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.
Source: unsplash
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.
10. Constellation Energy Corporation (NASDAQ:CEG)
Year-to-Date Performance: 40.47%
Number of Hedge Fund Holders: 83
Constellation Energy Corporation (NASDAQ:CEG) is one of the best-performing AI stocks so far in 2025. On July 15, Constellation Energy Corporation (NASDAQ:CEG) announced that it will be spending billions of dollars on nuclear energy projects to drive economic growth in Pennsylvania.
This announcement was made at the state’s inaugural Energy and Innovation Summit. The energy summit showcased that Pennsylvania could become a center for AI innovation.
Thanks to the leadership of state and federal officials and the actions of the Federal Energy Regulatory Commission earlier this year, Constellation Energy Corporation (NASDAQ:CEG) will be able to restart the Crane Clean Energy Center about a year ahead of schedule. The plant is expected to return to service in 2027. It will add 835 megawatts to the grid and continue generating electricity into the 2050s.
Constellation Energy Corporation (NASDAQ:CEG) has also asked the Nuclear Regulatory Commission (NRC) for permission to operate the Peach Bottom Clean Energy Center until at least 2054. This project could provide electricity worth tens of billions of dollars.
Additionally, the company plans to operate the Limerick Clean Energy Center into the 2040s. Constellation Energy Corporation (NASDAQ:CEG) is looking to increase its capacity by another 340 megawatts and is working to secure customer commitments.
The company expects these investments will help fuel innovation in AI and other industries.
Constellation Energy Corporation (NASDAQ:CEG) is a leading energy supplier specializing in reliable, emissions-free energy.
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Year-to-Date Performance: 42.34%
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best-performing AI stocks so far in 2025. On July 29, BofA Securities increased its price target for Advanced Micro Devices, Inc. (NASDAQ:AMD) from $175 to $200 while keeping its Buy rating.
BofA Securities highlighted the possible resumption of AI shipments to China in the second half of 2025, which could help Advanced Micro Devices, Inc. (NASDAQ:AMD) generate an extra $0.7 to $1 billion in AI GPU revenue in 2025 and $1.5 to $2 billion in 2026.
The firm also pointed out that Advanced Micro Devices, Inc.’s (NASDAQ:AMD is seeing stronger-than-expected pricing for its MI355X GPUs at more than $20,000, which compares to the consensus estimates of $17,000.
Looking ahead, BofA expects Advanced Micro Devices, Inc. (NASDAQ:AMD) to grow its overall CPU market share to over 30% by 2026. This would be a strong increase from less than 20% in 2023. The firm also believes that the company could capture 4% to 5% of the AI GPU market.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that specializes in graphics processing units (GPUs), microprocessors, and high-performance computing solutions. The company serves a range of high-growth industries like gaming, data centers, and AI.
8. Oracle Corporation (NYSE:ORCL)
Year-to-Date Performance: 47.21%
Number of Hedge Fund Holders: 97
Oracle Corporation (NYSE:ORCL) is one of the best-performing AI stocks so far in 2025. On July 17, Cantor Fitzgerald raised its price target on Oracle Corporation (NYSE:ORCL) from $216 to $271 while keeping an Overweight rating.
Cantor Fitzgerald raised its estimates for Oracle Cloud Infrastructure (OCI), Cloud Database Services (CDBS), and Multicloud CDBS. The firm’s new estimates surpass the consensus estimates for fiscal years 2027 through 2029.
The research firm highlighted Oracle Corporation’s (NYSE:ORCL) June 30, 2025, 8K filing, which showed multicloud CDBS revenue is growing over 100%. Cantor Fitzgerald forecasts this growth for fiscal 2025 to exceed 500%. However, this segment represents less than 0.5% of Oracle Corporation’s (NYSE:ORCL) total revenue.
Cantor Fitzgerald expects core OCI Infrastructure-as-a-Service revenues, excluding the implied CDBS forecast, to rise from 56% growth to 85% growth in fiscal 2026. The firm also kept its adjusted OCI estimates 5-6% higher than consensus estimates for fiscal years 2028 and 2029.
The firm justified the new price target due to the strong momentum in core OCI and the potential for further positive updates to its OCI estimates, which are already above consensus estimates.
Oracle Corporation (NYSE:ORCL) is an American multinational computer technology company specializing in database software, cloud infrastructure, and enterprise software solutions. The company offers one of the industry’s broadest and deepest suites of AI-powered cloud applications.
7. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Year-to-Date Performance: 55.72%
Number of Hedge Fund Holders: 17
BigBear.ai Holdings, Inc. (NYSE:BBAI) is one of the best-performing AI stocks so far in 2025. On July 1, H.C. Wainwright increased its price target for BigBear.ai Holdings, Inc. (NYSE:BBAI) from $6 to $9 and kept a Buy rating on the stock.
H.C. Wainwright pointed out that the company expects double-digit revenue growth in 2026. This expectation is supported by a backlog of $384.9 million as of the first quarter of 2025.
BigBear.ai Holdings, Inc. (NYSE:BBAI) has recently confirmed multiple deployments of its biometric software for Enhanced Passenger Processing at major international airports and ports of entry, a strategic partnership to accelerate AI innovation and real-world applications in the UAE, and a collaboration with Analogic to enhance threat detection and streamline security operations at airports around the world.
The firm also noted improvements in BigBear.ai Holdings, Inc.’s (NYSE:BBAI) balance sheet, which give the company flexibility to consider acquisitions. These acquisitions could help the company accelerate revenue growth and profitability.
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a company that provides AI-powered decision intelligence solutions and services for a range of industries, including national security, defense, travel and trade, manufacturing, and supply chains.
6. Bloom Energy Corporation (NYSE:BE)
Year-to-Date Performance: 57.12%
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the best-performing AI stocks so far in 2025. On July 25, UBS increased its price target for Bloom Energy Corporation (NYSE:BE) from $29 to $41 while keeping a Buy rating.
This decision to increase the price target came after Bloom Energy Corporation (NYSE:BE) announced that it will collaborate with Oracle Corporation (ORCL) to deliver on-site power to Oracle’s AI data centers within 90 days.
Bloom Energy Corporation (NYSE:BE) will utilize its fuel cell technology at select Oracle Cloud Infrastructure (OCI) data centers in the US, providing clean, reliable, and cost-efficient power for large-scale AI workloads.
Oracle Corporation (ORCL) is seeing strong demand for OCI services across its data center portfolio, including its large gigawatt AI data centers. Bloom Energy Corporation’s (NYSE:BE) fuel cell technology will help meet the rising demand for OCI’s AI and cloud computing services.
Bloom Energy Corporation (NYSE:BE) is known for its fuel cell systems that provide resilient and scalable onsite electricity generation for data centers, semiconductor manufacturing, large utilities, and other commercial and industrial industries.
5. Applied Digital Corporation (NASDAQ:APLD)
Year-to-Date Performance: 60.51%
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is one of the best-performing AI stocks so far in 2025. On July 31, Craig-Hallum increased its price target for Applied Digital Corporation (NASDAQ:APLD) from $12 to $18 while keeping a Buy rating.
The firm highlighted the company’s recent 150 megawatt (MW) expansion and potential future opportunities.
Craig-Hallum pointed out that Applied Digital Corporation (NASDAQ:APLD) has experienced pressure over the past month and suggested that the market had not yet recognized the value of an additional 150 MW of capacity.
The increase in price target also reflects future opportunities. This includes the possibility of another campus in North Dakota with a hyperscale customer.
Craig-Hallum also noted the potential for Polaris Forge 1 campus in Ellendale, North Dakota, to scale up to 1 gigawatt (GW) capacity.
Applied Digital Corporation (NASDAQ:APLD) is a technology company that designs, develops, and operates digital infrastructure for the high-performance computing (HPC) and artificial intelligence (AI) industries.
4. Western Digital Corporation (NASDAQ:WDC)
Year-to-Date Performance: 63.67%
Number of Hedge Fund Holders: 78
Western Digital Corporation (NASDAQ:WDC) is one of the best-performing AI stocks so far in 2025. On July 31, Mizuho increased its price target for Western Digital Corporation (NASDAQ:WDC) from $75 to $87 while keeping an Outperform rating.
This decision came after the company’s strong results for the June quarter, with the company reporting $2.61 billion in revenue. Western Digital Corporation (NASDAQ:WDC) also provided guidance for the September quarter, forecasting revenue of $2.70 billion and EPS of $1.54, surpassing consensus estimates of $2.55 billion in revenue and $1.42 in EPS.
Western Digital Corporation (NASDAQ:WDC) reported that its Nearline hard disk drive shipments reached 170 exabytes for the June quarter, a 17% increase compared to the previous quarter, with cloud customers making up 90% of revenues. According to estimates by Mizuho, average selling prices rose by 7% compared to the previous quarter and are expected to remain strong.
