Best AI stocks to watch in 2025
Advanced Micro Devices, Broadcom, Intel, Nvidia, Palantir Technologies and Super Micro Computer may be the best AI stocks to watch.
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Advanced Micro Devices, Broadcom, Intel, Nvidia, Palantir Technologies and Super Micro Computer may be the best AI stocks to watch. All, except Intel, are selected as the top % shares included in the iShares Future AI and Tech ETF.
Artificial Intelligence (AI) could become the latest investing theme of choice — the tech world has seemingly had enough of disruptive tech, cryptocurrency, Web3, Blockchain, and the Metaverse — and is ready to set its hopes on the next big thing.
Of course, while these former concepts are on the backburner as the days of ultraloose monetary policy have ended, AI is becoming the driving force for big tech. Indeed, 64% of the S&P 500’s gains in 2024 came from just seven companies, all of whom are potentially riding the AI wave to some degree.
There may be a difference between AI and the rest though. Artificial Intelligence is already in use across a wide variety of real-world applications, including in entertainment, social media, art, retail, security, sport analytics, manufacturing, self-driving cars, healthcare, and warehousing alongside dozens of other sectors.
Every Netflix recommendation, every supermarket rewards purchase, and every football match are analysed ever more relentlessly in order to provide more and better data. And while consumers have always understood — even peripherally — that AI was taking over more and more of the heavy lifting; the sector’s investment catalyst has finally arrived.
This catalyst is of course ChatGPT, created by OpenAI, a developed large language model (LLM) which garnered over 1 million users in its first five days of existence. It took Facebook 10 months, and Netflix three and a half years to hit the same milestone.
Taking the world by storm, it now boasts over 800 million active users a week1, and investors are now considering whether the innovation could make entire careers in areas such as copywriting, accounting, personal training, and even software development entirely redundant.
Whisper it, but some even believe ChatGPT could be instrumental in taking on Google’s dominance in the internet search space.
If this sounds fanciful - and there’s been no shortage of fanciful tech-related claims in the recent past - consider both the pace of technological change over the past 50 years, the hundreds of once vibrant and now abandoned career paths, and the fact that Google itself usurped Yahoo’s search crown.
AI development is exceptionally expensive, and for every ChatGPT breakthrough, there are hundreds of costly failures. Therefore, the best AI stocks could be predominantly the larger blue chips - which also helps to diversify any investment in the event that their AI projects fail.
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Best AI stocks to watch
1. Advanced Micro Devices (NASDAQ: AMD)
Advanced Micro Devices (AMD) is a semiconductor company which focuses on high performance computing and graphics visualisation, both of which are important in the advancement of AI technology. Its introduction of 3-DV-Cache technology in the AMD EPYC processors has improved how data is stored and increased performance up to 66%, helping to significantly advance AI workloads.
The company’s Q2 results saw revenue increase by close to 32%, reaching $7.68 billion, which was mostly driven by its Data Centre division. Operating profit was up 57% year-on-year in Q1 but dropped by 29% to $897 million in Q2, mainly due to an $800 million inventory charge from US export restrictions on its MI308 AI chips, lower gross margins, and higher operating expenses.
Despite this, AMD is one of the few companies with chips capable of powering AI technology. As AI continues to develop, there’s big opportunities as large tech companies such as Alphabet, Meta and Microsoft look to increase their AI budget.
AMD’s share price jumped around 40% in a single week in the second week of October 2025, setting new record highs, largely driven by the announcement of a multi-year AI chip supply deal with OpenAI (including a warrant giving OpenAI an option to acquire ~10% of AMD shares) that repositioned AMD as a central player in AI infrastructure.
Our analysts have given the stock a buy position.
Weekly candlestick chart showing the stock performance of AMD since November 2023
2. Broadcom Inc (NASDAQ: AVGO)
Broadcom Inc is a global technology company who specialise in semiconductor solutions and infrastructure software. Its solutions help manage data and optimise operations in areas such as broadband, networking, wireless and enterprise software.
The company reported strong Q3 results (ended 3 August 2025) which were largely driven by infrastructure software and AI semiconductor solutions. Revenue reached $15.95 billion, up around 22% from the previous year and its adjusted EBITDA reached $10.70 billion.
Looking ahead, analysts are expecting its strong performance to continue throughout 2026 with revenue reaching $23.47 billion by the end of Q3. The stock is currently in a buy position.
Weekly candlestick chart showing the stock performance of Broadcom since November 2023
3. Intel (NASDAQ: INTC)
Intel Corporation is one of the world’s leading semiconductor manufacturers, long known for its dominance in computer processors and integrated hardware solutions. In recent years, Intel has refocused its strategy to compete aggressively in the artificial intelligence (AI) and data centre markets, investing heavily in advanced manufacturing processes and next-generation chip architectures. Its Gaudi and upcoming Falcon Shores accelerator platforms aim to rival Nvidia and AMD in powering AI workloads, offering cost-effective performance for enterprise and cloud-scale AI applications.
In its most recent quarterly results, Intel reported mixed performance. Revenue for Q2 2025 rose modestly to $12.86 billion, supported by steady growth in its Foundry and Data Center divisions, but overall operating profit fell by $503 million due to continued high capital expenditures and pricing pressures in client computing. Despite short-term margin compression, Intel’s foundry expansion - including major new fabs in Arizona and Germany - has positioned it as a critical partner in securing global semiconductor supply chains and meeting the surging demand for AI-ready chips.
Intel’s strategy increasingly centres on reclaiming technological leadership through innovation and collaboration. The company has announced partnerships with several hyperscalers to deploy its Gaudi 3 AI accelerators at scale, while also leveraging its 18A process node to produce cutting-edge chips for third-party customers. Analysts note that Intel’s diversified portfolio-spanning PC chips, AI accelerators, networking, and foundry services-gives it a unique, vertically integrated position compared to fabless competitors.
Intel’s share price has recovered strongly in 2025, climbing more than 25% since mid-year, as investors regain confidence in its turnaround plan and AI roadmap. Momentum was boosted by growing optimism around its foundry business and early performance benchmarks of the Gaudi 3 platform, which demonstrated notable efficiency gains in large-scale AI training tasks. With further AI-focused product launches expected in 2026, Intel appears to be regaining its foothold in the rapidly evolving AI hardware race.
According to LSEG Data & Analytics, Intel has a hold rating but our analysts have given the stock a buy rating.
Weekly candlestick chart showing the stock performance of Intel since November 2023
4. Nvidia (NASDAQ: NVDA)
Nvidia is well-known as the world’s most valuable chipmaker, used in electronics ranging from smartphones, to cars, to high-end computing. Its Q2 earnings were strong, reporting a 55% increase in revenue which was primarily driven by data centre sales, despite export restrictions to China which were recently introduced.
Although the launch of DeepSeek has caused concern that demand for its chips may be overstated, large tech companies such as Alphabet and Meta continue to invest heavily in Nvidia to help build both internal and user facing AI applications.
As AI becomes ever more mainstream, demand for these chips could surge, and importantly, there is a high barrier to entry - Nvidia has a wide economic moat surrounding its market position as the ‘bricks and mortar’ AI choice.
Our analysts have given the stock a buy rating.
Find out more about buying Nvidia stock.
Weekly candlestick chart showing the stock performance of Nvidia since November 2023
5. Palantir Technologies (NASDAQ: PLTR
Palantir Technologies is a software company which specialises in data analytics and AI. Its core product was first used by the US government as a counter terrorism tool, but it has since expanded its services to local governments and private corporations.
The company’s Q2 results for 2025 reported a revenue increase of 48% year-over-year, reaching $1.04 billion, and an over 82% rise in pre-tax profits of $527.2 million with significant gains seen across both its commercial and government US businesses.
Whilst Palantir’s potential is significant and its recent results have reinforced it as a leader in AI-driven data analytics, its high valuation is a concern to some investors as it could result in short-term volatility. It’s long-term success is dependent on the company consistently exceeding its profit expectations.
Our analysts have given the stock a hold rating.
Weekly candlestick chart showing the stock performance of Palantir Technologies since November 2023
6. Super Micro Computer (NASDAQ: SMCI)
Super Micro Computer (Supermicro) is a leading provider of high-performance server and storage systems designed for cloud, enterprise, and AI workloads. Often referred to as the “backbone” of the AI hardware ecosystem, Supermicro builds the infrastructure that powers advanced computing clusters used by major tech firms and research institutions worldwide. Its modular, energy-efficient server architectures - optimised for Nvidia, AMD, and Intel chips - enable rapid deployment of large-scale AI training systems, making it a critical supplier in the expanding AI supply chain.
In its most recent quarterly results (Q4), Supermicro reported another period of growth. Revenue rose by 8% year-on-year to reach $5.75 billion, driven primarily by demand for AI-optimised servers equipped with Nvidia’s H100 and upcoming Blackwell GPUs. Net income fell by nearly 36% to $260.7 million, while gross profit margins slid to 9.5%, as management cautioned that component supply constraints and elongated delivery schedules could weigh on short-term performance as the company ramps up capacity to meet unprecedented demand.
Supermicro continues to benefit from its close partnerships with leading semiconductor makers and its reputation for delivering fully integrated, power-efficient data centre solutions. The company recently announced plans to expand its manufacturing footprint in Malaysia and Silicon Valley, aiming to triple production output by mid-2026. This expansion, along with its focus on liquid-cooling technology and rack-scale AI systems, positions Supermicro as a central player in enabling hyperscalers and enterprises to scale their AI infrastructure efficiently.
Supermicro’s stock has been one of the standout performers in 2025, gaining over 90% year-to-date as investor enthusiasm has been fuelled by continued AI infrastructure demand and speculation that Supermicro could become a takeover target or strategic partner for one of the major chipmakers seeking to vertically integrate. As AI data centre buildouts accelerate globally, Supermicro remains well-placed to capitalise on the sustained investment cycle powering the next wave of artificial intelligence deployment.
Our analysts have given the stock a hold rating.
Weekly candlestick chart showing the stock performance of Super Micro Computer since November 2023
How to invest or trade in AI stocks with us
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You can either invest in shares directly, which typically involves holding shares over several years with the view that it’ll increase in value over time. Or you can take a shorter-term approach and trade.
With trading, you can benefit from leverage. This allows you to take a position that’s greater than your initial deposit. For example, with 5:1 leverage, you could open a £5,000.00 position while only depositing £1,000.00 as ‘margin’. A 10% market movement could result in a 50% gain or loss on your deposited margin.
Keep in mind, leverage means you can gain or lose money faster than expected. Because your position size is far greater than your deposit, you could lose more money than you put in. Be aware also that past performance is not an indicator of future returns.
Best AI stocks to watch summed up
These are just a selection of some of the top AI companies to invest in. Always do your own research. Past performance is not a guide to future returns.
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