The rapid growth of artificial intelligence (AI) continues to reshape industries around the world, and experts are closely monitoring its trajectory. In December 2024, Roosevelt Bowman, Senior Investment Strategist at Bernstein Private Wealth Management joined ‘Wealth’ hosted by Yahoo Finance to share his insights on the AI landscape heading into 2025. Bowman predicts that AI will move beyond its current focus on semiconductors and cloud computing. He expects that it will expand into power infrastructure and cooling technologies, which play a crucial role in running large-scale AI models effectively.

Bowman also highlighted that AI models have tremendous power requirements of AI data centers. He emphasized the need for reliable energy sources to meet these demands and noted that this could lead to new market opportunities in sectors that support AI’s operational needs.

READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 Unrivaled Stocks of the Next 5 Years.

On February 28, 2025, Alex Zukin, managing director and head of software research at Wolfe Research joined Market Domination Overtime on Yahoo Finance to discuss the evolving role of AI in the software industry. Zukin noted that 2025 could be a pivotal year for software companies to unlock the real value of AI.

He pointed out that AI technology is moving extraordinarily quickly. Zukin expects this year to mark a turning point as companies start to implement AI solutions into production and unlock benefits. However, he cautioned the companies not to overpromise on artificial intelligence.

Zukin also told Yahoo Finance about the seasonality of the enterprise software market. The first quarter is typically difficult, but he expects growth to accelerate in the second half of 2025.

Beyond software, there is significant potential for AI to drive innovation across various industries.

With this background in mind, let’s take a look at the 8 fastest-growing AI stocks to buy now.

Methodology

To compile our list of the 8 fastest-growing AI stocks to buy right now, we looked for the largest and most popular AI companies. We reviewed Insider Monkey’s database of prominent AI stocks, financial media reports, ETFs, and various online resources to compile a list of more than 30 AI stocks. To look for the fastest-growing AI stocks, we narrowed down our list to companies with a compound annual growth rate (CAGR) in revenue exceeding 10% over the past 3 years and a year-over-year revenue growth rate of more than 25%. Next, we focused on the top 8 fastest-growing AI stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 8 fastest-growing AI stocks to buy right now were ranked in ascending order based on the number of hedge funds holding stakes in them, as of Q4 2024.

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8 Fastest Growing AI Stocks To Buy Right Now

8. Palantir Technologies Inc. (NASDAQ:PLTR)

Year-Over-Year Revenue Growth Rate: 28.79%

3-Year Revenue CAGR: 22.95%

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) is an American software company that specializes in software platforms for big data analytics. The company builds and deploys software platforms that serve as the central operating systems for its customers. Through its AI-powered platforms, Palantir Technologies Inc. (NASDAQ:PLTR) serves government and defense customers as well as commercial clients across manufacturing, healthcare, and financial services. PLTR ranks among the best high-growth stocks to invest in.

The company is focused on embedding scalable AI solutions to drive innovation across industries. On March 5, Palantir Technologies Inc. (NASDAQ:PLTR) announced a joint venture with TWG Global with an aim to transform the use of AI in financial services such as banking, investment management, and insurance. This collaboration will see Palantir Technologies Inc.’s (NASDAQ:PLTR) advanced AI infrastructure combine with TWG’s expertise in financial operations to create a unified, fully embedded, enterprise-wide AI strategy that will replace fragmented solutions. The full-scale AI solution will embed intelligence across every core function of financial institutions and insurance companies including compliance, fraud detection, risk monitoring, credit and lending, and operational efficiency.

7. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Year-Over-Year Revenue Growth Rate: 29.39%

3-Year Revenue CAGR: 39.65%

Number of Hedge Fund Holders: 77

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is an American cybersecurity technology company that ranks among the best high-growth stocks to invest in. The company’s cloud-native Falcon platform, which is powered by AI, protects critical areas of enterprise risk and provides endpoint security, threat intelligence, and response services.

Aristotle Atlantic Partners, LLC, an investment advisor, has a positive outlook on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and stated in its “Core Equity Strategy” Q4 2024 investor letter that the cloud cybersecurity market is expected to experience strong growth over the next few years. This growth will be driven by continued migration from on-premises to cloud-based architecture. Aristotle Atlantic Partners, LLC expects CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to capitalize on this trend due to its early-mover advantage, multiple product offerings, and native integrations with leading cloud platforms. The increase in sophisticated threats from state-backed cyber criminals leveraging high-performance computing and AI demands higher spending on advanced cybersecurity products. The investment advisory firm believes that the total addressable market will experience significant growth over the next 4 calendar years. The investor letter also noted that CrowdStrike Holdings, Inc.’s (NASDAQ:CRWD) cloud-native architecture and unified platform approach provide competitive advantages that lead to high customer retention.