Two Outstanding Artificial Intelligence Shares to Invest In Immediately
Artificial Intelligence (AI) has remained a significant talking point on Wall Street for several quarters now. Companies like Nvidia have been generating substantial wealth for investors, largely due to the surge in demand for AI-related applications and hardware.
As we move from 2024 into 2025, what AI stocks should we keep an eye on? Let's dissect two of my top picks.
The Trade Desk
The Trade Desk's shares experienced a noteworthy upward trend in 2024, increasing by around 60%. Underpinning this strong performance were equally noteworthy financial results. In the quarter ending on September 30, 2024, The Trade Desk reported a 27% year-over-year increase in revenue. Furthermore, the company's net income for the same quarter ($94 million) more than doubled compared to the previous year ($39 million).
Much of the company's success can be attributed to the expansion of the Connected TV (CTV) advertising market. The Trade Desk operates a platform for programmatic advertising that allows customers to buy and sell ad space on digital platforms.
For instance, a digital publisher or streaming service might have ad space they want to sell. By using The Trade Desk's platform, advertisers can purchase ad space on specific programs targeting particular demographics.
As per Jeff Green, Co-Founder and CEO of The Trade Desk:
"As we ... look ahead to 2025, we have never been in a better position to capture a larger share of the $1 trillion advertising [Total Addressable Market]. 2024 was a stellar year for CTV. Many of the largest media companies are now collaborating with us to help clients maximize the value of CTV advertising via programmatic [advertising]."
In essence, The Trade Desk is riding a wave that seems unstoppable. As traditional media formats (such as newspapers, radio, and cable TV) give way to digital media platforms like video and audio streaming, podcasts, and online news, The Trade Desk is developing the tools that facilitate communication between advertisers and these emerging platforms. Such tools utilize AI. For example, The Trade Desk's Kokai platform leverages AI-driven tools to help marketers optimize their bidding, evaluation, and assessment of advertising campaigns.
The Trade Desk is a company strategically positioned to capitalize on two key trends. First and foremost, it's a prominent player in the digital ad market, facilitating connections between buyers and sellers as the overall market experiences rapid expansion. Secondly, the company's AI-driven tools help buyers and sellers align the right ads with the right audience.
For investors seeking an AI stock in 2025 and beyond, The Trade Desk should definitely be on their radar.
Tesla
One could easily dismiss Tesla (TSLA -6.08%) as an automobile company. Indeed, it is best known for its vehicles. However, to fully comprehend why Tesla now boasts a market cap of over $1 trillion, one must view it as an AI company that manufactures vehicles -- not as a vehicle company that dabbles in AI.
Take autonomous driving, for instance. That achievement would not be possible without massive data collection and AI advancements that enable the safe and reliable implementation of Full Self-Driving (FSD) technology.
To accomplish this, Tesla committed to investing over $1 billion in its Dojo supercomputer. In order to train Dojo, Tesla's active vehicles will collect an immense amount of real-life driving data that will subsequently be uploaded to Dojo to continuously enhance and refine Tesla's FSD software.
Therefore, it's crucial to remember that each Tesla on the road functions as a data-collecting robot. In fact, in an interview earlier this year, Elon Musk himself referred to Tesla vehicles as "robots on four wheels."
Its evident that Tesla has numerous innovative products that rely on AI. Beyond FSD and robotaxis, there's also Optimus, the robot, which has the potential to revolutionize certain labor-intensive industries.
While automotive sales and margins do significantly impact Tesla's stock price in the short term, AI innovations will be increasingly significant in the long term. Consequently, there's still an opportunity for investors to invest in Tesla shares now, before many of these AI innovations reach fruition.
In the context of future AI stock investments, considering Tesla's significant investment in AI, specifically the Dojo supercomputer for autonomous driving and robotaxis, could prove fruitful for long-term investors.
Moreover, as we look towards 2025 and beyond, The Trade Desk, with its robust AI-driven tools like Kokai, is strategically positioned to capitalize on the rapid expansion of the digital ad market and help advertisers align ads with the right audience.
