Investing in AI: Stocks to Watch for 2025 Growth

NEW YORK, Feb. 18, 2025 – As the artificial intelligence (AI) revolution continues to evolve, investors are eyeing the next wave of market leaders. Since the launch of ChatGPT in November 2022, the Nasdaq Composite has surged by over 74%, with shares of Nvidia skyrocketing 685%. The question now is: which companies will dominate the upcoming phase of AI?

Three stocks currently garnering attention among analysts are CrowdStrike Holdings, Alphabet, and Apple. As more sophisticated AI platforms emerge, these companies are positioned to capitalize on the increasing demand for AI technologies.

CrowdStrike Holdings is at the forefront of AI-driven cybersecurity. The firm’s AI-powered tools are designed to learn dynamically and adapt to new threats, making them essential in an age where cybercrime—which cost the U.S. economy $12.3 billion in 2023—is prevalent. “Organizations will need to fight fire with fire,” said a CrowdStrike analyst. “The AI era will require intelligent cybersecurity measures to defend against sophisticated attacks.”

The company’s revenue has more than doubled, going from $1.6 billion to $3.7 billion in just three years. Analysts estimate CrowdStrike could reach $4.8 billion in revenue by fiscal year 2026, placing it in a strong position to benefit from AI growth.

Meanwhile, Alphabet, Google’s parent company, appears to be slowly repositioning itself in the AI race. After losing ground to OpenAI’s GPT-4o, Alphabet’s future in AI was questioned, especially after the launch of its Google Gemini platform. However, its recent advancements and commitment to invest $75 billion in capital expenditures in 2025—mostly allocated to AI initiatives—suggest a resurgence is possible.

“Lower-cost AI is likely to increase the use of Alphabet’s services,” noted a company representative. The firm reported nearly $73 billion in free cash flow in 2024, despite similar expenditures by competitors. Moreover, Alphabet’s stock has increased by almost 25% over the past year.

Apple also stands poised to thrive in this new AI environment. Known for its extensive ecosystem that includes iPhones, tablets, and wearable technology, Apple is leveraging its base of approximately 2.35 billion active iOS devices to integrate AI solutions into consumer applications. However, Apple’s entry into AI—the Apple Intelligence software suite—is still in its infancy. Despite initial feedback not meeting expectations, the long-term potential remains strong, with analysts predicting an average earnings growth of nearly 14% annually over the next three to five years.

John Mackey, former CEO of Whole Foods Market and current member of The Motley Fool’s board, remarked, “Apple remains an indispensable player in the consumer technology sphere. If it can effectively navigate its transition into AI, investors should stand to benefit significantly.”

In summary, as the AI landscape shifts, stocks like CrowdStrike, Alphabet, and Apple are positioned to gain from the continued integration and advancement of AI technologies. Investors looking to capitalize on this transition should weigh these options carefully as they seek to tap into the burgeoning AI market.