In partnership with

The AI Investing Pulse

March 20th, 2025

In this week’s edition:

1. Analysis - Four AI Stocks Showing Strength While Markets Struggle

2. Stock Ideas - Top 5 Bargain AI Stocks

3. News - The Better AI Stock: Palantir vs. Microsoft?

4. Startups - 5 AI Startups to Watch in 2025

5. Trends - The Future of Work: How AI and ML Are Redefining Jobs

6. Other News - “Hey AI, Are you Real?” Is the Latest Trend on Social Media

Four AI Stocks Showing Strength While Markets Struggle

Over the past five trading days, the QQQ (0.83%) has remained largely flat. After a strong start to the year, AI enthusiasm has cooled, leading to profit-taking and sector rotation as investors seek stocks that demonstrate resilience.

Despite the broader market’s volatility, certain AI stocks have shown relative strength, outperforming the QQQ and gaining momentum. This week, we highlight four AI-focused companies that have delivered strong weekly performance, with most projected to achieve 2025 sales and EPS growth above 20%, except for Spotify, which is just below at 18% sales growth but has strong EPS growth.

1. Spotify (SPOT)

Market Cap: $118B | Weekly Performance: 9.40% | 2025 Sales Growth: 18% | EPS Growth: 82%

Spotify is the world's largest music streaming platform, offering premium subscriptions and ad-supported streaming. The company continues to expand into podcasts, audiobooks, and personalised media consumption, reinforcing its position as a leader in digital content distribution.

Spotify leverages AI-driven recommendation algorithms to tailor personalised playlists, enhancing user engagement and retention. It also integrates AI-based audio enhancement for podcasts and music. Its AI-powered DJ, launched in 2023, curates playlists with an AI-generated voice providing real-time commentary. Additionally, AI-driven advertising solutions allow brands to improve targeting within its ad-supported model.

Analyst consensus: Buy | Average price target: $673

2. AppLovin (APP)

Market Cap: $100B | Weekly Performance: 8.97% | 2025 Sales Growth: 24% | EPS Growth: 46%

AppLovin is a leading AI-driven mobile technology company, providing app developers with solutions for advertising, monetisation, and analytics. Its proprietary AI engine, AXON, powers its adtech platform, enabling precise targeting and improved ad performance.

AppLovin’s AI technology helps optimise user acquisition, engagement, and retention, making it a key player in mobile advertising. With AI-enhanced automation and real-time bidding capabilities, the company is well-positioned to capitalise on the growth of the mobile gaming and app monetisation sectors.

Analyst consensus: Buy | Average price target: $486

3. SoundHound AI (SOUN)

Market Cap: $3.93B | Weekly Performance: 7.89% | 2025 Sales Growth: 100% | EPS Growth: 75%

SoundHound AI is a leader in AI-powered voice recognition and conversational AI, providing solutions for automotive, hospitality, and customer service applications. Its advanced voice AI technology enables businesses to integrate natural language processing into their operations.

SoundHound’s proprietary speech recognition and voice AI models allow for real-time voice interactions, making it a key player in the evolution of voice-enabled technology. The company’s AI solutions are increasingly used in automotive voice assistants, customer service automation, and enterprise AI applications, positioning it at the forefront of AI-driven voice computing.

Analyst consensus: Buy | Average price target: $14.57

4. Shopify (SHOP)

Market Cap: $131B | Weekly Performance: 5.19% | 2025 Sales Growth: 25% | EPS Growth: 20%

Shopify is a leading e-commerce platform, enabling small and medium-sized businesses (SMBs) to establish, scale, and manage online stores. The company is integrating AI to enhance store management, personalisation, and marketing efficiency.

Shopify employs AI-powered tools for product recommendations, fraud detection, and checkout automation. Its Shopify Sidekick AI provides merchants with real-time insights, improving operational efficiency. Additionally, AI-backed ad solutions enable businesses to refine targeting and optimise advertising spend, boosting conversion rates across digital storefronts.

Analyst consensus: Buy | Average price target: $134

With the QQQ under pressure in recent weeks, AI stocks that continue to show relative strength could emerge as leaders in the next market recovery. Despite broader market challenges, these companies are attracting institutional interest and demonstrating strong fundamentals.

In weaker markets, stocks that outperform the index can lead the way when conditions improve, making them ones to watch for signs of renewed momentum.

_{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. Data sources: Yahoo Finance, Stock Analysis and Finviz.}

TOP AI STOCKS

TOP AI ETFs

AI STOCKS IDEAS 

Top 5 Bargain AI Stocks - Yahoo Finance

Celestica - Top AI Connectivity Pick for 2025 - Seeking Alpha

Wedbush: 5 AI Stocks at Discounts - Tradingview

AI STOCKS & ETFs NEWS 

Better AI Stock: Palantir vs. Microsoft? - The Motely Fool - Palantir shows remarkable growth in AI but faces valuation risks, while Microsoft boasts a diversified portfolio and steady growth, making it a safer investment choice in the AI sector.

Meta stock analyst downgrade and market conditions drive 22% decline - MoneyCheck - Meta faces significant challenges, marked by analyst downgrades, rising market pressures, and competition, leading to a 22% stock decline.

Cantor Fitzgerald Upgrades Tesla Stock Rating to 'Overweight' - Quartz - Cantor Fitzgerald has upgraded Tesla's stock rating from "neutral" to "overweight," setting a price target of $425, indicating a potential 88.63% upside.

AI STARTUPS

5 AI Startups to Watch in 2025 - Medium - Emerging AI companies like VEED, Suno, Cohere, Kore.ai, and Anthropic are poised to make significant impacts in 2025.

Agentic AI startup AMT Aims to be 'Google Adwords for Influencers' - Techcrunch - AMT, an agentic AI startup, seeks to revolutionise influencer marketing with its platform, akin to Google Adwords, raising funds to enhance AI-driven advertising management.

Prezent Raises $20m to Build AI for Slide Decks - Techcrunch - Their AI assistant, Astrid, offers tailored presentation suggestions and supports expansion into new markets and industries.

AI TRENDS

The Future of Work: How AI and ML Are Redefining Jobs - London Daily News - AI and ML are reshaping the job landscape by automating tasks, generating new roles, and impacting various sectors differently.

The Future of AI in Healthcare: Insights from Investor Alexey Bashkirov - TechBullion - Alexey Bashkirov discusses AI's transformative potential in healthcare, highlighting its role in data management, drug development, and automation.

OTHER

“Hey AI, Are you Real?” Is the Latest Trend on Social Media - Cybernews - The answers are not only thought-provoking and mind-blowing, but they may also make you want to shut down your OpenAI account forever.

AI Tool Visualises a Cell to Help treat Cancer - MedicalXpress - Researchers have developed NicheCompass, an innovative AI tool that analyses cells' interactions and spatial genomic data, identifying treatment responses in cancer patients.

Start learning AI in 2025

Everyone talks about AI, but no one has the time to learn it. So, we found the easiest way to learn AI in as little time as possible: The Rundown AI.

It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

_{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.}