The AI revolution is reshaping industries, with the global market projected to soar from $235B in 2024 to $631B by 2028 (Morningstar). For investors, finding the best AI stocks is key to capitalizing on this boom. This June 2025 guide unveils the top AI companies to invest in, from giants to new AI companies to invest in, helping you navigate which AI companies to invest in with Swapgate’s insights.
A Review of AI Chip and Hardware Manufacturers
AI’s foundation lies in hardware, making chipmakers the backbone of the revolution. These biggest AI companies to invest in drive the infrastructure powering AI models.
NVIDIA (NVDA): The Undisputed King of AI Semiconductors
NVIDIA dominates with a 90%+ share of AI data center GPUs, fueling $39.3B Q4 2024 revenue (Forbes). Its Blackwell chips and CUDA software create a moat, locking in clients like Microsoft. What are the biggest competitive advantages, or “moats,” for a leading AI company? NVIDIA’s ecosystem—hardware, software, and developer tools—creates high switching costs, ensuring long-term dominance (Motley Fool). Trading at 31.8x forward earnings, it’s a top AI stock despite tariff risks (CoinTelegraph).
Taiwan Semiconductor (TSM): The World’s Foundry
Beyond the big names, which smaller companies are essential to the AI hardware supply chain? Taiwan Semiconductor (TSM) manufactures chips for NVIDIA, AMD, and Broadcom, with $20B AI-related revenue projected by 2028 at a 45% CAGR (Motley Fool). TSM’s advanced 3nm nodes and neutral foundry status make it a linchpin, trading at 20x forward earnings—a good AI company to invest in for steady growth (Morningstar).
The Cloud Titans: The Power Behind the AI Boom
Cloud giants provide the computing power for AI training, making them artificial intelligence companies to invest in with broad exposure.
Microsoft (MSFT): Leading the Charge with OpenAI and Azure
Microsoft’s $14B OpenAI investment and Azure’s 50% AI-driven growth ($80B capex planned for 2025) cement its lead (U.S. News). Copilot integrates AI into Office, boosting productivity for 60% of Fortune 500 firms (Forbes). What are the key differences between Microsoft’s, Google’s, and Amazon’s AI strategies? Microsoft focuses on enterprise AI integration and OpenAI partnerships, prioritizing productivity tools and cloud (Morningstar). At $526 target price (Argus), it’s a best AI stock to buy.
Alphabet (GOOGL): A Pioneer in AI Research and Integration
Alphabet’s DeepMind and Gemini 2.5 Pro enhance Google Search, handling 70% of global queries (Investopedia). Google Cloud’s $75B 2025 AI capex targets startups, with 30% growth in AI workloads (Motley Fool). Alphabet’s strategy emphasizes research-driven AI for Search and cloud expansion, trading 27% below fair value ($237, Morningstar). A best AI company to invest in for diversified exposure.
The Software Innovators: Putting AI to Work
Software firms translate AI into real-world value, offering most promising AI stocks for targeted bets.
Adobe (ADBE): The Future of Creative AI
Adobe’s Firefly AI powers Photoshop, generating $238M from 24 AI licensing deals by August 2024. Its 50M+ user base adopts AI features, driving 10% revenue growth in Q1 2025. Which industries are adopting AI the fastest, and which public companies benefit most? Creative industries lead, with Adobe’s AI tools cutting editing time by 40% for 4M+ professionals (U.S. News). At 18x forward earnings, it’s a top AI stock to buy now.
Palantir (PLTR): The Leader in AI-Powered Data Analytics
Palantir’s AI platforms analyze data for U.S. government and corporates, with $828M Q4 2024 revenue, up 36% (IG). Its Gotham and Foundry tools serve 500+ clients, including AstraZeneca for drug discovery (NerdWallet). How can you tell the difference between a company with genuine AI and one just using it as a buzzword? Palantir’s proven contracts and 30% cash flow margin show real AI impact, unlike hype-driven firms lacking revenue (Investopedia). A volatile but best AI stock to invest in at $85 support (@AskPerplexity).
