3 Artificial Intelligence (AI) stocks I’m reading up on in 2025

The art of successful investing often requires looking beyond short-term market movements to identify transformative technological shifts. Rather than focusing on quarterly earnings beats or temporary market sentiment, my investment strategy focuses on identifying companies that can compound value over many years or even decades.

The rise of artificial intelligence (AI) represents one such opportunity. While many are skeptical of the current AI boom, the technology’s potential to reshape our economy is becoming clearer by the day.

Industry analysts project AI could add trillions to global gross domestic product (GDP) by 2030, fundamentally changing the way we work, create and solve problems. For long-term investors, this presents a rare opportunity to participate in a technological revolution from its early stages.

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As we move into 2025, three companies stand out for their unique positions in the AI ​​value chain. Each brings something different to the table — from making the tools that make AI possible to developing quantum systems that could unlock AI’s next chapter. Here’s why I plan to aggressively buy these three tech stocks in 2025.

The backbone of AI innovation

ASML Holding NV (ASML 1.88%) is the undisputed leader in extreme ultraviolet (EUV) lithography equipment for semiconductor manufacturing. Its stock trades at 27.4 times forward earnings, representing a meaningful premium to the benchmark S&P 500‘s 24.2 multiple. This premium valuation reflects investors’ expectations for continued growth in demand for AI chips for the rest of the decade and beyond.

In addition to its core position in the AI ​​value chain, ASML offers a growing income stream with its dividend yield of 0.97%, supported by a conservative payout ratio of 35.2%. Furthermore, the company has increased its dividend at an unusual 23.4% annual rate over the previous five years, and is among the highest growth rates in the global stock market.

The bottom line is that ASML represents a compelling opportunity for long-term investors due to its virtual monopoly in lithography equipment for advanced chip manufacturing (which plays a critical role in AI development) and fast-growing dividends.

The core AI stock

Nvidia (NVDA 2.87%) continues to dominate the AI ​​chip market with its graphics processing units (GPU). Trading at 31.3 times forward earnings, Nvidia commands a healthy premium to the S&P 500, reflecting its position as the primary beneficiary of rising AI adoption. While the current dividend yield of 0.03% may seem insignificant, the company’s explosive dividend growth of 16.3% over the previous five years and a minimal payout ratio of 1.11% signal that there is significant room for future dividend expansion.

Nvidia’s latest quarterly results underscore its market dominance. Revenue rose 94% year over year in the most recent quarter, marking the sixth straight quarter in which it beat expectations by at least $2 billion. The company’s GPUs and proprietary software platform have become the de facto standard for AI development, creating powerful network effects and high switching costs for customers.

With AI adoption accelerating across industries and its steadily growing capital return program, Nvidia stands out as a foundational holding for AI-focused investors.

A quantum leap forward

IonQ (IONQ 0.83%) is at the forefront of commercializing quantum computing technology, though its current market cap of 233 times trailing sales warrants careful consideration. The company’s 237% price gain in 2024 reflects broader industry momentum coinciding with significant developments such as Alphabet’s Willow chip architecture and Amazon‘s Quantum Embark initiative.

A key differentiator in IonQ’s business model is its cloud-centric distribution strategy. Through partnerships with Microsoft Azure, Amazon Web Services and Google Cloud Platform, IonQ has created multiple channels for companies to access its quantum systems. This integration with established cloud infrastructure reduces technical barriers to adoption and enables easier scaling of quantum computing resources as capabilities evolve.

However, investors should weigh several critical factors. While IonQ’s caught-ion approach has shown promising coherence times and gate fidelities (ie, accuracy), the technology still faces significant technical challenges for practical applications. The company’s revenue base remains modest, and achieving commercial scalability requires overcoming both technical and market hurdles.

The rapid development of artificial intelligence could accelerate the development of quantum computers in unexpected ways. AI’s demonstrated ability to solve complex optimization problems and discover new approaches in areas such as chip design and materials science can help overcome current technical barriers in quantum computing. IonQ’s market position and deep technical expertise make it well positioned to take advantage of potential AI-driven breakthroughs in quantum computer architecture and error correction.

Despite widespread skepticism in the investment community, IonQ’s leadership in quantum computing technology and strategic cloud partnerships position it to capture overall value as the quantum computing market materializes. While the premium valuation may deter conservative investors, those seeking revolutionary technology exposure may find IonQ’s risk-reward profile compelling.

The big picture

The future of computing requires three key elements: the manufacturing precision of ASML’s EUV machines, Nvidia’s AI ecosystem dominance, and IonQ’s quantum computing potential. While their valuations are rich, each company’s strong competitive position and expanding capabilities in an increasingly computer-hungry world make them compelling holdings. As a result, I am increasing my shares in Nvidia and IonQ and starting a position in ASML in 2025.