One of the biggest topics on the stock market in 2024 was artificial intelligence (AI)which shows signs of becoming a revolutionary technology. However, it seems that artificial intelligence is still in its infancy, and 2025 still promises a lot of opportunities in the sector.
Let’s take a look at three AI stocks to buy this month.
Nvidia(NASDAQ: NVDA) is arguably the biggest gainer from AI, as its revenues have absolutely skyrocketed over the past two years. In fiscal 2024, which ended last January, its revenue grew by 125%, while in fiscal 2025, revenue should more than double again.
Enterprise graphics processing units (GPU) are the backbone of AI infrastructure construction thanks to the impressive processing speed of GPUs, which are required to handle large language model (LLM) training and AI inference. Meanwhile, it has amassed a whopping 90% market share in the GPU space over its competition Advanced micro devices thanks to its superior CUDA software platform, which includes developer tools and microlibraries that make it easy to program its chips to perform a variety of AI-related tasks.
Spending on AI infrastructure is only accelerating, as LLMs need more and more computing power for training. Meanwhile, Nvidia’s biggest customer Microsoft(NASDAQ: MSFT) announced that it will spend about $80 billion this calendar year on AI data centers.
Typically, about half of that consumption goes to GPU servers. By comparison, for the most recent fiscal year that ended in June, Microsoft spent $44.5 billion in capital expenditures (capex). With other large clients also increasing capital investment in AI infrastructure this year, Nvidia still has a lot of growth ahead of it.
Despite its strong stock performance, Nvidia trades at a forward price-to-earnings (P/E) ratio of around 31.5, based on analyst estimates for 2025, and a price-to-earnings-growth (PEG) ratio of 0.98. A PEG below 1 is generally considered undervalued, and growth stocks will often trade with a PEG well above 1.
Image source: Getty Images.
Microsoft plans to spend big on AI infrastructure this year, and for good reason. The company’s Azure cloud computing unit was the big AI winner, showing revenue growth of 33% last quarter, while its use of Azure OpenAI doubled in the past six months. Azure is a consumption model, and customers use its services to help build their own AI agents and applications. It also leads to greater use of data and analytics services.
While Azure is showing strong growth, it could be even stronger if not for capacity constraints. It has already predicted that Azure’s revenue will begin to accelerate in the second half of its fiscal year as more capacity comes from past capital investments. Meanwhile, it’s pouring a ton of money into building data centers around the world to try to keep up with demand.
Along with cloud computing, the company also has a big opportunity on the AI software side with its AI assistant copilots for the Microsoft 365 suite of productivity tools. For $30 per month per business use, Microsoft provides AI copilots for its various productivity tools that can do such things as organize and prioritize email, create PowerPoint presentations using only natural language, and even use the Python programming language in Excel using only natural query language. These AI co-pilots can save workers a lot of time and should be a huge growth driver for the company moving forward.
Trading at a P/E of 32.5 current fiscal year estimates, the stock is reasonably valued.
Salesforce(NYSE: CRM) aims to become a leader in agentic artificial intelligence, which is believed to be the next evolution of artificial intelligence beyond generative artificial intelligence. With generative AI, users can create content through queries, such as asking ChatGPT to create a vacation itinerary. Agentic AI would take it to the next level by going out on its own and booking everything needed for that vacation, like flights, hotels, dinner reservations, and tour guides.
A long-time leader in customer relationship management (CRM) software, the company launched its agent AI platform Agentforce in October, with an enhanced version announced in mid-December. The platform offers a variety of ready-made agents that users can customize using its no-code and low-code tools, while users will also be able to build their own agents from scratch. Ready-made agents are available in areas such as sales, marketing, recruiting, and customer service, among others.
Salesforce has seen rapid early adoption of Agentforce, and in early December the company said it had shut down 200 teams, and by mid-December it said it had shut down more than 1,000. By the end of fiscal 2026 (end of January 2026), it is projected to have deployed 1 billion Agentforce AI agents. Agentforce is a consumer product that costs $2 per conversation, so this is a huge opportunity for the company to grow.
The stock is currently trading at a reasonable valuation of 29 times FY2026 earnings and a PEG of 0.8.
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Geoffrey Seiler has no position in any of the listed stocks. 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. The Motley Fool has a disclosure policy.
