2 AI Stocks Set to Outpace Palantir by Year's End in 2025

As the artificial intelligence (AI) revolution continues to reshape industries, investors are keeping a close eye on the stocks that stand to benefit the most. While Palantir Technologies (PLTR) has been a standout performer, two other AI stocks are poised to surpass it by the end of 2025. This article explores the potential of Shopify (SHOP) and Arm Holdings (ARM) to outpace Palantir in the coming years.

Shopify: Revolutionizing E-commerce with AI
Shopify, the leading e-commerce platform, has been quietly integrating AI into its offerings to enhance the merchant experience and drive growth. The company's AI-driven tools, such as Shopify Magic, help merchants automate tasks like storefront organization, content generation, and customer service. This not only boosts efficiency but also drives sales and improves the overall merchant experience.

Shopify's expansion into B2B commerce, with tools for wholesale trading, is another key growth driver. This move taps into a larger market and positions the company to capture a greater share of the e-commerce pie. With strong financial results and international growth, Shopify is well-positioned to continue its success in 2025.

Arm Holdings: Capitalizing on Cloud Computing Growth
Arm Holdings, the leading provider of CPU architecture for mobile devices, is gaining traction in the data center market. Its energy-efficient CPUs have a 99% market share in smartphones and are increasingly being deployed by major cloud providers. As cloud computing growth accelerates, Arm's per-chip royalty revenue is expected to increase, driving its 2025 revenue and earnings growth of 22% and 33% annually, respectively.

Arm's CPU architecture advancements and cloud computing growth will significantly contribute to its 2025 performance. With a 100 times adjusted earnings valuation, Arm is well-positioned to potentially surpass Palantir's market value by year's end in 2025.

In conclusion, while Palantir Technologies has been a strong performer in the AI space, Shopify and Arm Holdings are poised to outpace it by the end of 2025. Shopify's AI integration with merchants and internal teams, coupled with its expansion into B2B commerce, positions it for continued growth. Meanwhile, Arm's CPU architecture advancements and cloud computing growth make it a strong contender in the AI stock race. As the AI revolution continues, investors should keep a close eye on these two companies as they strive to surpass Palantir in the coming years.