AI stocks, including Alphabet and Alibaba, present strong buying opportunities, but caution advised with Palantir.

From Nasdaq: 2025-01-06 04:51:00

In 2024, Wall Street’s bull market saw the Dow Jones, S&P 500, and Nasdaq gain 13%, 23%, and 29%, hitting record highs. Artificial intelligence played a major role in stock valuations climbing.

AI allows for split-second decisions without human intervention, benefiting various industries globally. As we enter 2025, two AI stocks, including Alphabet, stand out as strong buys.

Alphabet’s AI application through Google Cloud and hardware development make it a top choice. With a strong balance sheet, predictable cash flow, and attractive valuation, Alphabet is a compelling investment opportunity.

Another AI stock to consider in 2025 is Alibaba Group, with a leading position in cloud services and e-commerce in China. A strong balance sheet and low forward P/E ratio make Alibaba an attractive buy.

However, not all AI stocks are winners. Palantir Technologies, despite its unique services, faces challenges with an unsustainable valuation and limited growth potential. Investors should be cautious with this highflier in 2025.



Read more at Nasdaq: 2 Unstoppable Artificial Intelligence (AI) Stocks to Buy Hand Over Fist in 2025 and 1 to Avoid