Top 5 AI stocks to watch in 2025

What are AI stocks?

AI stocks are the shares of companies involved in the AI sector. This could be those that manufacture semiconductors, software companies or quantum computing organisations.

Since ChatGPT launched in November 2022 and garnered over 1 million users in five days (a feat that took Facebook 10 months to achieve and Netflix three-and-a-half years), AI has exploded in our everyday lives; it’s growing and threatening jobs, making our internet searches easier and suggesting more accurate recommendations for what we should watch next on TV.

It's important to consider the risks when stock trading AI shares. As this technology is growing at a rapid pace and is still relatively new, it’s costly and full of failures. Therefore, focusing on blue-chip companies and those with a steady momentum of growth might lead to better stock trading outcomes. But, as always, no stock is a guarantee – even the biggest ones in the world, so ensure you have a sufficient risk management strategy in place.

How are regulations affecting AI stocks?

Regulations are popping up all over the world in response to the growing use of AI in our daily lives. These are having an effect on AI stocks in a number of ways, some good, others bad. 

For example, better regulations lead to greater investor confidence, more ethical AI systems and innovation for businesses that can help others with compliance. On the other hand, though, regulations can just as easily stifle innovation, making it harder to make breakthroughs. They can also increase the costs for AI companies to do business, as organisations need to jump through hoops to be compliant. 

Advantages of AI stocks

Perhaps the greatest benefit to stock trading AI stocks is their potential for momentous growth, with AI adoption increasing across the board. Here are two more:

• Significant capital: tech giants and venture capitalists are investing heavily in AI companies
• Diversification: because AI is used across industries and sectors, stock traders have the opportunity to diversify their portfolios

Risks of AI stocks

In contrast, perhaps the biggest disadvantage of stock trading AI shares is their volatility, particularly smaller AI companies. Other cons include:

• Regulations: as we mentioned, regulations can have both a positive and negative influence on the AI industry. But as far as investors are concerned, they can lead to massive expenses for AI companies, which affects stock trader profits
• Competition: because the AI sector is so heavily competitive, it’s easy to pick the ‘wrong’ stock to trade – one that might not emerge as the leader in its industry
• Ethics: bias in AI models raises ethical concerns, as does the disappearing act that many jobs are doing

Top 5 AI stocks to watch in 2025

All five AI stocks mentioned in this article – Nvidia, Palantir Technologies, AMD, Innodata and Diginex – are available to trade through IG UAE via both contract for difference (CFDs) and non-leveraged stock trading. 

Overview of the AI stocks covered in this article

1. Nvidia (NASDAQ: NVDA)

Market cap: $4.02 trillion¹

EPS: $0.96²

Current focus: its data centre business, the company’s largest revenue driver

As one of the world’s most valuable chipmakers (used in countless objects in our daily lives, like smartphones, cars, medical equipment, computers and more), Nvidia makes our list due to its blue-chip status and astonishing growth in recent years with the rise of AI technology. 

It has evolved from a graphics processing unit (GPU) manufacturer for the gaming industry into the chip-making backbone of the AI sector – it powers ChatGPT, for example. Its H100 and H200 chips are in great demand, used by tech monoliths like Google and Microsoft. 

Highlights:

• The company saw record revenue of $39.3 billion in its fourth quarter in early 2025, up 12% from Q3 and 78% from the previous year³
• It hit a record full-year revenue of $130.5 billion – up a whopping 114%⁴
• Demand for its Blackwell microarchitecture, a new generation of GPU for advanced computing and generative AI, is soaring

2. Palantir Technologies (NASDAQ: PLTR)

 
Market cap: $335.34 billion⁵

EPS: $0.13⁶

Current focus: big data analytics, helping companies integrate, analyse and act on large volumes of data. While it initially focused on government and defence contracts, it now serves commercial markets, too

Palantir’s core services are Palantir Gotham for government and defence contracts, and Palantir Foundry for its commercial business. In 2023, the company launched its Artificial Intelligence Platform (AIP), which works with businesses in the healthcare, finance and manufacturing sectors.

Its future focus will be on expanding its AI capabilities and commercial customer base, which should be a growth driver for the company. 

