This article looks at the 10 stocks that will profit from AI.
Artificial Intelligence (AI) is no longer a concept of the future but a real economic force influencing markets. By transforming corporate processes and enhancing manufacturing, AI is leading the way for efficiency, innovation, and profitability. The first-movers in this space who are developing, enabling, or adopting AI technologies are positioned to capitalize on a fast-growing economy.
AI has been quick to capture the markets and revolutionize industries. According to McKinsey’s 2024 Global AI Survey, the use of generative AI has skyrocketed. Now, 50% of businesses are leveraging its capabilities—a jump from just 33% in 2023. AI integration across business functions has also surged, with 72% of companies now deploying AI in at least one area. This surge is not just attributable to automation but also to redesigning workflows, enhancing productivity, and redefining the way industries function. The latest McKinsey Global Survey on AI showed that organizations are implementing strategies to boost their bottom line, redesigning workflows for generative AI deployment, and appointing senior leaders to oversee AI governance. Larger enterprises, particularly those exceeding $500 million in annual revenue, are leading the way, pivoting faster than their smaller counterparts in adapting to AI-driven efficiencies.
According to industry forecasts, the generative AI market is projected to expand from $40 billion in 2022 to a staggering $1.3 trillion by 2032. Thomson Reuters further reported AI’s impact on productivity, predicting that professionals could save up to 12 hours per week by 2029, owing to AI-powered automation. As AI continues to evolve, its influence is spanning across industries from finance to healthcare, making it an essential factor in investment strategies.
Big tech is doubling down on AI investments. One of the two major tech gaints has earmarked $80 billion for AI initiatives this fiscal year, while another one has committed up to $65 billion, demonstrating their long-term faith in AI’s profitability. Meanwhile, a major e-commerce and cloud services provider is making a bold move with a $53 billion investment in cloud computing and AI infrastructure over the next three years, surpassing its AI expenditures from the past decade. Gartner’s 2024 survey underscores AI’s expanding footprint, revealing that finance AI adoption has risen dramatically, with 58% of finance functions now utilizing AI—up 21 percentage points from 2023.
As AI continues to drive fundamental shifts in business operations and market strategies, investors must react with agile investment strategies. The AI landscape is no longer restricted to tech giants, but a broad spectrum of industries and companies are increasingly adopting AI into their core strategies. The next section looks at the ten best AI stocks that can capitalize on this AI revolution.
Pixabay/Public Domain
Our Methodology
For this list, we identify the stocks that will profit from AI by classifying them as AI Enablers (companies operating in developing AI models, chips, and cloud infrastructure) or AI Adopters (companies that are leveraging AI for efficiency and innovation). Stocks are filtered using AI-specific metrics across sectors like semiconductors, cloud computing, healthcare, and financial services. We have then ranked them according to their growth estimates for 2025 and hedge fund sentiments. We have used Insider Monkey’s Q4 2024 exclusive proprietary database of hedge funds to arrive at our rankings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. BlackSky Technology Inc. (NYSE:BKSY)
EPS next year: 36.75%
Number of Hedge Fund Holders: 10
BlackSky Technology Inc. (NYSE:BKSY) is a space-based intelligence firm that provides real-time geospatial insights via its proprietary satellite constellation and the BlackSky Spectra analytics platform. Its services support various sectors, including national security, supply chain intelligence, crisis management, and critical infrastructure monitoring. This positions it as one of the best AI stocks to consider for investment.
In Q4 2024, BlackSky Technology Inc. (NYSE:BKSY) reported revenue of $30.4 million. Imagery and software analytics contributed $17.5 million, driven by rising demand for real-time geospatial intelligence. Revenue from professional and engineering services totaled $12.9 million, marking a decline from the previous year due to the completion of key project milestones.
Despite a net loss of $19.2 million in Q4 2024, BlackSky Technology Inc. (NYSE:BKSY) achieved an adjusted EBITDA of $7.4 million, indicating improved operational efficiency. Analyst sentiment remains optimistic, with a consensus 12-month price target averaging $17.50, suggesting a potential upside of 88.58% from current trading levels, as of 25th March.
BlackSky Technology Inc. (NYSE:BKSY) has introduced AI-powered analytics using ultra-high-resolution imagery from its first Gen-3 satellite, which was launched on February 18. This milestone showcases BlackSky’s advanced AI algorithms, which rapidly convert detailed satellite data into actionable intelligence.
9. Navitas Semiconductor Corporation (NASDAQ:NVTS)
EPS next year: 54.25%
Number of Hedge Fund Holders: 13
Navitas Semiconductor Corporation (NASDAQ:NVTS) designs and markets advanced power semiconductors, focusing on gallium nitride (GaN) power integrated circuits (ICs) and silicon carbide (SiC) power devices. These technologies are widely used across various applications, including mobile fast chargers, data centers, electric vehicles (EVs), and renewable energy systems, to enhance energy efficiency and power density.
In Q4 2024, Navitas Semiconductor Corporation (NASDAQ:NVTS) reported a significant milestone with GaN revenue increasing over 50% to reach a record high. The company also achieved design wins totaling $450 million, with the most substantial growth observed in the data center and EV sectors. Total revenue increased by 4.84% since last year.
Navitas Semiconductor Corporation (NASDAQ:NVTS) showcased its advanced GaN and SiC technologies at the Applied Power Electronics Conference (APEC) 2025. The company introduced the world’s first 8.5 kW AI data center power supply, achieving 98% efficiency.
As of March 25, 2025, Navitas’ stock price stands at $2.26, reflecting a market capitalization of approximately $444 million. As of December 31, 2024, Navitas Semiconductor Corporation (NASDAQ:NVTS) has $86.7 million in cash and cash equivalents.
The average price target from 9 analyst ratings stands at $4.00, with 67% of analysts giving a “Buy” rating. This suggests a strong upside potential of 76.99%. The company’s growth estimate for the next year is projected at 53.37%.
