Microsoft (MSFT) is also viewed as a robust investment in AI, bolstered by its significant investments in AI infrastructure and its partnership with OpenAI.

As Snowflake's core AI platform, Cortex, continues to develop, further financial improvement is expected as AI becomes more integral to its offerings.

Among these, Nvidia (NVDA) stood out as the best-performing stock in 2024, with a remarkable 171% increase and a market valuation exceeding $2 trillion.

Palantir Technologies (PLTR) has shown impressive growth with a 340% stock performance in 2024, but concerns about its high valuation warrant caution for potential investors.

The company has secured strategic partnerships with major tech firms like Oracle, Meta, and Microsoft, focusing on integrating its newly launched Palantir Artificial Intelligence Platform (AIP) within the Department of Defense.

Despite the positive outlook for these tech stocks, investors are advised to approach them with caution, particularly in light of current market conditions and valuations.

The software industry is projected to thrive in 2025, largely driven by increased investment in artificial intelligence (AI).

Dan Ives, managing director at Wedbush Securities, has released his top picks for megacap tech stocks in 2025, focusing on the 'Magnificent Seven' companies.

Ives believes Alphabet (GOOG, GOOGL) presents a strong investment opportunity due to its diverse ecosystem for AI integration, despite its current lower-than-average forward price-to-earnings multiple.

Additionally, Microsoft's CoPilot, an agentic AI assistant, is utilized by nearly 70% of Fortune 500 companies, enhancing its competitive edge in the AI landscape.

Salesforce (CRM) is introducing agentic AI through its platform named Agentforce, which is already in use by large enterprises like IBM and FedEx.

Snowflake (SNOW), which went public in 2020, is showing signs of recovery with a 29% year-over-year growth in product revenue and a net revenue retention rate of 127%.