One of the biggest themes in the stock market in 2024 Artificial Intelligence (AI)Which is showing signs of becoming a new technology. That said, AI still appears to be in its infancy, with 2025 still promising plenty of opportunities in the sector.
Let’s look at three AI stocks to buy this month.
nvidia(NASDAQ: NVDA ) Arguably the biggest winner has been from AI, as its revenue has absolutely skyrocketed in the past two years. In the financial year 2024, which ended in January last year, its income increased by 125 percent, while in the financial year 2025, its income has once again more than doubled.
of the company Graphic Processing Units (GPUs) GPUs are the backbone of building AI infrastructure because of their impressive processing speed, which is needed to handle large language model (LLM) training and AI inference. Meanwhile, it has amassed 90% market share in the GPU space compared to rivals Advanced Micro Devices Thanks to its superior software platform CUDA, which includes developer tools and micro-libraries that allow its chips to be easily programmed to handle various AI-related tasks.
Spending on AI infrastructure is only going to continue apace, as training LLMs requires more and more computing power. Meanwhile, Nvidia’s largest customer Microsoft(NASDAQ: MSFT ) announced that it will spend nearly $80 billion on AI data centers this calendar year.
Typically, about half the cost goes to servers with GPUs. By comparison, for its last fiscal year, which ended in June, Microsoft spent $44.5 billion in capital expenditures (capex). Even with other big customers ramping up capex spending on AI infrastructure this year, Nvidia still has a lot of upside.
Despite its strong stock performance, Nvidia trades at a forward price-to-earnings ratio (P/E) of about 31.5 and a price/earnings-to-growth ratio (PEG) of 0.98, based on 2025 analyst estimates. does business A PEG below 1 is generally viewed as undervalued, and growth stocks will often trade with PEGs above 1.
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Microsoft is planning to spend big on AI infrastructure this year, and for good reason. The company’s cloud computing unit Azure has been a big AI winner, showing revenue growth of 33% last quarter, while its Azure OpenAI usage has doubled in the past six months. Azure is a consumption model, and customers are using its services to help build their own AI agents and applications. It is also leading to greater use of its data and analytics services.
While Azure is showing strong growth, it could be even stronger if not for capacity constraints. It has already forecast that Azure revenue will pick up in the second half of its fiscal year as more capacity comes in from previous capex spending. Meanwhile, it’s pouring a lot of money into building data centers around the world to try and keep up with demand.
Beyond cloud computing, the company also has a big opportunity on the AI software side with AI assistant Copilot for its suite of Microsoft 365 productivity tools. For $30 per month per enterprise use, Microsoft provides AI Copilot for its various productivity tools that organize and prioritize emails, create PowerPoint presentations using only natural language, and integrate the Python programming language into Excel using only natural language. Can do things like use asks These AI copilots can save employees a lot of time and should be a big growth driver for the company going forward.
Trading at a current fiscal year estimated P/E of 32.5, the stock is reasonably valued.
Salesforce(NYSE: CRM ) Agent is trying to be the leader in AI, which is considered the next evolution of AI beyond generative AI. With Generative AI, users can create content through a prompt, such as asking ChatGPT to create a vacation program. Agentic AI will take it to the next level by automatically going out and booking everything you need for that vacation, such as flights, hotels, dinner reservations, and tour guides.
A longtime leader in customer relationship management (CRM) software, the company launched its agentic AI platform AgentForce in October with an improved version announced in mid-December. The platform offers a variety of out-of-box agents that users can customize through its no-code and low-code tools, while customers will be able to build their own agents from scratch. Out-of-the-box agents are available in areas such as sales, marketing, recruiting, and customer service, among others.
Salesforce has been quick to adopt AgentForce, with the company saying in early December that it had laid off 200 teams, while in mid-December it said it had laid off more than 1,000. It has projected that it will have 1 billion AgentForce AI agents deployed by the end of its fiscal year 2026 (end of January 2026). AgentForce is a consumable product priced at $2 per conversation, so this is a huge opportunity for the company to grow.
The stock currently trades at a fair value of 29 times FY2026 earnings and a PEG of 0.8.
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Geoffrey Seiler No positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft, Nvidia, and Salesforce. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. Motley Fool has a Disclosure Policy.
