The Best AI Stocks Carrying the Market Right Now
The AI industry is expected to reach $4.8 trillion by 2023, according to the United Nations Conference on Trade and Development. This means AI companies will continue to benefit from the boom and harness the full power of its technology,…
The AI industry is expected to reach $4.8 trillion by 2023, according to the United Nations Conference on Trade and Development. This means AI companies will continue to benefit from the boom and harness the full power of its technology, thus benefiting shareholders. A few large companies have gained tremendous attention due to their massive spikes in value and soaring stock prices. And despite market volatility and tariffs, their valuations have remained elevated.
While a rapid rise and stability cannot be predicted, there are a few companies that have remained top industry players for some time now. If you’re looking to build a portfolio of the best tech stocks, read on to learn more about the AI stocks currently carrying the market.
Palantir Technologies
Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) has become the talk of the town in 2025. With a 106% year-to-date gain, the stock is exchanging hands for $154 at the time of writing. However, it is down 18% from its all-time high. The company is in an incredible place to benefit from AI demand and is the best performing stock of the S&P 500 this year.
PLTR stock is trading at a premium, and many investors have valuation concerns. But there’s a lot to be excited about. The company reported an impressive second quarter with a 48% year-over-year jump in the top line. It is aggressively expanding in the commercial sector and has seen a 93% jump in the U.S. commercial revenue. It closed 157 deals of at least $1 million and 42 deals of at least $10 million. The U.S. commercial remaining deal value was up 145% year-over-year to $2.79 billion.
Driven by the success of its bespoke AI platforms, Palantir is one of the few companies that have demonstrated impressive growth and profitability. It continues to remain a favorite of the federal government and was recently awarded a $10 billion contract with the military.
I must mention that Palantir shares have an astronomical valuation. However, it continues to drive the market right now and Wall Street analysts are bullish on the stock with a “Buy” rating.
NVIDIA
Tech giant NVIDIA Corp. (NASDAQ:NVDA) needs no introduction. The biggest driver of AI growth across the country, NVIDIA has made the most of this thriving market. It has soared to new highs driven by its AI chips and has already delivered double digit gains in 2025. Up 23% year-to-date, the stock is exchanging hands for $170.
Once known for setting the gold standard in graphics processing units for the gaming industry, NVIDIA quickly shifted gears and started building GPUs for AI. It is a dominant chip designer, and the numbers are impressive. In the second quarter results, the company reported a revenue of $46.7 billion, up 56% year-over-year, and the data center revenue was $41.1 billion.
About 40% of the revenue comes from only two customers. While the company hasn’t named the customers, it mentioned that one customer represented 23% of the total revenue, while another represented 16% of the revenue. It could be one of the big tech companies heavily relying on Nvidia.
For Q3, company management is aiming for revenue of $54 billion. While high concentration on a few customers can present a significant risk, the top tech giants have plenty of cash on hand to spend on AI. As companies increase their AI spending, NVIDIA will continue to benefit.
NVIDIA presented at the Goldman Sachs Technology Conference on Sept. 8, and any announcements of new launches could boost the stock. NVIDIA has been carrying the market for a long time now and there’s no other company that can come close to it. It is an irreplaceable company you must add to your portfolio.
Taiwan Semiconductor
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is one stock to buy and hold forever. A major supplier for chip companies like NVIDIA and Broadcom (NASDAQ:AVGO), TSMC has also built strong relationships with Amazon.com Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ: AAPL). The company recently reported results and generated over $30 billion in sales for the quarter.
There’s growing demand for its 5nm and 3nm chip nodes, which continue to drive sales. It is sitting at the forefront of chip technology and has recently launched the 2nm chip node. This could indicate higher growth for the company as there will be improvements in 2nm which is why companies are willing to adopt this technology.
The company has cut ties to Chinese chipmaking tools and secured additional NVIDIA orders, playing a strategic role in the China-U.S. competition. The world’s largest contract chipmaker, TSMC has fast-tracked its U.S. manufacturing footprint. Production has already begun at its Japan lab, and the management has plans for American expansion this year.
Fundamentally, TSMC is in a strong position. It saw a 38% jump in revenue and an improved gross margin. The revenue stood at $30.07 billion and the EPS was $2.50, up 61% year over year. Its market share reached 70%, driven by the growing demand for smartphones, AI accelerators and PCs. This was TMSC’s strongest quarter, and it has gained a position that is hard to beat.
Tech giants are increasing their investment in AI, and TSMC will benefit from it. The company is well positioned to capitalize on the growing AI investment and could grab a larger market share in the coming years.
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Vandita Jadeja
Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
