Top 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, caution is paramount, whether you’re CFD trading or stock trading.

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 3 AI stocks for stock traders to watch in 2025

These three stocks – Micron Technology, Semtech Corporation and Nebius group – are all available for non-leveraged stock trading.

All figures are accurate as of 20 October 2025.

Overview of the stocks covered in this section

1. Micron Technology (Nasdaq: MU)

Market cap: US$227.16 billion¹

EPS: US$3.78²

Micron Technology is one of the biggest names in computer memory and storage. The company makes DRAM and NAND chips – the parts that help computers and servers quickly store and move data. These chips are now crucial for artificial intelligence (AI), because training and running AI models needs huge amounts of memory.

Micron’s latest products, such as its high-bandwidth memory (HBM), are designed specifically for AI data centres – the same kind used by companies like OpenAI or Google. This means the business is well-positioned to grow as AI adoption spreads.

The company’s share price can move up and down with the wider semiconductor market. Memory chip prices are cyclical, rising when demand is strong and falling when there’s oversupply. Investors should be aware that profits can swing from year to year.

Overall, Micron suits long-term stock traders who believe AI demand will keep growing, but who are also comfortable with the ups and downs of the chip industry.

Highlights:

• Micron achieved record revenue in Q4 FY25, and in fiscal 2025 overall, its revenue grew close to 50%³
• Not only is the company in the AI industry, but its using the technology to drive better performance across its product design, tech development and manufacturing divisions
• Year to date (YTD) stock price value has increased by 138.15%⁴

2. Semtech Corporation (Nasdaq: SMTC)

Market cap: US$5.88 billion⁵

EPS: US$0.44⁶

Semtech Corporation builds chips and systems that allow devices to communicate over long distances with very little power – a technology known as LoRa.

These products are used in everything from smart cities and energy grids to factory automation. While Semtech isn’t making AI chips directly, its technology helps feed data into AI systems, especially in the ‘Internet of Things’ (IoT) space.

For stock traders, Semtech offers a slower but steadier way to take part in the AI revolution. As the number of connected devices grows, so does the need for Semtech’s networking and data solutions.

It’s not a high-flying AI stock, but it has a clear niche that could see steady demand. Stock traders should keep in mind that competition in the semiconductor industry is fierce, and Semtech’s growth may depend on how well it expands into new IoT and cloud markets.

This share might suit stock traders looking for a smaller, more specialised tech company with long-term potential and less direct exposure to AI hype.

Highlights:

• Its latest quarterly report (Q2 FY26) states that it reduced debt by US$879 million since June 2024, indicating a stronger balance sheet⁷
• Its stock price has increased by 8.40% YTD⁸

3. Nebius Group (Nasdaq: NBIS)

Market cap: US$28.49 billion⁹

EPS: -US$0.56¹⁰

Nebius Group is a newer name in the AI world and is based in the Netherlands. The company builds cloud infrastructure for AI. In simple terms, it creates powerful data centres full of high-performance GPUs – the hardware that runs large AI models.

It also owns several related businesses, including AI data services and autonomous driving projects. This makes Nebius a full-stack AI company, involved in nearly every step of the process, from training AI models to deploying them.

For stock traders, Nebius represents a high-growth opportunity. It’s a fast-moving company working in one of the most exciting parts of the market. It has also attracted major funding to build new AI data centres across Europe.

It’s best suited for stock traders with a long-term outlook and a higher tolerance for risk. If it executes well, it could become a key name in the global AI infrastructure race

Highlights:

• Nebius is investing heavily, and profitability may take time. The company faces strong competition from big players like Amazon, Microsoft and Alphabet in the AI cloud space
• The company has seen explosive growth over the past year, with revenue for Q2 FY25 up 625% year-over-year (YoY)¹¹
• It has a negative EPS, but you can’t ignore that its YTD stock price has climbed 303.27%¹²

Top 3 AI stocks for CFD traders to watch in 2025

The three AI stocks mentioned in this section – NXP Semiconductors NV, Infineon Technologies AG and Cerence Inc – are available to trade through IG UAE via contracts for difference (CFDs).

