Unlocking the Power of Artificial Intelligence: 2 Stocks to Watch in 2025
As we step into 2025, I’m making it a priority to increase my exposure to the artificial intelligence (AI) revolution. While I already own a few stocks that will benefit from AI’s long-term growth, I’m looking to add more direct AI plays to my portfolio. In January, I’ll be buying two stocks that I believe have tremendous potential in this space.
Sea Limited: A Hidden Gem in AI
One of the top-performing stocks in my portfolio last year was Sea Limited (NYSE: SE). With a staggering 160% growth in 2024, it’s no surprise that I’m eager to add more shares to my portfolio. Sea’s impressive performance can be attributed to its diverse business segments, including e-commerce, digital finance, and digital entertainment. The company’s strong revenue growth, coupled with its achievement of adjusted EBITDA profitability, makes it an attractive investment opportunity.
What’s more, Sea has immense potential in AI, particularly in optimizing its e-commerce business. With a substantial cash reserve of $10 billion, the company is well-positioned to explore AI-driven opportunities as they arise.
Applied Materials: The Unsung Hero of AI Chipmaking
While chipmakers like Nvidia often steal the spotlight, there are other companies that play a crucial role in the AI revolution. Applied Materials (NASDAQ: AMAT) is one such company that has caught my attention. As the leader in semiconductor manufacturing equipment, Applied Materials provides the necessary tools for chipmakers to produce their products. As AI chips become increasingly complex, the demand for specialized equipment will skyrocket, making Applied Materials a prime beneficiary of this trend.
The company’s highly profitable business model, combined with its history of prioritizing capital returns to shareholders, makes it an attractive investment opportunity. With shares currently trading at a discount, I’m planning to add Applied Materials to my portfolio in January.
The Future of AI Investing
While these two stocks are just the beginning of my AI investing journey, I’m excited to explore more opportunities in this space throughout 2025. As the market continues to evolve, I’m confident that top AI stocks will become even more attractive investments. Don’t miss out on the chance to capitalize on the AI revolution – start building your portfolio today.
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