2 Must-Buy AI Stocks Dominating 2025 – Your Portfolio’s Missing Out

AI isn’t just the future—it’s printing money right now. These two stocks are crushing benchmarks while Wall Street snoozes.

The AI Powerhouse You Already Know (But Still Aren’t Buying)

Forget moonshots—this blue-chip’s AI tools are already baked into every Fortune 500’s workflow. 47% revenue growth last quarter came straight from enterprise AI adoption.

The Dark Horse Turning AI Into Cold Hard Cash

While chatbots grab headlines, this under-the-radar play monetizes AI infrastructure. Their chips power 3 of every 5 cloud AI deployments—and margins are disgusting.

Wake up call: If your portfolio lacks dedicated AI exposure, you’re basically shorting the industrial revolution. Again.

Image source: Getty Images.

1. Palantir Technologies

(PLTR -1.78%) has been one of the top stocks riding the AI boom. This leading software company just reported its first quarter of $1 billion or more in revenue, and it's still gaining momentum. Because of its success, the stock trades at expensive valuation multiples, but supporting these lofty share prices is the company's accelerating revenue growth and expanding profit margin.

Its success is based on bringing together large language models, software, and its ontology-based approach to building software that helps organizations gain real-time insights from disorganized data. Enterprises that use Palantir's software are significantly improving their supply chain efficiency and successfully monitoring their business operations., Meanwhile, the U.S. military uses it for surveillance and intelligence gathering, among other things, and other government agencies are putting it to use as well to better execute their directives.

Palantir closed 157 deals valued at $1 million or more in the second quarter, with 42 deals valued at $10 million or higher. This shows that organizations are seeing real returns on their money by reducing the time it takes to understand what's going on in their businesses and make quicker decisions.

While the U.S. government still makes up most of Palantir's business, the momentum in the commercial segment reveals its potential to grow into one of the most valuable companies in the world. U.S. commercial revenue growth in the more recently reported quarter accelerated to 93% year over year, reaching $306 million, compared to $426 million in U.S. government revenue.

Management is showing it can provide cutting-edge AI software while posting a healthy profit margin. Its net income reached $327 million in the second quarter, representing a net margin of 33%.

It's a richly valued stock for a good reason. The acceleration in revenue, expanding margins, and long-term potential to be theof AI spell a bright future for this innovative software company. Palantir offers incredible value to companies, and with only 849 customers, there are a lot of corporations out there that it has yet to bring on board.

AI adoption among enterprises is still relatively low, providing a long runway of growth for Palantir. While the shares could pull back after a monster run, this is a growth stock that could still deliver excellent returns over the next few decades.

Image source: Getty Images.

2. Arm Holdings

Building on the theme of AI companies that are seeing growing momentum in their respective markets, investors should take a close look at(ARM -0.73%). The stock is up 178% since its initial public offering in September 2023, but the shares have been stuck in a trading range over the last several months. Meanwhile, the company continues to be well-positioned in the data center market, as more cloud providers invest in its processor designs.

Arm benefits from a profitable business model. Instead of manufacturing chips, it designs them and earns revenue from licensing and royalties. Its total revenue grew 12% year over year in the last quarter, but royalty revenue grew 25% year over year based on data center demand for the company's Armv9 chip architecture.

Over 70,000 businesses use Arm's Neoverse data center chips for AI, representing a 40% year-over-year increase. Neoverse central processing units (CPUs) are powering's Grace data center chip,Web Services' Graviton, Google's Axion, and Microsoft Cobalt, among others.

The momentum in the data center space is based on the growing demand for greater energy efficiency to run advanced AI workloads. Power bottlenecks might be the only thing that can slow this tsunami from sweeping over the economy in the next decade. This is one reason leading cloud providers are using more Arm-based chip designs: They strike the right balance of optimal energy efficiency and performance.

The continued growth in Arm's business will eventually break the stock out of its slump. Analysts currently forecast earnings to grow 24% annually over the next several years. The company is serving an important role in the AI infrastructure market, which spells more upside for investors.