All figures are accurate as of 20 October 2025.

Overview of the stocks covered in this section

1. NXP Semiconductors NV (Nasdaq: NXPI)

Market cap: US$54.04 billion¹³

EPS: US$3.12¹⁴

NXP Semiconductors is a Dutch company that makes chips for cars, smartphones and industrial machines. Many of its products are used in advanced driver-assistance systems.

Its stock price often moves sharply after earnings announcements or changes in demand for car technology. In 2025, the stock has seen several double-digit percentage swings in just a few days. That kind of volatility can be attractive to CFD traders, who try to profit from price moves rather than long-term growth.

For short-term traders, NXP offers strong liquidity, regular news flow and global exposure. It can react quickly to new data on the automotive or semiconductor industries, giving plenty of potential trading setups.

However, the same volatility that creates opportunity can also lead to losses if trades move the wrong way. Traders should manage trading risk carefully with stop-losses and position sizing.

Highlights:

• NXP can be good for CFD traders who want to trade AI-related chips with global reach, but who also understand that volatility cuts both ways
• As an example of the volatile stock price, the share value has increased by 2.26% YTD, but by 26.16% over the past six months¹⁵

2. Infineon Technologies AG (Xetra: IFX)

Market cap: €42.24 billion¹⁶

EPS: €0.44¹⁷

Infineon Technologies is a German semiconductor company best known for its automotive and industrial chips. It’s also developing AI-ready products for use in smart factories and electric vehicles.

Infineon’s stock has been volatile in 2025, with multiple large daily moves – sometimes up, sometimes down – as investors react to global chip demand and geopolitical tensions. For CFD traders, these wide swings make Infineon an attractive short-term opportunity.

Because Infineon operates across several industries, its share price is affected by many factors – from car production data to energy prices. This can lead to frequent changes in direction, perfect for traders looking for momentum plays.

Highlights:

• It’s not as directly tied to AI as some US chipmakers, but its technology helps power many devices that rely on AI systems
• CFD traders can view it as a European volatility play with exposure to both industrial tech and AI growth
• Its stock price is typically all over the place, gaining 21.34% over the past six months, but a much lower 5.5% YTD¹⁸

3. Cerence Inc (Nasdaq: CRNC)

Market cap: US$488.21 million¹⁹

EPS: -US$0.27²⁰

Cerence Inc is a US company that builds AI voice and speech software for cars. Its technology powers voice assistants and conversational AI systems used by major automakers. Think of it as the ‘voice’ behind smart cars that can understand natural language commands.

Because Cerence is smaller and more niche than most AI companies, its share price tends to move sharply when news breaks. In 2025, its 30-day volatility rate has been very high, meaning the stock often makes big daily swings.

That makes Cerence particularly interesting for CFD traders. Positive news about new partnerships or product launches can send the stock soaring, while weak earnings or guidance can trigger big drops.

This constant movement gives traders many short-term opportunities. But with that comes risk; smaller tech companies can move aggressively on even small pieces of news.

Highlights:

• Cerence is a pure AI software play with high volatility and frequent trading action. It’s best suited to experienced CFD traders who thrive on movement and can handle rapid reversals
• Another example on our list of a volatile stock, it’s seen incredible growth over the past year, but has swung wildly during that time

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
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, October 2025
2. TradingView, October 2025
3. Micron, September 2025
4. TradingView, October 2025
5. TradingView, October 2025
6. TradingView, October 2025
7. Semtech, August 2025
8. TradingView, October 2025
9. TradingView, October 2025
10. TradingView, October 2025
11. Nebius, August 2025
12. TradingView, October 2025
13. TradingView, October 2025
14. TradingView, October 2025
15. TradingView, October 2025
16. TradingView, October 2025
17. TradingView, October 2025
18. TradingView, October 2025
19. TradingView, October 2025
20. TradingView, October 2025