Artificial intelligence (AI) stocks have soared over the last couple of years as optimism about the technology and its capabilities continues to grow. As most investors know, one of the more notable success stories is Nvidia,

One of the biggest themes that helped drive the market last year was artificial intelligence (AI). Known as one of the U.S. government's most important vendors, Palantir Technologies (NASDAQ: PLTR) and its data gathering and analytics solutions have been used for such critical tasks as fighting terrorism and tracking COVID-19 cases.

Artificial intelligence continued to be a driving force behind stock market returns in 2024. Here are some of the stocks that have benefited the most.

Palantir Technologies ( PLTR -2.52%) had an explosive 2024, reporting its highest profit ever, joining the S&P 500, and seeing its shares surge 340%. But the stock may have farther to go, possibly this year but particularly over the long term.

But as we've witnessed from previous next-big-thing technologies, not all stocks are necessarily going to be winners. As we steam ahead into 2025 and the practical application of this game-changing technology comes into full focus, two unstoppable AI stocks stand out as no-brainer buys, while another highflier is worth avoiding.

Rather than focusing on quarterly earnings beats or temporary market sentiment, my investment strategy centers on identifying companies that can compound value over many years or even decades. While many view the current AI boom skeptically,

Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two of the biggest rivals in tech. And today, they're both spending heavily on artificial intelligence (AI) as their rivalry evolves into yet another chapter.