Last year was great for markets in general, but the index that really stood out was Nasdaq. While it climbed 28% S&P 500 23% increased and Dow Jones Industrial Average has increased by 12%. The Nasdaq, heavily weighted in technology companies, rose as investors piled into the industry’s hottest new sector: artificial intelligence (AI) stocks.
Today’s $200 billion AI market is predicted to top $1 trillion by the end of the decade, and investors have sought to get in early on this high-growth story. Technology has the potential to transform many industries, saving companies time and money, resulting in increased earnings. And earnings growth often leads to positive stock performance.
As 2025 begins, it’s logical to ask the question: After two years of gains, will the Nasdaq continue the momentum this year? History says it will. If we look at the past period of gains since 1990, in five out of six cases, the Nasdaq has climbed for three or more consecutive years.
Of course, the market can surprise us and deviate from a trend, but in general, history has shown itself to be a solid guide. Now, let’s look at my top AI stocks to buy before the Nasdaq opens.
You can associate Meta platform (NASDAQ: META ) Mainly with social media. The company owns Facebook, Messenger, Instagram and WhatsApp — which together have more than 3.2 billion users.
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But Meta is also becoming a giant in AI, developing its own Large language model (LLM) to support tools we can all use, such as meta AI assistants. The company made AI its biggest investment area last year and recently talked about plans to continue increasing spending in this area. It aims to create AI that can assist all its users in their daily tasks, work-related projects and more.
This focus and related investments could eventually make Meta a leader in this hot growth sector and also increase its revenues. For example, the company generates most of its revenue through advertising — and AI assistants could prompt us to spend more time on Meta’s apps, encouraging advertisers to spend more to reach us.
With all this in mind, meta shares – only 24 times trading Estimates of future earnings Even after last year’s 65% gain – looks like a bargain AI buy before the Nasdaq soared.
the alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL )Like Meta, it might not be a company you automatically associate with AI. You probably know it best for Google Search, a tool that many of us use daily.
But it is winning in AI in two ways. First, its LLM Gemini is helping improve search and improve the experience for those who advertise on Google. And second, Alphabet offers AI tools and services, including Gemini, through its cloud computing business, Google Cloud.
