Top 13 AI Stocks to Invest in for 2025
BlackRock identifies AI and geopolitics as key market drivers in 2025, with AI stocks offering significant growth opportunities across the value chain.
According to BlackRock, AI and geopolitics are two of the most influential forces shaping global markets in 2025, with momentum expected to accelerate. The AI revolution is driving demand for power, labor, and capital expenditure, creating growth opportunities across the entire AI value chain. Geopolitical fragmentation is also reshaping tech, infrastructure, defense spending, and the dollar, presenting unique opportunities for investors.
Key Trends in the AI Industry
- J.P. Morgan Wealth Management highlights increasing AI capital spending among hyperscalers, despite inherent risks. AI adoption has doubled in the past year, fueling market shifts.
- Goldman Sachs Research predicts the next milestone in Generative AI will be AI agents capable of performing sequences of actions, potentially expanding the software market.
Methodology
The 13 most promising AI stocks were selected based on:
- Online rankings of AI-focused companies.
- Popularity among hedge funds.
- Hedge fund sentiment as of Q1 2025.
Investing in hedge fund-favored stocks has historically outperformed the market. For example, a strategy mimicking top hedge fund picks has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top AI Stocks
13. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)
- Hedge Fund Holders: 31
- Recent News: Goldman Sachs initiated coverage with a "Neutral" rating and a $40 price target. The firm sees China as more of an opportunity than a threat for semiconductor companies.
- AI Focus: GLOBALFOUNDRIES is investing $16 billion to expand semiconductor manufacturing and advanced packaging capabilities, driven by AI demand. The company also plans to acquire MIPS, a leader in AI and processor IP, to enhance its AI platform offerings.
GLOBALFOUNDRIES is a critical player in the AI hardware supply chain, enabling the production of specialized AI processors.
Stay tuned for updates on the remaining 12 stocks in future reports.
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About the Author
David Chen
AI Startup Analyst
Senior analyst focusing on AI startup ecosystem with 11 years of venture capital and startup analysis experience. Former member of Sequoia Capital AI investment team, now independent analyst writing AI startup and investment analysis articles for Forbes, Harvard Business Review and other publications.