Best Ai Stocks To Buy Now Morningstar

Bonisiwe Shabane

-Nov 17, 2025, 1:49 AM

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The timeline may be short. While few expect AI spending to decline in the short term, stock prices often reflect a promising outlook long before expected profits materialize. With AI adoption poised to go mainstream in the coming year, now is the time to stake your claim. Below is a brief overview of the state of AI, followed by a list of six AI stocks that look promising for 2025. A McKinsey report characterizes 2023 as the year "the world discovered generative AI (gen AI)." 2024 is when businesses began realizing value from using gen AI. The rising adoption has sparked extreme demand for AI-capable computing power.

Data centers, in turn, invested billions in hardware and software for powering, developing and training AI applications. In 2025, companies like OpenAI will look to move AI's capabilities into increasingly complex tasks. Use cases for AI will expand across industries and into the personal computing space. Organizations that have invested in AI will attempt to quantify the business value of those investments. How those business value questions resolve will influence the S&P 500. Stephen Wu, founding and managing partner of Carthage Capital Management, notes that nearly half of the S&P 500 is concentrated in tech stocks.

"With AI expectations running high," Wu explains, "it's crucial for AI to continue meeting expectations or there may be severe consequences." The AI boom still has many years to go before reaching full maturity. The artificial intelligence (AI) boom is alive and investors need to understand that this is a long-term trend, and that any dip (like we're expecting now) may be a great opportunity to buy the... I've got four of them that look like fantastic opportunities, and investors should consider buying them right now to ensure they're well-positioned to take advantage of the massive buildout that's ongoing. Nvidia (NVDA +2.65%) has been a top AI investment pick since the AI arms race kicked off in 2023. Its graphics processing units (GPUs) have become the industry standard, and it likely won't relinquish that position anytime soon.

It has orders for $300 billion worth of its top-tier AI computing chips coming up over the next five quarters, making it an excellent stock to consider scooping up, especially after many of the... Despite notions that Nvidia is overvalued, I think it's cheap. What investors forget to consider is Nvidia's amazing growth rate. The PEG ratio accounts for this growth, and anything under 1 is considered undervalued. In this piece, we will look at the best strong buy AI stocks to invest in. With 2025 nearing its end, another year has passed with AI dominating the markets.

As an illustration, consider the year-to-date performance of two exchange-traded funds (ETFs) that also list AI stocks. The Global X Artificial Intelligence & Technology ETF (AIQ) has gained 28.9% year-to-date as of market close on November 28th, while the Roundhill Generative AI & Technology ETF (CHAT) is up by 47.2%. Comparing these with the NASDAQ 100 and the S&P 500’s year-to-date gains of 21.3% and 16.7%, it’s clear that AI stocks have continued to attract money. When we talk about AI, while most attention is typically focused on chatbots developed by firms such as OpenAI, the term also applies to technologies used in the business world. These technologies include machine learning and agentic AI, with the former an indispensable part of SpaceX’s ability to land its Falcon 9 rockets. Machine learning algorithms rely heavily on what is called convex optimization, and according to Lars Blackmore, currently the Sr.

Principal Mars Landing Engineer for SpaceX, the firm relies on generating “customized flight code, which enables very high-speed onboard convex optimization” to land the Falcon 9. On the investing side of AI, the market is dominated primarily by big technology players. In the hardware space, it’s primarily NVIDIA that has benefited, while others, such as AMD, have also seen interest. In the software space, it’s mega caps Amazon, Google, and Microsoft whose enterprise software and consumer-focused platforms have garnered interest. However, while AI stocks have benefited, worries about the costs of development have surfaced at the tail end of the year. For instance, on Bloomberg’s Here’s Why podcast, Bloomberg Technology Europe’s Tom Mackenzie discussed famed short seller Michael Burry’s decision to go against the AI market.

Mackenzie explained that Burry’s “concern does focus on depreciation of some of these assets.” You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Artificial intelligence is revolutionizing industries across the board. So, it should come as no surprise that AI stocks are powering ahead, with many notable performers on the S&P 500. For best AI stocks, the stocks selected on our list are predicted to generate positive earnings per share (EPS) growth, carry analyst consensus of “buy or better” and hold a market cap of $10...

Our editors are committed to bringing you independent ratings and information. Advertisers do not and cannot influence our ratings. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below. Trades of stocks, ETFs and their options are commission free. Other fees may apply.

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Best Ai Stocks To Buy Now Morningstar

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