5 AI Stocks to Watch in 2025

In July 2025, the Trump administration unveiled the "AI Action Plan," a national strategy with over 90 measures to strengthen US leadership in artificial intelligence. The initiative calls for investments in digital infrastructure and chips, reduced regulations, and stricter export controls, at a time when AI is driving record profits and massive capital flows.

In the first quarter of 2025 alone, AI companies raised $52 billion, including $40 billion from SoftBank's record investment in OpenAI, the largest venture capital deal ever. According to McKinsey, the sectors with the greatest impact on the future of AI will be:

  • specialized semiconductors,
  • agentic AI (systems capable of planning and executing complex tasks),
  • advanced connectivity,
  • cloud and edge computing.
  • An earnings season dominated by AI

Alphabet (Google) posted double-digit growth, driven primarily by Google Cloud (+31.7% to $13.6 billion). The results restored investors' confidence in the group's ability to remain a leader despite competition from Microsoft/OpenAI and Anthropic. Increased AI investment by big tech companies is becoming a key signal for Wall Street.

Seeking Alpha's Quant System's Top 5 AI Stocks

Steven Cress, head of quantitative strategies at Seeking Alpha, has selected five stocks with strong momentum and still attractive valuations. Over the past 12 months, these stocks have averaged returns of approximately 143%.

1. Taiwan Semiconductor Manufacturing Company (TSM)

  • Market cap : $1 trillion

  • Industry : semiconductors

  • Key supplier to Nvidia, Apple and AMD.

  • It is investing in silicon photonics and expanding its presence in the US.

  • Strong revenue growth (expected +27.7%) with valuation still low compared to the sector.

2. Freshworks (FRSH)

  • Market cap : $4.1 billion

  • Industry : SaaS software

  • It offers AI solutions to over 68,000 global customers.

  • High margins (84.4%) and strong growth in profits and revenues.

  • Several positive analyst reviews in recent weeks.

3. Celestica (CLS)

  • Market cap : $19.9 billion

  • Industry : data center components

  • Impressive growth: +302% in one year.

  • It dominates the production of AI infrastructure components.

  • Margins and momentum at all-time highs.

4. Pagaya Technologies (PGY)

  • Market cap : $2.3 billion

  • Sector : Fintech AI

  • Use AI to optimize consumer and auto loans.

  • Explosive revenue growth and still undervalued compared to US competitors.

  • Goal: Increase network volume from $10 billion to $25 billion within 5 years.

5. CommScope (COMM)

  • Market cap : $1.76 billion

  • Sector : Communications Infrastructure

  • Leader in AI-powered network and data center solutions.

  • Strong earnings growth (expected +42.6%) and very low valuation (P/E <10).

  • Momentum accelerates with over +250% in 12 months.

Conclusion

The five selected stocks demonstrate a rare combination of explosive growth and still attractive valuations. In a volatile market, these companies represent diverse segments of the AI ​​ecosystem—from semiconductors to cloud, fintech to infrastructure—offering diversification opportunities and potential outperformance.