3 Artificial Intelligence Stocks That Lagged in 2024 but Are Set to Soar in 2025

Generado por agente de IAEli Grant
domingo, 22 de diciembre de 2024, 5:39 am ET1 min de lectura
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In 2024, several artificial intelligence (AI) stocks underperformed, despite the sector's overall growth. Factors contributing to their lag include market volatility, regulatory concerns, and competition. However, 2025 could be their year, as these companies have made strategic moves and investments that position them for growth. Let's explore three AI stocks that are poised to soar in 2025.

1. Alphabet (GOOGL)
Alphabet, the parent company of Google, has been a pioneer in AI since 2001. In 2023, it released Google Gemini, a competitive generative AI model that rivals ChatGPT. Additionally, Alphabet's Google Cloud is a key source for running AI workloads, with revenue growing 36% yearly in Q3 2024. Despite the stock's recovery, its P/E ratio of 23 is the cheapest among the 'Magnificent Seven' stocks, indicating undervaluation. Investors can buy into Alphabet's AI-driven growth at a reasonable price.



2. Alibaba (BABA)
Alibaba, the Chinese retail and technology conglomerate, is one of the world's largest cloud computing companies. In September 2024, it launched more than 100 new AI models, including advanced math and coding capabilities. Despite geopolitical risks and a slow 2024, Alibaba's revenue has grown significantly since 2015, making it a bargain at a 26 P/E ratio. Investors can buy into Alibaba's long-term growth potential at a reasonable price.



3. Uber Technologies (UBER)
Uber Technologies has leveraged AI in its ride-sharing platform to predict demand and price rides accordingly. The company's AI-driven growth has led to a 20% revenue increase and a profit of $2.6 billion in Q3 2024. Despite a high P/E ratio of 79, Uber's valuation is reasonable at 32. With its autonomous vehicle initiatives, Uber is well-positioned for growth in 2025 and beyond.



In conclusion, while several AI stocks underperformed in 2024, 2025 could be their year. Alphabet, Alibaba, and Uber have made strategic moves and investments that position them for growth. With competitive advantages and growth potential, these AI stocks are attractive investments for 2025. As the AI sector continues to evolve, investors should keep a close eye on these companies and their progress.
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Eli Grant

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