2025 AI Investment Hotspot: Analyzing Investment Opportunities from AI Stock Price Trends In-Depth Analysis of AI Concept Stocks and Stock Selection Strategies

AI Concept Stocks: Mastering the Investment Key to the Tech Revolution

Since ChatGPT ignited the market in the second half of 2022, artificial intelligence (AI) has moved from laboratories to mainstream capital markets, with the relevant listed companies experiencing a historic increase in their price-to-earnings ratios. Many enterprises, despite mediocre profitability, have seen their stock prices multiply several times. What is the logic behind this? Where are the investment opportunities in AI concept stocks?

First, it is necessary to understand the essence of AI concept stocks. Artificial intelligence refers to enabling machines to possess capabilities similar to human intelligence, including learning knowledge, logical reasoning, solving complex problems, understanding language, generating text and images, and more. Our daily interactions with Siri, ChatGPT, autonomous driving, etc., all fall within the AI scope.

AI concept stocks are those listed companies whose business is closely integrated with artificial intelligence technology. They may be chip manufacturers, server suppliers, cloud platforms, or AI software service providers. The core of investing in AI concept stocks is to align with the hardware infrastructure and application ecosystem behind the AI wave.

Current State of the AI Industry Investment: Growth Potential from Market Data

According to the latest industry report from IDC, global enterprises are accelerating their spending on AI-related solutions and technologies. By 2025, global enterprise AI investment is expected to reach $307 billion. Looking ahead three years, by 2028, total AI expenditure (covering applications, infrastructure, and services) may surpass $632 billion, with a compound annual growth rate of about 29%.

Of particular note is the change at the infrastructure level. Server expenditure is projected to account for over 75% of the share by 2028, becoming the core hardware supporting AI technology deployment. This data fully demonstrates that the AI industry still has vast growth space.

From the capital side, institutional investors and hedge funds continue to increase their holdings of AI-related targets. For example, Bridgewater Associates significantly increased its holdings of key AI companies such as NVIDIA, Alphabet, and Microsoft in its 2Q 2025 13F report. This reflects the market’s optimism about AI application prospects and the focus of capital on core nodes of the AI industry chain, such as computing power, chips, and cloud computing.

Many investors also allocate through thematic funds or ETFs to cover multiple links such as applications, infrastructure, cloud, and big data in one deployment. According to Morningstar statistics, as of the end of Q1 2025, the total assets of global AI and big data funds have exceeded $30 billion.

Overview of US and Taiwan AI Concept Stocks

Below are selected well-known AI concept stocks based on market capitalization, stock price, and YTD gains:

U.S. Market

Taiwan Market

(Data as of September 19, 2025, Source: Google Finance)

Analysis of Leading US AI Stocks

NVIDIA: The Absolute Dominance of the Chip Empire

NVIDIA’s leadership in the global AI computing field is unshakable. Its GPU and CUDA software platform have become industry standards for training and deploying large AI models. As generative AI sweeps the globe, NVIDIA’s complete ecosystem—from chips to systems to software—has enabled it to dominate the AI infrastructure market.

In 2024, NVIDIA’s revenue reached $60.9 billion, with an annual growth rate exceeding 120%, demonstrating remarkable growth momentum. Entering 2025, this momentum shows no signs of weakening. In Q2, revenue hit a new high of about $28 billion, with net profit increasing over 200% year-over-year. The main drivers are strong procurement from cloud giants and large enterprises for Blackwell architecture GPUs (such as B200, GB200).

Analysts generally believe that as AI applications extend from training to inference and gradually penetrate enterprise and edge computing scenarios, the demand for NVIDIA’s high-performance computing solutions will continue to explode. Its solid technological moat and complete ecosystem make it difficult to be replaced in the short term. Many institutions have raised target prices and maintain a “buy” rating.

Broadcom: An Indispensable Key Supplier for AI Data Centers

Broadcom is a leading global semiconductor and infrastructure software solutions company, playing a vital role in AI chips and network connectivity. As demand for AI servers surges, Broadcom leverages its customized ASIC chips, network switches, and optical communication chips to successfully integrate into the AI data center supply chain.

In FY2024, revenue reached $31.9 billion, with AI-related product revenue rapidly increasing to 25%, fully demonstrating its growth momentum in the AI wave. Moving into 2025, this trend becomes even clearer. In Q2, revenue grew 19% year-over-year, benefiting from cloud service providers accelerating AI data center construction, with demand for its Jericho3-AI chips, Tomahawk5 switches, and optical communication solutions continuing to rise.

As AI model sizes expand, the demand for high-performance network connectivity and customized chips will grow rapidly. Broadcom, as a technology leader in this field, will directly benefit from long-term trends. Foreign investors generally favor its AI product line’s growth potential, with target prices mostly above $2,000.

AMD: The Challenger in the AI Chip Market

AMD plays an innovative role in high-performance computing, gradually breaking NVIDIA’s monopoly in the AI accelerator market. Its Instinct MI300 series accelerators and CDNA 3 architecture provide important alternatives for cloud service providers and large enterprises.

