On Saturday, July 26, China expressed its intention to create an organization to foster global cooperation on artificial intelligence (AI). This could position China as an alternative to the US as both countries compete for influence over this important technology.

At the annual World Artificial Intelligence Conference in Shanghai, Premier Li Qiang said China wants to help coordinate global efforts to regulate fast-changing AI technology. He also said China is ready to share its progress in AI with other countries, especially the “Global South.” The global south includes developing or lower-income countries, mostly in the southern hemisphere.

On Wednesday, July 23, President Donald Trump’s administration released an AI plan designed to significantly grow AI exports to US allies. This is part of a strategy to keep the US ahead of China in AI technology.

The US has also set limits on exporting advanced AI chips and chipmaking technology to China, citing concerns that this technology might help China’s military.

Despite this, China continues to make important AI advancements that attract close attention from US officials.

While Li did not talk about the US, he seemed to be talking about Washington’s efforts that are looking to slow China’s progress in AI.

He warned that AI technology should not be controlled by just a few countries or companies. Instead, Li said that China wants AI to be shared openly, and every country and company should have equal rights to use it.

With this background in mind, let’s take a look at the 12 best-performing AI stocks so far in 2025.

Our Methodology

To compile our list of the 12 best-performing AI stocks so far in 2025, we looked for the largest and most popular AI companies. We reviewed Insider Monkey’s database of prominent AI stocks and various online resources to compile a list of more than 50 AI stocks. Finally, we ranked the 12 best-performing AI stocks so far in 2025 in ascending order based on their year-to-date performance as of August 1, 2025.

Additionally, we mentioned the hedge fund sentiment surrounding the best-performing stocks, which was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds.

Why do we care about what hedge funds do? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

12 Best Performing AI Stocks So Far in 2025

12. Alibaba Group Holding Limited (NYSE:BABA)

Year-to-Date Performance: 37.81%

Number of Hedge Fund Holders: 125

Alibaba Group Holding Limited (NYSE:BABA) is one of the best-performing AI stocks so far in 2025. On July 21, Benchmark reiterated its Buy rating on Alibaba Group Holding Limited (NYSE:BABA) with a price target of $176.

Benchmark noted that the company could face near-term margin pressure because of investments in Food Delivery and Instant Retail services. This led the firm to reduce its Q1 fiscal 2026 and fiscal year 2026 earnings estimates.

Benchmark sees this increase in investment by Alibaba Group Holding Limited (NYSE:BABA) as defensive, to respond to JD.com, Inc. (JD) entering the market and making some early market share gains in these segments.

Despite the near-term pressure, the firm pointed out strategic benefits for Alibaba Group Holding Limited (NYSE:BABA) as it can improve and reposition its core e-commerce strategy with a more integrated retail ecosystem approach, which could help the company grow in the long run.

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company focused on e-commerce, retail, AI, digital media and entertainment, cloud, and technology.

11. Vistra Corp. (NYSE:VST)

Year-to-Date Performance: 39.02%

Number of Hedge Fund Holders: 48

Vistra Corp. (NYSE:VST) is one of the best-performing AI stocks so far in 2025. On July 30, Vistra Corp. (NYSE:VST) announced that its board of directors has declared a quarterly dividend of $0.2260 for each share of its common stock. This reflects an estimated aggregate payment of about $75 million.

This dividend payment represents an increase of about 3% compared to the dividend paid by Vistra Corp. (NYSE:VST) in the third quarter of 2024. The dividend is scheduled to be paid out on September 30 to common shareholders of record as of September 19.

Additionally, Vistra Corp.’s (NYSE:VST) board of directors declared a semi-annual dividend for the Series A preferred stock. The Series A dividend is $40 per preferred share, or $80 on an annualized basis.

According to the report, the Series A dividend is scheduled to be paid out on October 15 to Series A preferred stockholders of record as of October 1.

Vistra Corp. (NYSE:VST) is a retail electricity and power generation company that serves customers, businesses, and communities. It operates a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities.