5 AI Stocks For February 2025

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Kenny
January 31, 2025

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5 AI Stocks For February 2025

Welcome to Money Masters!

Artificial Intelligence continues to shape the future, revolutionizing industries and creating lucrative opportunities for investors. As we move into February 2025, certain companies picked by Morningstar experts stand out for their pioneering advancements and strategic positioning in the AI landscape. These five AI stocks are not only driving innovation but also offer compelling growth potential for forward-thinking investors.

Let’s dive in.

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5 AI Stocks For February 2025

AMD’s expertise in semiconductors and GPUs positions it as a vital player in AI and data center markets.

  • AI-Ready Semiconductors: AMD’s GPUs are essential for AI workloads, offering a competitive alternative to Nvidia.

  • Data Center Growth: The booming demand for server CPUs and GPUs drives AMD’s long-term prospects.

  • Manufacturing Strategy: Partnerships with TSMC ensure cutting-edge chip production and rapid market entry.

  • Market Share Expansion: Leveraging Intel’s manufacturing missteps, AMD continues to gain ground in the semiconductor market.

  • Significant Upside: Trades 27% below its fair value estimate of $160 per share.

Adobe dominates the creative software industry with AI-powered tools and an expansive product ecosystem.

  • Creative Cloud Dominance: Flagship products like Photoshop and Illustrator maintain Adobe’s leadership in digital content creation.

  • AI Integration: Firefly’s generative AI capabilities attract new users and drive innovation.

  • Diversified Revenue: Document Cloud and digital experience solutions expand Adobe’s addressable market.

  • Cross-Selling Opportunities: Synergies between Creative Cloud and business solutions enhance customer value.

  • Valuation Advantage: Trades 30% below its fair value estimate of $590 per share.

Baidu leads China’s AI revolution with its generative AI and advancements in autonomous driving.

  • AI Pioneering: The Ernie generative AI model and advancements in cloud computing position Baidu as a leader in China’s AI landscape.

  • Autonomous Driving Ventures: Early investments in this field present long-term growth opportunities.

  • Core Revenue Strength: Dominance in online advertising ensures stable cash flow.

  • Emerging Technologies: Expansion into cloud and AI services supports diversification.

  • Deep Discount: Trades at a significant 49% discount to its fair value estimate of $157 per share.

A leader in enterprise databases and cloud solutions, Oracle is advancing its offerings to meet modern demands.

  • Database Excellence: Oracle’s relational database remains a cornerstone of enterprise IT, offering high switching costs and reliable revenue.

  • Cloud Transition: Oracle Cloud Infrastructure (OCI) enables seamless migration for traditional customers, driving revenue growth.

  • Enterprise Integration: Fusion applications and ERP solutions strengthen Oracle’s foothold in enterprise resource planning.

  • Technological Innovation: OCI’s advancements address a growing demand for diversified cloud providers.

  • Discounted Opportunity: Currently 20% undervalued with a fair value estimate of $195 per share.

Cognizant supports enterprise digital transformation with cutting-edge AI and IT services.

  • Digital Transformation Expertise: Cognizant enables enterprise AI adoption through robust IT and AI services.

  • Client Diversification: Strategic investments enhance technical capabilities and broaden its customer base.

  • Growth Potential: Poised to capitalize on increased demand for enterprise AI and cloud solutions.

  • Cost-Efficiency: Operational improvements and consulting services drive profitability.

  • Undervalued Gem: Currently 18% undervalued relative to its fair value estimate of $94 per share.

For further guidance on investing, get The Money Master Blueprint—A guide to building and sustaining wealth.

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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