AI Stocks Set to Soar: Why Nvidia and Oracle Could Be the Smartest Investments This Year
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1. Nvidia (NVDA)
Nvidia is currently leading the global AI revolution, and its stock reflects that momentum. With a market cap crossing $4 trillion, Nvidia is now the world’s second most valuable company, behind only Microsoft. The company dominates the GPU market, and its H100 and upcoming Blackwell chips are critical to powering large-scale AI models used by tech giants like OpenAI, Meta, Amazon, and Google.
What sets Nvidia apart is not just its hardware, but its complete AI ecosystem—software, data center solutions, and AI model deployment support. Revenue from its data center segment has exploded, driven by AI training demand and enterprise cloud adoption.
Institutional buying is at an all-time high, and analysts have raised their price targets well beyond $130 per share. While short-term pullbacks are possible due to overbought conditions, the long-term fundamentals remain incredibly strong. Nvidia is a pure-play on AI infrastructure, and if AI continues to scale globally, Nvidia may remain one of the biggest beneficiaries.
2. Oracle Corporation (ORCL)
Oracle has emerged as an unexpected winner in the AI and cloud computing boom. Traditionally seen as an enterprise database leader, Oracle has successfully transformed into a modern cloud infrastructure provider. Its Oracle Cloud Infrastructure (OCI) is gaining traction, especially in supporting AI workloads.
In 2025, Oracle's stock has surged over 50% YTD, with Bank of America raising its price target to $295. The company's strong performance is driven by high demand for AI-capable cloud systems, and partnerships with AI developers and software firms. Oracle's earnings have consistently beaten expectations, thanks to its robust cloud margins and scalable software model.