Additionally, Western Digital Corporation (NASDAQ:WDC) reported strong purchase orders and long-term agreements with its five biggest cloud service provider customers through fiscal year 2026. Two of these five agreements extend into the first half of fiscal 2027.
The company’s margins were described as strong, with AI helping to shift the product mix towards higher-capacity drives.
Western Digital Corporation (NASDAQ:WDC) is a global provider of data storage solutions. The company is committed to serving the world’s hyperscalers, enterprises, and cloud providers to support the next generation of AI-driven data workloads.
3. Super Micro Computer, Inc. (NASDAQ:SMCI)
Year-to-Date Performance: 88.49%
Number of Hedge Fund Holders: 40
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the best-performing AI stocks so far in 2025. On July 11, Citi increased its price target for Super Micro Computer, Inc. (NASDAQ:SMCI) from $37 to $52 but kept a Neutral rating.
The firm noted that the demand for AI servers is improving. Citi analysts pointed out that Super Micro Computer, Inc.’s (NASDAQ:SMCI) management is optimistic about fulfilling “current commitments over the next two quarters as Blackwell GPU supply constraints ease.”
Despite this, the analysts remain worried about profit margins because of the competition from DELL and HPE. The analysts believe this “will temper margin expansion expectations.”
Citi forecasts Super Micro Computer, Inc.’s (NASDAQ:SMCI) Q4 fiscal 2025 revenue to be $6.07 billion, which represents a 13.4% increase year-over-year and a 32% increase from the previous quarter. The firm expects EPS of $0.45, roughly in line with consensus estimates.
For the first quarter of fiscal 2026, Citi forecasts revenue to increase to $7.02 billion and EPS to $0.65, both above consensus estimates.
Super Micro Computer, Inc. (NASDAQ:SMCI) is a technology company that specializes in application-optimized total information technology solutions with server, AI, storage, IoT, switch systems, software, and support services. The company is focused on delivering “first to market” innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure.
2. Palantir Technologies Inc. (NASDAQ:PLTR)
Year-to-Date Performance: 105.17%
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best-performing AI stocks so far in 2025. On July 10, Wedbush increased its price target for Palantir Technologies Inc. (NASDAQ:PLTR) from $140 to $160 while keeping an Outperform rating.
According to Wedbush, the company has a “golden path to become the next Oracle (ORCL)” in the coming years. The research firm believes that Palantir Technologies Inc. (NASDAQ:PLTR) is positioned as a core winner in the trillions of AI spending anticipated over the next few years.
The firm pointed out that the company’s AI platform strategy is turning into a foundational platform for enterprises implementing AI use cases in different sectors. Wedbush noted that new and existing customers are “waiting in line” to sign up for different aspects of Palantir Technologies Inc.’s (NASDAQ:PLTR) technology stack.
Additionally, Wedbush believes that the market does not fully see the company’s potential to generate over $1 billion in revenue over the next few years through its AI platform US commercial business.
Palantir Technologies Inc. (NASDAQ:PLTR) is an American software and AI company that specializes in big data analytics. It serves key government and commercial enterprises.
1. CoreWeave, Inc. (NASDAQ:CRWV)
Year-to-Date Performance: 160.35%
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the best-performing AI stocks so far in 2025. On July 15, CoreWeave, Inc. (NASDAQ:CRWV) announced that it plans to invest more than $6 billion in a new, advanced data center in Lancaster, Pennsylvania. This data center will be designed to support the most cutting-edge AI use cases.
The first phase of the project will have a capacity of 100 megawatts (MW), with the potential to expand to 300 MW. According to the report by CoreWeave, Inc. (NASDAQ:CRWV), this will be one of the first large-scale data centers of its kind in the region.
The Lancaster facility will feature modern equipment tailored for demanding AI workloads. CoreWeave, Inc. (NASDAQ:CRWV) expects this facility to help make Pennsylvania and the broader Mid-Atlantic region a key hub in the global AI industry.
This new data center will join CoreWeave, Inc.’s (NASDAQ:CRWV) growing network of 33 AI data centers, including 28 located across the US.
CoreWeave, Inc. (NASDAQ:CRWV) is an AI Hyperscaler that provides enterprises and leading AI labs with cloud solutions for accelerated computing. The company operates data centers across the US and Europe.
While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRWV and that has a 100x upside potential, check out our report about this cheapest AI stock.
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