Top AI Stocks for 2025

As we close the curtain on 2024, a strange phenomenon is creeping into the market. I would call it AI fatigue. There is a sense that artificial intelligence may be a bubble that has run its course.

Some analysts are eager to get past the novelty of generative AI and large language models and get to the good stuff, which to them means how companies will monetize AI.

No one can predict the future, but the next wave of AI will include interactive and autonomous AI. While the real payoff may be years away, more companies are making inroads into these areas today. That’s why investors might want to consider these three stocks for their portfolios in 2025.

UiPath today

$14.00 -0.01 (-0.07%)

(As of 2:29 a.m. ET)

52 week range

$10.37

▼

$27.87

Price target

$17.50

UiPath Inc. NYSE: STI is a software company specializing in robotic process automation (RPA) technology. This technology provides users with tools to automate regularly occurring processes. The company’s UiPath platform advances the path toward agent automation, a state where agents, robots, humans, and models seamlessly integrate to enable autonomous processes that will result in smarter decision-making.

The company is not consistently profitable, but revenue has been increasing year-on-year. Growth is slowing, but this was expected after rapid growth in 2023. However, the company faces competition in this area from more established players such as Microsoft. To that end, UiPath continues to spend on marketing as well as R&D.

Nevertheless, the company is well capitalized and has no debt. Analysts have raised their price target on PATH stock, which has a consensus price target of $17.71. This gives investors a 21% upside to the December 11 closing price.

Intuitive surgery today

ISRG

Intuitive surgical

$545.16 +5.58 (+1.03%)

(As of 2:21 a.m. ET)

52 week range

$320.26

▼

$556.23

P/E ratio

87.65

Price target

$550.28

Intuitive Surgical Inc. NASDAQ: ISRG is a leader in robotic surgical assistance. The company is the brains behind the Da Vinci robotic surgery system, which is now in its fifth generation. Intuitive Surgical uses AI and machine learning (ML) technologies to generate insights that can help surgeons learn from cases ranging from simple to more complex, including those with anomalies and complications.

ISRG stock is up 61% in 2024, easily outperforming the broader market. However, the share is a good example of how a share can be expensive and at the same time provide good value. In this case, Intuitive Surgical has a forward P/E of over 100x. With the company expected to generate approximately $6.57 in earnings per share for the full year, you can see why analysts are raising their price target to as high as $650 per share.

iRhythm Technologies today

IRTC

iRhythm technologies

$89.42 +2.99 (+3.46%)

(As of 2:13 a.m. ET)

52 week range

$55.92

▼

$124.11

Price target

$107.82

Digital health company iRhythm Technologies Inc. NASDAQ: IRTC designs and manufactures medical devices that provide ambulatory cardiac monitoring services to help patients diagnose arrhythmias. The company says its latest product, Zio, has the most advanced AI in cardiac monitoring based on over a million hours of heart rhythm data.

The company’s current products are used by 6.4 million patients in the United States. However, iRhythm plans to expand its market to include a wider range of symptomatic patients. It is also planning international expansion, which should boost its the total addressable market to over one billion. Revenue is growing, but the company is not profitable and is not expected to be so in the next year.

Despite rising nearly 20% in the last three months, IRTC stock is still down 15% in 2024. That’s not deterring analysts from bidding the stock higher. The consensus price target of $107.82 is nearly 20% above the stock’s December 11 close. However, several analysts have a much higher price target, including Canaccord Genuity Group, which raised its price target from $125 to $152.