The traditional players in the AI infrastructure market are expected to see significant growth, but smaller companies with a unique approach to AI are poised to outperform. Three such companies that offer an alternative to mainstream AI plays like NVIDIA, Microsoft, Google, and Amazon are Palantir, AeroVironment, and Ambarella.
Palantir, which saw its stock price skyrocket in 2024, is well-positioned for continued growth in 2025, driven by a robust growth outlook and a move into the public sector. The company’s AI-empowered platform provides a comprehensive solution that can be used by businesses and industries of all kinds.
AeroVironment, which produces uncrewed aircraft and drones for government agencies, is also gaining traction in 2025. Its use of AI enhances decision-making and allows drones to increase autonomy and reaction times, making it an attractive option for those looking to invest in the defense sector.
Ambarella, a small semiconductor lab that has shifted its focus to Edge/AI computer vision applications, is another company with significant growth potential. Its full-stack approach to CV makes it well-suited for various applications, including defense, business, industry, and consumer electronics.
These companies offer unique plays on AI that can help investors avoid the crowded mainstream market. With analysts increasingly warming up to these stocks, Palantir, AeroVironment, and Ambarella are set to benefit from improved sentiment and price target increases in 2025.
Source: https://www.benzinga.com/content/42911537/these-3-ai-stocks-are-ready-to-lead-in-2025