We recently published a list of Top 10 AI Stocks That Should Be On Your Watchlist for 2025. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other top AI stocks that should be On your watchlist for 2025.
Investors are looking for new growth horizons in the AI industry to gauge whether the current market rally can continue for the years to come. Chetan Puttagunta, Benchmark general partner, said he’s noticed a lot of innovation in the past few weeks focused on improving the efficiency of algorithms.
“In the last six to eight weeks, we’ve seen a tremendous amount of innovation, especially at the model layer, and then for the last two years at the application layer, taking advantage of all the advances in the AI models. Specifically, what’s happening at the model layer is, as we move into an inference-time or test-time compute paradigm, you’re seeing a lot more advantage to entrepreneurs and technical founders that are able to push to the frontier with algorithmic innovation.”
To explain how AI is now actually improving workflows, Puttagunta gave the example of Sierra, a conversational AI startup making customer service solutions.
“So think of this Sierra AI agent, if you will, delivering the best customer service agent experience every time, replicated an infinite number of times. And that’s an experience that was previously not possible without AI.”
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For this article, we picked 10 AI stocks that are making moves amid the latest news. With each stock, we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Number of Hedge Fund Investors: 193
Jessica Lessin, The Information founder, editor-in-chief and CEO, recently discussed the state of AI space and her outlook on 2025. She mentioned the rising competition in the industry.
“I think 2025 is going to be the year where all bets are off—or rather, all gloves are off—in AI competition. NVIDIA Corp (NASDAQ:NVDA) will dominate GPUs, but you’re also seeing Broadcom and others partnering with tech companies to diversify. Last week, at The Information, we reported that Broadcom is now working with Apple on an AI chip for inference. While it doesn’t directly compete with NVIDIA Corp (NASDAQ:NVDA), there is significant competition in the space. I believe investors should stay very vigilant and try to understand the dynamics within each tech company. The key question inside these firms is: how can we build, build, build to create more optionality in AI technology?”
