Analysts’ Top 10 AI Stocks to Watch in December

December 04, 2025

The AI Investing Pulse

December 4th, 2025

In this Week’s Edition:

  1. Analysis - Analysts’ Top 10 AI Stocks to Watch in December

  2. Stock Ideas - Two fast growing AI stocks could become the next Nvidia

  3. News - Goldman Sachs reiterates buy rating on Apple stock

  4. Startups - Anthropic eyes massive IPO to beat OpenAI to market

  5. Trends - The next phase of the AI boom may be different

  6. Others - Former Google CEO Eric Schmidt warns AI could think for itself in four years

  7. Video - Tom Lee: Why a Rocky Start to December Could Lead to a Year-End Rally

Analysts’ Top 10 AI Stocks to Watch in December

In a week marked by ongoing discussion around AI valuations, investor focus remains centred on the companies forming the structural backbone of the AI economy. Analysts from Motley Fool, Money, Yahoo Finance, and Goldman Sachs appear to be converging on a clear and consistent theme for December. Their coverage highlights strengthening demand across semiconductors, cloud infrastructure, and enterprise AI platforms, with renewed confidence in major ecosystem players such as Apple following Goldman Sachs’ reiterated Buy rating.

This roundup consolidates those insights, summarising how top AI-linked stocks are performing fundamentally and in market momentum based on our AIIP Ranking Methodology. 

December Top AI Stock Picks

Source: Motley Fool, Money
Why it’s a top pick: Nvidia’s GPUs remain the de facto standard for AI workloads and data centres. It is seen as the backbone of the AI boom and continues to benefit directly from the global AI infrastructure build-out.
AIIP Ranking: Fundamental Score 100 | RS 66 | Ranking: Fundamental

Broadcom Inc. $AVGO ( ▼ 0.25% )  

Source: MarketBeat, Yahoo Finance
Why it’s a top pick: Broadcom is expanding rapidly in custom AI chips and accelerators for clients like Apple, Meta, and Alphabet. Analysts expect solid double-digit upside as AI-specific chip demand accelerates and the stock breaks out of consolidation.
AIIP Ranking: Growth/Fundamental Score 100 | RS 92 | Ranking: Watchlist

Taiwan Semiconductor Manufacturing Co. $TSM ( ▲ 1.15% )  

Source: Motley Fool
Why it’s a top pick: TSM manufactures the most advanced chips used by Nvidia, AMD, Apple, and others. It benefits from AI growth no matter which chip brand wins, making it a picks-and-shovels AI stock.
AIIP Ranking: Growth/Fundamental Score 100 | RS 78 | Ranking: Fundamental

Amazon Inc. $TSM ( ▲ 1.15% )  

Source: Motley Fool, Money
Why it’s a top pick: Amazon’s AWS cloud division provides exposure to AI infrastructure and services, and it is one of the largest hosts of AI workloads. Analysts view it as a more diversified and defensive play than pure AI stocks, offering AI upside without relying only on chips.
AIIP Ranking: Growth/Fundamental Score 92 | RS 54 | Ranking: Fundamental

Alphabet Inc. $GOOG ( ▲ 1.46% )  

Source: Motley Fool, Money
Why it’s a top pick: Alphabet is the owner of Google, DeepMind, and Gemini AI models. The company is making heavy investments in AI search, cloud AI tools, and consumer AI products. It is seen as undervalued relative to its AI potential.
AIIP Ranking: Growth/Fundamental Score 98 | RS 88 | Ranking: Watchlist

Advanced Micro Devices, Inc. $AMD ( ▲ 1.1% )  

Source: MarketBeat, Money, Zacks
Why it’s a top pick: AMD is positioned to gain share from Nvidia as demand grows for its upcoming MI450 AI accelerators. Analysts view the recent 25% pullback as temporary, with expectations for a strong rebound driven by improving hyperscale adoption.
AIIP Ranking: Growth/Fundamental Score 93 | RS 79 | Ranking: Fundamental

Palantir Technologies Inc. $PLTR ( ▲ 3.16% )  

Source: Motley Fool
Why it’s a top pick: Palantir holds a strong position in government and enterprise AI analytics. It is viewed as a long-term AI software platform and is noted to be profitable now, unlike many small AI firms.
AIIP Ranking: Growth/Fundamental Score 100 | RS 95 | Ranking: Watchlist

BigBear.ai Holdings, Inc. $BBAI ( ▲ 5.35% )  

Source: Motley Fool, Yahoo Finance
Why it was picked: BigBear.ai focuses on AI software for defense, government, and logistics. It is a very small company compared to big tech, suggesting a much higher upside but also much higher risk. It is popular among traders looking for the next breakout AI stock.
AIIP Ranking: Growth/Fundamental Score 45 | RS 95 | Ranking: Momentum

