The stock also benefited significantly from a bullish report from Wedbush analyst Dan Ives, who raised the company's target price from $10 to $22. Palantir Technologies' (NASDAQ: PLTR) stock posted remarkable gains of almost 385% in 2024,

Another reason the AI bubble can burst in 2025 is due to the expected resolution of GPU scarcity that's sent Nvidia's stock into the stratosphere.

Artificial intelligence (AI) has been one of the hottest trends in the technology sector over the past couple of years, and that's not surprising as this disruptive technology has been positively impacting multiple companies across several industries.

Since Warren Buffett became the CEO of Berkshire Hathaway ( BRK.A 0.80%) ( BRK.B 0.95%) in 1965, its stock has delivered a compound annual return of 19.8%. That would have been enough to turn a $1,000 investment into $42.5 million, whereas the same investment in the S&P 500 would have grown to just $325,053 over the same period.