So, how can Nvidia's stock soar 67% in 2025? Simple. It does what it's expected to and gives a solid outlook for next year. Right now, Nvidia trades for 52 times trailing earnings, which is near the cheapest level it has traded at over the past two years.

Euphoria around the prospects of artificial intelligence (AI) helped snap the capital markets out of a wicked funk that took place during much of 2022. And while some investors may be wary of just how long the bull market will last, history suggests 2025 should be another terrific year for technology stocks in particular.

Two hot stocks in this sector are Palantir Technologies (NASDAQ: PLTR) and SoundHound AI (NASDAQ: SOUN). Palantir's shares had surged by more than 300% over the prior 12 months, while SoundHound had skyrocketed by 600%.

Palantir (NASDAQ: PLTR) and Supermicro (NASDAQ: SMCI) are two of the market's most popular artificial intelligence stocks. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now.