Best AI Stocks to Watch in June 2025

These are the top AI stocks based on best value, fastest growth, and most momentum.

In May 2025, the AI landscape experienced significant advancements across various sectors. Google (GOOG) unveiled Gemini 2.5 Pro at its I/O 2025 conference, integrating it into a new “AI Mode” for Search. This feature offers conversational responses and real-time reports, aiming to increase user engagement with search engines. OpenAI expanded into hardware with its $6.5 billion all-stock acquisition of the startup io on May 21. Meanwhile, shares of AI leaders such as Nvidia Corp (NVDA) rallied with the rest of the market, gaining 18% for May, as the White House softened its stance on reciprocal tariffs with trading partners.

These are the best AI stocks to watch for June 2025. All data as of May 23, 2025.

Key Takeaways

• AI stocks can offer significant growth potential, fueled by rapid technological advancements and strong investor enthusiasm.
• In May 2025, the AI sector saw major developments with Google launching Gemini 2.5 Pro, OpenAI acquiring io for $6.5 billion to enter hardware, and AI stocks like Nvidia surging 18% amid easing U.S. trade tensions.
• The AI stocks with the best value, most momentum and fastest growth for June 2025 included Yiren Digital, Innodata, and Quantum Computing.

Best-Value AI Stocks

Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing and the stock price will rise. Investors often use price-to-earnings (P/E) ratio to find stocks that are undervalued, as a lower P/E ratio can indicate that a company is valued at less than its fundamental value.

However, it may take multiple quarters or years before a turnaround materializes.  Some stocks may also remain cheap for a reason, falling into a “value trap,” continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation. Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery, or the market recognizing the value opportunity.

• Yiren Digital Ltd.: Yiren is an AI-powered platform in China offering digital financial services, insurance brokerage, and lifestyle products. Yiren heavily utilizes AI in its operations, including a proprietary AI-driven credit scoring model that aggregates borrower-submitted and third-party data to segment borrowers by risk and determine loan pricing.
• Consensus Cloud Solutions, Inc: Consensus is a secure information delivery company specializing in cloud-based communication, data extraction, and digital signature solutions. Its flagship AI platform, Clarity, converts unstructured health care documents—such as faxes, PDFs, and handwritten notes—into structured, actionable data, and is primarily used in the health care industry.
• DXC Technology Company: DXC is a global IT services provider helping large enterprises and public sector organizations run mission-critical systems and modernize their IT infrastructures. The company features a global AI practice, focusing on generative AI, with a specialized team of experts organized into global centers of excellence.

Fastest-Growing AI Stocks

Growth investors look for companies with increasing revenue and earnings per share (EPS), believing these metrics signal strong business fundamentals and potential for value appreciation. However, relying on just one of these indicators can present an incomplete picture, as factors like tax law changes, mergers, or one-time gains can distort the numbers.

For a more balanced assessment, we screen AI growth stocks by looking at the most recent year-over-year percentage growth for both revenue and EPS, giving each equal weighting. We also excluded companies with growth rates in either category of 1,000% or more on the grounds that these are likely outliers.

• Innodata, Inc: Innodata is a data engineering company that supports major tech firms in building and scaling generative AI systems through high-quality training data, platforms, and services. The company has capitalized on surging demand for generative AI, signing eight big-tech clients between 2022 and 2024, including five of the “Magnificent Seven.”
• CyberArk Software Ltd.: CyberArk is a global leader in identity security, offering an AI-powered platform that protects human, machine, and AI identities across enterprise environments. Driven by rising demand for identity protection amid the proliferation of machine and AI agents, the company delivered a 30% free cash flow margin in Q1 2025 and reaffirmed its strong growth and profitability outlook for the year.
• Mobileye Global, Inc: Mobileye is a leading technology company specializing in advanced driver-assistance systems (ADAS) and autonomous driving solutions. Mobileye uses AI to power its collision avoidance systems by mimicking human vision through vision-based sensors trained on over 200 million miles of driving footage. Its AI, embedded in the proprietary EyeQ chip, enables real-time detection of vehicles, pedestrians, and road hazards.

