12 Cheap AI Stocks to Buy in 2025

1. NVIDIA Corporation (NASDAQ:NVDA)

Analyst Upside (as of January 27): 47.78%

No. of Hedge Fund Holders: 193

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions offering platforms and chips for data centers, self-driving cars, robotics, and cloud services. Chinese AI startup, DeepSeek, sent shockwaves to the U.S. stock market after revealing its AI tool that is potentially more efficient than the GPT-4-level model, designed at a fraction of the cost of Open AI’s model. NVDA shares plunged over 16% following the announcement of DeepSeek’s AI model on January 27. Is it game over for NVDA?

Analysts see this as an opportunity to buy NVDA shares as they believe the market has overreacted to the Chinese AI model. Bofa analysts believe this worry is overstated. Whereas, Wedbush analyst, Dan Ives called it a buying opportunity for American tech stocks. He wrote in a post on X:

“DeepSeek is a competitive LLM model for consumer use cases…launching broader AI infrastructure is a whole other ballgame and nothing with DeepSeek makes us believe anything different.  It’s about AGI for Big Tech and DeepSeek’s noise. Also, no US tech using this tech. Buying oppy.”

While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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