I have two people in stock and buy it as if there is no tomorrow
Investors looking for the best Artificial Intelligence (AI) Stock You might want to see the company Wall Street is currently looking down on. Some hardware and software engineers have experienced strong demand for technology, but for some reason the stock price has yet to look at verification. The increase from these businesses solves that problem.
Below are two AI stocks that can offer explosive returns to investors over the next few years.
At the time of writing, Advanced Micro Devices(NASDAQ:AMD) Stocks fell 8% after reporting fourth quarter earnings results. AMD is one of the leading suppliers Graphic Processing Unit (GPU)It is used for AI training and also gains market share. Intel In the consumer market. Both markets should continue to offer strong AMD growth in 2025, with the recent decline in stocks making it a great buying opportunity.
AMD ended with a strong memo in 2024, with fourth quarter revenue and adjusted revenues up 24% and 42% year-on-year respectively. However, Wall Street may have been looking for more specific guidance related to AMD revenues expected from its 2025 data center GPUs.
There were concerns about capital expenditure growth in AI infrastructure. China’s Deepseek claims to have built cutting-edge AI models for less money to compete with the best models of Openai and other AI leaders. This prompted fear of less investment in Data Center AI, resulting in AMD revenue of $5 billion, or 19% of total revenue last year.
However, these fears seem exaggerated. The investments needed to build these large-scale language models, such as Deepseek R1 and Openai’s ChatGPT, are not comparable to the investments needed to build AI systems in data centers to support the needs of businesses . for example, Meta PlatformHe says he is using AMD’s instinct MI300X GPU on the Grand Teton AI platform, but he says he will spend between $60 billion and $65 billion this year, with a significant portion being allocated to generate AI and other business needs. Masu. AMD expects another year of growth in its data center business, one year after the data center segment rose 94% in 2023.
Meanwhile, AMD reported a 58% year-on-year increase in revenue from the client segment in the fourth quarter, including sales of Ryzen PC processors. AMD appears to be positioned well for its continued momentum in the PC market Dell It has announced that it will be offering the first complete lineup of commercial PCs equipped with Ryzen.
Investors can buy AMD shares at a 23 attractive forward price (P/E) ratio at the current $112 share price. This is a bargain for this top chip supplier.
Investors interested in AI should consider stocks exposed to both hardware and software opportunities. One of the best AI software stocks to consider in 2025 is c3.ai(NYSE: AI)provides enterprise AI applications for use by US military and Fortune 500 companies.
C3.AI AI model provides highly accurate results and helps businesses do more with fewer. Organizations use software to find real cost savings. This creates enormous utility value and gives the company a solid growth trajectory.
It’s a relatively small business, with only $346 million progress, but it’s expanding quickly. Revenues increased 29% year-on-year in the most recent quarter, accelerating last year.
Its market capitalization is $4.4 billion, and C3.AI stocks trade at 12 times the sales. This makes sense for a rapidly growing software business. However, C3.AI stocks could trade at a higher valuation if they do not rely on a small number of companies for profit. For example, a contract with Baker fuse It accounted for 18% of revenue for the previous quarter, and the contract was set to expire in June.
This risk has gradually faded as C3.AI diversifies its customer base. Towards the end of 2024, Microsoft We have announced a five-and-a-half year contract with C3.AI to accelerate our investment in Enterprise AI. With this agreement, C3.AI will become the preferred AI application provider for Microsoft Azure Cloud services, which could lead to significant revenue growth. Growth from this transaction will help C3.AI expand its business, improve margins and change profits.
Since C3.AI announced its agreement with Microsoft, shares have risen 28%. There may be room for operation in 2025. The stock gives investors a great exposure to the large growth opportunities in AI software.
Consider this before purchasing inventory with advanced microdevice.
Motley Fool Stock Advisor The analyst team has identified what they believe 10 Best Stocks For investors to buy now…and advanced microdevice was not one of them. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.
When should you think about it? nvidia I created this list on April 15, 2005… If you invested $1,000 at the time of recommendation, There is $795,728! *
Now it’s worth notingStock AdvisorThe total average return rate926% – Market-breaking outperformance compared to175%For the S&P 500. Don’t miss our latest Top 10 list.
Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. John Ballard It is located in advanced microdevice. Motley Fools introduces and recommends advanced microdevices, Intel, Meta platforms, Microsoft, and Palantir Technologies. Motley Fool recommends c3.ai and the following options are recommended: A $395 call with Microsoft length for January 2026, a $27 call with Intel short for February 2025, a $405 call with January 2026. To Motley’s fool Disclosure Policy.
