May 10, 2025

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AMD, Nvidia, Palantir, Microsoft and Celestica top AI stocks, Nvidia more valuable with 56% margin and Apple executes on AI innovation

The AI stock market has seen significant fluctuations in 2025, with top stocks like AMD and Nvidia experiencing a decline of around 15%. Despite this, these companies still have massive potential to revolutionize businesses and industries. Nvidia is currently the more valuable company, with a market cap of $2.8 trillion and a profit margin of 56%, while AMD has a market cap of $165 billion and a profit margin of 6%. Other companies like Meta Platforms, Alphabet, Qualcomm, and Adobe are also making significant strides in AI, with Meta and Alphabet being considered 'no-brainer' stocks to buy. Apple is also expected to execute on AI, which will be critical to improving its investment narrative. Meanwhile, companies like Palantir, Microsoft, and Nvidia are leading the charge in AI innovation, with Palantir's AI platform being used by approximately 700 customers. The global AI market is expected to reach $407 billion by 2027 and $1.81 trillion by 2030, representing a 36% compound annual growth rate. As the AI market continues to grow, companies like Celestica, Tiger Royalties, and USD.AI are emerging as new players in the space, with Celestica being an overlooked AI play with robust fundamentals and strong AI tailwinds.

Key Takeaways

  • AMD and Nvidia are top AI stocks that have declined around 15% in 2025 but still have massive potential to revolutionize businesses and industries.
  • Nvidia is currently the more valuable company, with a market cap of $2.8 trillion and a profit margin of 56%.
  • Meta Platforms and Alphabet are considered 'no-brainer' AI stocks to buy, with Meta seeing AI impacting its business in five areas.
  • Qualcomm and Adobe are undervalued AI stocks, with Qualcomm dominating the smartphone market and Adobe providing industry-standard content creation tools.
  • Apple is expected to execute on AI, which will be critical to improving its investment narrative.
  • Palantir, Microsoft, and Nvidia are leading the charge in AI innovation, with Palantir's AI platform being used by approximately 700 customers.
  • The global AI market is expected to reach $407 billion by 2027 and $1.81 trillion by 2030, representing a 36% compound annual growth rate.
  • Celestica is an overlooked AI play with robust fundamentals and strong AI tailwinds, with a target price of $133.
  • Tiger Royalties has invested in decentralized AI, marking its entry into the space and aiming to position the company at the forefront of AI democratization.
  • USD.AI is a new concept that combines DePIN, AI, and stablecoins to provide an alternative to suboptimal hardware financing systems.

AMD vs Nvidia AI Stock

AMD and Nvidia are two top AI stocks that have declined around 15% in 2025. Despite this, they still have massive potential to revolutionize businesses and industries. Nvidia is currently the more valuable company with a market cap of $2.8 trillion, while AMD has a market cap of $165 billion. Nvidia's profit margin is 56%, while AMD's is 6%. Nvidia is still up 29% in the past 12 months, while AMD has fallen by 33%. AMD CEO Lisa Su forecast that the company could generate tens of billions of dollars in annual revenue due to its AI chips. Nvidia is currently the better AI stock to buy due to its stronger financials and dominant position in the market.

AMD vs Nvidia AI Stock

AMD and Nvidia are two top AI stocks that have declined around 15% in 2025. Despite this, they still have massive potential to revolutionize businesses and industries. Nvidia is currently the more valuable company with a market cap of $2.8 trillion, while AMD has a market cap of $165 billion. Nvidia's profit margin is 56%, while AMD's is 6%. Nvidia is still up 29% in the past 12 months, while AMD has fallen by 33%. AMD CEO Lisa Su forecast that the company could generate tens of billions of dollars in annual revenue due to its AI chips. Nvidia is currently the better AI stock to buy due to its stronger financials and dominant position in the market.

2 No Brainer AI Stocks

Meta Platforms and Alphabet are two AI stocks that are considered no-brainers to buy. Both companies are trying to integrate AI into their operations to transform their businesses. They are among the most valuable companies in the world but their stocks are not given a high valuation due to their current business models. Meta Platforms and Alphabet get most of their revenue from advertising, which can be affected by economic downturns. However, AI could have a massive impact on both companies in the future. Meta Platforms sees AI impacting its business in five areas, including improved advertising and more engaging experiences.

