The Hottest 10 Artificial Intelligence (AI) Stocks on the Market
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This group of companies reflects most of the industry's past, present, and future.
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July 8, 2025
06:00 AM
The Motley Fool
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This group of companies reflects most of the industry's past, present, and future
There's little doubt that artificial intelligence is here to stay
It's just too game-changing to put back in the box now
In fact, we've only scratched the surface of its potential usage
Industry re outfit Precedence Re predicts the worldwide AI market will grow at an average annualized pace of over 19% through 2034
This, of course, translates into opportunity for investors
The question is, which stocks offer the best shot at capitalizing on the movement's future growth
Here's a rundown of 10 of the hottest names in the that will ly remain hot for the duration of the artificial intelligence revolution
Image source: Getty Images
The OG centerpiece of AI data centers It's become such a commonly touted linchpin of the movement that it's almost become cliché
Nevertheless, Nvidia (NVDA -0. 74%) deserves top billing on any list of AI stocks to consider stepping into
The company's role in the matter is simple enough -- Nvidia makes the high-performance cessors that serve as the brains of artificial intelligence platforms; most estimates still put Nvidia's company's of the artificial intelligence cessor market in the ballpark of 85%
No rival seems to be able to break its firm hold on the, meaning it stands to ride the industry's jected growth
Making AI practical to use Hardware is only half of the AI story, though
Users also need a means of doing something constructive with all the mountains of digital data just waiting to be tapped
That's what Palantir nologies (PLTR 3. 54%) offers
It's got four different user interfaces that allow users to harness the power of AI
Its AIP platform, for instance, helps workers within an office setting to custom-build their own automated workflows and apps to imve their own ductivity
Meanwhile, its platform called Gotham supports data-driven decision-making for military combat situations
Priced at more than 200 times this year's expected per- earnings of $0. 58, Palantir stock is anything but cheap right now
With annualized growth rates of around 30% expected for at least the next few years, though, the premium price may well be worth it
A whole new kind of computing Although the vast majority of AI is still powered by traditional computers, a brand-new kind of computing platform is upon us
So-called quantum computing isn't limited by binary code's ones and zeros
By using the quantum mechanics of atomic and even subatomic p, a computing platform can simultaneously cess a near-infinite number of mathematical possibilities
Calculations that would have taken years to complete can now be in a matter of minutes
This solution, of course, has enormous implications for artificial intelligence
A handful of companies are quantum computers
None are quite as far along or as focused as IonQ (IONQ 2. 07%), though, which already commercialized the nology
The organization did $43 million worth of last year, nearly doubling its top line, which is expected to nearly double again this year
Already there Software giant Microsoft (MSFT -0. 24%) is still very much dependent on its Windows operating systems, its office ductivity software, its Azure cloud computing platform, and even its Xbox gaming franchise as fit centers
Don't look past its foray into the consumer-facing artificial intelligence market, though
While its virtual AI assistant, Copilot, hasn't exactly dethroned market-leading ChatGPT in this space, Microsoft's existing omnipresence (by virtue of its hold on the enterprise software space) arguably leaves it in the best position to monetize such a tool
As of late last year, roughly two-thirds of large U
Es were using Microsoft 365 Copilot in some way
Specialist versus generalist Microsoft's Copilot is a handy and powerful tool, to be sure
But, it's also a generalized assistant that might occasionally struggle to handle specific or more complex tasks
That's where C3. 39%) shines
Although its isn't exactly well suited to serve as a general web platform, the company offers more than 130 enterprise AI apps that can handle narrowly defined tasks predicting when an aircraft component is to fail, optimizing a retail store chain's duct pricing, and shorten the amount of time needed to apve a consumer loan
As time marches on, institutions may figure out that these more specialized solutions are the kind of artificial intelligence tools they actually need
Hiding in plain sight It might be one of the least conspicuous names in the, but International Machines, (IBM 0. 08%) or IBM, is quietly waist-deep into the AI in a handful of ways
One of these ways is through its artificial intelligence platform, called Watson, which is being used by Samsung SDS America, Intel, Deloitte, and Vodafone, just to name a few, as a means of becoming more cost-efficient, imving results, or both
The company's generative AI book of alone currently stands at (annualized) $6 billion
