From Nasdaq: 2025-01-17 14:00:00

The astonishing rally in U.S. stocks is attributed to the technology sector’s use of AI. Bloomberg projects AI spending to soar to $1.3 trillion by 2032, with potential gains for stocks like Nvidia, Broadcom, Qualcomm, Innodata, and Marvell Technology. Despite high valuations, AI-centric stocks remain strong investments for 2025.

AI adoption has been a significant driver of the recent bull run on Wall Street, with generative AI technology playing a crucial role. Companies leveraging AI have seen substantial growth, leading to a surge in stock prices. The technology sector’s innovative power, particularly in generative AI, is expected to continue driving growth in the long term.

Investing in AI-centric stocks with a favorable Zacks Rank for the long term is advised, despite potential overvaluation. Stocks like NVIDIA Corp., Broadcom Inc., QUALCOMM Inc., Innodata Inc., and Marvell Technology Inc. are poised for continued momentum in 2025. Any dips in their stock prices present buying opportunities for investors.

The expansion of AI-powered data centers is a rapidly growing industry. Major players like Microsoft, Alphabet, Meta Platforms, and Amazon are investing heavily in AI-enabled data centers. The sector’s growth is expected to drive significant demand for electricity, leading to a surge in U.S. electric power consumption by 2030.

Five AI-focused stocks with strong growth potential for 2025 include NVIDIA Corp., Broadcom Inc., QUALCOMM Inc., Innodata Inc., and Marvell Technology Inc. These stocks have seen positive earnings estimate revisions and are expected to perform well in the coming year. Investors are advised to consider these stocks for their portfolios.

NVIDIA Corp. is a global leader in generative AI technology, offering innovative products like the GeForce RTX 50 Series GPUs. The company anticipates a $1 trillion market opportunity for its GPUs in AI-powered data centers. NVIDIA’s next-generation Blackwell AI chips are in high demand, with expectations to exceed delivery estimates in fiscal 2025.

Broadcom Inc. has experienced strong demand for its custom AI accelerators and networking solutions. The company’s acquisition of VMware has bolstered its infrastructure software offerings. With a diverse product portfolio and strong partnerships, Broadcom is well-positioned for growth in the AI and data center space.

QUALCOMM Inc. has made strategic collaborations in the AI space, particularly in digital cockpit solutions for automobiles. The company’s Cloud AI 100 chip offers efficient server query capabilities, while its Snapdragon mobile chip and laptop processor cater to a range of AI applications. QUALCOMM’s strength in the Android smartphone market further enhances its growth prospects.

Innodata Inc. operates as a global data engineering company, providing AI data preparation services and supporting Big Tech companies in developing generative AI models. The company’s focus on data engineering and AI integration positions it well for growth in the AI-driven market. Innodata is a Zacks Rank #1 stock with strong short-term price upside potential.

Marvell Technology Inc. benefits from strong demand in the data center market, driven by AI-driven demand for its products. The company’s focus on solid-state drive controllers and storage solutions aligns with the increasing data volume demands. With growth expected in enterprise networking and carrier infrastructure markets, Marvell is poised for further expansion.



Read more at Nasdaq: Technology Sector Is Set to Stay as Safe Haven in 2025: 5 Top Picks