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These 3 AI Stocks Are Ready to Lead in 2025

Photo of Palantir company logo displayed on mobile phone

Key Points

  • Palantir uses AI to assist business and industry; the use cases are growing daily. 
  • AeroVironment uses AI to enhance drone operations, including autonomy and decision-making. 
  • Ambarella's full-stack approach to computer vision, Edge/AI application, is gaining traction. 
  • Five stocks we like better than Palantir Technologies.

Look no further if you are looking for AI winners who will shine in 2025 and who aren’t NVIDIA NASDAQ: NVDA or hyperscalers like Microsoft NASDAQ: MSFT, Google NASDAQ: GOOGL, and Amazon NASDAQ: AMZN

Three of the best AI stocks to buy for investors looking beyond the obvious megacaps are Palantir NASDAQ: PLTR, AeroVironment NASDAQ: AVAV, and Ambarella NASDAQ: AMBA—which are all on track for gains in 2025

Each offers a unique play on AI supported by an ability to monetize the technology over the long term. As big a market as the AI infrastructure industry is, the services and applications will produce the most growth over time, and these companies are well-positioned to benefit. 

Palantir: A Full-Service AI Platform to Rule Them All 

Palantir Technologies Today

Palantir Technologies Inc. stock logo
PLTRPLTR 90-day performance
Palantir Technologies
$116.08 +1.43 (+1.25%)
As of 04/29/2025 04:00 PM Eastern
52-Week Range
$20.50
$125.41
P/E Ratio
610.98
Price Target
$74.71

Palantir stock skyrocketed in 2024, and it still has a long way to go before hitting its peak. The surge in share prices is driven by a robust growth outlook supported by a move into the public sector.

Originally intended to aid governments, Palantir’s AI-empowered platform provides a comprehensive solution that is well-suited to businesses and industries and capable of providing security and actionable business insights. 

Results in 2024 include double-digit growth, revenue accelerating sequentially, year-over-year (YOY) improving profitability and guidance, and outperformance. 

The outlook for 2025 is robust, with growth expected to sustain in the mid-20% range and likely cautious. The takeaway from FQ3 2024 is that the new AIP strategy is gaining traction, with new use cases developing daily. The critical detail is that Palantir’s platform is suitable for any business or industry that generates data, which includes them all. 

Analysts' sentiment will continue to drive this market in 2025. After years of lagging and naysaying, analysts have begun warming to Palantir and increasing coverage. The activity in the second half of 2024 includes numerous price target increases, with the consensus price target rising, if not the sentiment rating. Possible catalysts for the stock price include improving sentiment, which is still pegged at Reduce. 

Palantir PLTR stock chart

AeroVironment Applies AI for Government Use

AeroVironment Today

AeroVironment, Inc. stock logo
AVAVAVAV 90-day performance
AeroVironment
$153.24 +3.53 (+2.36%)
As of 04/29/2025 04:00 PM Eastern
52-Week Range
$102.25
$236.60
P/E Ratio
88.07
Price Target
$202.00

AeroVironment makes a range of uncrewed aircraft, drones, and ground vehicles for the government and federal agencies. Its products are in demand due to heightened global tensions, re-armification trends, and their effectiveness in combat situations. The company uses AI to enhance decision-making, allowing drones to increase autonomy and reaction times, a technology that will eventually trickle down to the consumer level.

AeroVironment’s loitering munitions systems allow unmanned aircraft to remain on station undetected, waiting for targets of opportunity or on-call for ground support as needed. The systems can be armed with various components, including weaponry and surveillance, removing humans from dangerous situations. 

Analyst trends for AeroVironment are positive, including increasing coverage and a rising price target. The consensus figure rose 80% in 2024, nearly 50% above the price action in early 2025.

AeroVironment AVAV stock chart

What Makes Ambarella One of the Best AI Stocks to Buy?

Ambarella Today

Ambarella, Inc. stock logo
AMBAAMBA 90-day performance
Ambarella
$47.14 -0.15 (-0.32%)
As of 04/29/2025 04:00 PM Eastern
52-Week Range
$38.86
$85.15
Price Target
$85.00

Ambarella is still a small semiconductor lab but has gained traction after shifting to Edge/AI computer vision applications. Its full-stack approach to CV makes it well-suited to various applications, including defense, business, industry, and consumer. It uses AI at the edge, allowing computers to visualize their surroundings in real time. 

Applications for Ambarella's technology include drones, security, manufacturing, and autonomous vehicles. Results in 2024 included sequential acceleration, a return to YOY growth, profitability, outperformance, and improved guidance. The company says momentum is building in the IoT and automotive end markets, and its guidance is likely cautious. The IoT is expected to proliferate in 2025 as more 5G networks come online and use cases develop. 

Analysts' trends are driving this stock to new highs. The sentiment improved significantly by mid-year 2024, including numerous price target increases and sentiment upgrades. The stock is pegged at Moderate Buy with a potential for 15% to 30% upside by mid-year. 

Ambarella AMBA stock chart

Should You Invest $1,000 in Palantir Technologies Right Now?

Before you consider Palantir Technologies, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Palantir Technologies wasn't on the list.

While Palantir Technologies currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Thomas Hughes
About The Author

Thomas Hughes

Contributing Author

Technical and Fundamental Analysis

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
NVIDIA (NVDA)
4.8715 of 5 stars
$109.02+0.3%0.04%42.90Moderate Buy$164.96
Microsoft (MSFT)
4.8793 of 5 stars
$394.04+0.7%0.84%31.73Moderate Buy$493.89
Amazon.com (AMZN)
4.8842 of 5 stars
$187.39-0.2%0.11%33.89Moderate Buy$246.50
Alphabet (GOOGL)
4.0205 of 5 stars
$160.16-0.3%0.52%19.90Moderate Buy$198.89
Ambarella (AMBA)
3.2933 of 5 stars
$47.14-0.3%N/A-12.21Moderate Buy$85.00
Palantir Technologies (PLTR)
1.4135 of 5 stars
$116.08+1.2%N/A610.98Reduce$74.71
AeroVironment (AVAV)
3.1115 of 5 stars
$153.24+2.4%N/A88.07Buy$202.00
Compare These Stocks  Add These Stocks to My Watchlist 

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