The Top AI Stocks to Watch in March

The AI Investing Pulse

March 6th, 2025

In this week’s edition:

1. Analysis & Stock Ideas - The Top AI Stocks to Watch in March

2. News - Bernstein believes Nvidia’s stock pullback is a buying opportunity

3. Startups - Quantum startup says it's already making millions of light-powered chips

4. Trends - AI investment trends 2025: Beyond the bubble

5. Other News - Avaamo introduces AI-Powered digital workers

The Top AI Stocks to Watch in March

Week in Review

The AI sector, alongside broader equity markets, has faced increased volatility over the past week, as investors react to economic data, interest rate expectations, and geopolitical uncertainties. Concerns over inflation, regulatory shifts, and global supply chain constraints have contributed to a downward trend across major indices. Despite this turbulence, AI remains a key long-term investment theme, with companies continuing to expand their AI capabilities and position themselves for future growth.

This week, we highlight some of the top AI stock to watch for March, based on insights from leading analysts and market reports.

Nvidia (NVDA)

Market Cap: $2.8T | YTD: -12.65% | 2025 Sales Growth: 114% - EPS Growth: 52%

Nvidia remains the undisputed leader in AI chip technology. The company has secured over 70% of TSMC's advanced chip packaging capacity for 2025, underscoring the demand for its Blackwell AI chips. Despite competition from AMD and Intel, Nvidia’s dominance appears secure in the near term.

Nvidia is the primary supplier for hyperscale AI clusters, with New Street Research’s Pierre Ferragu estimating that eight major AI data centres will deploy one million XPUs by 2027, with half relying on Nvidia’s GPUs. While trading at a premium, investors see it as a long-term AI infrastructure play, with demand showing no signs of slowing.

Taiwan Semiconductor Manufacturing Company (TSMC)

Market Cap: $955B | YTD: -6.69% | 2025 Sales Growth: 30% - EPS Growth: 33%

TSMC plays a critical role in AI chip manufacturing, supplying Nvidia, Apple, and AMD with cutting-edge semiconductors. Following strong Q4 earnings, the company is scaling up production capacity for 2025, positioning itself to capitalise on surging AI demand.

Analysts point to record-high production levels at TSMC, supporting strong revenue growth for 2025 and beyond. Expansion plans also enhance supply chain resilience, securing its leadership in the AI hardware ecosystem.

Advanced Micro Devices (AMD)

Market Cap: $165B | YTD: -15.83% | 2025 Sales Growth: 24% - EPS Growth: 42%

AMD is making aggressive strides in AI, launching its Instinct MI300X AI accelerators to directly challenge Nvidia. Its latest Radeon RX 9070 and 9070 XT GPUs are also gaining traction in AI computing.

With a lower valuation than Nvidia, AMD is emerging as a strong alternative AI investment. Demand for its EPYC server chips continues to grow, reinforcing its position in AI-driven enterprise computing.

Meta Platforms (META)

Market Cap: $1.6T | YTD: 12.12% | 2025 Sales Growth: 17% - EPS Growth: 6%

Meta is deepening its AI integration, with plans to invest $65 billion in AI projects throughout 2025. These initiatives have already led to enhanced ad targeting and stronger user engagement across its platforms.

The stock has outperformed most AI peers, gaining 12% year-to-date. Analysts see Meta as a leader in AI monetisation, validating its expansive investment strategy. Despite this growth, its valuation remains reasonable at 27x forward earnings, aligned with the Nasdaq 100 average.

The Trade Desk (TTD)

Market Cap: $33B | YTD: -43.38% | 2025 Sales Growth: 20% - EPS Growth: 7%

The Trade Desk is a standout AI stock in digital advertising, leveraging AI to optimise ad spend and enhance campaign performance. However, its Q4 revenue missed expectations, raising concerns about its growth trajectory.

Despite its strong positioning in AI-driven advertising, the stock trades at a high valuation, suggesting that future growth may already be priced in.

Alphabet Inc. (GOOG)

Market Cap: $2.1T | YTD: -8.60% | 2025 Sales Growth: 15% - EPS Growth: 11%

Alphabet is betting big on AI, with a $75 billion investment in AI-ready data centre infrastructure. Google Cloud’s AI-driven services saw 30% year-over-year growth, reaching $12 billion in Q4 2024.

