AI Stocks: Why Traders Can’t Get Enough

AI isn’t just cool tech—it’s your ticket to big portfolio gains. In June 2025, AI stocks are hotter than ever. Microsoft’s stock is up 37%, Palantir’s got retail traders buzzing, and even small players like Archer Aviation are making noise.

I’ve been trading tech stocks for over a decade, and this AI frenzy feels like the dot-com boom, but with bigger potential. Let’s break down why AI’s the talk of the town, which stocks to watch, how to trade them smart, and two top services—Marc Chaikin’s Power Gauge Report and Jeff Brown’s The Near Future Report—that can guide your AI investments.

Why AI Stocks Are Taking Over

AI’s changing the game—healthcare, cars, insurance, you name it. It’s not just for geeks; it’s a cash machine. The global AI market’s set to leap from $235 billion in 2024 to $631 billion by 2028, growing 30% a year, says International Data Corporation.

Big names like Amazon are pouring $100 billion into AI data centers in 2025, per U.S. Bank. That cash boosts chipmakers, cloud companies, and startups. Edward Jones says tech stocks, loaded with AI players, posted 20% earnings growth in Q1 2025, outpacing other sectors. Microsoft’s stock climbed 30% since April, hitting a $3.48 trillion market cap. On X, traders are obsessed with Palantir, whose AI tools crunch data for governments and corporations. Charles Schwab notes it’s a top pick for everyday investors like us.

Here’s why AI stocks are grabbing attention:

• Huge Growth: Nvidia’s selling AI chips like crazy, and Microsoft’s cloud AI is raking it in.

• Broad Reach: AI’s in everything—Lemonade’s insurance bots, Archer’s flying taxis, and more.

• Big Money: Amazon, Microsoft, and Google are spending $250 billion on AI in 2025, lifting smaller players.

• Crowd Hype: X posts are pumping stocks like SoundHound AI, fueling retail trader excitement.

• Long-Term Play: AI’s like the internet in the ‘90s—it’s here to stay.

The Big Picture: What’s Driving AI

AI’s growth isn’t just about cool tech—it’s about money. Companies need AI to stay competitive. In healthcare, it’s speeding up diagnoses. In finance, it’s catching fraud and powering trading bots. In transport, it’s guiding self-driving cars and drones. Every industry’s jumping in, driving demand for AI tools.

The big players—Amazon, Microsoft, Google—are spending billions on data centers to handle AI’s huge computing needs. U.S. Bank says Amazon’s $100 billion investment alone is boosting chipmakers like Nvidia and Broadcom, and cloud providers like Microsoft. Smaller firms like Arista Networks, which makes data center gear, are also cashing in.

Retail traders are all over it. X is buzzing with “AI stocks to buy now” and “best AI stocks for 2025.” Palantir’s a crowd favorite for its AI data platform used by the Pentagon and big businesses. Schwab’s data shows it’s a top-traded stock among retail investors, alongside Nvidia and Microsoft. Institutional investors are also piling into AI-focused ETFs like ARK Autonomous Tech (ARKQ), which saw big inflows in Q1 2025.

Top AI Stocks to Watch

AI covers chips, cloud, software, and niche plays like flying taxis. Here are my top picks, from safe bets to high-risk flyers, with a nod to why I own some.

Microsoft (MSFT): The Safe Giant

Microsoft’s killing it with AI. They invested $14 billion in OpenAI, the ChatGPT creators, and now AI’s in Azure, Bing, and Office. Their cloud business grew 31% in Q1 2025, with AI generating $13 billion a year, up 175%. The stock’s at $474.75, up 37% in a year, with a 0.29% dividend. It’s pricey at 30 times next year’s earnings, but analysts see it hitting $514. I own MSFT for its steady growth and AAA credit rating. It’s a cash machine with 23 years of dividend hikes.

Broadcom (AVGO): The Chip Powerhouse

Broadcom makes custom AI chips for data centers used by Amazon and Google. Their stock doubled in 2024, and AI sales surged 77% in Q1 2025. Trading at 29 times next year’s earnings, it’s cheaper than last year’s high of 36. Analysts expect 22% annual earnings growth. I’ve got a small position in AVGO as a budget-friendly chip play compared to Nvidia.

Archer Aviation (ACHR): The Risky Flyer

Archer’s building electric flying taxis with AI navigation. At under $5, it’s a cheap but risky bet—they’re not profitable yet. The urban air taxi market could hit $9 billion by 2030. X traders are hyped, but it’s a wild ride. I bought a small stake last month, and it’s been up 20%, then down 15%. Only use play money here.

Nvidia (NVDA): The Chip King

Nvidia dominates AI chips with 70-90% market share and $44.1 billion in Q1 2026 sales. It’s pricey at 35 times earnings, but its PEG ratio under 1 suggests it’s not overvalued. I don’t own NVDA—missed the early boat—but I’d jump in at $100. It’s volatile but a must-watch.

Palantir Technologies (PLTR): The Retail Star

Palantir’s AI platform powers data analysis for the CIA and Walmart. X traders love it—PLTR memes are everywhere. Its PEG ratio under 1 suggests it’s undervalued. I’m eyeing it but don’t own it yet. Great for hype plus growth.

Snowflake (SNOW): The Data Play

Snowflake’s cloud platform fuels AI data needs, with 28% revenue growth in Q4 2025 and 126% customer retention. It’s not cheap, but it’s a long-term winner. I own a small stake because data’s AI’s backbone.

SoundHound AI (SOUN): The Voice Bet

SoundHound’s voice AI powers car dashboards and restaurant kiosks. Under $5, it’s risky but has upside if voice tech takes off. I’m watching but don’t own it. X traders are buzzing about it.

Lemonade (LMND): The Insurance Upstart

Lemonade’s AI processes 70% of insurance claims in seconds. It’s growing fast but volatile. I tried a small buy last year and got burned. Cool play, but brace for swings.

AI ETFs: The Safe Way In

If picking stocks feels risky, ETFs spread your bets. ARK Autonomous Tech (ARKQ) holds Tesla, Archer, and others with a 0.75% fee. I keep 20% of my portfolio in ARKQ for steady exposure. Other solid picks:

• Global X Robotics (BOTZ): 43 stocks, 0.68% fee, global focus.

• ROBO Global Robotics (ROBO): 80 stocks, covers tech, healthcare, factories.

• iShares Robotics (IRBO): Broad AI and robotics, low fee.

ETFs let you ride the AI wave without betting big on one stock. BOTZ helps me sleep easy.

Two Top Services for AI Stock Picks

Want expert guidance? Two services stand out for AI stock recommendations.

Marc Chaikin’s Power Gauge Report

Marc Chaikin’s Power Gauge Report is a must for AI stock picks. This Wall Street pro’s system rates over 4,000 stocks using 20 factors like earnings and price trends, giving clear buy or sell signals. In 2023, it nailed Alphabet as a top AI pick, which soared. It also flagged 21 stocks that later crashed up to 81%.

Chaikin’s AI Power Picks portfolio includes big names like Adobe and Google, plus lesser-known winners like Q2 Holdings (QTWO), a fintech stock up 10 months straight in 2025. A subscription costs $149/year and includes the Power Pulse system and bonus reports like “4 Power Picks for Retirement.” It’s great for beginners or pros wanting data-driven AI picks. I use it to double-check my trades.

Jeff Brown’s The Near Future Report

Jeff Brown’s The Near Future Report focuses on AI and tech stocks with big potential. Brown, a tech expert, recommends a $50 AI supplier stock tied to major players, projecting 10x-100x gains in a $15.7 trillion AI market. His “Manifested AI Supplier” pick, revealed in a special report, targets a small-cap stock poised to benefit from AI’s growth. The service, priced at $149/year, includes monthly stock picks, a model portfolio, and bonuses like “The AI Revolution: 3 Stocks Set to Soar.” Brown’s track record includes early calls on Nvidia, making this ideal for traders chasing high-growth AI plays. I’m considering it for small-cap AI ideas.

Both services fit different styles: Chaikin’s data-driven approach for steady picks, Brown’s bold bets for high rewards. Choose based on your risk tolerance.

How to Trade AI Stocks Like a Pro

AI stocks can make you money, but they’re wild. I’ve won and lost big in tech. Here’s how I trade AI stocks smart.

1. Spy on Google Trends

Check Google Trends for “AI stocks” or tickers like “PLTR.” Spikes mean retail traders are piling in, pushing prices up. I saw “NVDA” searches soar in Q1 2025, and Nvidia rallied 20%. Check weekly to spot hot stocks. It’s like reading the crowd’s mood.

