Look no further if you’re looking for AI winners that will shine in 2025 that aren’t NVIDIA Nasdaq: NVDA Or hyperscalers like Microsoft Nasdaq: MSFTGoogle Nasdaq:GoogleAnd Amazon Nasdaq: AMZN. Palantir NASDAQ:PLTRAerovironment Nasdaq:AFAFAnd Ambarella Nasdaq: AMBA They are alternatives to mainstream AI technologies that are on track to make gains in 2025. Each offers a unique AI play backed by the ability to monetize the technology over the long term. As large a market as the AI infrastructure industry is, services and applications will produce the most growth over time, and these companies are well positioned to benefit.
Palantir: A full-service AI platform to control everyone
Palantir Technologies Today
Palantir Technologies
As of 03/01/2025 at 05:45 PM ET
- 52 week range
- $15.66
▼
$84.80
- P/E ratio
- 399.47
- Price target
- $41.00
Palantir stock has skyrocketed in 2024, and it still has a long way to go before it reaches its peak. The rise in stock prices is due to strong growth expectations supported by the transition to the public sector. Originally intended to help governments, Palantir’s AI-powered platform provides a comprehensive solution well-suited to businesses and industries and capable of delivering security and actionable business insights. Results in 2024 include double-digit growth, sequential revenue acceleration, improved profitability and guidance year-over-year, and outperformance.
The outlook for 2025 is strong, with growth expected to continue in the mid-20% range and likely to be cautious. The takeaway from FQ3 2024 is that the new AIP strategy is gaining momentum, with new use cases developing daily. The important detail is that the Palantir platform is suitable for any business or industry that generates data, which includes all of that data.
Analyst sentiment will be a driver of this market in 2025. After years of lagging and rejection, analysts are starting to warm up to Palantir and increase coverage. Activity in the second half of 2024 includes several target price increases, with the consensus target price, if not the sentiment rating, rising. Potential catalysts for the share price include improved sentiment, which remains linked to a downgrade.
AeroVironment applies AI for government use
AeroVironment today
As of 03/01/2025 at 05:45 PM ET
- 52 week range
- $116.51
▼
$236.60
- P/E ratio
- 92.53
- Price target
- $225.20
AeroVironment manufactures a range of unmanned aircraft, drones, and ground vehicles for government and federal agencies. Its products are in demand due to rising global tensions, rearmament trends, and their effectiveness in combat situations. The company uses artificial intelligence to enhance decision-making, allowing drones to increase autonomy and reaction times, a technology that will eventually move to the consumer level.
AeroVironment’s loitering munitions systems allow drones to remain on station undetected, waiting for targets of opportunity or on call for ground support as needed. The systems can be armed with various components, including weapons and surveillance, keeping humans out of dangerous situations.
Analyst trends for AeroVironment are positive, including increased coverage and a higher price target. The consensus figure is up 80% in 2024, almost 50% higher than the price action in early 2025.
Ambarella makes computers see
Ambarella today
As of 03/01/2025 at 05:38 PM ET
- 52 week range
- $39.69
▼
$81.32
- Price target
- $84.17
Ambarella is still a small semiconductor lab but has gained traction after pivoting to Edge/AI computer vision applications. Its complete CV approach makes it well-suited for various applications, including defence, business, industrial and consumer. It uses artificial intelligence at the edge, allowing computers to visualize their surroundings in real time.
Applications for Ambarella’s technology include drones, security, manufacturing, and autonomous vehicles. Results in 2024 included sequential acceleration, return to year-over-year growth, profitability, outperformance and improved guidance. The company says momentum is building in the IoT and automotive markets, and its guidance is likely to be cautious. The Internet of Things is expected to spread in 2025 as more 5G networks come online and use cases evolve.
Analyst trends are driving this stock to new highs. Sentiment improved significantly by mid-2024, including several target price increases and sentiment upgrades. The stock is pegged at Moderate Buy with 15% to 30% upside potential by mid-year.
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