The AI Investing Pulse

September 4, 2025

In this Week’s Edition:

1. Analysis - Top 10 AI stocks to watch in September

2. Stock Ideas - Best Quantum computing stocks

3. News - Alibaba shares rise on AI strength: can the stocks continue their rally?

4. Startups - AI agent startup Sierra nears 350 million round at 10 billion valuation

5. Trends - Nvidia CEO Jensen Huang's 10 big predictions for the future

6. Other News - What's the real value of AI

Top 10 AI Stocks to Watch in September

This week, we break down the AI stock market outlook for September — drawing on insights from MarketBeat, The Motley Fool, Zacks, Yahoo Finance, and Trader — and aligning them with our proprietary AIIP model.

The prevailing sentiment for AI stocks in September is bullish, driven by the expanding application of AI beyond core infrastructure, robust corporate earnings, and widespread positive analyst revisions.

Below we highlight the top AI stock selections identified by Marketbeat, The Motley Fool, Zacks, Yahoo Finance, and Trader, alongside our independent assessment and ranking based on the AIIP model — our proprietary AI Investing Pulse (AIIP) Score*, which evaluates stocks on growth potential, momentum, and relative market performance. Here are the top picks.

Snowflake $SNOW ( ▲ 1.1% )  

What the Company Does
Snowflake operates a data lake platform central to AI analytics and training.

Why It Stands Out
Its recent “blowout” quarter sparked a stock price surge and over 30 analyst upgrades. While momentum is strong, the valuation looks stretched after a steep rally.

📊 AIIP Scores: Total Score 66, RS 88 → Momentum List

MongoDB $MDB ( ▲ 1.38% )  

What the Company Does
MongoDB provides a leading database platform widely used for AI applications.

Why It Stands Out
Q2 revenue doubled YoY with accelerating growth and strong guidance. However, its rapid 45% spike in five days and wide analyst target range ($170–$430) highlight volatility.

📊 AIIP Scores: Total Score 81, RS 44 → Fundamental List

Nvidia $NVDA ( ▼ 2.88% )  

What the Company Does
Nvidia is the market leader in GPUs, CUDA, and AI-specific compute hardware.

Why It Stands Out
Q1 revenue hit $44.1B (+69% YoY), cementing its leadership. Risks include China export restrictions ($4.5B write-down) and geopolitical tensions.

📊 AIIP Scores: Total Score 100, RS 75 → Fundamental List

Microsoft $MSFT ( ▼ 1.87% )  

What the Company Does
Microsoft integrates AI across its Office suite and Azure cloud services.

Why It Stands Out
Azure grew 33% (AI contributed 12 points). Strong adoption of Copilot supports long-term growth, though cloud spending could soften in a slowdown.

📊 AIIP Scores: Total Score 81, RS 61 → Fundamental List

Alphabet $GOOGL ( ▲ 1.06% )  

What the Company Does
Alphabet powers AI through Google Search, Google Cloud, and new AI-driven initiatives like health tools.

Why It Stands Out
Trading at a P/E of 16.9 (below its 5-year average), Alphabet remains a “clear AI bargain.” Regulatory pressures and cloud budget risks are the main headwinds.

📊 AIIP Scores: Total Score 94, RS 67 → Fundamental List

Palantir Technologies $PLTR ( ▼ 0.35% )  

What the Company Does
Palantir develops AI-powered platforms (Gotham, Foundry) for governments and enterprises.

Why It Stands Out
Its exceptional growth and market dominance have driven a meteoric rise, though valuations look stretched. Still, it combines strong fundamentals with unmatched momentum.

📊 AIIP Scores: Total Score 93, RS 99 → Watchlist

Duolingo $DUOL ( ▼ 2.73% )  

What the Company Does
Duolingo offers AI-enhanced language learning and is expanding into broader education.

Why It Stands Out
Analysts see upside, but competition from emerging AI language tools (e.g., ChatGPT) and its P/E of 132 create downside risk.

📊 AIIP Scores: Total Score 93, RS 68 → Fundamental List

Amazon $AMZN ( ▼ 0.05% )  

What the Company Does
Amazon leverages AI through AWS cloud compute and automation across logistics.

Why It Stands Out
With 1M robots in warehouses and Q2 operating profits up 31%, AI is boosting efficiency. Heavy infrastructure spending could weigh on margins if demand dips.

📊 AIIP Scores: Total Score 90, RS 64 → Fundamental List

Arista Networks $ANET ( ▲ 0.87% )  

What the Company Does
Arista provides high-performance networking solutions critical to cloud and AI data centres.

