Artificial intelligence (AI) has been one of the biggest themes on Wall Street for several quarters. Stocks like Nvidia has made many fortunes for investors, thanks to the growing demand for AI-related applications and hardware.
As we turn the calendar from 2024 to 2025, which AI stocks should we keep an eye on? Here’s a look at two of my favorites.
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The Trade Bureau
The Trade Bureau (NASDAQ:TTD) 2024 had a solid year, as shares rose more than 60%. The driving performances were equally impressive impressive financial affairs. In its most recent quarter (the three months ending September 30, 2024), The Trade Desk reported 27% year-over-year revenue growth. Additionally, the company’s net income in the most recent quarter ($94 million) more than doubled from a year earlier ($39 million).
A large part of the company’s success can are credited to the growth of the connected TV (CTV) advertising market. The Trade Desk operates a programmatic advertising platform that allows clients to buy and sell advertising space on digital platforms.
For example, a digital publisher or streaming service may have advertising space that it would like to sell. By using The Trade Desk platform, advertisers can purchase advertising space Certainly programs that target certain demographic groups.
As Jeff Green, co-founder and CEO of The Trade Desk, put it:
As we look ahead to 2025, we have never been in a better position to capture a larger share of the $1 trillion advertising market (the total addressable market). 2024 was a banner year for CTV. Many of the largest media companies are now working with us to help clients realize the full value of CTV advertising through programmatic.”
In short, The Trade Desk is riding an unstoppable wave. As older forms of media (such as newspapers, radio and cable). TV) continue give way to digital media platforms such as video and audio streaming, podcasts and online news, The Trade Desk builds the tools that will connecting advertisers to these new platforms, and those tools use AI. For example, The Trade Desk’s Kokai platform relies on AI-powered tools to help marketers perfect their ad campaign bidding, scoring, and measurement.
The Trade Desk is a company positioned to benefit from two key trends. First, it is a major player in the digital advertising market, connecting buyers and sellers as the overall market expands rapidly. Second, the company’s AI-powered tools help buyers and sellers match the right ads to the right audience.
Investors looking for an AI stock in 2025 and beyond should consider The Trade Desk.
Tesla
Someone could be forgiven for inventing Tesla (NASDAQ: TSLA) as a car company. After all, for which the company is best known its vehicles. But if you want to understand why Tesla now has a market cap of over $1 trillion, you have to learn to think of it as an AI company that makes vehicles. — not as a vehicle company that deals with AI.
For example, a long-standing goal of Tesla is autonomous driving. This will only be possible through large-scale data collection and advances in AI that will enable the safe and reliable use of full self-driving technology (FSD).
To make that possible, Tesla pledged to spend more than $1 billion on its Dojo supercomputer. To Train Dojo, active Tesla vehicles will capture a vast amount of real-life driving data which will in turn be uploaded to Dojo to continuously train and improve Tesla’s FSD software.
Therefore, investors should remember that every Tesla on the road is essentially a data-collecting robot. In an interview earlier this year, Elon Musk said indeed himself called Tesla vehicles “robots on four wheels.”
It’s clear Tesla has many innovative products that rely on AI. Besides FSD and robotaxis, there is more Also the Optimus robot, which could bring about a revolution Certainly labor-intensive industries.
Granted, car sales and margins are important to Tesla. In the short term, they will have a significant impact on the company’s share price. In the longer term, however, AI innovations will play a greater role within the company. That’s why there’s still time for investors to consider buying Tesla stock now – before many of these AI innovations are fully realized.
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*Stock Advisor returns December 30, 2024
Jake Lerch has positions at Nvidia, Tesla and The Trade Desk. The Motley Fool has and recommends positions in Nvidia, Tesla, and The Trade Desk. The Motley Fool has a disclosure policy.
