The Nasdaq’s 28% surge last year has investors eagerly anticipating another year of growth, and AI stocks are leading the charge. As artificial intelligence continues to transform industries, these three companies are poised for significant gains.
Meta Platforms (NASDAQ: META) is developing its own large language model to support tools like Meta AI assistant, aiming to create AI that can assist users with daily tasks and work-related projects. With shares trading at 24 times forward earnings estimates, they look like a bargain buy before the Nasdaq soars.
Alphabet (NASDAQ: GOOG) is winning in AI through its LLM Gemini, improving search experience for advertisers and generating significant revenue through Google Cloud. Although facing an antitrust case, Alphabet’s focus on AI has helped it reach milestones, making its stock a compelling option with shares trading at 21 times forward earnings estimates.
Nvidia (NASDAQ: NVDA) is the top AI chip company, expanding its empire into various industries like healthcare and automaking. Its enterprise software and tools could push revenue higher in the years to come, solidifying its position as a leader in AI growth. With shares trading at 45 times forward earnings estimates, Nvidia remains a top buy before the Nasdaq takes off.
Investing in these AI stocks can provide significant returns, especially with The Motley Fool’s track record of outperforming the S&P 500. As the Nasdaq continues to soar in 2025, keep an eye on these three companies and consider investing in their potential for growth.
Source: https://finance.yahoo.com/news/history-says-nasdaq-soar-2025-161200404.html