Look no further if you’re looking for AI winners that will shine in 2025 that aren’t NVIDIA NASDAQ:NVDA or hyperscalers like Microsoft NASDAQ:MSFTGoogle NASDAQ:GOOGLand Amazon NASDAQ:AMZN. Palantir NASDAQ:PLTRAerovironment NASDAQ:AVAVand Ambarella NASDAQ: AMBA There are alternatives to traditional AI games on track to make gains in 2025. Each offers a unique play on AI backed by an ability to monetize the technology over the long term. As large as the market for the AI infrastructure sector is, these are the services and applications that 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
(As of 01/02/2025 5:45 p.m. ET)
- 52 week interval
- $15.66
▼
$84.80
- Price/earnings ratio
- 375.97
- Target price
- $41.00
Palantir stock has soared in 2024, and it still has a long way to go before reaching its peak. The rise in stock prices is driven by robust growth prospects supported by a transition to the public sector. Originally intended to help governments, Palantir’s AI-powered platform provides a comprehensive solution well-suited for businesses and industries and capable of delivering secure, actionable business insights. Results in 2024 include double-digit growth, sequential revenue acceleration, year-over-year (year-over-year) improvement in profitability and guidance, and outperformance.
The outlook for 2025 is strong, with growth expected to remain around 20% and probably cautious. The takeaway from Q3 2024 is that the new AIP strategy is gaining traction, with new use cases being developed daily. The critical detail is that Palantir’s platform is suitable for any business or industry that generates data, which includes them all.
Analyst sentiment will be a driving force for this market in 2025. After years of delay and denial, analysts have started to show interest in Palantir and increase coverage. Activity in the second half of 2024 includes numerous price target increases, with the consensus price target increasing, and even the sentiment rating. Possible catalysts for the stock price include improving sentiment, which is still linked to Reduce.
AeroVironment applies AI for government use
AeroVironment today
(As of 01/02/2025 5:45 p.m. ET)
- 52 week interval
- $116.51
▼
$236.60
- Price/earnings ratio
- 89.91
- Target price
- $225.20
AeroVironment manufactures a range of aircraft, drones and unmanned ground vehicles for government and federal agencies. Its products are in demand due to increased global tensions, rearmament trends and their effectiveness in combat situations. The company uses AI to improve decision-making, allowing drones to increase their autonomy and reaction times, a technology that will eventually trickle down to the consumer level.
AeroVironment’s wandering munitions systems allow unmanned aircraft to remain on scene undetected, waiting for targets of opportunity or on standby for ground support if necessary. Systems can be armed with various components, including weapons and surveillance systems, to remove humans from dangerous situations.
Analyst trends for AeroVironment are positive, including increasing coverage and a rising price target. The consensus figure is up 80% in 2024, almost 50% above the price change at the start of 2025.
Ambarella shows computers
Ambarella today
(As of 01/02/2025 5:34 p.m. ET)
- 52 week interval
- $39.69
▼
$81.32
- Target price
- $84.17
Ambarella is still a small semiconductor lab, but has gained traction after moving into Edge/AI computer vision applications. Its comprehensive approach to CV makes it well suited to a variety of applications including defense, business, industry and the general public. It uses cutting-edge AI, allowing computers to visualize their surroundings in real time.
Applications of Ambarella’s technology include drones, security, manufacturing and autonomous vehicles. 2024 results included sequential acceleration, return to year-over-year growth, profitability, outperformance and improved guidance. The company says momentum is building in the IoT and automotive end markets, and its forecasts are likely conservative. IoT is expected to proliferate in 2025 as more 5G networks come online and use cases develop.
Analyst trends are pushing this stock to new highs. Sentiment has improved significantly in mid-2024, including numerous price target increases and sentiment improvements. The stock is rated Moderate Buy with upside potential of 15-30% by mid-year.
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