3 Artificial Intelligence (AI) Stocks to Buy in 2025 That Could Be Better Picks Than Palantir

Palantir Technologies - Palantir Technologies (PLTR) gained 340% in 2024, making it the best-performing stock in the S&P 500 despite joining the index in September 2024 [1] - The company's valuation is considered high, trading at 159 times forward earnings and 69 times sales, which may not justify its premium price [3] Alphabet - Alphabet (GOOG, GOOGL) delivered a 36% gain in 2024, significantly lower than Palantir's performance but is expected to outperform in 2025 [2] - Alphabet's forward earnings multiple of 21 is considered a bargain compared to Palantir's valuation [3] - Google Cloud is expected to benefit from AI-driven demand for cloud services, and AI agents could provide additional growth opportunities in 2025 [4] - Waymo, Alphabet's self-driving car unit, plans to expand into Atlanta and Austin in 2025, potentially becoming a major growth driver by the end of the decade [5] Nvidia - Nvidia (NVDA) ranked as the No 3 top stock in the S&P 500 in 2024, with shares soaring 171% [6] - The company's valuation is at 31 times forward earnings, which is reasonable given its robust growth potential [6] - The launch of Blackwell GPUs has seen "insane" demand, and Nvidia is on an annual cycle of new product rollouts, with the successor to Blackwell expected in late 2025 [7] Advanced Micro Devices - Advanced Micro Devices (AMD) underperformed in 2024, with shares declining 18%, but a rebound is anticipated [8] - AMD reported record revenue in Q3 2024 and expects another all-time high in Q4, driven by AI-fueled data center growth [8][9] - AMD's stock is considered undervalued with a PEG ratio of 0 31, making it one of the most attractively valued AI stocks based on its five-year growth potential [10]