Why It Stands Out
EPS revisions show accelerating growth (+23.79% YoY). Strong fundamentals but RS is just below Watchlist level.

📊 AIIP Scores: Total Score 96, RS 78 → Fundamental List

Micron Technology $MU ( ▲ 3.68% )  

What the Company Does
Micron supplies AI-driven memory and storage solutions (HBM, DRAM).

Why It Stands Out
Demand recovery, long-term contracts, and solid finances position it well. No major risks highlighted in the current outlook.

📊 AIIP Scores: Total Score 86, RS 66 → Fundamental List

Final Take

Based on our AIIP model, Palantir Technologies (PLTR) is the sole stock earning Watchlist status this September, combining strong fundamentals with outstanding momentum.

Nvidia (NVDA) and Arista Networks (ANET) are standout names on the Fundamental List, close to Watchlist thresholds. Snowflake (SNOW), while on the Momentum List, remains one to watch given strong public sentiment and a pivotal role in AI infrastructure.

Other names — including MongoDB, GitLab, Duolingo, Amazon, Microsoft, Alphabet, and Micron — remain on the Fundamental List, with excellent business strength but requiring greater momentum to break out.

_{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.}

_{*Methodology & Scores - All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). Total Score combines metrics for Sales and EPS Growth, Financial Quality, and Valuation, to assess overall business strength (out of 100). Relative Strength (RS) Score measures a stock’s price performance relative to the AI universe (173 AI-focused public companies). Ranking Status is assigned based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80.}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

Best Quantum computing stocks to buy - The Motley Fool

Best data centre stocks - U.S. News

PANW vs CRWD: which cybersecurity stock is a better buy? - The Globe and Mail

AI STOCKS & ETFs NEWS

Google chrome escapes break-up in landmark antitrust ruling - Silicon Republic
US District Judge Amit Mehta ruled that Google will not divest Chrome or Android, stating the plaintiffs overreached. The decision allows Google to continue specific business practices while requiring data sharing and competitor access.

Will Nvidia stock soar if interest rates are cut in September? - Zacks
Nvidia could thrive if interest rates decrease in September, as lower borrowing costs may enhance its investments in AI infrastructure and production of next-gen chips, further solidifying its market position.

Alibaba shares rise on AI strength: can the stocks continue their rally? - The Motley Fool
Alibaba's shares surged due to a 26% revenue growth in its AI-driven cloud division and a 78% net profit increase, while the company invests heavily in AI infrastructure and on-demand delivery services.

China's AI-fueled stock rally bucks economic ills - Asia Times
China's stock market has surged, with Shanghai shares reaching 10-year highs, driven by investor optimism in AI, despite economic challenges like a property crisis and weak consumer demand.

AI STARTUPS

AI agent startup Sierra nears 350 million round at 10B valuation - The Economic Times
Sierra, an AI startup, is approaching a $350 million funding round, aiming for a $10 billion valuation. Specialising in conversational agents for customer service, their innovative platform has attracted significant investor interest.

Paypal ventures leads $18m series a in web platform kite - Tech in Asia
Kite AI raised $18 million in a Series A round led by PayPal Ventures, totaling $33 million. The funding will expand its decentralised AI infrastructure, facilitating autonomous AI agent interactions in Web3.

AI TRENDS

Nvidia CEO Jensen Huang's 10 big predictions for the future over the next 5 years - The Times of India
Nvidia CEO Jensen Huang predicts a $4 trillion AI infrastructure investment, growth in AI applications, and Nvidia's dominance in hardware and software, capturing a significant share of the data center market by 2028.

The future of AI: higher computing power as the key - OpenPR
The evolution of AI relies on enhanced computing power, emphasizing innovations in energy-efficient architectures and hybrid computing. This trend drives investments and applications across industries while addressing environmental concerns.

The father of quantum computing believes AGI will be a person not a program - Digital Trends
A quantum computing pioneer argues that Artificial General Intelligence (AGI) will emerge as a person-like entity, challenging traditional views of AI and suggesting a link to quantum processes for true reasoning and autonomy.

OTHER

What's the real value of AI - Knowledge at Wharton
In 2024, AI, especially generative AI, is seen as a vital business asset, emphasising adaptability and strategic integration. Companies are investing in AI to achieve measurable improvements and sustainable growth.

4 ways to use AI to improve lives, from MIT researchers - MIT Sloan
MIT researchers explore AI applications to enhance organ transplant policies and streamline asylum processes, while emphasising the ethical use of technology to boost efficiency, fairness, and transparency in society.

_{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. Data sources: S&P Global Market Intelligence}