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The artificial intelligence (AI) boom has impacted several industries, but tech companies like NVIDIA Corp. (NASDAQ:NVDA) are rewarded handsomely. Companies are investing millions into the AI sector, and the future could see several AI stocks soaring to new highs. The Nasdaq Composite consists of the largest tech giants, and there are companies tackling different layers of the AI space. Some are proven businesses with many years of history, while a few have recently gained recognition due to their AI data center revenue. Palantir Technologies (NASDAQ:PLTR), Broadcom Inc. (NASDAQ: AVGO), and Nvidia are the best-performing AI stocks in the Nasdaq Composite Index. Here’s why.
Nvidia
One of the largest companies in the world with a market cap of $4.41 trillion, Nvidia has the highest weightage in the Nasdaq Composite Index. It makes up 13% of the index, which means its performance impacts the whole market. Nvidia stock gained 31% in 2025, and the upcoming results could take the stock higher.
Nvidia is undoubtedly one of the best AI companies in the world and is riding the boom. The company makes graphics processing units (GPUs) that power data centers. It also makes AI chips that have seen a massive surge in demand. Nvidia has reported strong growth and strong demand quarter after quarter. It is constantly expanding margins, raising industry expectations.
The demand for Nvidia’s new Blackwell and Rubin GPUs is off the charts. CEO Huang stated that the demand is so high that the company now has an order book of $500 billion for these chips. This is only the beginning for Nvidia. While the stock might not rally like it did in the past two years, it will continue to keep moving higher. The company expects all of this revenue in the next 1-1.5 years.
Nvidia expects to report a revenue of $54 billion in the third quarter and a gross margin of 73.3%. It has successfully managed to beat expectations in the previous quarters and could do so again. The earnings are more than just another update. The upcoming Nvidia results will move the market.
Palantir Technologies
Palantir has become a significant beneficiary of the AI boom. The company caters to government and private corporations through its AI software platforms, Foundry, Gotham, and the Artificial Intelligence Platform (AIP). The stock has gained 122% this year and is on an upward spree. Exchanging hands for $167, PLTR has gained over 500% in five years.
The company has recently signed a multi-year, multi-million-pound deal with PwC UK to advance AI and data solutions. It has also entered into a multiyear partnership with FTAI Aviation to improve global engine maintenance.
In the third quarter, it reported a revenue of $1.2 billion, up 63% year-over-year, marking a record quarter. The commercial revenue was up 121%, while the government revenue was up 52% year over year. Palantir closed 204 deals of at least $1 million and 53 deals of at least $10 million. Its customer count was up 45% year over year, and the U.S. commercial remaining deal value soared 199% year over year to $3.63 billion.
Management has raised the revenue guidance for the fourth quarter. While there are concerns about Palantir’s valuation, the stock has shown resilience and gained significantly this year. When valuations soar, so do investor expectations, and Palantir will have to deliver to prove its strength.
The epic run this year has made it one of the best AI stocks to own. The stock could be a long-term winner in the AI race.
Broadcom
Nvidia is not the only player when it comes to AI. Broadcom is gaining prominence in the industry and has launched an alternative to GPUs. The company has partnered with AI hyperscalers to build its own chips that are optimized for a client’s workload.
This allows it to cater to a niche client in the massive market. While it may not be able to achieve the market share of Nvidia, it has been able to stand strong in the computing industry.
In the third quarter, Broadcom announced a revenue of $16 million, up 22% year over year, and declared a dividend of $0.59 per share. The company saw accelerating demand in the AI sector. Its semiconductor solutions revenue soared 26% year over year, while the AI-related semiconductor revenue was up 63% year over year.
The infrastructure software segment saw a 17% jump. It also hit a record free cash flow of 7 billion, amounting to 44% of the total revenue. For the fourth quarter, the management is aiming for a revenue of $17.4 billion.
The stock has gained 46.78% in 2025 and is exchanging hands for $340. It is up over 100% in 12 months. Broadcom’s custom AI accelerators have the potential to become a larger part of the AI industry, making it a great stock to buy now. Wall Street is bullish on the stock, and several analysts raised their price target after the quarterly results.