In 2024, AMD’s revenue reached $22.9 billion, with data center business growing 27% annually, indicating that its AI strategy is gradually taking effect. In Q2 2025, revenue increased 18% year-over-year. Benefiting from the adoption of MI300X accelerators by major cloud providers and the launch of MI350 series in the second half, AI-related revenue has doubled.

As AI workloads become more diverse, customer demand for alternatives is increasing. AMD leverages its CPU+GPU integration advantage and open ecosystem strategy to gradually expand its share in AI training and inference markets. Foreign institutions generally recognize its growth potential, with target prices mostly above $200.

Microsoft: The Absolute Platform for Enterprise AI Applications

Microsoft is the leading platform for global enterprise AI transformation. Through exclusive cooperation with OpenAI, deep integration of Azure AI cloud platform, and Copilot enterprise assistant, Microsoft successfully integrates AI technology seamlessly into global enterprise workflows.

In FY2024, revenue reached $211.2 billion, with Azure and cloud services growing 28%, and AI services contributing over half of the growth momentum. Entering FY2025, this acceleration becomes even more evident. The intelligent cloud business revenue first exceeded $30 billion, driven by large-scale deployment of Copilot for Microsoft 365 and exponential growth in Azure OpenAI usage.

As Microsoft deeply integrates Copilot into Windows, Office, and Teams—products used by over 1 billion users worldwide—its monetization capability will continue to be unleashed. Many institutions see Microsoft as the most certain beneficiary of the “enterprise AI popularization” wave, with target prices ranging from $550 to $600.

Deep Dive into Taiwan AI Concept Stocks Leaders

Quanta (2382): The Hidden Champion in the AI Server Market

Quanta Computer has actively transformed into the AI server field in recent years, becoming the most watched AI concept stock in Taiwan stocks. Its subsidiary Quanta Cloud Technology (QCT) specializes in servers and cloud solutions, successfully entering the supply chain of ultra-large US data centers and AI servers, with major clients including NVIDIA and international cloud service providers.

In 2024, Quanta’s revenue reached NT$1.3 trillion, with the proportion of AI servers continuously increasing and gross margin improving significantly. In 2025, driven by a surge in AI server shipments, performance remains strong. In Q2, revenue exceeded NT$300 billion, with an increase of over 20% year-over-year, setting a new historical high.

Analysts generally believe that Quanta, leveraging AI and cloud trends, will maintain long-term growth. The average foreign institutional target price is around NT$350–NT$370, still with room for upward movement compared to current prices.

Realtek-KY (3661): The AI Expert in ASIC Design

Realtek-KY is one of Taiwan’s most representative AI concept stocks, mainly focusing on ASIC customized chip design services. Its clients include US cloud giants and leading manufacturers in high-performance computing and artificial intelligence.

In 2024, revenue reached NT$68.2 billion, with an annual growth rate over 50%, demonstrating strong growth driven by AI demand. In Q2 2025, Realtek’s quarterly revenue surpassed NT$20 billion, doubling compared to the same period last year. Gross margin and net margin continue to improve, benefiting from large AI customer projects entering mass production and new AI accelerators and data center orders.

As generative AI applications expand rapidly worldwide, the market generally views Realtek’s long-term growth potential positively. The average foreign institutional target price is between NT$2,200 and NT$2,400, still with upside potential from current prices.

Delta Electronics (2308): The Key Provider of Power and Cooling Solutions

Delta Electronics is a global leader in power management and power solutions, actively entering the AI server supply chain in recent years, mainly providing high-efficiency power supplies, cooling, and cabinet solutions.

In 2024, Delta’s annual revenue was about NT$420 billion, with the performance from data centers and AI-related applications continuously rising. In Q2 2025, revenue was about NT$110 billion, with an increase of over 15% year-over-year, supported by expanding demand for AI servers and data center infrastructure, with gross margin remaining high.

MediaTek (2454): Forward-looking Deployment in Mobile AI and Edge Computing

MediaTek is one of the top ten fabless semiconductor design companies worldwide. With the rise of generative AI and edge computing, MediaTek actively advances its AI chip deployment. Its Dimensity series mobile platforms now include enhanced AI computing units, and it collaborates with NVIDIA to develop automotive and edge AI solutions.

In 2024, revenue reached NT$490 billion, benefiting from increased AI chip shipments, with gross margin improving quarter by quarter. In Q2 2025, revenue was about NT$120 billion, up approximately 20% year-over-year, mainly driven by higher market share in high-end mobile chips and increased demand for AI smart devices. Foreign institutional target prices range from NT$1,300 to NT$1,400, still above current prices.

Silicon Double (3324): Market Pioneer in Liquid Cooling Technology

Silicon Double is a leading Taiwanese manufacturer of cooling solutions, focusing on high-performance water cooling modules. As AI server chip power consumption continues to surpass kilowatts, traditional air cooling has reached a bottleneck. Silicon Double’s advanced liquid cooling technology has successfully positioned itself in the global AI server supply chain, becoming a key player in promoting AI infrastructure upgrades.