The other chief way IBM is evolving as an artificial intelligence stock is the organization's foray into the quantum computing realm
While IonQ may be one of the earliest names in the market with a more modest platform, IBM is aiming for raw quantum computing power
It intends to build a 200-qubit platform by 2029, versus IonQ's current top-performing system consisting of only 36 qubits
Let's not forget Alphabet Since quantum computing has been put into focus here, know that Alphabet (GOOG -1. 63%) (GOOGL -1. 53%) is working on this as well
Late last year, it unveiled a quantum computer chip nicknamed Willow, with 105 qubits ready to be put to work
It's still more of an experiment than a commercial offering, if the company decides to commercialize it at all -- it's possible Google could choose to use this high-powered computing platform strictly for its own purposes
Whatever the future holds on this front, though, the company's got the verbial goods
In the meantime, Google is making inroads with a more practical and marketable AI tool
While its Gemini remains a direct interface for anyone needing higher-level help from the World Wide Web and now serves on the order of 50 million users per day (according to numbers compiled by of Apps), users of Google's engine are now regularly finding AI-powered responses to queries in their results as well
If nothing else, this helps ensure Google's tool remains a potent cash cow
AI platforms are more than cessors and software What if the most important advancements on the artificial intelligence front weren't being driven by hardware powerhouses Nvidia or software and interface viders Palantir and C3
What if ushering in the next generation of artificial intelligence solutions was instead going to depend on the you never see or think
That's ly to be the case, putting a relatively small Marvell nology (MRVL -4. 79%) into the well-deserved spotlight
In simplest terms, Marvell makes many of the components that connect -- and connect to -- the wall of motherboards that make up an AI data center
For instance, Its optical digital signal cessors allow for the super-fast transmission of data using fiber-optic cables that can stretch for miles
But, it also manufactures custom cessors for artificial data centers that don't require an often-expensive off-the-shelf solution from a vider Nvidia
The company did nearly $5. 8 billion worth of last year and is expected to grow this figure by a hefty 43% this year
Look beyond your corner of the world You're almost certainly familiar with ChatGPT, Google's Gemini, and Microsoft's Copilot
You may also know that Facebook parent Meta Platforms now vides a similar tool, while X (formerly Twitter) offers a generative AI tool called Grok
All of them seemingly have a respectable ing relative to their age
These aren't the only artificial intelligence and virtual assistant options out there, though
These are just the ones you're familiar with because they're readily available in the Western world with little fuss or regulatory oversight
Asia has its own grown consumer-facing AI offerings, DeepSeek, Alibaba's (BABA -2. 23%) Qwen, and Baidu's Ernie
Qwen may not be China's most artificial intelligence assistant, and it's certainly not the whole world's
But, much Microsoft, Google, or Facebook, Alibaba has the advantage of already being there
Remember, Alibaba's Tmall and Taobao dominate China's and the region's e-commerce space, with commanding control of roughly half of China's massive online shopping market alone
And now for something completely different Finally, add Recursion Pharmaceuticals (RXRX -6. 64%) to your list of the market's hottest artificial intelligence stocks
Yes, this is a pharmaceutical outfit, but yes, it's also an AI name
The company uses artificial intelligence to predict how a particular drug might perform or plan how the underlying molecule might be best fabricated, saving time as well as money on clinical trials that may end in failure
It's not a mere premise, either
The company's so-called Recursion OS has access to 36 petabytes (36 million gigabytes) of prietary scientific data that's not only being used by the company to develop its own drugs but also works in partnership with more conventional pharma players, Roche and Sanofi, that recognize saving time and money allows a drugmaker to focus on more mising spects
This might help make the point: Recursion reckons that nine out of 10 int drugs never make it past clinical trials despite a decade's worth of development and roughly $2 billion worth of R&D costs for each one
Recursion OS cuts these figures down to a fraction of their usual levels
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors
James Brumley has positions in Alphabet
The Motley Fool has positions in and recommends Alphabet, Baidu, Intel, International Machines, Meta Platforms, Microsoft, Nvidia, and Palantir nologies
The Motley Fool recommends Alibaba Group, C3
Ai, Marvell nology, Roche Holding AG, and Vodafone Group Public and recommends the ing options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft
The Motley Fool has a disclosure policy.
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