Considering how well artificial intelligence (AI) stocks have done over the past two years, it's hard to imagine some of them going even higher. However, this industry still has significant tailwinds as we have barely scratched the surface of what is possible with AI.

Agentic AI represents a significant shift from earlier forms of AI, signaling both promises and challenges for the future.

Palantir emerged as one of the best pure-play AI investments in 2024. The stock had a phenomenal year, rising 340%. However, 2025 hasn't been so kind to Palantir stock, which has plummeted 16% to start the year.