As 2024 wraps up with the S&P 500 achieving a remarkable 26.6% gain, artificial intelligence (AI) continues to dominate the tech landscape. With AI driving rapid advancements across industries, stocks in this space have surged in value, offering significant growth potential for long-term investors. If you’re ready to commit even a modest amount to your portfolio, consider these three AI-powered stocks that stand out for 2025: Palantir Technologies (PLTR), C3.ai (AI), and UiPath (PATH).

1. Palantir Technologies (NASDAQ: PLTR)

Palantir has solidified its position as a leader in data analytics and AI-driven solutions. Known for its strong government and enterprise customer base, the company’s Artificial Intelligence Platform (AIP) sets it apart by focusing on real-world applications rather than generic AI models.

  • Key Metrics:
    • Q3 2024 revenue rose 30% year-over-year to $729 million.
    • Operating margin stood at 38%, with $1 billion in free cash flow over the trailing year.
    • Customer base grew 39% year-over-year to 629 clients.
  • Outlook:
    Despite its lofty price-to-sales (P/S) ratio of 70.9, far above its five-year average, Palantir’s recent inclusion in the S&P 500 and its robust AI tailwinds make it a compelling long-term buy.

2. C3.ai (NYSE: AI)

As a leader in enterprise AI, C3.ai has been making significant strides in diversifying revenue streams and forming strategic alliances.

  • Key Metrics:
    • Q2 fiscal 2025 revenue grew 29% year-over-year to $94.3 million, marking seven consecutive quarters of accelerating growth.
    • Non-Baker Hughes revenue surged 41%, reducing dependency on its primary client.
    • Recently inked a deal with Microsoft, integrating its services into Microsoft Azure, providing access to 95% of Fortune 500 companies.
  • Financial Position:
    With over $730 million in cash and minimal debt, C3.ai has the flexibility to invest in research and development. While its P/S ratio of 14.1 exceeds its historical average, the company’s partnership with Microsoft and strong market positioning make it an attractive pick for 2025.

3. UiPath (NYSE: PATH)

UiPath has emerged as a leader in robotic process automation (RPA) and is now venturing into AI agent automation—a market expected to grow from $0 in 2023 to $4.1 billion by 2028.

  • Key Metrics:
    • Fiscal Q3 2025 annual recurring revenue (ARR) rose 17% year-over-year to $1.6 billion.
    • Dollar-based net retention rate of 113% reflects strong customer retention and cross-selling.
    • Over 1,000 organizations have signed up for its AI agent builder preview, showcasing high demand for its innovations.
  • Outlook:
    UiPath is well-positioned to capture opportunities in the fast-growing AI automation market, supported by its proven track record in RPA and new AI-powered tools.

The AI revolution is just beginning, and these three companies are at the forefront of transformative innovation. While each has shown significant recent growth, their unique market positions and focus on AI-powered solutions provide immense long-term potential. Whether it’s Palantir’s focus on mission-critical AI deployment, C3.ai’s strategic partnerships, or UiPath’s leadership in automation, these stocks could be smart additions to any 2025 portfolio.

This story was originally featured on Finance.Yahoo.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.