Artificial Intelligence (AI) is hot. And in this quick note, I share data on 3 of the absolute hottest AI stocks right now. Each one is very different than the others.
(data as of Friday 24-Jan-2025, source: StockRover)
For starters, check out the incredible year-to-date performance of each of these stocks (in the table above) as compared to the benchmark S&P 500 ETF (VOO) index.
Tempus AI (TEM)
Tempus AI is focused on building the leading AI-enabled (Intelligent) Diagnostic platform in the world, by integrating Data + Diagnostics. And in the last week, Nancy Pelosi and Cathie Wood both purchased, and it seems like Larry Ellison alluded to it in a speech with regards to the new $500 billion AI infrastructure announcement from the white house (i.e. “Stargate”).
Vertiv (VRT)
Vertiv makes electrical components for data centers. Data centers run AI applications, and have been growing very rapidly. Therefore, Vertiv is on a high fundamental growth trajectory too.
Vistra Corp (VST)
Vistra Corp has seen significant stock price increases due to its natural gas and nuclear power facilities, which are ideal for meeting the scalability and reliability needs of data centers. It has been identified as one of the top performers in the utility sector due to the AI data center boom.
Worth Considering:
Some investors might be tempted to wait for a pullback before they even consider buying any of these names, whereas others (call them “momentum” investors) recognize the upwards price trajectory combined with a healthy runway for more fundamental upside (based on the long-term AI megatrend).
If you are going to consider owning any of these names, I recommend considering them in a small amount, and as part of a prudently-diversified, goal-focused, long-term investment portfolio.