The artificial intelligence theme has gripped the market for some time now, with many stocks benefiting nicely from the mania and providing big gains for investors.
And in 2025, the theme is looking to be powerful yet again given the increasing adoption and red-hot demand we’ve heard about from companies in their quarterly updates.
Several stocks, including Palantir PLTR, Broadcom AVGO, and, of course, Nvidia NVDA, look to have a strong year on the back of their AI-related offerings and services. Let’s take a closer look at each.
Broadcom Sees Record Sales
Broadcom has quickly risen to the top concerning AI players, with its latest set of quarterly results fully confirming robust demand. Its FY24 has just ended, with annual revenue of $51.6 billion reflecting a new record and growing 44% year-over-year on the back of strong demand for its solutions.
Impressively, record annual semiconductor revenue of $30.1 billion in FY24 was driven by its leading AI XPUs, with AI revenue overall growing 220% year-over-year. Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Broadcom’s earnings outlook has also shifted positively across the board following the latest set of results, landing the stock into a favorable Zacks Rank #2 (Buy). Its next quarterly results are scheduled for March, with early consensus expectations alluding to 36% EPS growth on 22% higher sales.
Image Source: Zacks Investment Research
Palantir Shares Outperform Massively
Palantir’s robust share performance has been fueled by the AI frenzy, with the company’s latest set of quarterly results pleasing investors in a big way. The strong results and favorable commentary have caused analysts to raise their earnings expectations, with the stock sporting a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The company’s sales have snowballed thanks to strong AI demand, with sales of $726 million throughout its latest period growing 30% year-over-year and 7% sequentially. As shown below, PLTR’s sales have consistently grown sequentially over the years.
Image Source: Zacks Investment Research
Nvidia Remains AI-Favorite
Investor-favorite Nvidia continues to fire on all cylinders, with its Data Center results regularly blowing away expectations and posting big year-over-year growth. Like those above, its earnings outlook has brightened nicely over recent months, with positive revisions regularly hitting the tape following quarterly prints.
Image Source: Zacks Investment Research
As shown below, the Data Center results have been notably bullish, with the most recent beat totaling a sizable $1.8 billion amid another period of scorching-hot demand.
Image Source: Zacks Investment Research
Jensen Huang, CEO, wrapped up the latest set of quarterly results with a bullish statement: “The age of AI is in full steam, propelling a global shift to NVIDIA computing. Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference.”
Bottom Line
The AI-frenzy isn’t going anywhere anytime soon, with demand expected to remain red-hot as more increasingly adopt the technology.
And for those looking for exposure in 2025, all three stocks above – Palantir PLTR, Broadcom AVGO, and, of course, Nvidia NVDA – are prime selections, with each sporting a positive earnings outlook.
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5 Stocks Our Experts Predict Could Double In the Next Year
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