Artificial intelligence (AI) is no longer just a buzzword. It’s a driving force behind technological advancements and economic growth across the globe. From reshaping industries to enhancing everyday experiences, AI is transforming how we live and work.
Key takeaways
1. NVIDIA, Microsoft, Alphabet, Amazon and Meta are the top AI stocks to watch for significant growth in 2025, driven by their strong market positions and technological advancements
2. The generative AI market is projected to reach $1.3 trillion by 2032, presenting a lucrative investment opportunity, but risks related to market volatility and regulatory scrutiny must be considered
3. Investors should diversify their portfolios by utilizing both individual AI stocks and AI-focused ETFs, while implementing risk management strategies to navigate the dynamic AI investment landscape
Understanding the artificial intelligence landscape
Top AI stocks to consider
AI company + Key strengths | Highlights |
---|---|
NVIDIA (NVDA) - AI Hardware leader | Blackwell platform enables real-time generative AI on trillion-parameter models, cutting costs and energy use |
Microsoft (MSFT) - AI integration & research | Azure AI services streamline operations; large-scale models with reasoning and code generation capabilities |
Alphabet (GOOGL) - Innovation through Google AI & DeepMind | Gemini AI models drive advancements, setting the stage for the next generation of AI breakthroughs |
Meta (META) - AI for user engagement | AI discovery engine and Reels enhance engagement across platforms like Facebook and Instagram |
Amazon (AMZN) - AI in e-commerce & cloud services | AWS Trainium2 chips accelerate machine learning training for generative AI applications. |
Palantir (PLTR) - Big data & AI insights | AI-powered platforms like Foundry and Gotham provide critical data analysis for enterprises and governments |
C3.ai (AI) - Enterprise AI software | Focuses on AI tools for streamlining operations and optimizing supply chains |
UiPath (PATH) - Robotic Process Automation (RPA) | AI-driven software bots automate repetitive business tasks, enhancing efficiency across industries |
Top AI companies worthy of your consideration
Alternative investment options in AI
Overview: AI-focused ETFs are like a cheat code for getting into the AI game without having to pick individual winners. They bundle investments in multiple leading companies driving AI innovation, so you’re betting on the growth of the whole industry rather than relying on a single stock to crush it.
Notable ETFs:
Here are a few standout AI-focused ETFs to consider:
- Global X Robotics and Artificial Intelligence ETF (BOTZ): This fund combines AI hardware manufacturers, software developers and robotics companies, making it a solid pick for investors aiming to ride the AI and automation boom
- iShares Robotics and Artificial Intelligence ETF (IRBO): Offers exposure to global companies in robotics, automation and AI innovation, providing a diversified portfolio of industry leaders
- ARK Autonomous Technology and Robotics ETF (ARKQ): Focuses on autonomous tech and robotics, including companies working on AI-driven vehicles, industrial automation, and advanced manufacturing solutions
Benefits: The biggest perk? Diversification. AI-focused ETFs spread your investment across multiple companies, reducing your risk if one underperforms. Plus, they give you broad exposure to the AI market, making them perfect for anyone looking for balanced growth in a fast-moving industry.
Income generation: Some AI companies don’t just offer growth — they pay dividends, giving you a steady stream of income alongside the potential for your investment to appreciate. These payouts are a sign of financial health and profitability, making them a great pick for income-focused investors.
Examples:
If you’re looking for AI companies that don’t just innovate but also pay you back with dividends, here are a few companies worth knowing about:
- Microsoft (MSFT): A major player in AI and a steady dividend payer — Microsoft is basically the poster child for balancing growth and income
- NVIDIA (NVDA): The king of AI hardware, NVIDIA combines explosive growth potential with consistent dividends to keep shareholders happy
- IBM (IBM): While it might not grab headlines like some others, IBM’s focus on AI (hello, Watson!) and enterprise solutions makes it a reliable dividend-paying pick
- Qualcomm (QCOM): This tech giant uses AI in its chipsets and software while rewarding investors with solid, steady dividend payouts
These companies offer that sweet spot: Cutting-edge AI innovation paired with a steady stream of income — perfect for anyone wanting both growth and a little something extra in their pocket.
Considerations: If you’re diving into dividend-paying AI stocks, keep an eye on metrics like the dividend yield, which shows how much income you’ll earn, and payout ratios, which tell you if the company can sustain those payments long-term. The sweet spot is balancing high yields with solid growth prospects for a winning strategy.
Factors to consider when investing in AI stocks
-
1
Technological innovation: When it comes to investing in AI, a company’s commitment to pushing the boundaries of research and development is a big deal. Companies like NVIDIA and Alphabet are leading the charge, constantly delivering breakthroughs that set industry trends and open doors to new opportunities.
Keep an eye out for firms actively pouring resources into cutting-edge AI solutions — those are the ones likely to drive long-term growth and shape the future of the industry. -
2
Financial health: A company’s financial health tells you a lot about its stability and ability to grow. Look at key metrics like revenue growth, profit margins and how well they manage debt. Companies like Microsoft, with steady revenue3 increases and strong margins, are prime examples of financial resilience.
These are the companies that can keep investing in AI without skipping a beat, even when the market gets tough. -
3
Market competition: Knowing the competitive landscape is critical. Focus on companies with a dominant market position or a unique edge that sets them apart. Take NVIDIA, for example — they’ve cornered the AI chip market, giving them a serious advantage over competitors.
When a company holds a strong position in a competitive field, it’s a good sign they’ll continue leading the pack and delivering solid returns. -
4
How to invest in AI stocks
Choosing a brokerage
Step one? Pick the right brokerage. For AI stocks, you’ll want a platform that gives you access to the big markets, has competitive fees and doesn’t make your head spin with a complicated interface. Here are a few solid options for Canadian investors:
Getting started is easy — have your ID ready, sign up and simply fund your account.
AI Investment strategies
Once your brokerage account is set up, it’s time to figure out your game plan. Your strategy should match your financial goals and risk tolerance:
- Growth investing: Go for big names like NVIDIA and Microsoft, the trailblazers in AI tech. These companies are all about innovation and have the growth numbers to back it up.
- Value investing: Keep an eye on undervalued companies with solid fundamentals. Think of smaller, emerging AI players that might not be on everyone’s radar yet but have loads of potential.
- Dividend investing: As mentioned earlier, companies like Microsoft and NVIDIA offer a great balance of steady dividend income and impressive growth potential, making them solid picks for investors seeking both stability and innovation in the AI space.
Portfolio diversification
Diversification is a no-brainer when it comes to managing risk in the fast-moving AI market. Spreading your investments across different sectors and industries helps you avoid putting all your eggs in one basket.
As we discussed throughout the article, AI-focused ETFs such as the Global X Robotics & Artificial Intelligence ETF (BOTZ) make it super easy to get broad exposure to the industry without having to pick individual winners.
Related read: How and when to rebalance your portfolio
By mixing in defensive investments like dividend-paying stocks (think Microsoft and NVIDIA) with high-growth companies, you can keep your portfolio balanced — steady enough for stability but with plenty of room for upside. Keep an eye on your investments and tweak things as needed to make sure they’re still aligned with the market and your goals.
At the end of the day, diversification is your safety net. It lets you ride the AI wave while staying protected from the inevitable ups and downs.
FAQs

Noel Moffatt is a Canadian fintech expert with a passion for simplifying personal finance. Based in St. John’s, NL, he draws on his background in finance, SEO, and writing to deliver clear explanations and actionable advice. Noel is dedicated to equipping readers with the knowledge and tools they need to make informed financial decisions, striving to make personal finance more accessible and understandable through his in-depth articles and reviews.
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply.