Artificial Intelligence (AI) turns out to be a revolutionary technology and thanks to it, several companies become winners in this sector of the economy. Shares of many of these companies have already posted significant gains. But as AI is still in its early stages, many of these actions have additional room to maneuver.
Let’s look at five AI stocks that could continue to rise in the coming years.
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Nvidia (NASDAQ:NVDA) is already one of the biggest beneficiaries of AI, as its graphics processing units (GPUs) have become the backbone of building AI infrastructure. The demand for its chips is insatiable and it appears there will be no let up as large language models (LLM) need ever-increasing computing power and therefore GPUs that they need to be trained on as they become more advanced.
With its CUDA software platform having long become the standard on which developers learned to program GPUs, Nvidia has a wide moat that has allowed it to achieve a dominant share of the GPU market. At the same time, the company continues to advance its technology, accelerating its design cycle to once a year (from the previous cycle of two to three years). This combination of a wide gap and technological advancements should allow Nvidia to maintain its huge market share and continue to be one of the biggest winners in AI.
For investors looking for the next big AI chip winner, Broadcom(NASDAQ:AVGO) tops the list of candidates. The company participates in the development of AI infrastructure through its networking portfolio, which provides switches and network interface cards (NICs), as well as by helping customers create custom AI chips.
The company is looking to expand and take market share in the AI data center switching market, where its Ethernet switches compete with Nvidia’s InfiniBand technology. It touts that Ethernet technology is superior to InfiniBand in handling AI workloads and transferring data between GPUs. While both technologies have their pros and cons, it is a growing market that is becoming increasingly important as GPU clusters become larger. There are therefore many potential advantages from which several actors can benefit.
Broadcom’s biggest opportunity, however, is helping its customers develop chips designed for specific computing and power needs. The company has gained a number of large clients in this space and is expected to be a strong growth engine in the coming years.
Microsoft(NASDAQ:MSFT) was one of the first major technology companies to adopt AI and bring it mainstream following a significant and increased investment in OpenAI, the maker of ChatGPT. Since then, its Azure cloud computing unit has been a big AI winner, as customers adopt its services to create their own AI agents and co-pilots. This has led to steady growth for Azure, including revenue growth of 33% last quarter. The company is investing heavily in expansion to meet demand.
Microsoft is also starting to benefit from AI in its software segment, where it has introduced several AI assistant co-pilots for its productivity tools within its Microsoft 365 offering. As these AI assistants advance and user adoption increases , the company faces a huge opportunity. Priced at $30 per month per enterprise user (with a Microsoft 365 subscription required), AI assistant costs can in some cases be as high, or even higher, than the cost of Microsoft 365 itself.
Although Microsoft was an early winner in AI, its biggest opportunities may still lie ahead.
One of the biggest winners in AI software has been AppLovin (NASDAQ:APP)which has seen astronomical growth since the launch of its AI-powered adtech platform, Axon 2.0. Since then, its adtech solution has become the essential solution for mobile gaming companies to attract new customers and better monetize their games. Although growth has been explosive since its launch, the company believes it can continue to grow its gaming customer revenues by between 20% and 30% per year.
However, the biggest opportunity for the company moving forward is to expand the use of Axon 2.0 beyond gaming clients to other segments. It has just started testing Axon 2.0 in the broader e-commerce sector and is seeing good initial results. Meanwhile, AppLovin management believes that the e-commerce vertical will become a significant revenue growth driver as early as next year.
If the company manages to expand Axon 2.0 beyond gaming, the title should have a lot more potential in the years to come.
After experiencing initial success in the automotive and foodservice verticals, Sound dog(NASDAQ:SON) seeks to become the world’s first AI-powered voice commerce platform following its recent acquisition of Amelia. A conversational and generative AI platform, Amelia offers SoundHound a broader range of customers in industries such as healthcare, financial services, insurance and retail.
While the company still has plenty of growth opportunities in the automotive and foodservice sectors, the stock’s real upside lies in the use of its technology across a wide range of industries, each with its own own specific vocabularies and interactions. This may include making doctor’s appointments or answering complex questions related to a stock transaction.
If it can advance its AI voice platform to this level and serve a multitude of industries, the sky is the limit.
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Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool ranks and recommends AppLovin, Microsoft and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
