2 Best AI Stocks to Buy in December

1 hour ago 4

Marc Guberti, The Motley Fool

Tue, December 16, 2025 astatine 7:39 AM CST 5 min read

  • AI stocks person taken a beating since Oracle and Broadcom released their net results, and these 2 look similar bully buying opportunities.

  • IREN addresses vigor bottleneck concerns that Nvidia volition sermon successful a backstage acme adjacent week.

  • Alphabet is winning successful carnal and integer AI, with its online ads and unreality computing offering charismatic gross maturation close now.

  • 10 stocks we similar amended than Iren ›

Artificial quality (AI) stocks are starting to merchantability astatine discounted prices acknowledgment to antagonistic sentiment related to precocious released Oracle (NYSE: ORCL) and Broadcom (NASDAQ: AVGO) net results.

Oracle banal dropped due to the fact that investors are disquieted astir however OpenAI volition spend its $300 cardinal woody for unreality computing space, and that doesn't adjacent see OpenAI's deals with AI chipmakers. Meanwhile, Broadcom delivered fantabulous results for its AI sales, but borderline worries and a beardown run-up yet sank the banal aft earnings. The AI chipmaker anticipates margins to driblet by astir 1% successful Q1 FY26.

Several AI stocks saw their banal prices driblet aft this one-two punch, but it has resulted successful plentifulness of large deals successful the banal market. Here are 2 AI stocks to bargain successful December.

Artist rendering of an AI chip.

Image source: Getty Images.

Iren (NASDAQ: IREN) is an Australia-based AI specializer that's moving to lick the vigor bottleneck plaguing information centers. The information centers it builds are touted arsenic operating connected 100% renewable energy. It recently signed a five-year, $9.7 cardinal woody with Microsoft that showcases the company's potential. Some investors grew wary of the institution aft Iren raised $2.3 cardinal successful convertible notes, but portion of the wealth went toward getting escaped of indebtedness with little favorable terms. It's a short-term stock dilution to little the wide dilution and attain amended financing successful the agelong run.

Iren's banal trades down by astir 50% from its highest successful aboriginal November, which seems similar a crisp overreaction. Yes, IREN has had 1 of the biggest run-ups of the twelvemonth (up 271% successful 2025, adjacent aft the terms drop), but Oracle's and Broadcom's woes are not related to Iren successful immoderate way.

Iren has existent semipermanent imaginable to motion respective deals similar the Microsoft one. The institution anticipates generating $3.4 cardinal successful yearly recurring gross by the extremity of fiscal 2026. That's up from $16.4 cardinal successful fiscal 2025 gross from AI unreality services.

One much large tech woody similar the Microsoft 1 lets Iren execute its goal. Jumping from $16.4 cardinal to $3.4 cardinal successful yearly recurring gross is exceptional. That's wherefore the banal is rallying truthful much, and maturation is apt to proceed into 2027 and beyond.


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