AI Stocks to Watch: Palantir's Competitors Showing Promising Growth in Artificial Intelligence
Top AI Stocks with Reasonable Valuations Offer Long-Term Growth Prospects
In the rapidly evolving world of artificial intelligence (AI), investors seeking exposure to this burgeoning sector may find promising opportunities in a select group of companies. These include NVIDIA, Broadcom, Applovin, and Coreweave, which are strategically dominant in AI infrastructure, exhibit strong revenue growth, and boast reasonable valuations.
NVIDIA dominates the AI GPU market, powering over 95% of AI training, and its latest AI chips (H100/H200) have enabled major AI applications like ChatGPT and Gemini. The company's data center revenue grew an impressive 400% year-over-year, and it controls over 80% market share in AI model training and inference, making it a core AI infrastructure play. NVIDIA's growth prospects are robust, with analysts forecasting earnings growth of 29% annually over the long term.
Broadcom is a large-cap diversified tech company with a market cap of approximately $350 billion. It supplies essential chips for AI data centers and cloud infrastructure and expects $12 billion in AI-related revenue in 2025. Broadcom benefits from stable demand from hyperscale cloud providers like Google, Microsoft, and Amazon, and trades at more moderate valuations compared to pure AI plays.
Applovin is a profitable company with rapidly improving margins and strong cash flow. It is recognized for its AI-driven advertising business and has a significant market upside (~47%). Applovin has been consistent in delivering positive surprises over the past two years, making it an attractive option for investors.
Coreweave, a recent IPO, provides specialized high-performance cloud infrastructure optimized for AI workloads, especially GPU computing. It services major clients like OpenAI and Microsoft, renting cutting-edge GPUs for AI training. Backed by NVIDIA, Coreweave is expanding aggressively in AI data center capacity.
Investors looking for AI exposure with a balance of growth potential and valuation discipline should consider these stocks as foundational holdings in the evolving AI economy. The total investment in data centers is forecasted to exceed $7 trillion in the next five years, with over $5 trillion allocated for processing AI loads.
Alphabet, Google's parent company, also presents an interesting investment opportunity. Despite concerns over regulatory threats and AI disruption, Google's core business isn't showing signs of slowing down. Google Search revenue grew by 11.7% year over year in Q2 of 2025, and Alphabet's shares have risen approximately 15% over the past month. Alphabet's current price-to-earnings ratio (P/E) is 21, making it more reasonably valued compared to some other AI stocks.
In conclusion, the AI landscape offers a variety of promising investment opportunities. Companies like NVIDIA, Broadcom, Applovin, and Coreweave, with their strategic positions, strong revenue growth, and reasonable valuations, are well-positioned for long-term growth in the AI sector. Meanwhile, Alphabet, with its solid growth prospects and reasonable valuation, remains an attractive option for investors seeking exposure to the AI economy.
Investing in companies like NVIDIA, Broadcom, Applovin, Coreweave, and Alphabet provides exposure to the burgeoning artificial-intelligence sector, as they are strategically positioned, exhibit strong revenue growth, and boast reasonable valuations. These stocks offer long-term growth prospects, especially in the AI sector, as the total investment in data centers is forecasted to exceed $7 trillion in the next five years, with over $5 trillion allocated for processing AI loads.
