Top 5 Generative AI Stocks to Watch in 2025

Generative AI witnessed remarkable advancements in 2024. Top generative AI companies like OpenAI, Google and Anthropic lead the LLM race with architecting and improving LLMs. Companies like Nvidia complimented the GenAI revolution with necessary hardware serving as the computational backbone. Also, these LLMs have made it possible to bring autonomous systems to life with agentic AI. And all of this is reflected in how the share prices of these companies have soared in 2024. As a fellow generative AI user and stock market investor, these are exciting times to invest and add such stocks to our portfolios. Through this article, I’ll introduce you to the top 5 generative AI stocks that may provide you with investment opportunities worth a fortune.

Top 5 Generative AI Stocks

In this article, we will be looking at 5 generative AI stocks trading in the US markets. We will be looking at companies which are:

• Using generative AI in their existing workflows to bring efficiency
• Creating new products using generative AI

Our primary focus would be on mid-cap/small-cap companies which are doing some tremendous work but are overshadowed in the news by the big giants – Google, Microsoft, Meta, Nvidia, etc.

And finally, be cautious of how you perceive this article, this is not investment advice. We just want to bring your attention to some publicly traded companies doing magic with generative AI.

So without any further ado, let’s look at 5 generative AI stocks you must check out.

1. Salesforce

It would be very rare for someone in the corporate world to not have heard of Salesforce; the unchallenged leader in customer relationship management (CRM). It offers a suite of tools for sales automation, marketing, customer service, and analytics.

Salesforce has been a leader in adopting generative AI technology to steer towards greater efficiency. In September 2024, it was in the news for the launch of Agentforce – a service that enables customers to use AI agents to handle computer-based tasks and improve productivity. In December 2024, they announced Agentforce 2.0 which surpasses the former by introducing Slack integration. This upgraded Atlas Reasoning Engine improved accuracy and expanded CRM and analytics capabilities, enabling more efficient and intelligent AI-driven workflows.

As a stock market investor in AI, such news coming from one of the top companies in its respective industry makes it worth it to check its numbers and possibly invest in it.

• Stock Price as of 20th December 2024: 343.65 USD
• Market Cap as of 20th December 2024: 328.87 billion USD

2. Phunware

Phunware Inc. is a small-cap enterprise software company that specializes in custom mobile app solutions, analytics, digital advertising, and location-based services. They focus on enhancing mobile engagement through scalable, personalized app experiences and a digital asset ecosystem.

Phunware too has been making its move with the advent of Generative AI. In October 2024, Phunware Inc. announced the development of a generative AI-based platform aimed at democratizing mobile app creation. This platform will enable businesses of all sizes to design, build, and deploy high-quality custom mobile applications rapidly, significantly reducing the time and cost associated with traditional app development. 

As an AI stock market investor, this is a very risky but highly rewarding investment opportunity to add to your portfolio. Especially considering how volatile this small-cap stock has been, from a market cap of 12 million USD in 2023 to 120 million USD in Q1 2024 and back to 61 million USD in Q4 2024. So do your due diligence and watch out for its performance.

• Stock Price as of 20th December 2024: 3.89 USD
• Market Cap as of 20th December 2024: 77.37 million USD

3. SoundHound AI

SoundHound AI provides a voice AI platform for creating custom conversational experiences. It specializes in voice recognition and natural language understanding, enabling voice-enabled applications across industries like automotive, IoT, and customer service. Its products include Smart Answering and SoundHound Chat AI, which enhance user interactions and business analytics

In August 2024, SoundHound AI acquired Amelia, an enterprise AI software company specializing in conversational AI agents for customer service and support. This strategic acquisition expanded SoundHound’s reach across multiple industries, including retail, financial services, healthcare, automotive, and more. And its impact is already being recognized in the industry. SoundHound AI’s Amelia platform was named by Frost & Sullivan as a leader for driving innovation and growth in patient engagement and operational efficiency

All this has added to a soaring stock for SoundHound AI Inc. (SOUN) has shown remarkable stock performance in 2024, with its share price increasing by over 900% year-on-year, significantly outperforming major AI companies like Nvidia. An interesting generative AI stock to add to your list of stocks.

• Stock Price as of 20th December 2024: 21.76 USD
• Market Cap as of 20th December 2024: 8.04 billion USD

4. Innodata

Innodata is a global data engineering company on a mission to help the world’s leading technology companies and enterprises drive Generative AI innovation. They provide a range of transferable solutions, platforms, and services for Generative AI /AI builders and adopters.

In 2024 Innodata Inc. launched an open-source LLM Evaluation Toolkit, accompanied by 14 semi-synthetic and human-crafted datasets, enabling enterprises to assess the safety of their LLMs across multiple harm categories. This toolkit assists data scientists in identifying and mitigating problematic outputs, with a commercial version anticipated later this year. 

Innodata also introduced Intelligent Insights, a generative AI-powered feature within its Agility PR Solutions platform. This enables organizations to swiftly analyze global media content, assess brand mentions and trends, and perform language translations, thereby enhancing decision-making regarding company reputation and industry positioning. 

As an AI stock investor, if we check the one-year trend, Innodata has gone up by approximately 400%. Combine this with the strides they are making with Generative AI, and Innodata looks like a strong investment opportunity to add to your list of stocks.

• Stock Price as of 20th December 2024: 43.01 USD
• Market Cap as of 20th December 2024: 1.25 billion USD

5. UiPath

UiPath is a leading robotic process automation (RPA) company that helps businesses automate repetitive tasks. The UiPath Platform accelerates the shift toward a new era of agentic automation—one where agents, robots, people, and models integrate seamlessly to enable autonomous processes and smarter decision making.

Recently, UiPath has integrated Anthropic’s large language model, Claude 3.5 Sonnet, into its platform to enhance AI capabilities across three key products:

• UiPath Autopilot for Everyone: An AI companion that streamlines daily work tasks by providing instant, accurate answers to business questions and automating digital paperwork.
• Clipboard AI: A tool that automates data entry by intelligently extracting information from digital documents and pasting it into enterprise applications.
• Medical Record Summarization Solution: A new feature designed to improve the analysis of medical records, enabling faster and more accurate summarization.

This integration aims to offer customers improved productivity, cost savings, and decision-making capabilities by combining UiPath’s automation platform with Claude’s advanced AI features.

As someone on the lookout to invest in generative AI stocks into their portfolio, this seems like a risky investment opportunity. The stock price has been on a downward trajectory with the price eroding by more than 80% from the 2021 price level. However, the company’s actions look promising with the strides they are taking by adopting LLMs and agents. So, this is definitely a stock to watch out for. 

• Stock Price as of 20th December 2024: 13.25 USD
• Market Cap as of 20th December 2024: 7.28 billion USD

Also Read: Top 10 Generative AI Startups of 2025

Conclusion

The generative AI revolution continues to redefine industries, offering unparalleled innovation and efficiency. While giants like Google and Nvidia dominate headlines, mid-cap and small-cap companies such as Salesforce, Phunware, SoundHound AI, Innodata, and UiPath are making significant strides in adopting and leveraging generative AI. These companies showcase a mix of innovation and risk, making them exciting investment opportunities for forward-thinking investors. As you explore these generative AI stocks, remember to consider your investment strategy and risk tolerance carefully. Generative AI holds immense potential, and these companies could be pivotal players in shaping its future impact on the global economy.

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