However, Alphabet's stock performance has lagged, remaining negative year-to-date, as investors assess the long-term profitability of its AI ventures.

Palantir (PLTR)

Market Cap: $211B | YTD: 19% | 2025 Sales Growth: 35% - EPS Growth: 32%

Palantir surged to all-time highs in early 2025 before tumbling 30% in two weeks after peaking on 18 February. The drop below its 50-day moving average raised concerns over potential DoD budget cuts and their impact on U.S. Army contracts.

Despite the volatility, Palantir’s profitability is improving, and its AI-driven commercial expansion is accelerating. Wedbush analyst Daniel Ives believes budget constraints may actually favour Palantir, as its cost-effective AI solutions could win a larger share of IT spending. However, sustained revenue growth and weakening institutional ownership remain key concerns.

Despite ongoing market volatility and pressure on many AI stocks, the sector remains at the forefront of technological innovation.

While valuations remain high, investor interest persists as companies continue to commercialise AI and embed it into operations. As adoption accelerates, leaders in AI hardware, cloud computing, and enterprise AI solutions will drive the next phase of growth. March’s stocks to watch showcase companies at the heart of this transformation, underscoring the scale and impact of AI innovation.

_{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: Finviz, Stock Analysis.}

TOP AI STOCKS

TOP AI ETFs

AI STOCKS & ETFs NEWS 

Bernstein believes Nvidia’s stock pullback is a buying opportunity - Investing.com - Bernstein cites attractive valuations and multiple growth catalysts despite regulatory risks. The firm maintains an "outperform" rating with a $185 price target.

Tesla faces slower growth and rising risk among increasing reasons to worry - MarketWatch - Tesla struggles with declining sales, market share losses, and CEO Elon Musk's controversies impacting brand perception, while facing stock volatility.

Ai stocks signal a correction before a buying opportunity emerges - IO-Funds - Market volatility suggests the S&P 500 may correct before stabilizing, impacting AI and semiconductor stocks. The I/O Fund plans to invest once conditions improve.

Microsoft's stock is at its lowest level in over a year. Why the selloff may be overdone - Marketwatch - Microsoft's stock has declined significantly, but the selloff may be exaggerated. Strong fundamentals and long-term growth prospects suggest potential for recovery as investor confidence could return.

AI STARTUPS

Quantum computing startup says it's already making millions of light-powered chips - StartupNews - Quantum is producing millions of light-powered chips using photonic quantum computing, aiming for a one-million-qubit quantum computer.

AI startups: Google-backed IT startup NinjaOne raises $500 million - PYMTS - NinjaOne secured $500 million in Series C funding, valuing the company at $5 billion, to enhance automated endpoint management.

Stripe CEO says AI startups are growing faster than SaaS ever did -  Techcrunch - Stripe CEO Patrick Collison highlights the rapid growth of AI startups, which achieve $1 million in revenue faster than SaaS companies, and warns against dismissing their innovative potential.

AI TRENDS

AI investment trends 2025: Beyond the bubble - JP Morgan - The AI sector is transforming investing, driven by a few dominant companies. While their high valuations raise concerns, potential growth exists across the AI ecosystem, urging investors to seek opportunities beyond the tech giants.

AI-driven stock trading is a double-edged sword - DeccanHerald - AI enhances trading efficiency and risk management but also incurs risks like market volatility and potential losses from flawed algorithms, highlighting the need for careful oversight.

Leading generative AI companies - IOT Analytics - OpenAI, Anthropic, Cohere, Hugging Face, Stability AI, Nexure IQ, Accubits, Miquido, and InData Labs are transforming industries through innovative generative AI solutions, enhancing automation, creativity, and efficiency.

OTHER

Avaamo introduces AI-Powered digital workers for enterprise automation - Techcircle - These agents operate continuously, providing multilingual support with human-like intelligence.

Forget ChatGPT: Google Gemini can now see the world with live video and screen sharing - Tom’s Guide - Google Gemini's latest update features live video processing and screen sharing, enhancing user interaction and competition with ChatGPT, available to Gemini Advanced subscribers on Android in March. 

_{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.}