How to Invest in AI Stocks: A Quick Guide
How to invest in AI companies? Follow these steps to dive into top AI stocks:
- Choose and Open a Brokerage Account: Platforms like Swapgate, Robinhood, or Fidelity offer zero-commission trading. Swapgate’s $100M daily volume and 0.5% fees suit beginners (Swapgate).
- Research and Buy Your Chosen AI Stocks: How can you determine if a popular AI stock’s valuation is driven by hype or real earnings? Check P/E ratios (NVIDIA’s 31.8x vs. S&P’s 21x) and revenue growth (Palantir’s 36%). Use Morningstar or Yahoo Finance for data, then buy via your brokerage (Motley Fool).
- Consider AI ETFs for Instant Diversification: Is it better to buy individual AI stocks or an AI-focused ETF? ETFs like Global X Robotics & AI (ROBO, 0.68% expense ratio) hold 49 stocks, including NVIDIA and Keyence, reducing risk vs. single stocks like PLTR (Morningstar). Ideal for broad exposure.
Fractional shares on Swapgate let you buy $10 of NVIDIA or Microsoft, making AI companies to invest in accessible (Robinhood).
Frequently Asked Questions
What’s the Difference Between Investing in AI Hardware vs. AI Software Stocks?
What’s the difference between investing in AI hardware vs. AI software stocks? Hardware stocks like NVIDIA bet on infrastructure spending, with stable demand ($39.3B revenue, Forbes). Software stocks like Adobe focus on niche applications, offering higher growth (10% Q1) but market-specific risks (U.S. News).
How Can I Invest in New, Smaller AI Companies?
How can I invest in new, smaller AI companies? Look for newly public firms like SoundHound (SOUN, $157M 2025 forecast, 83% growth) or Confluent (CFLT, 19% dip, Forbes). These new AI companies to invest in carry high risk due to unproven models, so limit exposure to 5–10% of your portfolio.
What Is the Single Biggest Risk When Investing in the AI Sector?
What is the single biggest risk when investing in the AI sector? High valuations (e.g., Datadog’s 60x forward earnings) and competition from startups like DeepSeek risk corrections, with AI stocks down 15% YTD. Regulatory shifts, like EU’s AI Act, add uncertainty.
Additional Insights
What are the major catalysts to watch for the AI sector in the second half of 2025? Key drivers include:
- Stargate AI Project: Enabling interoperable AI systems, boosting firms like NVIDIA and Microsoft (Forbes).
- Data Center Capex: $325B Big Tech spending, up from $223B in 2024, fueling TSM and Broadcom (Motley Fool).
- Regulatory Clarity: U.S. tariff softening and EU AI Act enforcement could stabilize markets (CoinDesk).
| Stock | Market Cap | P/E (Forward) | AI Focus | 2025 Catalyst |
| NVIDIA (NVDA) | $3.2T | 31.8x | GPUs | Blackwell chips |
| TSM (TSM) | $800B | 20x | Foundry | 3nm node demand |
| Microsoft (MSFT) | $2.7T | 35x | Cloud/AI | Azure growth |
| Alphabet (GOOGL) | $2.1T | 22x | Search/Cloud | Gemini 2.5 Pro |
| Adobe (ADBE) | $220B | 18x | Creative AI | Firefly adoption |
| Palantir (PLTR) | $90B | 45x | Analytics | Government deals |
Conclusion: Investing in the Next Technological Revolution
The best AI stocks to invest in—from NVIDIA’s chips to Palantir’s analytics—offer exposure to a $631B market by 2028. What AI companies to invest in? Choose best AI companies to invest in like Microsoft for stability or most promising AI stocks like SoundHound for growth, aligning with your risk tolerance. How to invest in AI companies? Use Swapgate’s zero-commission platform to buy stocks or ETFs. Major catalysts like Stargate and $325B capex signal a bull run. Research thoroughly, avoid hype, and invest in the AI revolution with confidence in 2025.