AI-Driven Growth in Tech, Media, and Telecom: High-Conviction Investment Opportunities in 2025

The artificial intelligence revolution is reshaping industries at an unprecedented pace, creating both disruption and opportunity. For investors, the challenge lies in identifying firms that are not merely riding the AI hype train but are structurally positioned to capitalize on its transformative potential. Recent earnings reports and strategic shifts at Unity Software, Telus, and European AI beneficiaries like SAP and Atos reveal compelling cases for strategic positioning in this accelerating sector.

Unity Software: A Buy Signal Amid Creative and Growth Solutions Momentum

Unity Software (U) has emerged as a standout in the AI-driven tech landscape. Its Q3 2025 results underscored resilience: revenue rose 5% year-over-year to $471 million, with adjusted earnings per share (EPS) of $0.20 beating estimates by $0.03. The company's guidance for Q4 2025-projecting $480–490 million in revenue-reflects mid-single-digit sequential growth in its Grow Solutions and high-single-digit year-over-year expansion in Create Solutions, driven by AI-enhanced tools for developers and advertisers.

Analyst sentiment is equally bullish. A consensus of 32 ratings assigns an average target price of $46.69, with BTIG upgrading to "Buy" with a $60 target (22% upside) and Piper Sandler citing growth in Unity's Vector ad business. These upgrades signal confidence in Unity's ability to monetize AI-driven innovations, particularly in gaming, advertising, and the metaverse. With a current price of $35.87, the stock appears undervalued relative to its growth trajectory and analyst expectations.

Telus: Leveraging AI to Reinvent Telecom

In the telecom sector, TELUS has demonstrated how AI can drive both operational efficiency and customer acquisition. Its Q4 2024 results showed consolidated operating revenues rising 3.5% to $5.4 billion, alongside industry-leading customer growth of 328,000 in mobile and fixed services. The company's TTech segment, which integrates AI into network optimization and customer service, delivered 7.0% Adjusted EBITDA growth in Q4 2024, with full-year growth of 5.5%.

For 2025, TELUS has set ambitious targets: 2–4% operating revenue growth and 3–5% Adjusted EBITDA growth. Its health segment, which leverages AI for personalized care and data analytics, delivered 18% operating revenue growth in Q3 2025. These metrics highlight TELUS's dual strategy of scaling core telecom services while monetizing AI-driven verticals. As AI adoption accelerates in healthcare and enterprise services, TELUS's diversified model positions it as a defensive yet growth-oriented play.

European AI Beneficiaries: SAP's Cloud Ascendancy and Atos's Turnaround

The European AI market, projected to grow at a 26.4% CAGR through 2032, is home to two contrasting narratives: SAP's cloud-driven dominance and Atos's strategic rebirth.

SAP's Q3 2025 results were a masterclass in AI integration. Total revenue rose 7% to €9.08 billion, with cloud revenue surging 22% to €5.29 billion and the Cloud ERP Suite growing 26% to €4.59 billion. CEO Christian Klein credited AI adoption in SAP's Business Suite and partnerships with OpenAI and AWS for these gains. With a current cloud backlog of €18.8 billion, SAP is poised to capitalize on long-term AI contracts, particularly in regulated sectors like finance and public administration.

Atos, meanwhile, is navigating a painful but necessary transformation. Q3 2025 revenue fell 10.5% organically to €1,977 million, driven by contract exits and a weak market environment. However, its Eviden SBU-a spinoff focused on high-margin AI and data services grew 77% year-over-year to €356 million, fueled by the Jupiter contract and a €50 million deal with Serbia's government to build a National AI Factory. While Atos's FY 2025 results will reflect continued pain, its cost-cutting "Genesis" plan and 2026 growth expectations suggest a path to profitability. For patient investors, Atos represents a high-risk, high-reward bet on Europe's AI industrialization.

Strategic Positioning: Why Act Now?

The accelerating convergence of AI and core industries-from gaming (Unity) to telecom (TELUS) to enterprise software (SAP, Atos)-demands immediate strategic positioning. Unity and TELUS offer near-term visibility through strong earnings and analyst upgrades, while SAP's cloud momentum and Atos's AI-focused rebirth provide long-term catalysts.

However, risks persist. Atos's near-term losses and regulatory headwinds in Europe could test investor patience. Similarly, Unity's reliance on speculative AI-driven ad tech requires careful monitoring. Yet, given the sector's structural growth and the compelling valuations of firms like Unity and TELUS, the case for conviction is clear.

As the AI revolution matures from experimentation to execution, investors who act decisively today will reap the rewards of tomorrow.