Look no further if you’re looking for AI winners who will shine in 2025 and not NVIDIA. NASDAQ: NVDA or hyperscalers such as Microsoft NASDAQ: MSFTGoogle NASDAQ: GOOGLEand Amazon NASDAQ:AMZN. Palantir NASDAQ: PLTRAeroVironment NASDAQ: ABAVand Ambarella NASDAQ: AMBA are alternatives to mainstream AI games that will be profitable in 2025. Each offers a unique AI play, backed by the ability to monetize the technology over the long term. As big as the market for the AI infrastructure industry is, services and applications will generate the most growth over time, and these companies are well positioned to benefit from it.
Palantir: The Full-Service AI Platform That Will Rule Them All
Palantir Technologies today
Palantir Technologies
As of 01/03/2025 17:45 Eastern
- 52 week range
- $15.66
▼
$84.80
- P/E ratio
- 399.47
- Target price
- $41.00
Palantir stock has taken off in 2024 and still has a long way to go before it peaks. The rise in share prices is driven by robust growth prospects, bolstered by a move into the public sector. Originally designed to help governments, Palantir’s AI-powered platform is a comprehensive solution that is well suited for enterprises and industries, delivering security and actionable business intelligence. 2024 results include double-digit growth, sequential revenue growth, year-over-year improvements in margins and guidance, and outperformance.
The outlook for 2025 is optimistic, with growth expected to remain around 20% and likely to be cautious. The takeaway from Q3 2024 is that the new AIP strategy is gaining momentum, with new use cases being developed daily. The important detail is that the Palantir platform is suitable for any business or industry that generates data, including all of them.
Analyst sentiment will be the driving force behind this market in 2025. After years of underperformance and skepticism, analysts began to warm to Palantir and expand its reach. Activity in the second half of 2024 includes multiple price target increases, with the consensus price target rising, if not the sentiment rating. Possible catalysts for share price growth include improving sentiment, which remains pegged at the Decline mark.
AeroVironment uses artificial intelligence for government needs
AeroVironment today
As of 01/03/2025 17:45 Eastern
- 52 week range
- $116.51
▼
$236.60
- P/E ratio
- 92.53
- Target price
- $225.20
AeroVironment produces a range of unmanned aircraft, drones and ground vehicles for government and federal agencies. Its products are in demand due to heightened global tensions, rearmament trends and their effectiveness in combat situations. The company uses artificial intelligence to improve decision-making, allowing drones to increase autonomy and response time. This technology will eventually reach the consumer level.
AeroVironment loitering munition systems allow unmanned aircraft to remain on station undetected, waiting for suitable targets or calling in ground support if necessary. The systems can be armed with a variety of components, including weapons and surveillance equipment to remove people from dangerous situations.
Analyst trends for AeroVironment are positive, including increased coverage and an increased price target. The consensus figure is up 80% for 2024, which is almost 50% higher than the price action at the start of 2025.
Ambarella makes computers see
Ambarella today
As of 01/03/2025 17:38 Eastern
- 52 week range
- $39.69
▼
$81.32
- Target price
- $84.17
Ambarella is still a small semiconductor lab, but it has gained momentum since moving into Edge/AI computer vision applications. Its comprehensive approach to CV makes it well suited for a variety of applications including defense, business, industrial and consumer. It uses artificial intelligence at the edge, 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 the Internet of Things and automotive markets are gaining momentum and its forecasts are likely to be cautious. The Internet of Things is expected to proliferate in 2025 as more 5G networks come online and use cases evolve.
Analyst trends are taking this company’s stock to new highs. By mid-2024, sentiment had improved significantly, including multiple price target increases and improved sentiment. The stock is pegged at Moderate Buy with 15% to 30% upside potential by mid-year.
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