One of the biggest topics in the stock market in 2024 was Artificial Intelligence (AI)which is showing signs of becoming a breakthrough technology. However, it seems that AI is still in its infancy, as 2025 still promises a lot of opportunities in this sector.
Let’s take a look at three AI stocks to buy this month.
Nvidia(Nasdaq: NVDA) It has arguably been the biggest winner from AI, with its revenues rising significantly over the past two years. In fiscal year 2024, which ended in January last year, its revenues grew by 125%, while in fiscal year 2025, its revenues are expected to double again.
Company Graphical processing units (GPUs) They are the backbone of building AI infrastructure due to the incredible processing speed of GPUs, and are essential for handling training of large language models (LLM) and AI inference. At the same time, it has gained a whopping 90% market share in the GPU space compared to its competitors Advanced micro devices Due to CUDA’s superior software platform, which includes developer tools and small libraries that allow its chips to be easily programmed to handle various AI-related tasks.
Spending on AI infrastructure continues to accelerate, as LLM holders need more and more computing power to train on. Meanwhile, Nvidia’s largest customer Microsoft(NASDAQ:MSFT) It announced that it will spend about $80 billion this calendar year on artificial intelligence data centers.
Typically, about half of this spending goes to servers with GPUs. By comparison, in its most recent fiscal year ending in June, Microsoft spent $44.5 billion in capital expenditures. With other large customers also increasing capital spending on AI infrastructure this year, Nvidia still has plenty of growth ahead.
Despite its strong stock performance, Nvidia is trading with a forward price-to-earnings (P/E) ratio of about 31.5, based on analyst estimates for 2025, and a price/earnings-to-growth (PEG) ratio of 0.98. A peg below 1 is generally viewed as undervalued, and growth stocks often trade with a peg well above 1.
Image source: Getty Images.
Microsoft plans to spend a significant amount on AI infrastructure this year, and for good reason. The company’s cloud computing unit Azure has been a big AI winner, showing 33% revenue growth in the latest quarter, while use of Azure OpenAI has doubled in the past six months. Azure is a consumer model, and customers use its services to help build their own AI agents and applications. This also leads to increased usage of its data and analytics services.
Although Azure has shown strong growth, it could be even stronger if not for capacity constraints. It already expects Azure’s revenue to start accelerating in the second half of its fiscal year as capacity increases from previous capital spending. At the same time, it is spending a lot of money building data centers around the world to try to keep up with demand.
In addition to cloud computing, the company also has a big opportunity on the AI software side with its AI assistant pilots for its Microsoft 365 suite of productivity tools. For $30 per month per enterprise use, Microsoft provides AI assistants for a variety of productivity tools that can do things like Organize and prioritize emails, create PowerPoint presentations using only natural language, and even use Python in Excel using only natural language. Demands. AI assistants can save workers a lot of time and should be a big driver of company growth moving forward.
Trading at a P/E of 32.5 estimates for the current fiscal year, the stock is reasonably valued.
Sales force(NYSE: CRM) It aspires to become a pioneer in the field of agentic AI, which is believed to be the next evolution of AI after generative AI. Using generative AI, users can create content via a prompt, such as asking ChatGPT to create a vacation itinerary. Agentic AI will take this to the next level by going out on its own and booking everything needed for that vacation, such as flights, hotels, dinner reservations, and tour guides.
The company, a long-time leader in customer relationship management (CRM) software, launched its Agentforce AI platform in October, with an enhanced version announced in mid-December. The platform offers a variety of ready-made agents that users can customize through its no-code and low-code tools, while customers will be able to create their own agents from scratch as well. Ready-made agents are available in areas such as sales, marketing, recruiting, and customer service, among others.
Salesforce has seen early and rapid adoption of Agentforce, with the company saying in early December that it had closed 200 teams, while in mid-December it said it had closed more than 1,000 teams. It is expected to have 1 billion Agentforce AI customers deployed by the end of its fiscal year 2026 (ending January 2026). Agentforce is a consumer product that costs $2 per conversation, so this is a big opportunity going forward for the company.
The stock currently trades at a reasonable valuation of 29 times fiscal 2026 earnings and a PEG of 0.8.
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Jeffrey Seller He has no position 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 $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has Disclosure policy.
