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30 AI Stocks to Watch for Explosive Growth in 2023 and Beyond

Hannah Perry | May 12, 2025

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30 AI Stocks Poised for Growth: Insights from a Bullish Tech Analyst

Artificial Intelligence (AI) is heralded as the fourth industrial revolution, promising advancements comparable to those brought by the steam engine, electricity, and the internet. According to Daniel Ives, a senior equity analyst at Wedbush Securities, AI is “the biggest tech transformation in over 40 years.” Ives projects that the global AI market will balloon to $407 billion by 2027 and reach $1.81 trillion by 2030, achieving a staggering compound annual growth rate of 36%.

The recent surge in AI interest is attributed to tools like ChatGPT and user-friendly applications, prompting a competitive race among companies to harness AI capabilities. Ives has delineated a list of 30 AI-centric companies that are pivotal to this ongoing revolution. The companies are categorized across various sectors, including semiconductors, hyperscalers, consumer internet, cybersecurity, software, and autonomous technologies.

Semiconductors and Hardware

This segment encompasses companies responsible for producing the semiconductors and hardware essential to powering AI data centers. The semiconductor market is anticipated to benefit significantly from advances in AI, 5G, and the internet of things (IoT). Key players include:

  • Nvidia Corp. (NVDA) – Renowned for its graphics processing units (GPUs), Nvidia stands at the forefront, with increased demand expected from both data centers and the autonomous vehicle sector. Potential Upside: 37%
  • Advanced Micro Devices Inc. (AMD) – Supplies critical central processing units (CPUs) for computers. Potential Upside: 28%
  • Micron Technology Inc. (MU) – Anticipated to see a rise, with projections indicating a 45% upside.
  • Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) – With a 26% potential upside, this company is pivotal in the hardware production chain.
  • Broadcom Inc. (AVGO) – A building block for many network applications with a 15% potential upside.

Hyperscalers

Hyperscalers are the cloud providers that store and process massive amounts of data integral to AI. Approximately 15% of cloud services currently feature AI integration, and they are positioned as immediate beneficiaries of the AI revolution. Noteworthy companies in this space include:

  • Microsoft Corp. (MSFT) – With robust integration of AI tools into its office products, Azure cloud is a front-runner for enterprise clients. Potential Upside: 15%
  • Alphabet Inc. (GOOGL) – Despite concerns over search-engine revenues, Alphabet’s cloud operations are closely monitored. Potential Upside: 31%
  • Amazon.com Inc. (AMZN) – Another key player with a 25% potential upside.
  • Oracle Corp. (ORCL) – Positioned well for growth, with an 18% potential upside.

Consumer Internet

Consumer internet companies can leverage AI in multiple ways, from optimizing ads to enhancing user engagement. Among the significant players are:

  • Apple Inc. (AAPL) – With its ecosystem of apps and a proprietary AI called Apple Intelligence, it shows an 18% potential upside despite facing some supply chain concerns.
  • Meta Platforms Inc. (META) – Aiming to enhance advertising tools, its advancements in AI provide promising opportunities. Potential Upside: 17%
  • Alibaba Group Holding Ltd. (BABA) – Positioning itself for an estimated 32% potential upside.
  • Baidu Inc. (BIDU) – Estimated to have a 25% potential upside.

Cybersecurity

As cyber threats become a significant concern, cybersecurity companies are increasingly important. Investing in cybersecurity solutions is essential as global cybercrime costs are projected to surge to $23 trillion by 2027. Key players include:

  • Palo Alto Networks Inc. (PANW) – Set to capitalize on rising cybersecurity demand. Potential Upside: 13%
  • CyberArk Software Ltd. (CYBR) – Positioned for growth with a 22% potential upside.
  • Zscaler Inc. (ZS) – Less optimistic with a 2% potential upside.

Software

Software acts as an intermediary between AI capabilities and user applications. This sector shows great promise as companies innovate to utilize AI effectively:

  • Palantir Technologies Inc. (PLTR) – While recently trading above consensus estimates, its strong potential lies in the realm of government and corporate software solutions. Potential Upside: -16%.
  • Salesforce Inc. (CRM) – Highly regarded for its Agentforce platform. Potential Upside: 31%
  • International Business Machines Corp. (IBM) – A powerhouse in enterprise software, remains a robust choice with a stable forecast. Potential Upside: 0%.
  • Adobe Inc. (ADBE) and others complete the roster, with various upsides highlighted by Ives.

Autonomous and Robotics

The realm of robotics and autonomous vehicles, once a fictional domain, is on the brink of reality through AI integration. Highlighting innovation is:

  • Tesla Inc. (TSLA) – Known for its pioneering efforts in self-driving technology, though facing challenges in 2025 as sales may slow. Investors remain hopeful about its long-term potential.

As industries prepare to harness AI’s potential, this comprehensive list of 30 AI stocks provided by Daniel Ives offers a roadmap for investors. As with all investments, careful consideration and research are imperative.