20 AI stocks expected to post the highest compound annual sales growth through 2025
By Philip van Doorn
AI is "the next new thing" in tech, but unlike other investment fads, this one seems likely to have staying power as it transforms many industries
Things move quickly in the world of artificial intelligence. It is easy to sit back and complain about developments that could be disruptive, but sometimes investors are best served by putting emotions aside and observing new developments and how they affect markets. Could AI developments and related trends make you a lot of money?
Below is a new screen showing a group of AI-oriented companies expected to increase their sales most rapidly through 2025, based on consensus estimates among analysts polled by FactSet. Then we show expected revenue growth rates for the largest AI-oriented companies in the screen.
Over the long haul, many businesses might perform more efficiently by employing AI. Maybe this technology can create an economic revolution similar to the one that moved the majority of the working population away from agricultural labor during the 19th and 20th centuries.
Back in February, we screened 96 stocks held by five exchange-traded funds focused on AI and related industries and listed the 20 that analysts thought would rise the most over the following 12 months.
Three months is a long time for AI, and the shakeout hasn't even started.
Read:Congress and tech seem open to regulating AI efforts, but that doesn't mean it will happen
There is no way to predict how politicians will react to perceived or real threats of AI and machine learning. And the largest U.S. tech players are doing everything they can to employ the new technology and remain dominant. But that doesn't mean they will grow more quickly than smaller AI-focused players.
A new AI stock screen
Once again we will begin a screen with these five ETFs:
Altogether and removing duplicates, the five ETFs hold 270 stocks of companies in 23 countries. We first narrowed the list to 197 covered by at least nine analysts and for which consensus sales estimates are available through calendar 2025. We used calendar-year estimates because some companies have fiscal years that don't match the calendar.
Here are the 20 screened AI-related companies expected by analysts to have the highest compound annual growth rates (CAGR) for sales from 2023 through 2025. Sales estimates are in millions of U.S. dollars. The list also shows which of the above five ETFs holds each stocks.
Company Ticker Estimated sales -- 2023 ($mil) Estimated sales -- 2024 ($mil) Estimated sales -- 2025 ($mil) Two-year estimated sales CAGR through 2025 Held by BioXcel Therapeutics Inc. BTAI $5 $39 $121 411.5% WTAI Luminar Technologies Inc. Class A LAZR $86 $266 $588 161.0% ROBT, WTAI BlackBerry Ltd. CA:BB $685 $769 $1,925 67.6% ROBT Credo Technology Group Holding Ltd. CRDO $183 $259 $363 40.9% IRBO SentinelOne Inc. Class A S $619 $881 $1,176 37.9% WTAI Wolfspeed Inc. WOLF $982 $1,323 $1,860 37.6% WTAI SK hynix Inc. KR:000660 $18,319 $27,899 $34,542 37.3% WTAI Mobileye Global Inc. Class A MBLY $2,109 $2,782 $3,920 36.3% ROBT, WTAI Snowflake Inc. Class A SNOW $2,811 $3,863 $5,139 35.2% IRBO, THNQ, WTAI Lemonade Inc. LMND $395 $471 $712 34.2% THNQ, WTAI Nio Inc. ADR Class A NIO $11,874 $16,733 $21,304 33.9% ROBT Stem Inc. STEM $607 $833 $1,055 31.8% WTAI Upstart Holdings Inc. UPST $547 $768 $938 31.0% BOTZ, WTAI Cloudflare Inc. Class A NET $1,284 $1,669 $2,194 30.7% THNQ Samsara Inc. Class A IOT $830 $1,062 $1,364 28.2% THNQ Ambarella Inc. AMBA $287 $355 $472 28.2% IRBO, ROBT, THNQ, WTAI iflytek Co. Ltd. Class A CN:002230 $3,561 $4,582 $5,851 28.2% THNQ Tesla Inc. TSLA $99,558 $128,412 $161,061 27.2% ROBT, THNQ, WTAI CrowdStrike Holdings Inc. Class A CRWD $2,935 $3,793 $4,739 27.1% THNQ, WTAI PB Fintech Ltd. IN:543390 $358 $462 $573 26.5% IRBO Source: FactSet
Click the tickers for more about each company or ETF.
Click here for Tomi Kilgore's detailed guide to the wealth of information for free on the MarketWatch quote pages.
We have screened for expected revenue growth, rather than for earnings or cash flow, because in a newer tech-oriented business area, investors are most likely to consider the top line as companies sacrifice profits to build market share.
It is important to do your own research if you consider purchasing any individual stock, to form your own opinion about a company's ability to remain competitive over the long term. Starting from the top of the list, BioXcel Therapeutics Inc. (BTAI) is expected to show exponential sales growth, but that is from a low expected baseline this year.
What about the largest AI-related companies held by these ETFs?
Here are the largest 20 companies in the screen by market capitalization, ranked by expected sales CAGR from 2022 through 2025. Once again the sales estimates are in millions of U.S. dollars, but the market caps are in billions.
Company Ticker Estimated sales -- 2023 ($mil) Estimated sales -- 2024 ($mil) Estimated sales -- 2025 $mil) Two-year estimated sales CAGR through 2025 Market Cap ($bil) Held by Tesla Inc. TSLA $99,558 $128,412 $161,061 27.2% $528 ROBT, THNQ, WTAI Nvidia Corp. NVDA $29,839 $36,877 $46,154 24.4% $722 BOTZ, IRBO, ROBT, THNQ, WTAI Taiwan Semiconductor Manufacturing Co. Ltd. ADR TSM $71,434 $86,284 $101,112 19.0% $445 ROBT, WTAI Advanced Micro Devices Inc. AMD $22,976 $26,823 $30,359 15.0% $163 IRBO, ROBT, THNQ, WTAI ASML Holding NV ADR ASML $28,974 $32,374 $37,796 14.2% $263 THNQ, WTAI Microsoft Corp. MSFT $223,438 $251,028 $282,397 12.4% $2,318 IRBO, ROBT, THNQ, WTAI Samsung Electronics Co. Ltd. KR:005930 $200,595 $227,286 $252,129 12.1% $292 IRBO, WTAI Amazon.com Inc. AMZN $559,438 $626,549 $702,395 12.1% $1,164 IRBO, ROBT, THNQ, WTAI Adobe Inc. ADBE $19,470 $21,784 $24,276 11.7% $158 IRBO, THNQ
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