Dell Technologies Inc. $DELL ( ▼ 1.71% )  

Source: Motley Fool
Why it was included: Dell is a direct beneficiary of enterprise AI infrastructure spending because it supplies AI servers and data-center hardware. It is considered less speculative than smaller AI names and remains a stable infrastructure play.
AIIP Ranking: Growth/Fundamental Score 77 | RS 57 | Ranking: Fundamental

Apple Inc. $AAPL ( ▼ 0.71% )  

Source: Goldman Sachs
Why it’s a top pick: Goldman Sachs reiterated its Buy rating on Apple despite an App Store slowdown, citing confidence in Apple’s broader ecosystem strength, AI integration efforts, and long-term platform durability. Its $320 price target highlights notable upside as Apple deepens AI capabilities across devices and services.
AIIP Ranking: Growth/Fundamental Score 37 | RS 63 | Ranking: No Signal

Final Take

The December Top Picks illustrate strong consensus among analysts from Motley Fool, Money, MarketBeat, Yahoo Finance, and Goldman Sachs, all pointing toward the same overarching trend: AI infrastructure is leading the next phase of market growth. Companies such as NVIDIA, TSM, Broadcom, AMD, and Dell form the hardware backbone powering AI adoption, while Alphabet, Amazon, Palantir, and Apple continue emerging as the software and ecosystem leaders driving enterprise and consumer integration.

The AIIP methodology reinforces this outlook. NVIDIA, TSM, Broadcom, and Palantir all achieved perfect Fundamental Scores of 100, highlighting exceptional financial and operational strength. While momentum differs across the list, the group’s overall profile reflects durable demand, rising investment, and accelerating AI-driven transformation as we head into the new year.

Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.

About AIIP - The AIIP Index tracks 173 AI-focused public companies across the full AI stack, serving as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP 173 AI stocks. Ranking Status is based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80

Premium Report - If you’d like access to this week’s top AI stock identified by our AIIP methodology - Access Latest Report →

TOP AI STOCKS PERFORMANCE

COMPANY

SECTOR

WEEKLY

Veritone (VERI)

Technology

27.0%

Amkor Tech. (AMKR)

Technology

26.1%

MongoDB (MDB)

Technology

24.4%

TOP AI ETFs PERFORMANCE

ETFs

SECTOR

WEEKLY

iShares (ARTY)

Future AI & Tech

4.5%

Themes (WISE)

Gen AI & Tech

3.8%

Global X (AIQ)

AI & Tech

2.4%

AI STOCKS IDEAS

AI STOCKS & ETFs NEWS

Goldman Sachs maintains a Buy rating on Apple, raising the price target to $320, citing strong overall revenue growth despite a 2% decline in App Store spending growth.

AWS introduced the Trainium3 AI chip, boasting significantly improved performance and memory. A roadmap for the future Trainium4 chip, which will support Nvidia interoperability, was also announced.

Google Cloud has secured a significant multimillion-dollar contract with NATO, focusing on enhancing data security and cloud services for the alliance members.

OpenAI CEO Sam Altman has initiated a “code red” to enhance ChatGPT, focusing on personalisation, response speed, and addressing over-refusals, while delaying other initiatives due to rising competition from Google and Anthropic.

AI STARTUPS

Anthropic eyes massive IPO to beat OpenAI to market – TechBuzz

Anthropic is planning a potential IPO by 2026 to enhance its capital for acquisitions and leverage its AI chatbot Claude, with discussions for private funding aiming for a valuation over $300 billion.

AI boom has huge winners, wipes out overhyped startups – Business Insider

The article discusses how the AI boom is benefiting significant players while leading to the decline of overvalued startups. It highlights insights from venture capital investors concerning the market’s rapid evolution.

The upcoming AI expansion focuses on targeted, productivity-driven applications in sectors like construction and enterprise software, with a notable shift toward real-world integrations that enhance efficiency and customer support.

Key cybersecurity trends for 2026 include the rise of agentic AI, quantum computing risks to encryption, and advanced cybercrime tactics. Organisations must adapt governance and security measures to address these challenges.

The AI future is now all about the edge – EE Times

Edge AI is shifting processing from centralised clouds to local devices, enabling real-time decision-making and enhanced security while addressing scalability and privacy challenges across industries like manufacturing and healthcare.

AI is transforming pharma and biotech, projected to generate $410 billion annually by 2025, enhancing drug development, clinical trials, and personalised medicine while rapidly increasing market value, automation, and industry collaborations.

OTHERS

Eric Schmidt forecasts that AI will achieve recursive self-improvement within four years, allowing autonomous learning. He emphasises the necessity for safeguards as AI approaches independent capabilities, driven by ongoing technological scaling.

VIDEO

Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence