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The AI Stocks to Watch in 2025
The AI Investing Pulse
January 2nd, 2025
🎉🎉HAPPY NEW YEAR AND ALL THE BEST FOR 2025🎉🎉
In this week’s edition:
Analysis - The AI stocks to watch in 2025
News - Retail investors predict quantum stocks will outperform AI shares in 2025
Startups - 7 fast growing startups to watch out for in 2025
Trends - 2025 tech investment predictions: transformation and realignment
Other News - The biggest AI flops of 2024
The AI Stocks to Watch in 2025
As 2025 begins, the AI sector stands at a pivotal juncture, brimming with both promise and potential. From groundbreaking innovations in hardware to transformative software applications, AI is not just reshaping industries, it’s redefining how we live, work, and invest.
To provide a comprehensive outlook, we’ve compiled insights from leading media outlets like Investopedia, Barchart, The Motley Fool, and Investor’s Business Daily, along with financial institutions such as JP Morgan, Rosenblatt Securities, and Citi. These experts highlight some of their top stocks and ETFs for 2025.
Focus: Innovation as the key driver of AI growth.
Nvidia (NVDA): A leader in GPUs, critical for training and deploying AI models. Morgan Stanley, Bank of America, and Bernstein have all named it a “top pick.”
Tesla (TSLA): Redefining autonomous driving through cutting-edge AI.
Intel (INTC): Struggling after losing 60% of its value in 2024. Bernstein recommends caution, urging investors to “stay away.”
Focus: Chipmakers powering the AI revolution.
Nvidia (NVDA): A “Strong Buy” consensus, with price targets ranging from £175 to £220.
Broadcom (AVGO): High-performance hardware for AI-powered data centres. Rated a “Strong Buy.”
Marvell Technology (MRVL): Advanced semiconductors tailored for AI workloads. Another “Strong Buy” pick.
Focus: Balancing hardware and software for AI’s evolution. Their top 10 for 2025.
Nvidia (NVDA): Indispensable for training advanced AI systems.
Palantir (PLTR): Leading in enterprise AI, helping organisations extract insights from complex datasets.
Microsoft (MSFT): Driving AI innovation with cloud infrastructure and productivity tools.
Others to watch: Broadcom, Arm Holdings, Taiwan Semiconductors, Google, Amazon, Meta, Tesla.
Focus: Companies leading the AI revolution across hardware, software, and applications. Daniel Ives of Wedbush Securities identifies these top picks:
Nvidia (NVDA): Dominating the AI GPU market.
Microsoft (MSFT): Integrating AI across productivity tools and cloud platforms.
Palantir (PLTR): Enabling enterprises with AI-driven insights.
Others to watch: Tesla, Google, Apple, MongoDB, Pegasystems, Snowflake, and Salesforce.
Focus: Key AI stocks in their “Top Tech Stocks for 2025”, focusing on companies driving innovation in hardware, software, and enterprise solutions.
Broadcom (AVGO): Price Target: £250. AI-related revenue is expected to grow 40%, reaching £18 billion in 2025.
CyberArk (CYBR): Price Target: £375. A leader in cybersecurity, CyberArk’s widening product range positions it as a top choice for AI-integrated security solutions.
Dell Technologies (DELL): Price Target: £160. Dell benefits from AI expenditure growth and continued demand for conventional IT infrastructure.
HubSpot (HUBS): Price Target: £635. Leveraging AI to enhance small business tools and profitability.
Synopsys Inc. (SNPS): Price Target: £685. A strong player in semiconductor design tools, Synopsys benefits from rising demand for advanced AI-related chips.
Focus: AI hardware leaders and companies pushing the boundaries of AI applications.
Advanced Micro Devices (AMD): Leveraging its strength as a top chipmaker, AMD powers AI data centres with cutting-edge semiconductors.
Meta Platforms (META): Experiencing a "renaissance," Meta's revenue grew 22% in 2024, largely attributed to AI innovations in advertising and other revenue streams.
Focus: AI infrastructure leaders, spotlighting companies advancing optical and networking solutions critical for AI systems:
Coherent (COHR): Sales projected to grow 180% in 2025, driven by advancements in optical communication solutions essential for AI infrastructure.
Ciena (CIEN): A pioneer in AI-enabled networking, Ciena supports seamless data transport across global digital ecosystems, enhancing connectivity for AI applications.
Focus: The Motley Fool highlights ETFs offering diversified AI exposure with unique approaches to tapping into the AI revolution.
Roundhill Generative AI & Technology ETF (CHAT): Focusing GenAI and Tech with stocks such as Nvidia and Alphabet.
KraneShares AI & Technology ETF (AGIX): A recent entrant focusing on AI innovators offering exposure to cutting edge AI companies.
Global X Artificial Intelligence & Technology ETF (AIQ): Established in 2018, this ETF stands out for its higher software exposure and international holdings.
A Transformative Year Ahead
As 2025 unfolds, AI is set to achieve unprecedented growth, building on the foundations laid in recent years. Industry leaders like Nvidia, Microsoft, and Palantir dominate in hardware, software, and enterprise applications. Meanwhile, emerging players such as Coherent and Ciena are redefining AI infrastructure.
Looking ahead, advancements in quantum computing and autonomous AI agents promise to push the boundaries of technological innovation, creating new possibilities across industries while redefining what AI can achieve.
We’ll continue to closely track and share the most promising opportunities in AI as they emerge throughout 2025. The year ahead promises to be an exciting one, filled with innovation and discovery, though not without its share of market volatility.
TOP AI STOCKS
COMPANY | SECTOR | WEEKLY |
|---|---|---|
BigBear.ai (BBAI) | Technology | 39.50% |
Quicklogic(QUIK) | Technology | 20.09% |
Grid Dynamics(GDYN) | Technology | 8.91% |
TOP AI ETFs
ETFs | SECTOR | WEEKLY |
|---|---|---|
Themes (WISE) | GenAI & Tech | 1.24% |
Robo Global (THNQ) | Global AI | -2.10% |
Global X (AIQ) | AI & Tech | -2.18% |
AI STOCKS & ETFs NEWS
Retail investors predict quantum stocks will outperform AI shares in 2025 - MSN - While AI and quantum computing are often seen as complementary technologies, retail investors on Stocktwits believe that quantum stocks will outperform AI shares in 2025.
NASDAQ100 meets AI revolution. What every investor should know - SmartP - The NASDAQ100 is undergoing a transformative evolution in the wake of rapidly advancing AI technologies.
Meta has a new vision that could change both AI and social media - Yahoo Finance - The future of social media may not be what you think.
What to expect from the US stock market in 2025 - Investopedia - Wall Street analysts generally expect stocks to post another year of gains in 2025. Small-cap and mid-cap stocks could perform well in the year ahead thanks to lower interest rates.
AI STARTUPS
7 fast growing startups to watch out for in 2025- tech.co - From green technology to education, keep an eye on these startups in 2025 and beyond.
From AI agents to enterprise budgets, 20 VCs share their predictions on enterprise tech in 2025 - TechCrunch - While AI is lauded by some as the biggest technological breakthrough since the industrial revolution, enterprises, arguably the tech’s biggest potential customer base have been slow to adopt AI.
AI TRENDS
2025 tech investment predictions: transformation and realignment - Forbes - The 2025 tech investment environment promises fewer speculative frenzies and more focused, strategic activity.
Key trends in major segments of the AI industry - Digital Garage - Analysis of the latest trends and competitive strategies shaping the AI era.
Dragonfly founder predicts AI agents surge in 2025 - BeinCrypto - Dragonfly founder predicts 2025 will see AI wallets transform user experiences, bridging blockchain gaps and reducing fees seamlessly.
OTHER
The biggest AI flops of 2024 - MIT - From chatbots dishing out illegal advice to dodgy AI-generated search results, take a look back over the year’s biggest AI failures.
MIT’s 10 AI must reads for 2024 - MITSloan - These popular AI articles from MIT Sloan Management Review unlock fresh insights for leaders on the biggest AI challenges.
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.