2025 AI Stock Investment Outlook: Leading Companies and Opportunity Deployment

With the rapid advancement of generative AI technology, AI concept stocks have risen from fringe topics to the core focus of global capital markets. Since the launch of ChatGPT, publicly listed companies related to it have experienced unprecedented valuation increases, even though some companies’ profit growth has not kept pace with their stock price gains. So, at this critical juncture in 2025, which AI stocks are worth paying attention to? Where are the investment opportunities along the industry chain? This article will analyze in depth.

The Truth of the Market Under the AI Wave

AI is no longer a distant sci-fi concept but a real force integrated into daily life. From voice assistants and financial forecasting to autonomous driving systems, AI applications have penetrated every corner of society. Companies are continuously increasing their investments in AI R&D, and market expectations for related products are soaring.

According to the latest data from IDC, global enterprise spending on AI-related solutions is projected to reach $307 billion in 2025. More critically, by 2028, total expenditure including AI applications, infrastructure, and services is expected to surpass $632 billion, with a compound annual growth rate of about 29%. Among these, spending on accelerated servers will account for over 75% by 2028, becoming the core hardware supporting AI technology deployment. These figures clearly demonstrate that the growth space for the AI industry remains vast.

Institutional investors and hedge funds are accelerating their deployment. For example, in Bridgewater’s Q2 2025 report, they significantly increased holdings in key AI companies such as NVIDIA, Alphabet, and Microsoft. Capital is positioning itself at the core nodes of the AI ecosystem, including computing power, chips, and cloud computing.

In addition to individual stocks, thematic funds and ETFs have also become choices for institutional and retail investors. According to Morningstar, by the end of Q1 2025, the total assets of global AI and big data funds exceeded $30 billion, reflecting a systemic allocation demand for the AI industry.

Industry Layering of AI Concept Stocks

AI concept stocks are not a single type but cover different segments of the industry chain. Upstream mainly involves chips and computing architectures; midstream includes servers, hardware, and infrastructure providers; downstream encompasses application layers and software service providers. Companies at different levels face different growth cycles and risks.

Upstream chip layer mainly consists of GPU manufacturers and ASIC design firms, which are the core of AI computation. Midstream infrastructure layer provides servers, cooling, power supplies, etc., benefiting from the continuous expansion of data centers. Downstream application layer includes cloud platforms, enterprise software, and vertical application solutions, aiming to convert AI technology into tangible business value.

Core Stocks Recommended in Taiwan Stock Market for AI

Quanta Computer (2382): Leader in AI Server OEM

Quanta Computer is one of the world’s largest notebook OEMs. In recent years, it has shifted into the AI server market, becoming a representative of Taiwan’s AI concept stocks. Its subsidiary, Cloud Network, specializes in servers and cloud solutions, successfully entering the supply chain of large US data centers, with major clients including NVIDIA and international cloud service providers.

In 2024, Quanta’s revenue reached NT$1.3 trillion, with the AI server business continuously increasing its proportion and gross margin significantly improving. Entering 2025, the shipment volume of AI servers surged, driving strong performance; in Q2, revenue broke NT$300 billion, up over 20% year-on-year, setting a new high for the same period. Foreign institutional investors are optimistic about its long-term growth prospects, with an average target price around NT$350–NT$370.

Silicon Motion (3661): Leader in ASIC Design

Silicon Motion focuses on customized chip design services, serving US cloud giants and high-performance computing leaders. In 2024, its full-year revenue reached NT$68.2 billion, with a growth rate exceeding 50%, demonstrating strong growth driven by AI demand.

In Q2 2025, Silicon Motion’s quarterly revenue surpassed NT$20 billion, doubling from the same period last year, with continued increases in gross and net profit margins. Benefiting from large AI customer projects entering mass production and new generation accelerators receiving orders, market sentiment remains optimistic, with an average target price of NT$2,200–NT$2,400.

Delta Electronics (2308): Hidden Champion in AI Supply Chain

Delta Electronics is a global leader in power management and thermal solutions. Recently, it has actively entered the AI server supply chain, providing high-efficiency power supplies, cooling, and cabinet solutions. In 2024, annual revenue was about NT$420 billion, with the contribution from data centers and AI applications steadily rising.

In Q2 2025, revenue was approximately NT$110 billion, up over 15% year-on-year, mainly benefiting from expanding demand for AI servers and data center infrastructure. Gross margin remains high.

MediaTek (2454): Driver of Edge and Mobile AI

MediaTek is one of the top ten fabless semiconductor companies globally. With the rise of edge computing, its layout in AI chips is accelerating. Its Dimensity series platforms now include enhanced AI computing units and collaborate with NVIDIA to develop automotive and edge AI solutions.

