2 high-growth AI stocks I’d love to buy in 2025

Artificial intelligence (AI) stocks have been volatile this week. This is due to the fact that the emergence of Chinese AI app DeepSeek has shaken up the market. As a long-term investor, however, I remain very bullish on the artificial intelligence theme as the technology is likely to have a profound impact on the world over the next decade. With that in mind, here’s a look at two top AI stocks I’d love to buy for my portfolio in 2025.

Rolling out AI agents

One company that I think has huge potential on the AI front is ServiceNow (NYSE: NOW). It’s a software company that enables businesses to automate processes and deliver better experiences to employees and customers.

ServiceNow’s software is already embedded within the corporate world. Currently, the company serves 85% of the Fortune 500.

However, it’s now rolling out some really exciting AI products. An example here is its AI agents. Designed to boost efficiency, these can autonomously perform tasks (across a range of departments). So, they have the potential to significantly reduce costs for firms.

I wouldn’t be surprised if, in a decade’s time, these AI agents are doing a lot of work that is done by humans today (e.g. customer service). Taking a long-term view, I reckon this company has the potential to be a genuine winner in the AI space.

Now, the issue with this stock for me right now is the valuation. Currently, the forward-looking price-to-earnings (P/E) ratio is about 68. That’s a little too high for me. Because it doesn’t leave any room for error (like a short-term slowdown in revenue growth).

I am prepared to pay a high valuation here as the company is growing quickly. This year, analysts expect revenue to climb 20%.

But I’m not prepared to invest at the current valuation. So, I’m going to wait patiently for a pullback in the hope that I can snap up some shares at a lower earnings multiple.

Helping businesses get an edge

Another tech company that appears to have a ton of potential in the AI space is Palantir (NASDAQ: PLTR). It specialises in software that helps organisations use their data to get an edge.

In the past, Palantir has had a lot of success working with government organisations. From the FBI and the CIA to the UK’s NHS, it has won a lot of major contracts.

Now however, the company is moving into the corporate world and it’s having success here too. In Q3 2024, commercial revenues were up 54% year on year.

One product that is driving this success is Palantir’s AIP (Artificial Intelligence Platform) product. This is a powerful platform that enables businesses to rapidly deploy AI.

Now again, it’s the valuation that is the deal-breaker for me here. Currently, Palantir sports a P/E ratio of 159.

I just can’t bring myself to pull the trigger and invest at that price. If the company was to experience some kind of setback like a slowdown in contract wins or a cyberattack, the shares could fall significantly.

I am keen to get a few Palantir shares into my portfolio at some stage, however. I’m hoping an opportunity presents itself in 2025.

The post 2 high-growth AI stocks I’d love to buy in 2025 appeared first on The Motley Fool UK.

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Edward Sheldon has no position in any of the shares mentioned. The Motley Fool UK has recommended ServiceNow. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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