In this article, we will discuss the 12 Most Promising AI Stocks According to Wall Street Analysts.
Artificial intelligence (AI) continues to accelerate rapidly, moving from emerging technologies to influencing how businesses carry out operations. As per SAP, the changes occurring in 2025 revolve around autonomous AI agents, specialized AI models, user interface design, and enterprise adoption patterns. On 13th January, an AI behemoth highlighted that the first Trump Administration focused on America’s strength and success in AI, boosting an environment where the broader US industry can compete.
Therefore, mainstream AI is now a critical part of every new application, which helps fuel economic growth, promote US interests, and make sure that America can sustain its leadership in cutting-edge technology. On a related note, Trump announced billions of dollars in private sector investment focused on building AI infrastructure in the country.
Trump Announces $500 Billion Investment for AI Infrastructure
US President Donald Trump announced a private sector investment of up to $500 billion focused on financing infrastructure for AI, targeting to outperform rival nations in the business-critical technology. Mr. President went on to add that ChatGPT’s creator OpenAI, SoftBank, and Oracle are discussing a JV called Stargate, which is expected to build data centers and create over 100,000 jobs in the US. Notably, these companies, together with several other equity backers of Stargate, decided to commit $100 billion for immediate deployment. The remaining investment is expected to take place over the upcoming 4 years.
As per Trump, this is the largest AI infrastructure project in history. Also, Stargate is expected to build the physical and virtual infrastructure which will focus on powering the next generation of AI, including data centers around the US.
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AI Rally to Continue in 2025, Says UBS
As per UBS, the AI rally has aided in driving 2 straight years of healthy returns for the NASDAQ Composite, which also includes a 28% rally last year. The Mag 7 group of technology stocks drove more than half of the S&P 500’s gains in 2024. In the previous year, continued upward revisions in AI capex from the Big 4 tech giants supported keeping the AI rally on track. UBS expects the upward revisions to continue over the near term.
Even though AI revenues might again lag behind capex in 2025, UBS expects that AI monetization will improve sharply in 2025. The AI adoption continues to accelerate across industries and is well-placed to broaden in 2025. Also, the arrival of more clearly useful AI agents is expected to further support return on investment (ROI).
With this in mind, let us now have a look at the 12 Most Promising AI Stocks According to Wall Street Analysts.
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Our Methodology
To list the 12 Most Promising AI Stocks According to Wall Street Analysts, we conducted extensive research and scanned through several online rankings. After getting an initial list of 15-18 stocks, we shortlisted the ones in which analysts saw upside potential. Finally, the stocks were arranged in ascending order of their average upside potential, as of January 21, 2025. We also mentioned hedge fund sentiments around each stock, as of Q3 2024.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Most Promising AI Stocks According to Wall Street Analysts
12) Synopsys, Inc. (NASDAQ:SNPS)
Average Upside Potential: ~19%
Number of Hedge Fund Holders: 53
Synopsys, Inc. (NASDAQ:SNPS) has a strong presence in the Al space mainly because of its contributions through tools that help create, verify, and optimize complex Al-driven software and hardware systems. Redburn-Atlantic initiated coverage on the company’s shares, giving a “Buy” rating and a price target of $600. Synopsys, Inc. (NASDAQ:SPS), which is known for its software products and services, utilized in designing electronic systems and integrated circuits, is anticipated to benefit from the rising complexity and increased costs related to developing cutting-edge solutions.
Al solution monetization is also one of the potential growth catalysts for the company. With Al being adopted across various sectors, the capability to monetize Al solutions effectively is expected to result in numerous opportunities. Synopsys, Inc. (NASDAQ:SNPS) is involved in developing solutions for emerging technologies including Al and 3D-IC.
Such areas can be growth drivers for the broader semiconductor industry, and the company’s investments in such fields place it well to capture market opportunities. With chip designs becoming more complex to support Al applications, Synopsys, Inc. (NASDAQ:SNPS)’s EDA tools and IP offerings become more important for semiconductor companies. Parnassus Investments, an investment management company, released the Q3 2024 investor letter. Here is what the fund said:
“Synopsys, Inc. (NASDAQ:SNPS) plays a crucial role in optimizing semiconductor processing power beyond physical design limits. It benefits from companies like Google and Amazon designing their own chips and the proliferation of AI accelerator development. Its proprietary EDA technology and rising demand for custom chips and AI accelerators should drive durable revenue and earnings growth.”
11) UiPath Inc. (NYSE:PATH)
Average Upside Potential: ~20%
Number of Hedge Fund Holders: 34
UiPath Inc. (NYSE:PATH), which specializes in automation, integrates AI technologies and, therefore, stands at a critical juncture in the broader AI industry. The company leverages AI to enable intelligent automation. Bryan Bergin from TD Cowen maintained a “Hold” rating on the company’s shares, offering a price target of $16.00. The analyst stated that UiPath Inc. (NYSE:PATH) has shown positive signs under its recent reorganization, with higher clarity and focus, primarily in its agentic AI and go-to-market execution.
UiPath Inc. (NYSE:PATH) has showcased its ability to enhance its subscription-based business model while, at the same time, scaling its AI-driven capabilities. The company’s long-term focus on AI development and enterprise growth is expected to help it as the firm captures market share in the growing automation space. UiPath Inc. (NYSE:PATH)’s Chief believes that the company offers a differentiated approach to agentic automation, which can expand its market opportunity by enabling customers to automate more complex and variable workflows in order to deliver enterprise-wide AI transformation.
The expansion of the AI industry continues to increase demand for intelligent automation, where automation solutions can handle repetitive, complex, and decision-driven processes. With companies adopting AI-driven strategies, they need platforms to integrate AI models into their workflows. UiPath Inc. (NYSE:PATH) allows organizations to deploy AI models directly in the automation pipelines.
