If I Could Buy Only 1 Stock To Bet On The AI Boom In 2025, It Would Be This One.
Investors piled into artificial intelligence (AI) stocks last year in the hope that this hot technology will transform an entire industry — and this has fueled gains in three major benchmarks. I S&P 500i Nasdaqonce The Dow Jones Industrial Average has grown by double digits, led by companies developing and using AI. The idea is that creators of AI tools and services will benefit as they sell them to others, and users of AI will benefit as the technology makes them more efficient and leads them to better discoveries.
The good news for investors who got into the story early and investors now looking to buy AI stocks is that the boom is far from over. Analysts predict that today’s $200 billion market will reach more than $1 trillion by the end of the decade — so there’s a lot to gain for AI companies and their investors in the coming years.
And the best news is this: To get big AI wins, you don’t need to research and buy shares of several players. One company in particular is well-positioned to dominate this field now and for the long term, and this can translate into incredible stock performance. So, if I could only buy one stock to bet on the AI boom in 2025, it would be this one.
You may feel that, after last year’s AI stock performance, you should now search far and wide for a player that hasn’t taken off. But that is not necessary. One of last year’s AI winners may have been just getting started as many things to come could boost other benefits this year and beyond. This means that it is never too late to invest in this top stock, and you can reap the rewards in both the near and long term.
The stock I will buy is betting on the AI boom this year and for a long time Nvidia (NASDAQ: NVDA). And here’s why. My first point is that Nvidia is already well established as a supplier of high performance AI chips, or graphics processing units (GPUs). These are the basic features needed for important AI tasks such as training and modeling models.
Nvidia benefited from the initial AI boom as data centers built their own infrastructure and companies building AI platforms sought out the company’s GPUs. This has helped Nvidia report quarter after quarter of double- and triple-digit revenue growth in recent years — and gross margins of more than 70% indicate that the company is very profitable in sales.
Of course, Nvidia faces competition in the chip market, but the company’s commitment to innovation — promising annual updates to its chips — should make it very difficult for competitors to jump ahead.
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