12 Best Growth Stocks Under $25 to Buy Now

1. Unity Software Inc. (NYSE:U)

Number of Hedge Fund Holders: 35

Share Price as of January 8, 2024: $23.08

Unity Software Inc. (NYSE:U) provides a game engine that allows people to create 3D games, 2D games, and interactive simulations. The gaming industry is growing immensely, which can explain the growth of companies like Unity Software. As a result, the company has over 1.1 million active users and 3.7 billion downloads per month, especially because of its end-to-end offering, setting it apart from competitors. In addition to that, more than 70% of the top 1,000 mobile games, 25% of the top 1,000 PC games, and 87% of the top 100 games are made with Unity.

Other than supportive environmental and demand conditions, Unity Software Inc. (NYSE:U) is also increasingly pouring into AI to enhance the game development process, user precision, and customer support. Its latest release, Unity 6 offers faster rendering, powerful lighting options, complete multiplayer workflows, and advanced AI capabilities. It is also more stable and allows users to develop dynamic AI experiences across all Unity platforms using Sentis, a neural network inference library, that allows users to import, optimize, and run AI models to suit their needs.

Unity Software Inc. (NYSE:U) has posted a strong start to 2025, growing by 1.5% over the past five days. Investors are bullish on the stock because of the consistency U has displayed over time; beating revenue expectations and turning its managerial strategy around to meet future goals.

While we acknowledge the potential of U to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than U but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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