Considering how well artificial intelligence (AI) stocks have done over the past two years, it's hard to imagine some of them going even higher. However, this industry still has significant tailwinds as we have barely scratched the surface of what is possible with AI.

The adoption of artificial intelligence (AI) technology is set to continue at a rapid pace in 2025: Market research firm IDC estimates that investments in data center infrastructure, AI agents, and efforts taken by organizations to embed AI capabilities into their operations will add up to outlays of $227 billion this year.

With some of the biggest AI players going all-in on this technology, it might make existing AI powerhouses, like Palantir (NASDAQ: PLTR), a bit nervous. Palantir emerged as one of the best pure-play AI investments in 2024.