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The AI Investing Pulse

March 13th, 2025

In this week’s edition:

1. Analysis - Agentic AI - The Top Stocks to Watch

2. Stock Ideas - 2 AI Stocks to Buy in the Tech Sell-Off 

3. News - Wedbush Maintains Tesla Stock Outperform with $550 Target

4. Startups - AI agent-powered compliance automation startup Norm Ai raises $48m

5. Trends - Quantum AI: What is it and how does it work?

6. Other News - Summary of AI-Powered Smart Homes

Agentic AI: The Next Wave in AI Investing - Top Stocks to Watch

Artificial intelligence (AI) has already reshaped industries, transforming business operations and human interaction with technology. Now, a groundbreaking evolution within AI—Agentic AI—is poised to redefine automation, decision-making, and real-time adaptation.

Agentic AI refers to autonomous systems that execute complex tasks, learn from their environments, and adapt their behaviour in real-time, without human intervention. This self-sufficiency enables businesses to streamline operations, reduce costs, and enhance productivity across sectors such as healthcare, manufacturing, finance, and logistics.

How Agentic AI Will Reshape Business Operations

• Productivity & Cost Efficiency – AI-powered automation will handle repetitive, rule-based tasks, allowing businesses to scale operations without increasing labour costs, boosting profit margins.

• Real-Time Decision-Making – AI agents will analyse live data streams, dynamically optimising supply chains, pricing strategies, and financial models with minimal human intervention.

• Customer Experience – AI-driven virtual assistants will enhance personalisation, reduce wait times, and anticipate customer needs, setting a new benchmark for engagement.

• Risk Management & Cybersecurity – AI will detect and counter cyber threats in real-time while automating compliance and fraud detection, strengthening security across industries.

• Industry Disruption – From healthcare (AI-driven diagnostics and drug discovery) to manufacturing and logistics (self-learning automation), businesses will see increased efficiency and reduced errors.

As companies integrate Agentic AI, its impact will continue to grow, reshaping industries and redefining competitive advantage.

Some Leading Stocks to Watch

With investor interest in Agentic AI growing, several major players are at the forefront of this transformation:

Alphabet Inc. (GOOGL) - Market Cap: $2T | YTD: -11.72%

Alphabet, Google’s parent company, remains a dominant force in AI. Its DeepMind division and Google Cloud AI services are integrating Agentic AI into automated customer service, self-learning algorithms, and AI-powered analytics. With extensive R&D investment, Alphabet is pushing AI-driven enterprise solutions forward.

Nvidia Corporation (NVDA) - Market Cap: $2.8T | YTD: -13.81%

Nvidia’s GPUs are the backbone of AI model training, providing the computational power necessary for Agentic AI. The NVIDIA DGX platform accelerates AI model training, while its chips support everything from autonomous vehicles to robotics and data centres. As demand for AI computing rises, Nvidia remains a key player.

Microsoft Corporation (MSFT) - Market Cap: $2.8T | YTD: -9.07%

Through its Azure cloud platform, Microsoft is deeply involved in Agentic AI development. From AI-powered automation in Microsoft 365 Copilot to enterprise-grade AI applications, Microsoft continues to enhance AI-driven business solutions, reinforced by strategic partnerships with OpenAI.

Salesforce Inc. (CRM) - Market Cap: $272B | YTD: -14.88%

Salesforce is embedding AI-powered automation into its CRM ecosystem. Einstein AI is revolutionising predictive analytics, automated insights, and workflow automation, helping businesses enhance customer engagement and streamline operations.

Some Emerging Stocks to Watch

While large-cap companies dominate AI, several small-cap stocks are gaining traction in Agentic AI:

UiPath Inc. (PATH) - Market Cap: $6.5B | YTD: -6.92%

A leader in robotic process automation (RPA), UiPath integrates AI-driven decision-making into enterprise workflows, making its solutions highly relevant as businesses adopt intelligent automation.

