Two of the hottest artificial intelligence (AI) stocks heading into 2025 are Palantir Technologies (NASDAQ: PLTR) and SoundHound AI (NASDAQ: SOUN). Both stocks had a phenomenal 2024, with Palantir's stock up almost 400% and SoundHound AI's gaining nearly 900%.

A rate-cutting campaign by the Federal Reserve, a resilient economy and strong corporate earnings provided another solid backdrop for the stock market in 2024. After a stellar 2023, it was a great year for growth stocks in the software space like Palantir Technologies and AppLovin after the S&P 500 and Nasdaq composite confirmed new uptrends in early November 2023 with one-day gains of more than 1.

Two prominent companies in this area are quantum computing company IonQ (NYSE: IONQ) and semiconductor-giant Nvidia (NASDAQ: NVDA). Through Dec. 11, IonQ's share price was up around 140%, and Nvidia's had risen about 180% in 2024.

Cathie Wood didn't jump on the artificial intelligence (AI) bandwagon. Her Ark Innovation ETF has been invested in AI for more than a decade. The exchange-traded fund (ETF) lists AI at the top of the list of disruptive innovations that should deliver strong long-term growth.

Advanced Micro Devices (NASDAQ: AMD) and Marvell Technology (NASDAQ: MRVL) have enjoyed contrasting fortunes on the stock market in 2024, with one of these names delivering stellar gains while the other one is in the red.

Alphabet ( GOOGL -0.26%) ( GOOG -0.24%) currently trades at $196 per share. However, Morgan Stanley analysts led by Brian Nowak have outlined a bull-case scenario where the stock advanced 38% to $270 per share in 2025, driven by strong revenue growth across its advertising and cloud computing businesses.