AI to Replace Humans in “Most Things”: Stocks to Watch

Rapid advances in artificial intelligence (AI) have seen application of the technology in almost every industry and aspect of life. The overwhelming acceptance of AI has also been driving the stock markets for the past couple of years. In fact, AI stocks were the biggest catalyst of the outperformance of US indices, DJIA, S&P 500 and the Nasdaq Composite in 2024. The ability to reason and make quick decisions without human intervention has expanded the addressable market for AI. In its Sizing the Prize report, PwC projected that AI has the potential to contribute $15.7 trillion to the global economy by 2030.

So, when Microsoft’s co-founder, Bill Gates, stated in an interview with Jimmy Fallon that advances in AI will lead to humans no longer being needed “for most things” in the world, it didn’t come as a surprise to the financial markets. Yet, the Magnificent Seven, which includes AI giants Nvidia, Microsoft, Alphabet, Amazon, Apple, Meta Platforms and Tesla, have been on a major downtrend in 2025. Despite this, analysts are bullish on AI stocks. So, which ones do they believe have upside potential? Let’s take a look.

Super Micro Computer (NASDAQ: SMCI)

Headquartered in San Jose, California, Super Micro Computers is an information technology company that specialises in the manufacture and sales of high-performance servers. The company is a major player in the computer hardware segment, with a market cap of about $23 billion as of April 2025. Super Micro’s innovations in server infrastructure, especially in AI-powered platforms, have been driving its rapid growth and financial outperformance.

Some analysts have set the price target for the stock at $70. Given that the company’s share price was up 19.17% YTD on April 25, 2025, this implies an almost 100% upside. However, the average price target is $48.33, which reflects almost 35% upside potential. In either case, Wall Street appears bullish on the stock.

Nvidia Corp (NASDAQ: NVDA)

The AI stock that was most favoured by investors in 2024 has had a rocky 2025. The leader in graphics processing units (GPUs), AI and accelerated computing was down 23.05% YTD to $106.43 on April 25, 2025. Despite this, the Wall Street high target price is $220 per share, implying almost 117% upside to the stock. Even if we take the average price target of $168.49, the stock has more than 58% upside.

Nvidia’s Hopper (H100) and Blackwell GPUs have been adopted with open arms by businesses wanting to capitalise on the power of generative AI and to build or train large language models (LLMs). Going forward, analysts are optimistic about the launch of another super chip by Nvidia, the next-generation data centre accelerator, Vera Rubin, in 2026, followed by Vera Rubin Ultra in 2027.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM)

Despite the US-China trade tensions clouding the near-term outlook for Taiwan Semiconductor, the company has irrefutably established its dominant position in the semiconductor industry. Taiwan Semiconductor is the preferred partner for leading chip makers globally, including Nvidia. Its Q1 results reflect this, with revenue surging 35% to $25.5 billion and gross margin growing 190 basis points year-on-year. Wall Street believes that the demand for semiconductors will need to significantly slow down globally to adversely affect Taiwan Semiconductor.

Although the stock had declined 38.07% YTD to $163.51 on April 25, 2025, the price target high of $251 per share, suggesting more than 50% upside. Even the average price target of $219.43 implies an over 34% upside.

Amazon.com Inc (NASDAQ: AMZN)

The e-commerce giant needs no introduction anywhere in the world. However, given that it is majorly dependent on Chinese suppliers, the US-China tariff war could hurt this part of the company’s business. Fortunately, Amazon is also the company behind the world-leading cloud platform, Amazon Web Services (AWS), which is expected to significantly benefit from the increasing adoption of AI across sectors. This is because AI adoption will raise the demand for cloud solutions. Plus, the company offers AI services and applications through AWS, Alexa and more.

All this makes analysts optimistic that Amazon could see its earnings growing 20% annually in the long term. This is also why despite the stock having plunged 15.32% YTD to $186.48 by April 25, 2025, the price target high is $287, representing a 62% upside. Even the average target price of $246.70 implies almost 33% upside.

Alphabet Inc (NASDAQ: GOOG)

The parent of the most popular search engine is also the third-largest tech company in the world by revenue, after Amazon and Apple. In fact, Alphabet might have foreseen the power of the AI revolution years ago, when it acquired AI research lab DeepMind in 2014. Plus, its generative AI tool, Gemini, boasted 350 million monthly active users in April 2025. Alphabet has also launched AI tools for Google Workspace and Google Cloud, while deploying AI to improve the performance of its search engine. In addition, the company has announced that it will ramp up its spending on AI infrastructure to $75 billion in 2025.

Although Alphabet’s stock has not declined as much as its peers in the Magnificent Seven, it had still fallen 13.27% YTD to $165.33 by April 25, 2025. Yet, its business fundamentals have led analysts to set a price target high of $275, implying almost 82% upside, while the average price target of $196.97 represents over 20% upside potential.

While such bullish sentiment might make it tempting to rush to invest in AI stocks, it is important to do your groundwork before making a trading decision. Despite strong fundamentals, AI stocks have been underperforming in 2025 due to multiple reasons. Keeping an eye on the latest news updates and using technical analysis tools are crucial for informed decisions.

To Sum Up

• Market sentiment on AI stocks has been bullish for the past couple of years.
• The rapid adoption of the technology across industries has fuelled the optimism.
• Bill Gates commented that AI will take over from humans “for most things.”
• Despite the overall downtrend in AI stocks in 2025, analysts are optimistic.
• Super Micro Computer, Nvidia, Taiwan Semiconductor, Amazon and Alphabet are some AI stocks with upside potential.

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