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.

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%.

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.

This top-performing ETF's largest three stock holdings are Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom.

The second unstoppable Ai stock that can be bought hand over first in the new year is China-based Alibaba Group (NYSE: BABA).