Top AI Stocks to Watch for 2025 and Beyond

Artificial Intelligence (AI) technology is still in its early stages, with many businesses yet to fully adopt generative AI. According to a survey by the U.S. Census Bureau, only 9.2% of U.S. businesses had integrated AI into their operations as of June 2025, with this figure steadily rising each quarter.

AI stocks are well-positioned to leverage the current growth environment while maintaining long-term competitive advantages. Microsoft expanded its investment in OpenAI in early 2023, allowing it to quickly build new AI services for Azure and its enterprise software segment. Azure is now a $75 billion business, with revenue increasing 34% year over year in fiscal 2025.

Alphabet has integrated generative AI into Google Search, boosting search traffic. Google Cloud grew 32% last quarter, with operating margins expanding to 21%. Alphabet increased its annual capital expenditure guidance to $85 billion to meet the demand for its cloud AI services.

Taiwan Semiconductor Manufacturing has expanded its market share due to increased demand for high-end GPUs and networking chips. The company expects 20% average annual revenue growth from 2025 to 2029, driven by strong performance in the AI market. TSMC is anticipated to maintain high gross margins due to strong demand for its 2nm chips.