In 2024, revenue was NT$24.5 billion, with an increase of over 30%. Moving into 2025, growth momentum is even more pronounced. Benefiting from major cloud service providers accelerating the adoption of liquid cooling solutions, shipments of AI server water cooling modules surged from Q2 onward. With the launch of next-generation higher-power AI accelerators, the penetration rate of liquid cooling will rapidly increase. Foreign reports generally favor its profitability, with target prices mostly above NT$600.

The Dialectic of AI Stock Prices and Long-term Investment Value

Whether AI concept stocks are worth long-term investment depends on the development prospects of AI technology. It is certain that AI technology will, like the internet, change human life and production models, generating enormous benefits.

However, it is important to recognize that in the early stages, due to infrastructure needs, upstream AI concept stocks will benefit first, but high growth and market heat are likely difficult to sustain long-term. Referencing Cisco Systems, the first internet equipment stock, which hit a peak of $82 during the 2000 internet bubble and then fell over 90% to $8.12 after the bubble burst. After 20 years of steady operation, the stock price still has not returned to the high.

For downstream companies, although the market generally believes that such companies’ development is relatively sustainable and that AI stock prices will benefit long-term, historical trends of Microsoft and Google show that their AI stock prices also peaked during major bull markets and then fell sharply, remaining difficult to return to previous highs for years. Theoretically, timely switching can allow long-term investment, but this is not easy for ordinary investors.

In staged investments, attention should be paid to the development speed of AI technology, the realization of its value, and whether individual stocks’ profit growth slows down.

Comparison and Selection of AI Investment Tools

Besides directly buying stocks, investors can also allocate through stock funds or ETFs:

Investors can consider combining dollar-cost averaging to buy stocks, stock funds, or ETFs, to average the purchase cost. Although AI is still in a rapid development stage, positive factors may not always focus on the same company. Some companies’ AI stock prices may have already fully reflected the positive news, so continuous innovation is necessary to maximize performance.

Regarding platform choice, for investing in Taiwan stocks, open an account with a Taiwanese broker. For US stocks, use a Taiwanese broker via cross-trading, or open an account with an overseas broker, or trade through a contract for difference (CFD) platform. Each platform has its advantages and disadvantages, depending on investment preference. For short-term trading, CFD platforms may be more suitable, as they allow long and short positions, with no commission and higher leverage.

Risks and Opportunities in AI Stock Investment

With rapid advances in large language models, generative AI, and multimodal AI, the demand for computing power, data centers, cloud platforms, and dedicated chips will continue to rise. In the short term, chip and hardware suppliers like NVIDIA, AMD, and TSMC will remain the biggest beneficiaries.

In the medium to long term, AI applications in industries such as healthcare, finance, manufacturing, autonomous vehicles, and retail will gradually land, transforming into tangible revenue for many enterprises and driving the growth momentum of the overall AI concept stocks.

On the capital front, although AI themes remain a focus, AI stock price trends are inevitably affected by macroeconomic conditions. If the Federal Reserve and other central banks adopt loose monetary policies, it will be bullish for high-valuation tech stocks; conversely, high interest rates may compress valuations. Additionally, AI concept stocks are sensitive to news, prone to large fluctuations in a short period. As new energy or other themes emerge, capital may flow elsewhere. Therefore, short-term volatility is possible, but the long-term trend remains upward.

Policy and regulation will also be key variables. Governments worldwide generally view AI as a strategic industry and may increase subsidies or investments in infrastructure, providing positive support. However, issues such as data privacy, algorithm bias, copyright, and ethics may lead to stricter regulations. If regulations tighten, valuations and business models of some AI companies could face challenges.

Overall, AI concept stocks from 2025 to 2030 will feature a “long-term bullish, short-term volatile” pattern. Investors wishing to participate in AI growth should prioritize chip and infrastructure providers like accelerators or select companies with tangible applications such as cloud services, medical AI, and fintech. Diversified investment via AI-themed ETFs can also effectively reduce the risk of individual stock fluctuations.

For ordinary investors, a more prudent strategy is long-term allocation with phased entry rather than chasing highs in the short term. This can help reduce the impact of market fluctuations on returns.

It is also important to be aware of the risks in AI concept stock investment:

Industry Uncertainty: Although artificial intelligence has existed for decades, it has only recently become mainstream due to technological advances. Rapid changes and progress make it difficult even for knowledgeable investors to keep pace. This means that after buying a stock, investors may easily fall into hype-driven volatility around that company’s AI stock.

Unproven Companies: While many major tech firms participate in AI, some AI companies have little history or foundation for reference. These companies may carry greater operational risks compared to more stable, time-tested firms.

Policy and Social Reactions: Leaders in computer science have warned of potential dangers related to AI. As the field expands and evolves, public opinion, regulations, and other factors may influence AI stock performance in unexpected ways.