One of the biggest themes in the stock market in 2024 was artificial intelligence (AI)which shows signs of becoming a breakthrough technology. That said, it appears that AI is still in the early stages, with 2025 still promising many opportunities in the sector.
Let's take a look at three AI stocks to buy this month.
Nvidia(NASDAQ: NVDA) it is arguably the biggest gainer from AI, as its revenue has grown exponentially in the past two years. In the 2024 financial year, which ended in January last year, its revenue grew by 125%, while in the 2025 financial year, its revenue is expected to more than double once again.
The company graphics processing units (GPUs) is the backbone of building AI infrastructure due to the impressive processing speed of GPUs, which is needed to handle large language model (LLM) training and AI inference. Meanwhile, it amassed a whopping 90% market share in the GPU space over its competitor Advanced Micro Devices due to its superior CUDA software platform, which includes developer tools and micro-libraries that allow its chips to be easily programmed to handle various AI-related tasks.
Spending on artificial intelligence infrastructure continues to accelerate, as more and more computing power is needed to train LLMs on it. Meanwhile, Nvidia's biggest customer Microsoft(NASDAQ: MSFT) announced that it would spend about $80 billion this calendar year on AI data centers.
Typically, about half of that spending goes toward servers with GPUs. By comparison, for its last fiscal year that ended in June, Microsoft spent $44.5 billion in capital expenditures (capex). With other major customers also increasing capex spending on 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 about 31.5, based on 2025 analyst estimates, and a price/earnings-to-growth (PEG) ratio of 0.98. A PEG below 1 is generally considered undervalued, and growth stocks will often trade with PEGs 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 has been a big AI winner, showing revenue growth of 33% last quarter, while its Azure OpenAI usage has doubled in the past six months. Azure is a deployment model, and customers use its services to help build their own AI agents and applications. This also leads to increased use of its data and analytics services.
Although Azure has been showing strong growth, it could be even more robust if not for capacity constraints. He has already predicted that Azure's revenue will begin to accelerate in the second half of its financial year as more capacity comes on from past capital spending. Meanwhile, it's pouring tons of money into building data centers around the world to try and keep up with demand.
In addition to cloud computing, the company also has a big opportunity on the AI software side with its AI assistant co-plots for its Microsoft 365 suite of productivity tools. For $30 per month per enterprise use, Microsoft provides AI copilots for its range of productivity tools that can do things like organize and prioritize emails, create PowerPoint presentations using only natural language, and even use programming language Python in Excel using only natural language prompts. These AI copilots can save a lot of time for employees and should be a major growth driver for the company going forward.
Trading at a current fiscal year P/E ratio of 32.5 estimates, the stock is reasonably priced.
Salesforce(NYSE: CRM) is looking to become a leader in agentic AI, which is believed to be the next evolution of AI beyond generative AI. With generative AI, users can create content through a prompt, such as asking ChatGPT to create a vacation itinerary. Agentic AI would take that 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.
Long a leader in customer relationship management (CRM) software, the company launched its agentic AI platform Agentforce in October, with an enhanced version announced in mid-December. The platform offers a variety of out-of-the-box agents that users can customize through its no-code and low-code tools, while customers will be able to build their own agents from scratch as well. Out-of-the-box agents are available in areas such as sales, marketing, recruiting and customer service, among others.
Salesforce has seen rapid early adoption of Agentforce, with the company saying in early December it had shut down 200 teams, while in mid-December it said it had shut down more than 1,000. It has projected to have 1 billion Agentforce AI agents in use by the end of its fiscal 2026 (ends January 2026). Agentforce is a consumable product that costs $2 per conversation, so this is a big opportunity going forward for the company.
The stock currently trades at a reasonable valuation of 29 times fiscal 2026 earnings and a PEG of 0.8.
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Geoffrey Seiler does not have a position in any of the stocks mentioned. 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.
