Considering how well artificial intelligence (AI) stocks have done over the past two years, it's hard to imagine some of them going even higher. However, this industry still has significant tailwinds as we have barely scratched the surface of what is possible with AI.

That sets the table for continued growth over the coming years. Analysts estimate that Nvidia will grow earnings by an average of 38% annually for the next three to five years. Today, Nvidia trades at a forward P/E ratio of 51, a rock-solid value for its anticipated growth.

Wall Street's top billionaires money managers have picked out their favorite AI stocks for the new year -- and Nvidia didn't make the cut.

Having said that, if I were to choose just one stock to invest in AI, it would have to be Amazon ( AMZN -0.32%). It offers an excellent combination of growth potential and safety, and there's a solid case to be made that it is the most attractively valued of the megacap tech stocks right now.

After AI had its "iPhone moment" with the release of ChatGPT in late 2022, leading stocks in the space have seen phenomenal returns. For example, NVIDIA (Nasdaq: NVDA) gained 239% in 2023 and 171% in 2024.

With some of the biggest AI players going all-in on this technology, it might make existing AI powerhouses, like Palantir (NASDAQ: PLTR), a bit nervous. Palantir emerged as one of the best pure-play AI investments in 2024.