AI stocks are having their moment in the spotlight, despite some turbulence. Curious if any will fit nicely in your portfolio? Read on for a New Yorker’s take.
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AI stocks and current market vibes
2025’s stock market has been a wild ride. Tariff unrest and federal budget cuts throw gas on the volatility fire. But AI stocks are in the spotlight, with investors betting on what’s to come more than what’s behind. It’s like chasing a trendy new restaurant; appetizing but unpredictable.
Zoom in on the Invesco AI and Next Gen Software ETF (IGPT), which saw a tasty rise in 2024 but seemed to skip dessert, closing with an 11% gain. This year it’s already down 6%, while the S&P dances a less frenetic two-step, down just 2.3%.
Criteria for picking the crème de la crème of AI stocks
Which AI stocks came out on top in the last year? We sifted through those with skyrocketing share prices and market caps north of $2 billion. These companies are the heavy hitters, the real MVPs.
The five best AI stocks strutting their stuff
Let’s talk numbers—here’s a table breakdown. Then we dive into who’s been throwing elbows in the AI scene.
Palantir Technologies Inc. (PLTR)
- Stock Price: $84.91
- Revenue Growth: 28.79%
- EPS Growth: 111.11%
- Operating Cash Flow: $1,153.87 million
- Debt-to-Equity: 0.05
Why PLTR’s all that
Palantir ain’t just techie babble; it’s a data analytics powerhouse helping governments and businesses make smarter moves. It’s like the brainy, cool kid at the tech party. In ’24, Palantir’s sales leaped 38% to $1.9 billion, making revenue like printing money. Investors are eyeing this as a juicy opportunity, especially with its fat cash reserve of $5.2 billion.
Upstart Holdings, Inc. (UPST)
- Stock Price: $53.69
- Revenue Growth: 23.43%
- EPS Growth: NA
- Operating Cash Flow: $186.33 million
- Debt-to-Equity: 2.43
The UPST buzz
How about borrowing with a bit more pizzazz? Upstart jazzes up lending with AI tricks, approving loans while charging lower interest rates. Investors have been snacking on this stock like a New York bagel, despite economic jitters that put a damper on its price after February’s slide.
Twilio Inc. (TWLO)
- Stock Price: $106.08
- Revenue Growth: 7.32%
- EPS Growth: NA
- Operating Cash Flow: $716.24 million
- Debt-to-Equity: 0.14
Why TWLO’s dialed in
Need a text or email blast? Twilio is your go-to for snazzy customer interactions. Its new AI assistants mean business, pushing TWLO stock up 74% in a year, despite a tech sell-off that had it blushing recently.
SoundHound AI, Inc. (SOUN)
- Stock Price: $9.74
- Revenue Growth: 76.05%
- EPS Growth: NA
- Operating Cash Flow: -$89.63 million
- Debt-to-Equity: 0.15
SoundHound’s pitch-perfect future
Voice solutions to up your game, SoundHound’s AI creeps into fast food and more. With 73% growth over the past year, it’s looking like a headliner, even if its stock rocked a little in March.
SAP SE (SAP)
- Stock Price: $276.80
- Revenue Growth: 9.51%
- EPS Growth: -49.04%
- Operating Cash Flow: $5,646.61 million
- Debt-to-Equity: 0.39
SAP’s savvy ERP game
ERP ain’t just for geeks; even New Yorkers know SAP helps businesses run smoother than a Fifth Ave limo. With its AI-leading software, it’s drawing investors like moths to a midnight street lamp.
AI stock trends to watch
Hardware’s yesterday’s news. Software’s the toast of the town, bringing the AI sizzle. According to Investors.com, inventory boosts AI’s ROI and market traction. It’s all about who can make a dollar go the furthest.
Industries reaping AI’s rewards
Money’s pouring into AI, especially for those playing the long game. Companies are cutting costs and upping marketing game—think:
- Autonomous AI for customer chats
- Cybersecurity’s new defender
- Diagnosing diseases at lightspeed
- Upping the shopping cart index with suggestive algorithms
Calling the shots on AI stock investment timing
February’s nosedive might be a “taking-a-breath” kind of moment for AI stocks—cue investment thoughts? Software solutions offer real bang for your buck, and the right move could make you a return champ.
Bottom line, AI’s risky but packed with potential. Got cash flow checklists and leadership vibes in sync? Dive in slowly but surely, starting with a bit, then scale up as you groove to the AI beat.
Frequently asked questions
What was 2024’s top AI libation?
Palantir was the sizzler of 2024, with stock rocketing over 349.51%.
Are AI cookies overbaked?
Some are valued like rare truffles, but others hold weighty promise.
Wanna bask in AI without picking stocks?
Opt for AI-themed ETFs like Global X AI & Technology (AIQ) for a low commitment dive.
Who makes bank from AI?
Health, finance, and on-the-go retail need AI like New Yorkers need coffee—daily and indispensable.
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