11 Best Performing Cybersecurity Stocks So Far in 2025

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1. Palantir Technologies Inc. (NASDAQ:PLTR)

Year-to-Date performance as of April 25: 45.14%

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics and software company that develops platforms for government agencies, financial institutions, and large corporations to understand massive data sets.

On April 25, UBS analyst Karl Keirstead reiterated Palantir Technologies Inc. (NASDAQ:PLTR)’s Neutral rating and maintained a price target of $105. Keirstead’s approach to assessing the company’s resilience in an uncertain economic climate included consulting with Palantir’s commercial and government partners. The feedback indicates that, while Palantir’s business is healthy, it faces potential risks owing to delays in federal negotiations.

NATO stated on April 14 that it had given Palantir Technologies Inc. (NASDAQ:PLTR) a contract to use its Maven Smart System for AI-powered military operations. The contract, which was signed on March 25, authorizes the NATO Communications and Information Agency (NCIA) to employ a variant of the AI system—Maven Smart System NATO—to assist the transatlantic military organization’s Allied Command Operations strategic command.

In addition, Palantir Technologies Inc. (NASDAQ:PLTR) has teamed with Everfox to improve software solutions for classified network settings, with an emphasis on joint and integrated command and control operations. The partnership seeks to deliver real-time intelligence processing and a uniform data environment for complicated network requirements.

While we acknowledge the potential for PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%.  If you are looking for an AI stock that is more promising than PLTR but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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