Best AI Stocks for January 2025

These are the top AI stocks based on best value, fastest growth, and most momentum

Reviewed by Charlene Rhinehart

December brought two major advancements in artificial intelligence (AI). On Dec. 5, OpenAI unveiled its o1 model, marking a shift toward reasoning-oriented capabilities rather than simple prediction. This model aims to emulate deliberate, human-like thought processes, enhancing its problem-solving and decision-making abilities. Not to be left behind in the AI arms race, Google announced the launch of Gemini 2.0 on Dec. 11, highlighting its “agentic” abilities, which enable the AI to autonomously understand, anticipate, and act on behalf of users. In 2025, the AI landscape continues to evolve, edging closer to the existence of true “thinking” artificial intelligence.

Below, we explore the best AI stocks for January 2025, considering those with the best value, fastest growth, and most momentum. Data are current as of Dec. 18, 2024.

Best Value AI Stocks

Value investing is a strategy based on the principle that some stocks trade at prices that are below their intrinsic value. Investors able to identify these stocks, usually through analysis of fundamental metrics, may be primed for a return on their investment when the market corrects the mispricing and the stocks rise. One such metric is the price-to-earnings (P/E) ratio. Lower P/E ratios are generally considered to be signs of a more attractively valued company since it is valued at less than its fundamental value.

• Consensus Cloud Solutions, Inc.: Consensus Cloud Solutions is a global leader in digital cloud fax technology, offering AI-driven solutions that automate workflows and enhance operational efficiency. On Nov. 7, the company reported a lukewarm third quarter that saw revenues decline by 3.1% year-over-year to $87.8 million, driven by a decrease in the “small office home office” business, partially offset by growth in the corporate segment.
• Perion Network Ltd.: Perion Network is a digital advertising company that helps brands and publishers improve their online presence through targeted advertising and data-driven technology. The company leverages AI technologies to optimize digital advertising across all phases of campaigns, including planning, activation, and reporting.
• Trimble, Inc.: Trimble provides technology solutions that increase productivity and sustainability across industries like construction, agriculture, and transportation. Trimble focuses on using AI to enhance automation, precision, and data analysis across industries like construction and agriculture. At the Trimble Dimensions Conference on Nov. 11, Trimble showcased a generative AI-powered tool for architects to create and refine designs based on text prompts and visual styles, streamlining design processes.

Fastest-Growing AI Stocks

Investors often evaluate growth stocks based on revenue and earnings per share (EPS), as these are key measures of a company’s performance. Looking at only one of these two factors, however, can leave your search susceptible to temporary phenomena, including tax law changes or one-off gains.

We aim for a more balanced screen of AI growth stocks by looking at the most recent year-over-year percentage growth for both revenue and EPS, giving each equal weighting. We also exclude companies with growth rates in either category of 1,000% or more on the grounds that these are likely outliers.

• Grid Dynamics Holdings, Inc.: Grid Dynamics is a technology services company that helps Fortune 1000 businesses accelerate growth and gain a competitive edge through digital transformation. It specializes in consulting and implementing solutions in areas like artificial intelligence, big data, analytics, cloud, and DevOps.
• ODDITY Tech, Ltd.: Leveraging an AI-driven platform and advanced data science, ODDITY identifies consumer needs and creates innovative beauty and wellness products for its 50 million users. ODDITY reported strong third-quarter 2024 results, with net revenue of $119 million (up 26% year-over-year), and adjusted EBITDA of $25 million, driven by strong consumer demand for its direct-to-consumer model and high-performance products.
• Applovin Corporation.: AppLovin develops software and AI-powered solutions to help businesses reach their target audiences, enhance marketing strategies, and expand their user base. The company operates two primary segments: Software, which earns revenue from advertising fees on its mobile applications, and Apps, which generates income through in-app purchases and advertisers’ acquisition of digital inventory.

AI Stocks With the Most Momentum

Momentum investing is based on the principle that stocks that have increased at a faster rate compared with the market or their peers are likely to continue on that trajectory, at least in the short term, as long as there aren’t fundamental changes to those companies’ operations or the broader industry.

Below, we look at the AI stocks that have provided the highest total return in the last 12 months.

• Quantum Computing Inc.: Quantum Computing’s strategy focuses on delivering accessible and affordable quantum machines to commercial and government markets, based on its proprietary Entropy Quantum Computing (EQC) technology for superior performance and low power consumption. The company hopes to use its products to capture market share in high-performance computing, AI, cyber security, and remote sensing applications.
• SoundHound AI, Inc.: SoundHound’s proprietary technology offers fast, accurate voice recognition across various industries, including automotive, TV, Internet of Things (IoT), and customer service. In a sign of the times, SoundHound recently announced a partnership with Church’s Texas Chicken to implement its Dynamic Drive-Thru voice AI ordering system, which allows customers to place orders conversationally, with up to 90% of orders processed without human intervention.
• Palantir Technologies, Inc.: Palantir provides advanced software platforms for data integration, analytics, and decision-making, for both government and commercial sectors. Its government clients include the U.S. Department of Health and Human Services; its current revenue mix is 55% government and 45% commercial customers as of 2024.

Advantages

• Broad applications

• Fast-moving innovation

• Popular trend

Disadvantages

• Industry uncertainty

• Untested companies

• Dangers of AI

Advantages of AI Stocks

Broad applications: AI has transformed—or has the potential to transform—a host of different industries and sectors. Companies positioned as leaders within the AI space could be well-positioned to benefit from widespread adoption and a broad, diverse customer base.

Fast-moving innovation: AI is at the forefront of innovation today, with both major tech firms and smaller up-and-coming companies working diligently to advance this technology. This means that the potential for breakthrough success may be huge as the industry continues to evolve.

Popularity: As of mid-2024, AI is still one of the most talked-about trends in technology. Interest in this space is very high, meaning that investors could be poised to benefit from tremendous momentum with the right investments.

Disadvantages of AI Stocks

Industry uncertainty: Although AI has been in existence for decades, it is only in the last several years that technological developments have brought this field into the mainstream. With changes and advancements happening incredibly quickly, it can be difficult for even the most knowledgeable investors to keep pace with what is happening in the industry. For instance, this means it could be easy for investors to get caught up in the hype surrounding a particular company after the ideal time to purchase that company’s stock.

Untested companies: While many of the major tech firms are involved in AI, other AI companies have little history and foundation for investors to consider when selecting investments. These companies may pose a greater risk than more stable, time-tested firms.

Dangers of AI: Leaders in computer science and related fields have warned of the potential dangers associated with AI. As the field continues to expand and change, public opinion, regulations, and other factors may change and have the potential to impact AI stocks in unexpected ways.

The Bottom Line

AI stocks present investors with the opportunity to tap into one of the most popular—and potentially most revolutionary—technology trends today. With companies across virtually all industries and sectors exploring ways to integrate AI into their operations, firms that are focused on the hardware and software required to run AI programs stand to benefit. But there are significant risks to investing in AI stocks, including the uncertain future of the industry and the potential dangers of AI technology itself.

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As of the date this article was written, the author does not own any of the above securities.