AI Stocks With the Most Momentum

Momentum investing is a strategy that seeks to capitalize on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. The core idea is that stocks on an upward trajectory are likely to continue rising as long as the fundamental drivers
behind their growth remain intact.

The momentum strategy has become synonymous with AI, owing to the fast growth of this sector. AI names can generate returns that far outpace established tech names, driven mostly by investor sentiment. While it’s a viable strategy for those with a higher risk tolerance, investors should also focus on the company’s underlying financials to ensure the anticipated growth prospects will materialize.

Here are the AI stocks with the highest total return in the last 12 months.

• Quantum Computing, Inc: This company builds powerful AI hardware by combining light (photons) and electricity to process information faster and more efficiently than traditional computers. Its AI technology, called reservoir computing, can be used to predict trends, recognize patterns, or analyze time-based data.
• Diginex Limited. Diginex is a London-based regulation technology company that uses blockchain, AI, and data analytics to help businesses and governments improve ESG and sustainability reporting. In February, the company announced new AI-powered features for its diginexESG platform, built using OpenAI’s technology. These features will help companies comply with global sustainability reporting standards by automating data extraction, improving compliance, and enhancing risk assessments.
• Palantir Technologies, Inc: Originally founded in 2003 to serve U.S. intelligence agencies, Palantir now serves over 700 global clients across both government and commercial sectors. On May 6, Palantir, xAI, and TWG Global announced a strategic partnership aimed at helping financial service providers scale AI by embedding it into core operations. A key element of the collaboration is the deployment of modular AI agents designed to transform and augment the modern workforce.

Advantages of AI Stocks

Mass Disruption

AI is a rapidly evolving sector with applications across nearly every industry, from health care to finance and cybersecurity. As adoption accelerates, AI companies have significant room for revenue expansion and market dominance. Furthermore, ongoing advancements in research and development are enhancing AI models’ reasoning and adaptability, unlocking even greater disruptive potential.

Innovation

AI-driven automation enhances efficiency, leading to reduced costs for businesses. Companies leading in AI development can secure long-term competitive advantages, making them attractive investments in both the short and long term.

Investor Enthusiasm

AI stocks often experience strong investor enthusiasm, driving rapid price appreciation. With ongoing advancements in machine learning, automation, and generative AI, market sentiment remains highly bullish, fueling momentum-driven gains.

Disadvantages of AI Stocks

High Valuations and Market Speculation

Many AI stocks trade at high valuations due to investor enthusiasm and growth expectations. While the AI sector has strong long-term potential, some companies may be overvalued, leading to the risk of significant price corrections. Speculative investments, particularly in early-stage AI companies, can result in inflated valuations that may not be supported by actual revenue or profitability.

Regulatory Risks

AI technology is increasingly facing scrutiny from governments and regulatory bodies worldwide. Concerns over data privacy, algorithmic bias, job displacement, and national security risks could lead to stricter regulations that impact operations and growth prospects. The legal landscape around AI is still in its early stages, and new laws around transparency, intellectual property rights, and ethical AI development are being fleshed out.

Stiff Competition

The AI industry is highly competitive, with major players such as Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and OpenAI continuously advancing their technologies. This rapid pace of innovation means that companies that fail to stay ahead may become obsolete. Additionally, emerging AI startups such as DeepSeek can disrupt established players seemingly overnight, making it difficult for investors to predict long-term trends.

The Bottom Line

AI stocks offer significant growth potential, fueled by rapid technological advancements and strong investor enthusiasm. However, high valuations, regulatory uncertainties, and intense competition pose risks that investors must carefully navigate. While AI remains a compelling long-term investment, careful scrutiny of a company’s financials and thorough risk management are essential to avoid speculative bubbles and hype.

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As of the date this article was written, the author does not own any of the above securities.