9 AI Stocks That Still Have Positive One-Year Returns

AI stocks saw tremendous growth over the last year. NVIDIA and SoundHound in particular hogged much of the spotlight for their massive spikes in value. But what does the AI industry have in store for 2025, especially given tariffs and broad market volatility?

While there's been some speculation that the hype around AI may be overblown, or that geopolitical issues could stymie semiconductor development that's critical to AI's success, several AI companies continue to perform well thus far this year.

9 best-performing AI stocks

Here are the nine best-performing stocks in the Indxx Global Robotics & Artificial Intelligence Thematic Index, ordered by one-year returns. With so much going on in the markets right, we'll keep this list updated weekly.

» Want to start investing in AI stocks? You'll need an investment account first. Here's our list of the best brokerages for stock trading

Who are the five best-performing companies?

1. SoundHound AI Inc. (SOUN)

SoundHound AI creates voice-based AI products, such as a voice assistant for restaurants that allows customers to place orders, ask about hours and create reservations. In addition to the food service industry, SoundHound creates products for the automotive and hospitality sectors as well. The company boasts an impressive client list, including Hyundai, Pandora, KrispyKreme, White Castle, Toast and Square.

2. Upstart Holdings Inc. (UPST)

Upstart is an AI lending marketplace that connects users to banks and credit unions to help them find personal, auto and refinance loans. The platform also features home equity lines of credit and small “relief” loans. Upstart claims to have close to three million customers and that its AI technology helps lenders approve more people from marginalized communities.

3. Faro Technologies Inc. (FARO)

Faro Technologies is an imaging company that operates in a variety of industries, including aerospace, defense, automotive and natural resources. The company offers 3D measurement and imaging solutions, as well as hardware like 3D laser scanners and measurement hardware.

4. Pegasystems Inc. (PEGA)

Pegasystems offers an AI decisioning and workflow automation platform that helps companies automate customer service, personalize engagement and streamline operations. Pegasystems’ CEO Alan Trefler has been working in AI for over 40 years, and the company’s client base includes Aflac, Booking.com and Ford.

5. Intuitive Surgical Inc. (ISRG)

Intuitive creates products and services to advance minimally-invasive care. The company specializes in robotic-assisted surgical and bronchoscopy systems. Intuitive’s systems have been used in more than 14 million procedures worldwide.

What are AI stocks?

AI stocks are shares of companies that work in the artificial intelligence space or heavily utilize AI in their business operations. There are many applications for AI, and thus a large variety of AI stocks: Some AI companies create voice recognition software. Others create pilotless aircraft.

According to Haydar Haba, the founder of Andra Capital, a venture capital firm that invests in AI companies there are several publicly traded companies that have substantial AI interests and are poised to benefit from the growth of the industry.

» Want some practice first? Try paper trading

AI stocks tend to fall into one of two categories: blue-chip technology companies that have invested in or partnered with AI developers, and small, experimental companies that are completely focused on AI development.

Shares of small AI developers might seem like the most “direct” investments in AI, but Michael Brenner, a research analyst who covers AI for FBB Capital Partners, says they’re not necessarily the best AI investments.

“Large language models require a tremendous amount of data and a huge amount of capital to put together,” Brenner says.

Brenner notes that small companies may develop innovative new models on their own, but eventually they will have to partner with a bigger company that has more infrastructure in order to run those models at a commercial scale.

“So far, we’re sticking with more of the mega-cap tech companies,” Brenner says, referring to FBB Capital Partners’ AI portfolio.

How to invest in AI stocks

If you're very new to stock trading and want to invest in AI stocks, the first step is to open a brokerage account.

From there you'll need to decide what kind of AI stock exposure you want. Individual AI stocks can potentially offer high returns, but require taking on a lot of risk, upfront expense and research work.

Another option is to invest in AI stocks via pooled exchange-traded funds that focus on AI.

» Check out our roundup of the best online brokerages for stock trading

How to find AI ETFs

Haba said investors can also get exposure to AI stocks through exchange-traded funds that invest in a basket of companies involved in AI development and implementation.

There are several AI stock indexes — like the Indxx Global Robotics & Artificial Intelligence Thematic Index and the Nasdaq CTA Artificial Intelligence & Robotics Index — which are tracked by ETFs.

You can also find AI ETFs in an ETF screener by searching for “artificial intelligence,” “machine learning” or “AI,” but make sure to thoroughly research any ETF you find this way.

Some ETFs that have “AI” in their name invest in AI-linked companies. But others are diversified ETFs that use AI-powered trading, and are not necessarily invested in AI stocks.

» Check out the best AI ETFs

Could we be in an AI bubble?

It depends on who you ask. According to some analysts, we are not in an AI bubble^[0]

Haba said that there are some signs investors may be overenthusiastic about the potential of AI right now.

“AI has been used as a buzzword to drive share price premiums, but companies have not always demonstrated usage of cutting-edge techniques,” he said.

“In the private markets, we are seeing hundreds of millions of dollars flow into ‘AI’ companies that have no product market fit. While investors are justifying such investments based on growth potential, it remains unclear whether that potential can or will ever be monetized,” Haba said.

Brenner also acknowledges that some individual AI-linked companies have seen their valuations increase sharply without a big change in their business fundamentals.

However, Brenner doesn’t think that the current surge of interest in AI amounts to a bubble, because many indexes of technology stocks are still below their previous highs.

“At macro-level, it’s hard to say we’re in a bubble, because we’re not at an all-time high,” Brenner says.

One thing for sure is that tech stocks account for a high market capitalization. In other words, tech stocks may be occupying a greater percentage of your portfolio than in previous years. This can make portfolios riskier in the event that we are in an AI bubble.

Should you invest in AI stocks?

Investors should think carefully before buying individual stocks or narrowly focused ETFs. Targeted investments can be riskier than broad investments, such as S&P 500 index funds, which have a long-term average annual return, not accounting for inflation, of about 10%.

One guideline that can help limit that extra risk is to devote no more than 10% of your overall portfolio to individual stocks.

But if you’re financially secure enough to buy individual stocks, Brenner says AI stocks are worth considering.

“I think retail investors should be thinking about how machine learning is going to impact the stocks they own,” he says.

“For individual investors looking at individual stocks in their 401(k)s, if they can weather the volatility of individual stocks, investing in AI-related companies as part of a diversified portfolio could make sense,” Brenner says.

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