2 No Brainer AI Stocks

Meta Platforms and Alphabet are two AI stocks that are considered no-brainers to buy. Both companies are trying to integrate AI into their operations to transform their businesses. They are among the most valuable companies in the world but their stocks are not given a high valuation due to their current business models. Meta Platforms and Alphabet get most of their revenue from advertising, which can be affected by economic downturns. However, AI could have a massive impact on both companies in the future. Meta Platforms sees AI impacting its business in five areas, including improved advertising and more engaging experiences. Alphabet's AI Overviews search summary tool has been a popular feature, and the company supplies tools and infrastructure to build AI models.

2 Undervalued AI Stocks

Qualcomm and Adobe are two AI stocks that look undervalued in today's market. Qualcomm's stock has fallen 38% from its record price, and its valuation is 14.6 times earnings. Adobe's stock has fallen 39% from its peak, and its valuation is 25.4 times earnings. Both companies are leaders in their respective fields, with Qualcomm dominating the smartphone market and Adobe providing industry-standard content creation tools. Qualcomm is diversifying its product catalog, adding target markets such as PC processors and Internet of Things sensors. Adobe is throwing its weight behind the AI opportunity, with AI-related product announcements and a focus on digital creation tools.

Apple AI Innovation

Apple is a technology company that is benefiting from a strong ecosystem, strong cash flow, and a dominant high-end market position. The company is expected to execute on AI, which will be critical to improving its investment narrative. Analysts have a consensus price target of $228.65 on Apple's stock, which implies an upside of 16% from current levels. Apple ranks 3rd on the list of AI stocks on Wall Street's radar, but some AI stocks may hold greater promise for delivering higher returns in a shorter time frame.

Best AI Stocks to Buy

Daniel Ives has picked Microsoft, Palantir, and Nvidia as the best AI stocks to buy. Microsoft is a leader in software and cloud computing, and is using AI to enhance its Azure cloud platform. Palantir is an innovator in data analysis software, and is integrating AI technology into its products. Nvidia is a leader in semiconductors and is dominating the market with its AI-powered chips. The global AI market is expected to reach $407 billion by 2027 and $1.81 trillion by 2030, representing a 36% compound annual growth rate.

Digital Marketplaces Disrupt Insurance

The insurance industry is being disrupted by digital marketplaces that are using AI to connect carriers with agents. First Connect is a digital marketplace that matches carriers with agents in a streamlined fashion, providing benefits to policyholders. The company's platform uses AI and APIs to expedite the process of analyzing and approving errors and omissions policies. The insurance industry is facing changes due to natural disasters, inflation, and high interest rates, which have made it more expensive to replace homes, automobiles, and personal property.

Tiger Royalties Invests in Decentralized AI

Tiger Royalties and Investments Plc has invested £250,000 in Tao Strategies Singapore, a company that is part of the Bittensor network, an open-source blockchain marketplace for machine-learning models. The investment marks Tiger's entry into the decentralized AI space and aims to position the company at the forefront of AI democratization. The partnership will accelerate Tao Strategies' operations and enhance the Bittensor network's resilience and performance.

Palantir AI Momentum

Palantir Technologies Inc. is an AI stock that is on Wall Street's radar. The company is a leader in data analysis software and is integrating AI technology into its products. Palantir's AI platform is used by approximately 700 customers, including key industrial concerns and government agencies. The company's data tools have proven popular in both the private and public sectors, and its use of natural language processing speeds up human-machine interaction.

USD AI Financing

USD.AI is a new concept that combines DePIN, AI, and stablecoins to provide an alternative to suboptimal hardware financing systems. The company offers a source of lucrative yield on-chain and is focused on financing the future of AI infrastructure. Crypto and AI have a lot of hype, but USD.AI aims to deliver substance in the AI infrastructure space.

Celestica AI Play

Celestica is an overlooked AI play with robust fundamentals and strong AI tailwinds. The company posted a solid Q1 with 20% year-over-year revenue growth and EPS rising from $0.86 to $1.20. Valuation scenarios suggest a 38% to 18% upside potential, with a target price of $133. The company's AI-driven data center demand is driving growth, and its strong financials make it a compelling investment opportunity.

Sources

AI Stocks Nvidia AMD Meta Platforms Alphabet Qualcomm Adobe Apple Microsoft Palantir USD.AI Celestica AI Infrastructure Decentralized AI Machine Learning Blockchain Artificial Intelligence