C3.ai Inc. (AI) - Market Cap: $2.8B | YTD: -37.21%

C3.ai specialises in enterprise AI applications, focusing on predictive analytics and automation across industries like energy, healthcare, and defence.

BigBear.ai (BBAI) - Market Cap: $822M | YTD: -26.52%

BigBear.ai develops AI-powered analytics and decision-support tools, with applications in defence, logistics, and large-scale enterprise AI operations.

SoundHound AI Inc. (SOUN) - Market Cap: $3.4B | YTD: -53.98%

SoundHound AI is advancing conversational AI and voice assistants with agentic capabilities that allow systems to process, understand, and respond dynamically. As AI-driven customer interactions become more prevalent, SoundHound is an emerging player in this field.

The AI Revolution is here, but Challenges Remain

Agentic AI represents a fundamental shift in how businesses operate, automate, and compete. However, it is still early days, and some of its capabilities remain in development. Key challenges include technological maturity, regulatory concerns, security risks, and market uncertainty. Fully autonomous decision-making and large-scale AI integration require further advancements, while evolving regulations may shape the pace of adoption.

Despite these hurdles, industry leaders such as Nvidia, Microsoft, and Alphabet are driving AI innovation, while emerging players like UiPath, C3.ai, and BigBear.ai are carving out high-growth opportunities. The trajectory of Agentic AI is clear, and as the technology matures, its impact will only accelerate.

For those tracking AI advancements, Agentic AI is not just the future, it is unfolding now.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

TOP AI STOCKS

TOP AI ETFs

AI STOCKS IDEAS 

2 AI Stocks to Watch in the Tech Sell-Off - The Globe and Mail

Investing in Small-Cap AI: Powering the Next Tech Revolution - Financial Content

AI ETF to Watch during the Nasdaq Sell-Off - The Globe and Mail

AI STOCKS & ETFs NEWS 

Wedbush Maintains Tesla Stock Outperform with $550 Target - Investing.com - Wedbush Securities cites strong financial health, product developments, and potential political support as key factors driving optimism for the company's future growth.

Meta Begins Testing its First In-House AI Training Chip - Reuters - Meta is testing its first in-house AI training chip, developed to reduce reliance on Nvidia hardware.

Best-Performing AI Stocks Last Year - Forbes - Top AI stocks like Nvidia, Palantir, and Broadcom surged last year. Analysts remain optimistic about continued growth in the sector, advising investors to focus on strong business fundamentals.

AI STARTUPS

AI Agent-Powered Compliance Automation Startup Norm Ai raises $48m - SiliconAngle - Norm Ai has raised $48 million to enhance its AI-driven compliance platform, totaling $87 million in 18 months.

Servicenow acquires Moveworks - ChannelPro - ServiceNow is set to acquire Moveworks for $2.85 billion, aiming to enhance its AI capabilities by integrating Moveworks' automation and enterprise search tools.

Fintech Startups are Rushing into AI: Are They Headed for Disaster? - Benzinga -Fintech startups are rapidly adopting AI for operational efficiency and enhanced customer experiences, but they must navigate regulatory challenges and cybersecurity risks to avoid potential pitfalls. 

AI TRENDS

Quantum AI: What is it and How does it Work? - CNET - Quantum AI merges quantum mechanics with artificial intelligence, enhancing data processing speed, security, and analytics.

Key Trends in VC Investments for 2025 - InformationWeek - In 2025, venture capital investments will focus on AI, green technology, and healthcare, driven by lower interest rates and stabilized valuations, amid macroeconomic uncertainties and regulatory challenges.

Healthcare Startups now offer Personalised Medicine, thanks to AI - EUreporter - AI is transforming personalised medicine by allowing healthcare startups to customize treatments based on individual patient data.

OTHER

Summary of AI-Powered Smart Homes - The Tribune - AI is transforming luxury homes into smart, personalised spaces by enhancing security, automating home functions, optimising energy use, and incorporating wellness features.

Identifying Processes for Agentic AI - CIO - Businesses can identify processes for agentic AI by focusing on routine tasks, consistent decision-making, and complex workflows.

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_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice.}