Key Takeaways:
- AMD analysts see over 30% upside as demand surges for its MI300X AI chip.
- ASML’s near-monopoly on lithography machines makes it an essential AI company at a historically low valuation.
- TSMC’s dominance in chip production and 20% expected earnings growth make it a strong long-term compounder.
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AI is changing the world faster than ever, and the companies behind the technology are poised for massive growth.
While Nvidia has dominated the headlines, there are other AI stocks with just as much, if not more, potential.
Here are three of the best AI stocks to buy for 2025.
1: Advanced Micro Devices (AMD)
AMD is the #2 player in AI chips behind Nvidia.
The company still has a lot of growth potential like NVIDIA, but at a much cheaper price.
AMD’s latest MI300X AI chip is seeing major demand, and its chips are being used for data centers, cloud computing, and AI workloads.
Currently, analysts have an average price target of 148 dollars per share for AMD, which means they see over 30% upside today.
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These next 2 stocks are our favorite because they’re truly irreplaceable monopoly businesses.
2: ASML (ASML)
ASML is one of the single most important companies in AI chip production.
ASML makes the lithography machines needed to produce high-end AI chips that every major semiconductor company, including NVIDIA, AMD, and Apple, need.
And the best part is that ASML has practically no competition.
ASML has a monopoly over the industry, with about a 90% market share on lithography machines.
Today the looks fairly cheap with a historically low P/E ratio, so it’s worth a look.
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3: Taiwan Semiconductor Manufacturing Company (TSM)
Finally, we have Taiwan Semiconductors.
This company produces over 60% of the world’s most chips, and is legitimately the backbone of the AI industry.
Without it, the entire global tech industry would collapse.
TSMC is expected to grow earnings around 20% annually, yet the stock trades below 20 times earnings.
Analysts think the stock is 30% undervalued today and can continue to compound for years to come.
TIKR Takeaway
AI is transforming industries, and these three stocks are positioned to benefit from its growth.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks and was built for investors who think of buying stocks as buying a piece of a business.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. We aim to provide informative and engaging analysis to help empower individuals to make their own investment decisions. Neither TIKR nor our authors hold positions in any of the stocks mentioned in this article. Thank you for reading, and happy investing!
