |
| Net Profit Margin | 35.71% |
| Operating Margin | 48.87% |
Microsoft Corporation stock chart (NASDAQ: MSFT)
This chart tracks Microsoft Corporation stock price performance over time.Meta Platforms (META.NASDAQ)
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality and mixed reality headsets, augmented reality, and wearables worldwide.
Meta Platforms is headquartered in USA and is traded on the NASDAQ under the ticker symbol META. At the last market close, its share price was $672.36 with a trading volume of 16,327,378.
| YTD performance | 142.06% |
| Market cap | $1.5 trillion |
| Revenue | $189.5 billion |
| Earnings per Share (EPS) | $22.62 |
| Return on Equity (ROE) | 32.64% |
| Price-to-Earnings Ratio (P/E) | 27.10 |
| Net Profit Margin | 30.89% |
| Operating Margin | 40.08% |
Meta Platforms stock chart (NASDAQ: META)
This chart tracks Meta Platforms stock price performance over time.Broadcom (AVGO.NASDAQ)
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally.
Broadcom is headquartered in USA and is traded on the NASDAQ under the ticker symbol AVGO. At the last market close, its share price was $324.85 with a trading volume of 25,006,396.
| YTD performance | -27.2% |
| Market cap | $1.5 trillion |
| Revenue | $63.9 billion |
| Earnings per Share (EPS) | $4.77 |
| Return on Equity (ROE) | 31.05% |
| Price-to-Earnings Ratio (P/E) | 68.10 |
| Net Profit Margin | 36.20% |
| Operating Margin | 31.77% |
Broadcom stock chart (NASDAQ: AVGO)
This chart tracks Broadcom stock price performance over time.Cisco Systems (CSCO.NASDAQ)
Cisco Systems, Inc. designs, develops, and sells technologies that help to power, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.
Cisco Systems is headquartered in USA and is traded on the NASDAQ under the ticker symbol CSCO. At the last market close, its share price was $77.01 with a trading volume of 24,708,000.
| YTD performance | 72.58% |
| Market cap | $289.8 billion |
| Revenue | $57.7 billion |
| Earnings per Share (EPS) | $2.59 |
| Return on Equity (ROE) | 22.42% |
| Price-to-Earnings Ratio (P/E) | 28.32 |
| Net Profit Margin | 17.90% |
| Operating Margin | 23.60% |
Cisco Systems stock chart (NASDAQ: CSCO)
This chart tracks Cisco Systems stock price performance over time.Analog Devices (ADI.NASDAQ)
Analog Devices, Inc. engages in the design, manufacture, testing, and marketing of integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia.
Analog Devices is headquartered in USA and is traded on the NASDAQ under the ticker symbol ADI. At the last market close, its share price was $304.01 with a trading volume of 2,704,020.
| YTD performance | 105.05% |
| Market cap | $149.6 billion |
| Revenue | $11.0 billion |
| Earnings per Share (EPS) | $4.55 |
| Return on Equity (ROE) | 6.57% |
| Price-to-Earnings Ratio (P/E) | 67.16 |
| Net Profit Margin | 20.58% |
| Operating Margin | 30.50% |
Analog Devices stock chart (NASDAQ: ADI)
This chart tracks Analog Devices stock price performance over time.Types of AI stocks
AI stocks can be grouped into a few main categories, depending on how the companies are involved with artificial intelligence.
- Pure AI plays. Focus mainly on developing AI software, machine learning models, or data platforms. These businesses are at the heart of AI innovation and often provide the tools that power everything from chatbots to autonomous vehicles.
- AI infrastructure. Firms that build the hardware and cloud systems needed to run complex AI models. This includes chipmakers, data center providers and cloud computing giants.
- AI adopters. Companies in sectors like healthcare, finance or retail that use AI to improve efficiency, personalize services or analyze large amounts of data. While AI might not be their core business, it plays a key role in their growth strategies.
How to invest in AI stocks
- Open a brokerage account. Choose a broker that suits your needs, whether it’s one with robust research tools, low fees or a user-friendly interface. Then, complete an application and sign up.
- Fund your account. Deposit funds via a bank transfer, debit card or any other means your broker allows.
- Research and choose AI stocks. Research the best AI stocks (or funds) for your portfolio, and then search for them on your chosen platform by company name or ticker symbol.
- Buy shares. Select the amount you want to invest and create an order to buy shares. And just like that, you’re now officially an investor in the AI sector.
Compare trading platforms to invest in AI stocks
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Why do people want to invest in AI stocks?