In 2024, revenue reached NT$490 billion, with gross margin improving quarter by quarter. In Q2 2025, revenue was about NT$120 billion, up approximately 20% year-on-year, mainly driven by increased market share in high-end mobile chips and rising demand for AI smart devices. Foreign investors are generally optimistic about its dual momentum in mobile AI and automotive AI, with target prices around NT$1,300–NT$1,400.

Sunlord (3324): Key Player in Liquid Cooling

Sunlord is a leading Taiwanese thermal solution provider, focusing on high-performance water cooling modules. As AI server chips’ power consumption surpasses 1 kW, traditional air cooling has reached its limit. Sunlord has successfully positioned itself in the global AI server supply chain with its advanced liquid cooling technology.

In 2024, revenue was NT$24.5 billion, with an annual growth rate over 30%. In 2025, benefiting from major cloud service providers accelerating the adoption of liquid cooling solutions, shipments of water-cooled modules for AI servers increased significantly from Q2 onward. As next-generation higher-power AI accelerators are introduced, liquid cooling penetration will rapidly increase, and Sunlord, as a technology pioneer, will directly benefit. Most foreign reports are optimistic about its profitability, with target prices above NT$600.

Leading US AI Stocks

NVIDIA (NVDA): Absolute Leader in AI Computing

NVIDIA is the undisputed leader in global AI computing, with its GPUs and CUDA software platform becoming industry standards for training and deploying large AI models. In 2024, revenue reached $60.9 billion, with a growth rate over 120%, demonstrating remarkable growth amid exploding AI demand.

In Q2 2025, revenue hit a new high of about $28 billion, with net income increasing over 200% year-on-year. Strong demand from cloud providers and large enterprises for Blackwell architecture GPUs (B200, GB200) continues to boost performance. As AI applications shift from training to inference and penetrate enterprise use, the demand for NVIDIA’s high-performance computing solutions will continue to grow exponentially. Multiple institutions have raised target prices and issued buy ratings.

Broadcom (AVGO): Key Supplier for AI Infrastructure

Broadcom is a leading global semiconductor and infrastructure software solutions provider, playing a critical role in AI chips and network connectivity. In fiscal year 2024, revenue was $31.9 billion, with AI-related product revenue rapidly increasing to 25%.

Entering 2025, Broadcom’s AI deployment deepens. In Q2, revenue grew 19% year-on-year, benefiting from large cloud providers accelerating AI data center deployments, with demand for Jericho3-AI chips and Tomahawk5 switches continuing to rise. As AI model sizes expand, the need for high-performance network connectivity and customized chips will grow rapidly, and Broadcom, as a technology leader, will benefit directly. Most foreign reports give buy ratings, with target prices above $2,000.

AMD (NASDAQ: AMD): Challenger in the AI Chip Market

AMD plays a challenger role in high-performance computing, with its Instinct MI300 accelerators and advanced CDNA 3 architecture successfully entering the AI chip market dominated by NVIDIA. In 2024, revenue reached $22.9 billion, with data center business growing 27% annually.

In Q2 2025, AMD’s revenue increased 18% year-on-year. Benefiting from MI300X accelerators adopted by major cloud providers and the upcoming MI350 series in the second half, AI-related revenue has multiplied. As AI workloads become more diverse, customer demand for alternative solutions is increasing. AMD is gradually expanding its market share through its CPU+GPU integration advantages. Most foreign institutions are optimistic about its growth potential, with target prices above $200.

Microsoft (MSFT): Hub of Enterprise AI Transformation

Microsoft is a leading platform for enterprise AI transformation, building a strong ecosystem through comprehensive cloud-to-application AI solutions. Its exclusive partnership with OpenAI, Azure AI cloud platform, and Copilot enterprise assistant enable seamless AI integration into global enterprise workflows.

In FY2024, revenue reached $211.2 billion, with Azure cloud revenue growing 28%, and AI services contributing over half of the growth. In FY2025, large-scale deployment of Copilot for Microsoft 365 by enterprise clients led to the first quarter’s intelligent cloud revenue surpassing $30 billion. As Copilot features are deeply integrated into Windows, Office, Teams, and other products used by over 1 billion users worldwide, its monetization potential will continue to be unleashed. Many institutions see Microsoft as the most certain beneficiary of the “enterprise AI popularization” wave, with target prices around $550–$600.

Google (GOOG): Versatile in AI Applications

Google actively integrates generative AI into core businesses such as search, advertising, and cloud. Its Gemini model and Google Cloud AI solutions are creating new value for enterprise clients. In 2024, revenue growth was driven by increased AI-powered ad click-through rates and rapid growth in Google Cloud.

Market consensus believes that, leveraging its data advantage, research capability, and large user base, Google has long-term potential in commercializing AI applications.