
Last year was great for markets overall, but the indicator that really stood out was… Nasdaq. It rose by 28%, while Standard & Poor’s 500 It increased by 23% and Dow Jones Industrial Average 12% increase. The Nasdaq, heavy on technology companies, rose as investors piled into the industry’s hottest new space: artificial intelligence stocks.
Today’s $200 billion AI market is expected to reach $1 trillion by the end of the decade, and investors have sought to capitalize early on this high-growth story. This technology has the potential to transform many industries, saving businesses time and money, while increasing profits as a result. Earnings growth often leads to positive stock performance.
As 2025 begins, it makes sense to ask this question: After two years of gains, will the Nasdaq maintain the momentum this year? History says it will. If we look at past periods of gains since 1990, in five out of six cases, the Nasdaq has risen for three or more consecutive years.
Of course, the market can surprise us and deviate from the trend, but overall, history has proven to be a solid guide. Now, let’s take a look at the best AI stocks to buy before the Nasdaq launches.
You can link Meta platforms (NASDAQ:META) Mainly with social media. The company owns Facebook, Messenger, Instagram, and WhatsApp, which together have more than 3.2 billion users each.
day.
But Meta has also become an AI giant, developing its own AI Great language model (LLM) to support tools we can all use, like the Meta AI Assistant. The company made artificial intelligence its largest investment area last year and recently spoke of plans to continue increasing spending in this area. It aims to create an artificial intelligence that can help all its users with their daily tasks, work-related projects, and more.
This focus and related investments could eventually make Meta a leader in this hot growth area and boost its revenues as well. For example, the company generates most of its revenue through advertising — and its AI assistants may prompt us to spend more time on meta apps, encouraging advertisers to spend more to get us there.
Taking all this into account, Meta-shares trade only 24 times Forward earnings estimates Even after last year’s 65% gain – it looks like an AI buy to snap up before the Nasdaq rises.
alphabet (NASDAQ:GOG) (Nasdaq:Google)like Meta, may not be a company that you automatically associate with AI. You probably know it best for Google search, a tool many of us use every day.
But it wins in the AI field in two ways. First, LLM Gemini helps them optimize search and improve the experience for those who advertise on Google. Second, Alphabet offers AI tools and services, including Gemini, through Google Cloud, its cloud computing subsidiary.
The post History Says the Nasdaq Will Soar in 2025. My 3 Top AI Stocks to Buy Before It Does. first appeared on Investorempires.com.