Many investors are eyeing AI stocks because they represent both a technological shift and a financial opportunity. Here’s why artificial intelligence is attracting so much interest:
- Massive growth potential. The AI industry is expanding fast, transforming how people work, communicate and solve problems — and it’s still just getting started. The global AI market is projected to reach $4 trillion by 2033, up from $189 billion in 2023.(4)
- A front-row seat to innovation. Investing in AI is a way to support the next wave of breakthroughs, from autonomous vehicles and robotics to smarter healthcare and personalized digital assistants.
- Built-in diversification. Since AI is being adopted across so many fields — including tech, medicine, finance and transportation — investing in AI stocks often means getting exposure to a wide range of sectors, which can help spread out risk.
Risks of AI stocks
AI may be one of the most exciting areas in tech, but like any fast-growing industry it comes with its own set of risks. While the idea of intelligent robots is still mostly science fiction, the financial risks tied to AI are very real.
- Uncertain profitability. AI is still an emerging field, and not every company in the space will succeed. While some may lead the next wave of innovation, others may struggle to turn a profit — a reminder that no investment, especially in new industries, comes with guaranteed returns.
- Technological obsolescence. The speed at which AI technology evolves means today’s breakthrough can be tomorrow’s outdated tool. Companies that don’t adapt quickly may lose relevance, making it risky for long-term investors.
- Regulatory challenges. As AI becomes more integrated into daily life, governments are starting to pay closer attention. New laws around privacy, ethics and data use could impact how companies operate — and how their stocks perform.
"You only need to look at the performance of NVIDIA, which has rallied more than 1,000% since the beginning of 2023, to see the potential of investing in artificial intelligence stocks today. But with a price-to-earnings (P/E) ratio of 53.2, it’s clear that NVIDIA, like many other AI stocks, is growing based on the expectation of future revenues.
This can be an extremely risky game to play for investors, and the dot-com boom and subsequent bust at the beginning of the century show that speculating on future growth can be a strategy that backfires.
Investing in AI stocks will be a good long-term investment if you believe in the potential of artificial intelligence. However, this strategy involves looking beyond the fundamentals of key industry stocks, as they are already priced in for future growth.
Instead, investors must explore whether or not the stock can outperform its current P/E ratio over the long term. If you feel that the boom has more room for momentum, then AI investing may still benefit your portfolio."
Alternative ways to invest in AI stocks
Beyond directly buying individual stock in AI companies, there are several other ways to gain exposure to this dynamic industry.
- Exchange-traded funds (ETFs). These funds invest in a basket of different AI stocks, spreading out the risk associated with individual stocks. They offer flexibility and accessibility, as you can easily trade them on a regular stock exchange. Popular examples include the Global X Artificial Intelligence & Technology ETF (AIX) and the Global X Robotics & Artificial Intelligence ETF (BOTZ).
- Venture capital. For those with access and higher risk tolerance, venture capital offers a way to invest in early-stage AI startups before they go public. While this route can carry more risk, it also comes with the potential for outsized returns if the startup succeeds or gets acquired. Platforms that offer non-accredited investors access to private market opportunities, like Wealthsimple, which offers access to private equity funds.
Pros and cons of investing in AI stocks
Pros
- High growth potential and fast growing sector
- Chance to participate in a revolutionary industry
- Spans multiple sectors, allowing some diversification
Cons
- No guarantee of profitability in the long term for AI investments
- Regulatory changes could disrupt the operations and profitability of AI stocks
- Some AI tech can become obsolete relatively quickly
Bottom line
AI isn’t science fiction anymore — it’s quickly becoming a major force across industries. While no one can predict exactly how it will shape the future, one thing is clear: it’s not going away.
Investing in AI stocks offers exciting opportunities, but it also comes with real risks. Focus on companies with strong fundamentals, long-term vision and the ability to adapt in a fast-changing space. As with any investment, patience and a clear strategy go a long way.
Ready to start investing? Compare the best brokerage accounts to find a platform that fits your needs and goals.
FAQs about the best AI stocks
Who is the leader in AI technology?
There's no single leader in AI, but a few companies stand out for their innovation, scale and influence. Nvidia is widely considered a key player thanks to its powerful GPUs, which are essential for training and running advanced AI models. OpenAI, the company behind ChatGPT, has pushed the boundaries of what's possible with large language models and natural language processing.
Other major names include Google (Alphabet), with its deep investments in AI research and products like Gemini and TensorFlow, and Microsoft, which has partnered closely with OpenAI and integrated AI across its products. Amazon, Meta and Tesla are also at the forefront, each applying AI in unique ways — from cloud services and social media algorithms to autonomous driving.
Is AI a good investment?
AI has strong long-term potential as it's transforming industries and driving innovation across the economy. Leading companies in the space could see significant growth, but the sector is still evolving and comes with risks like rapid change and regulatory uncertainty. As with any investment, it's smart to research and diversify.
Sources
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