Interestingly, Palantir Technologies was the best-performing company on the S&P 500 in 2024, having returned 340.5%.⁷ 

Highlights:

• Palantir Technologies reported a Q1 2025 growth of 39% year-over-year (YoY) in the US. In the same region, its revenue rose 55% YoY⁸
• Its customer count grew 39% YoY and 8% quarter-over-quarter⁹
• It had a Rule of 40 score of 83%.¹⁰ This is a financial metric often used in software-as-a-service (SaaS) businesses; it suggests that companies’ combined revenue growth and profit margin should be 40% or higher

3. Advanced Micro Devices (NASDAQ: AMD)

 
Market cap: $213.13 billion¹¹

EPS: $0.96¹²

Current focus: semiconductors, central processing units (CPUs) and GPUs, data centre growth

As Nvidia’s top competitor in AI chips, as well as a formidable opponent to Intel, AMD originally manufactured traditional CPUs. It’s transformed itself over the past few decades into a key player in high-performance computing. 

Its primary growth driver is its data centre, where it expects significant growth to happen. However, it does face headwinds due to China's export restrictions. 

With its dual CPU and GPU offerings, it occupies a unique place in the market, giving stock traders something firm to hold onto. 

Highlights:

• First quarter 2025 revenue was $7.4 billion, while gross margin was 50% and operating income was $806 million¹³
• First quarter revenue grew 36% YoY¹⁴ 
• AMD is investing heavily in research and development (R&D) to prepare it for the future of AI

4. Innodata (NASDAQ: INOD)

 
Market cap: $1.58 billion¹⁵

EPS: $1.41¹⁶

Current focus: AI solutions, specifically data annotation, training and preparation services

Innodata’s business model relies on providing the foundational data infrastructure that AI companies need to train their models, serving generative, traditional and enterprise AI applications. 

It’s a key player in the AI value chain, able to handle large-scale projects well, which it manages with a diverse and global workforce and scalable operations.

Looking to the future, Innodata is focusing on expanding its AI capabilities by capturing the demand for high-quality data training. 

Highlights:

• The company made $58.3 million in revenue in the first quarter of 2025, which equals a 120% revenue growth YoY¹⁷
• Adjusted EBITDA of $12.7 million – an increase of $8.9 million from the same period last year¹⁸
• Innodata is planning to reinvest a portion of cash from its operations into targeted investments in tech to improve AI journeys for current and prospective customers 

5. Diginex Limited (NASDAQ: DGNX)

 
Market cap: $1.53 billion¹⁹

EPS: $0.53²⁰

Current focus: regulatory technology (RegTech) solutions focused on sustainability and environmental compliance

Diginex has undergone a significant transformation, having gone from being in blockchain and cryptocurrency services to being a RegTech provider.

The company is headquartered in Hong Kong. It’s capitalised on the growing demand for environmental, social and governance (ESG) compliance solutions that are powered by AI and blockchain technology. 

Its proprietary software, diginexESG, is a reporting platform that combines blockchain and AI-driven analytics. 

Diginex is expanding its geographical footprint – with a recent partnership with AIKYA to launch diginexESG in Malaysia. 

Highlights:

• The company’s growth is heavily centred on expansion through acquisitions and partnerships, indicating solid growth plans for stock traders to keep an eye on
• Revenue for the fiscal year ending 31 March 2025 increased 57% to $2 million²¹
• It recently completed its IPO in January 2025,²² displaying an upward trajectory for the business

How to trade AI stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for AI stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for AI stocks available for direct ownership
3. Choose the stock you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about ETFs

Footnotes
 

1. TradingView, July 2025
2. Trading Economics, April 2025
3. Nvidia financial results, Nvidia Newsroom, February 2025
4. Nvidia financial results, Nvidia Newsroom, February 2025
5. TradingView, July 2025
6. Trading Economics, May 2025
7. CNBC, January 2025
8. Palantir Technologies earnings report, May 2025
9. Palantir Technologies earnings report, May 2025
10. Palantir Technologies earnings report, May 2025
11. TradingView, July 2025
12. Trading Economics, March 2025
13. AMD earnings report, May 2025
14. AMD earnings report, May 2025
15. TradingView, July 2025
16. Trading Economics, March 2025
17. Innodata earnings report, May 2025
18. Innodata earnings report, May 2025
19. TradingView, July 2025
20. TipRanks, July 2025
21. Diginex earnings report, July 2025
22. Diginex earnings report, July 2025
23. TipRanks, July 2025