2. Use Simple Chart Tricks

Charts help you time buys and sells:

• RSI: A 0-100 score. Below 30 means cheap; above 70, pricey. Microsoft’s RSI hit 30 in April 2025, then jumped 30%. Use TradingView for free RSI.

• Moving Averages: A stock crossing its 50-day average is a buy signal. Broadcom did this in Q1 and rallied. The 200-day shows longer trends.

• Support Levels: Buy at prices a stock’s held before. Nvidia held $100 in Q1—I wish I’d bought.

I check charts daily but keep it quick.

3. Spread Your Bets

Don’t go all-in on one stock. I split my cash: 50% safe (Microsoft, ETFs), 30% growth (Broadcom, Nvidia), 20% risky (Archer, SoundHound). Keeps me safe when one flops. NerdWallet says keep single stocks under 10% of your portfolio. Learned this after a bad bet years ago.

4. Follow Big Spenders

Amazon’s $100 billion AI budget boosts chipmakers like Broadcom and gear makers like Arista. Microsoft and Google’s spending helps too. I listen to earnings calls—dull but gold. Arista popped after Amazon’s Q1 2025 call. Yahoo Finance has transcripts.

5. Watch the Rules

AI’s under scrutiny—privacy, security, ethics. Investopedia says new laws could hit data-heavy firms like Google. Trump’s $500 billion AI plan with Nvidia and Microsoft could lift U.S. stocks, but tariffs might hurt chipmakers. I check Reuters for policy updates.

6. Buy the Dips

AI stocks swing hard. Tariff fears tanked the Nasdaq 10% in Q1 2025. I grabbed Nvidia and Broadcom cheap, and they bounced 15%. Set limit orders to buy low. The Motley Fool says dips are tech’s best friend.

7. Track X Buzz

X is a trader’s goldmine. Search “AI stocks” or “PLTR” to spot trends. SoundHound AI spiked 25% when it trended in Q2 2025. Don’t buy on hype alone—check earnings. I use X for ideas, then dig deeper.

8. Use Stop-Loss Orders

Stop-loss orders sell if a stock drops too far. I set mine 10-15% below buy price. Saved me when Lemonade crashed. It’s a safety net for volatile stocks like Archer.

Risks You Can’t Ignore

AI stocks are thrilling but risky:

• High Prices: Nvidia and Palantir trade at high multiples. A bad quarter could tank them.

• New Rules: Data or ethics laws could hurt profits. Meta’s already faced issues.

• Market Swings: Tariffs or rate hikes hit tech hard. The Morningstar AI index fell 20% in Q1 2025.

• Risky Bets: Archer and SoundHound aren’t profitable. They could flop.

I use stop-losses and keep my portfolio mixed. Don’t chase hype—spread your bets.

Cheap AI Stocks Under $5

Got a tight budget? Stocks under $10 like Archer (ACHR) and SoundHound (SOUN) are tempting. Archer’s flying taxis and SoundHound’s voice tech are cool but unprofitable. I’ve got a small ACHR position for fun, but it’s not my core. These can double or crash, so use spare cash. X loves them, but hype fades if results don’t come.

New AI Stocks to Watch

New AI firms keep popping up. xAI, building AI for science, and Deepseek, a Chinese generative AI player, might IPO in 2025 or 2026. I check Crunchbase for startup buzz to spot the next Palantir. For now, stick to proven names unless you’re feeling bold.

Trump and AI Stocks

Trump’s back in 2025, pushing a $500 billion AI plan with Nvidia and Microsoft. X is hyped about “Trump AI stocks” like PLTR and NVDA. But trade wars or tariffs could hit chipmakers tied to China. I watch Reuters and Bloomberg for policy news to stay ahead.

The Future of AI Stocks

AI’s just warming up. Microsoft’s AI push, Broadcom’s chips, and Archer’s taxis show the market’s range. ETFs like ARKQ or BOTZ are safe bets. Use Google Trends, X chatter, and charts to time trades.

Services like Chaikin’s Power Gauge Report and Brown’s The Near Future Report can guide you—Chaikin for steady picks, Brown for high-growth gems. Amazon’s $100 billion spend and others’ billions keep the growth coming. Edward Jones says tech’s outpacing everything, and I agree.

But stay sharp. High prices, new rules, and market swings demand a plan. I keep my portfolio mixed—half safe, half growth—and check weekly. AI’s where the money’s at for 2025. Jump in, but trade smart.

FAQ: Investing in AI Stocks in 2025