From Nasdaq: 2025-04-23 04:20:00

In 2023 and 2024, Artificial intelligence (AI) stocks led to impressive S&P 500 performances, but in 2025 they have become the biggest drags on stock market returns. While some top AI stocks have dropped in price, there are attractive entry points for smart investors in cloud computing, software, and semiconductors.

Microsoft (NASDAQ: MSFT) has seen significant growth in its Azure cloud computing platform, with a 31% revenue increase driven by a 157% rise in AI services. The company’s enterprise software business is also benefiting from AI, making Microsoft a leader in the AI sector.

Adobe (NASDAQ: ADBE) has developed its own AI model, Firefly, integrated into its products like Photoshop and Illustrator. With increasing AI features, Adobe expects revenue to reach $30 billion over the next three years, presenting a value opportunity for investors.

Applied Materials (NASDAQ: AMAT) plays a crucial role in producing semiconductors for AI technology, with a strong market position due to a virtuous cycle of revenue reinvestment. The company is well-positioned for continued growth with increasing demand for advanced chip designs.

Consider investing in Microsoft, Adobe, or Applied Materials to capitalize on the growth potential in AI stocks, despite the recent market challenges.



Read more at Nasdaq: 3 No-Brainer Artificial Intelligence (AI) Stocks to Buy Now With $400