Artificial intelligence (AI) was a market-driving theme last year, with AI stocks helping the S&P 500, the Nasdaq, and the Dow Jones Industrial Average each soar in the double digits. Companies selling AI tools and services saw earnings climb -- and investors piled into these players.

Returning 25% in 2024, the S&P 500 delivered a record-breaking year for stock market investors. A resilient global economy coupled with interest rate cuts by the Federal Reserve continues to fuel optimism toward a strong outlook.

Nvidia stock is likely to be a top performer again in 2025 as the company ramps up shipments of its new Blackwell graphics processing units ( GPU s) for data centers. They are potentially the most powerful chips in the world for developing AI models, and demand for them far exceeds supply.

The market is coming off two superb years, 2023 and 2024, when the S&P 500 climbed over 53% in total, mainly thanks to tech and artificial intelligence (AI) stocks. While 2025 has started off with some turbulence,

History Says the S&P 500 Will Surge in 2025. 2 AI Stock-Split Stocks to Buy Before It Does.

The S&P 500 posted its biggest comeback since September as Wall Street shrugged off some weakness in stocks linked to the artificial intelligence trade. The market benchmark rose 0.2% after trading down 0.

Semiconductor stocks are the biggest S&P 500 gainers in Thursday trading, fueled by upbeat commentary from Taiwan Semiconductor Manufacturing Co. on the state of the artificial-intelligence market. Chip-equipment stocks KLA Corp.

The S&P 500 added 0.6% on Monday, Jan. 6, led by a surge in semiconductor stocks as the first full week of the new year got underway.

Over a third of the S&P 500's value is now concentrated in the "Mag 7" — a handful of huge companies that sell AI technology.

Chip-related stocks are pacing the S&P 500 higher Monday as the artificial-intelligence trade gains further momentum. Two factors are driving the action. To start, Foxconn issued upbeat December metrics,

The S&P 500's recent growth, driven by AI optimism and productivity gains, contrasts extremely extended valuations, creating a brittle market outlook for 2025. We foresee two scenarios: continued momentum leading to 10% to 20% positive returns, or a quick, significant downturn if mega cap earnings begin to change direction.

Is the VanEck Semiconductor ETF (SMH) the best way to play the artificial intelligence boom? Here's how the AI stock ETF performs vs. others.