3 Artificial Intelligence (AI) Stocks to Buy If You're Bullish on a 2025 Rebound

The three major benchmarks struggled in the first months of the year as investors worried about the economic situation ahead. President Donald Trump set out a plan to impose tariffs on imports, a move analysts and economists said could weigh on growth. The concern is both businesses and consumers would face higher costs -- a scenario that might hurt corporate earnings.

Over the past few weeks, though, certain positive elements have helped the S&P 500 (SNPINDEX: ^GSPC), the Dow Jones Industrial Average (DJINDICES: ^DJI), and the Nasdaq Composite (NASDAQINDEX: ^IXIC) to rebound. The U.S. reached initial trade deals with the U.K. and China, and the U.S. temporarily exempted the high-growth area of electronics from import tariffs.

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Of course, uncertainty still remains. A federal court ruling recently halted Trump's tariffs, but an appeals court then ruled the U.S. could continue collecting duties. And this legal battle may continue. Meanwhile, tensions between the U.S. and China just intensified again as the U.S. said China breached their trade agreement.

But these latest events could be temporary disturbances and might not hold indexes back for very long. And artificial intelligence (AI) stocks could be the first to benefit, considering the growth potential of that market -- analysts expect it to surpass $2 trillion by the early 2030s. So, if you're bullish on a 2025 rebound, consider these three AI stocks to buy.

Image source: Getty Images.

1. Advanced Micro Devices

Nvidia dominates the AI chip market, but that doesn't mean there isn't room for other winners. And one that's showing potential is Advanced Micro Devices (NASDAQ: AMD). This chip designer is on the way up, offering an AI chip -- MI300X -- that may not beat Nvidia's top chip, but still offers customers quality performance.

Customers are realizing this, helping AMD's data center revenue to soar 57% in the recent quarter. Year-over-year growth accelerated for the fourth straight quarter, even against the backdrop of a complex economic environment, CEO Lisa Su said. This was done at increasing profitability on sales, with non-GAAP (generally accepted accounting principles) gross margin expanding to 54% from 52% in the year-earlier period.

AMD also is a leader in the central processing unit (CPU) market -- these are the main processors found in standard computers -- and recently gained more than 16% in CPU market share, bringing it close to beating Intel in that market, according to Wccftech.

AMD trades for 27x forward earnings estimates, down from 54x less than a year ago, yet revenue has climbed significantly -- so now looks like a great time to buy.

AMD PE Ratio (Forward) data by YCharts

2. Broadcom

Broadcom (NASDAQ: AVGO) is a networking expert, selling a wide range of products used anywhere from your smartphone to data centers. And speaking of data centers, they're driving growth for the company now as demand from AI customers soars.

In the most recent quarter, the company's AI revenue surged 77% to $4.1 billion, and consolidated revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached record levels. Importantly, the momentum looks set to continue. Broadcom forecast $4.4 billion in AI semiconductor revenue for the second quarter, saying this will be driven by big cloud service providers as they pile into connectivity solutions.

Broadcom also predicted its three major cloud customers will result in a serviceable addressable market of $60 billion to $90 billion in fiscal 2027. And this doesn't even include four other big customers working with Broadcom to develop AI accelerators.

Broadcom stock is trading close to its all-time high, but considering the AI growth ahead and its valuation of 36x forward earnings estimates, there still is room for the stock to run -- and it may gather momentum as the indexes rebound.

3. Oracle

Oracle (NYSE: ORCL) once was mainly known for its database management platform, but in recent times, it's become a significant player in the AI story. This tech giant offers a broad and flexible range of cloud solutions and has seen AI cloud infrastructure revenue take off in recent quarters -- in the most recent period, it soared nearly 50%.

The company's record level of sales contracts in the quarter offer us visibility on what's ahead, and there's reason to be optimistic: This $48 billion in contracts helped remaining performance obligations, or revenue to expect from these deals, to climb 63% to $130 billion.

On top of this, Oracle is involved in the Stargate project to build out AI infrastructure in the U.S., and the company also is playing a key role in an international Stargate effort. Along with partners including AI chip giant Nvidia, Oracle will help build a Stargate campus in the United Arab Emirates.

As for valuation, Oracle looks reasonably priced, trading at 27x forward earnings estimates, considering these catalysts for growth that could push the stock higher in the months and quarters to come. So, if indexes rebound in 2025, Oracle may be one of the big winners.

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Adria Cimino has positions in Oracle. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Oracle. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.