In the previous year, artificial intelligence (AI) emerged as a major market driver, significantly boosting the S&P 500, Nasdaq, and Dow Jones Industrial Average, with substantial earnings growth for AI companies. The initial AI growth focused on infrastructure development and model training for complex problem-solving. As early 2025 unfolds, optimism remains high for AI, fueled by ongoing infrastructure enhancements. Nvidia CEO Jensen Huang highlights that around $1 trillion worth of computing hardware worldwide needs upgrades for accelerated computing, a process that will take time. Additionally, 2025 may usher in the era of agentic AI, enabling AI systems to reason and develop real-world solutions, which could revolutionize various industries. Investors don't need to spend excessively to capitalize on AI growth in 2025. Here are three top AI stocks to consider investing approximately $500 in this year: 1. **Nvidia:** As a leader in the AI market, Nvidia's comprehensive involvement in AI development—from chip manufacturing to software solutions—positions it for continued substantial revenue growth. The company's commitment to innovation and the recent launch of its Blackwell architecture, which has experienced high demand, suggest further significant gains in Nvidia stock in 2025. 2. **Alphabet:** The parent company of Google, Alphabet is the most affordable stock among the "Magnificent Seven" leading technology companies, trading at 21 times forward earnings.

Known primarily for Google Search, Alphabet's advertising revenue remains robust. The company is also leveraging AI to enhance its Google Cloud services, which recently surpassed $10 billion in quarterly revenue. Its AI tools and large language model Gemini contribute to its growth and hold promise for investors. 3. **Amazon:** The e-commerce giant Amazon benefits from AI by utilizing it to improve its business operations while also selling AI products through Amazon Web Services (AWS). Amazon's AI investments are aimed at streamlining fulfillment processes and enhancing profitability. AWS has shown considerable success, achieving a $110 annualized revenue run rate while focusing on AI technology layers. With recent initiatives like Project Amelia, an AI agent for e-commerce, Amazon is well-positioned for the next wave of AI growth. Overall, these three companies present strong investment opportunities in the burgeoning AI sector for 2025.