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The AI Investing Pulse

June 19, 2025

In this Week’s Edition:

1. Analysis - Two High-Scoring AI Stocks Riding the AI Wave

2. Stock Ideas - Bank of America Bullish on these 4 Under the Radar AI Stocks

3. News - 12 AI Stocks Every Investor Should Be Watching

4. Startups - Spotify CEO Leads $690m Funding Round for AI Drone Company

5. Trends - Gartner AI Agents Will Drive Half of Decisions by 2027

6. Other News - Amazon CEO Andy Jassy Expects AI to Shrink Tech Giant’s Workforce 

Two High-Scoring AI Stocks Riding the AI Wave

In the fast-paced world of AI investing, we believe that identifying companies which combine solid fundamentals with visible market strength is key to maintaining a well-informed watchlist strategy. This week, we’re looking at two standout names from our Weekly Watchlist, one from the semiconductor industry, the other from financial services. One underpins the AI ecosystem by providing essential infrastructure, while the other brings AI to life through practical, real-world applications.

Both meet our minimum thresholds for Growth Score and Relative Strength (RS) — and notably, both show RS ratings currently trending upward, reflecting strong investor interest and sustained price strength.

Here’s why Credo Technology Group and Upstart Holdings are firmly on our radar:

1. Credo Technology Group $CRDO ( ▼ 5.06% )

• Sector: Technology

• Industry: Semiconductor

• AI Stack: Network & Connectivity

• Total Score: 84 (out of 100)

• Relative Strength (RS): 97 (out of 100)

🧠 Powering the AI Superhighways

Credo operates at a critical layer of the AI ecosystem — the digital "roads" that enable ultra-fast data transfer between systems. The company focuses on high-speed connectivity for cloud, AI, and enterprise data centres, supplying components such as Active Electrical Cables (AECs) and Digital Signal Processors (DSPs).

Recently featured as a Zacks Bull of the Day, Credo delivers the infrastructure required to support the exponential growth in AI-driven data. With the data centre market projected to more than double over the next five years, the demand for its solutions could remain strong.

Credo has beaten consensus earnings by an average of 27% across the past four quarters. Its 12-month share performance stands at 191%, well ahead of broader indices — placing it among our top 10 AI performers over the past year.

That said, recent chart analysis suggests the stock may be testing resistance, a level that could lead to short-term consolidation. While this does not alter the longer-term outlook, it’s a technical signal we’re monitoring closely.

2. Upstart Holdings, Inc. $UPST ( ▲ 1.01% )

• Sector: Financial

• Industry: Credit Services

• AI Stack: Application & Edge

• Total Score: 82.8 (out of 100)

• Relative Strength (RS): 95 (out of 100)

🧠 Smarter Lending

Upstart brings artificial intelligence into practical application by transforming how consumer credit decisions are made. Replacing traditional FICO scoring, its AI model automates 92% of loans, enhancing both efficiency and borrower experience.

The company’s loan offering has expanded to include auto loans, HELOCs, and small-dollar credit — all reporting double-digit sequential growth in Q1 2025. Its latest model (Model 19) includes payment transition prediction, helping to lift conversion rates from 14% to 19% within just a year.

In Q1, revenue rose 67% year-on-year, and the company returned to profitability with £0.30 EPS. The Zacks Consensus Estimate projects 58.8% sales growth for 2025, with earnings estimates trending higher over the past 60 days.

From a performance standpoint, data shows a 159% gain over the past 12 months, ranking Upstart among our top 10 AI stocks by 12-month performance, alongside Credo on our AI list.

However, technical analysis also suggests that it is at a resistance level, which could cap short-term upside. As with Credo, this is a pattern we’re monitoring closely.

🔍 Final Take

Credo Technology and Upstart Holdings aren’t just riding the AI wave — they’re helping to shape it. Whether building out the infrastructure or applying AI in real-world services, both show strong performance, solid fundamentals, and rising market interest.

As always, while these companies are worth watching for potential setups or breakout moves, it’s also important to stay mindful of broader macro factors. Geopolitical tensions could introduce increased volatility into the markets, particularly in tech-sensitive sectors like AI.

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_{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.}

_{Source: Finbox (S&P Global Intelligence). Growth Score: Sales and EPS Growth + Fundamentals. RS Score: Relative Strength vs the AI universe of 171 AI stocks.}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS 

Bank of America Bullish on these 4 Under the Radar AI Stocks - AOL

Stock Market to Soar: 2 AI Stocks to Watch - The Motley Fool

Should You Forget Nvidia and Watch these 2 AI Stocks Instead? - The Globe and Mail

AI STOCKS & ETFs NEWS 

12 AI Stocks Every Investor Should Be Watching - Insider Monkey - 12 notable AI stocks, including Advanced Micro Devices' new AI chips and Reddit's recent AI initiatives, highlighting the growing importance of AI in technology and investment opportunities.

What Does Bank of America's Downgrade on Nvidia Mean for Everyday Investors? - MoneyTalkNews - Bank of America's downgrade of Nvidia to "neutral" reflects concerns about valuation levels, suggesting cautious sentiment among everyday investors despite the company's overall strong tech outlook. 

Musk's AI Business Burning Through $1 Billion a Month - MyBoroadband -  Elon Musk's xAI faces significant financial strain, burning $1 billion monthly. The company seeks $4.3 billion in equity funding and $5 billion in debt to sustain operations amid concerns over its revenue generation capabilities.

AI STARTUPS

Spotify CEO Daniel Ek leads $690m funding round for AI drone manufacturer Helsing - Musicbusinessworldwide - This funding round boosts its valuation to around $13 billion and expands its operations to include autonomous strike drones.

Wildfire Tech Comes of Age: Pano AI Raises $44M Series B led by Giant Ventures to Scale Early Detection Infrastructure - GlobeNewswire - Pano AI has raised $44 million to enhance its AI-driven wildfire detection technology, now trusted by 15 U.S. electric utilities.

AI TRENDS

Gartner AI Agents Will Drive Half of Decisions by 2027 - Technologymagazine - Gartner predicts that by 2027, AI agents will influence 50% of business decisions through enhanced data integration, analytics, and decision intelligence.

This is Why Quantum AI is the Next Big Thing - Techradar - Quantum artificial intelligence is the fusion of quantum computing and artificial intelligence. It is poised to redefine what’s computationally possible and it’s closer to reality than many think.

OTHER

Amazon CEO Andy Jassy Expects AI to Shrink Tech Giant’s Workforce - Seattletimes - In the next few years, he expects Amazon’s total corporate workforce to decline as efficiency gains from AI spread throughout the company.

AI and Gen AI in Business Operations - CapGemini - Generative AI is reshaping business operations by automating complex tasks and enhancing decision making across supply chain, finance, and customer service.

_{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}