We recently published a list of Top 10 AI stocks that should be on your watchlist for 2025. In this article, we'll take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands compared to other top AI stocks that should be on your 2025 watchlist.
Investors are looking for new growth horizons in the AI industry to gauge whether the current market rally can continue in the coming years. Chetan Puttagunta, general partner of Benchmark, said he has noticed a lot of innovation in recent weeks aimed at improving the efficiency of algorithms.
“Over the last six to eight weeks we have seen a huge amount of innovation, especially at the model layer, and over the last two years at the application layer, taking advantage of all the developments in the AI models. What's happening specifically at the model layer is that as we move to an inference-time or test-time computing paradigm, you see a lot more benefit for entrepreneurs and tech founders who are able to push the envelope with algorithmic innovation. ”
To explain how AI actually improves workflows, Puttagunta gave the example of Sierra, a conversational AI startup that creates customer service solutions.
“Think about this Sierra AI agent, delivering the best customer service experience every time, replicated an infinite number of times. And that is an experience that was previously not possible without AI.”
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For this article, we picked 10 AI stocks that are making moves amid the latest news. We have mentioned the sentiment in the hedge fund for each share. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (see more details here).
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Number of hedge fund investors: 193
Jessica Lessin, founder, editor-in-chief and CEO of The Information, recently discussed the state of the AI space and her outlook for 2025. She mentioned the increasing competition in the industry.
“I think 2025 will be the year when all bets are off – or rather, all gloves are off – in AI competition. NVIDIA Corp (NASDAQ:NVDA) will dominate GPUs, but you'll also see Broadcom and others working with tech companies to diversify. Last week at The informationwe reported that Broadcom is now working with Apple on an AI chip for inference. While it doesn't compete directly with NVIDIA Corp (NASDAQ:NVDA), there is significant competition in this space. I believe that investors should remain very vigilant and try to understand the dynamics within each technology company. The most important question within these companies is: how can we build, build, build to create more choices in AI technology?”
