Five stocks set to thrive with AI in 2025

As reported by Market Watch, in 2025, five companies could increase their profits due to advancements in artificial intelligence, reports a Kazinform News Agency correspondent. According to Baron Capital fund managers, these companies are Duolingo, Axon Enterprise, Kratos Defense & Security Solutions, SentinelOne, and Tempus AI.

Duolingo: Duolingo already uses AI in teaching foreign languages online. In the third quarter, the number of the company’s active users grew by 36% to 113 million, up from 83 million a year earlier. The number of paid subscribers rose by 47% to 8.6 million from 5.8 million, and sales increased by 40% to $192.6 million.

“It helps select the right exercise for the user and tailor the lesson accordingly,” says Ashim Mehra, a portfolio manager who likes the company and holds it in his Baron Technology Fund. “They understand where the industry is going and how to use AI in their products,” Mehra says.

Axon Enterprise: This Company sells body camera equipment and tasers. Axon deploys AI to mine body-cam audio and GPS data to write rough drafts of incident reports.

“Our customers are as excited as we are about what’s ahead. There’s no place where this is more clear to me than the area of artificial intelligence,” Axon CEO Patrick Smith told analysts on the company’s most recent earnings call.

Kratos Defense & Security Solutions: A defense contractor providing components and software used in the Patriot missile interceptor, the Iron Dome, satellites, and spacecraft.

“AI is a way for systems to take a massive amount of information and distill it into actionable intelligence,” says Randy Gwirtzman, portfolio manager at Baron Discovery Fund.

SentinelOne: Known for its cybersecurity solution, the Singularity Platform, SentinelOne processes data in real time to detect and prevent cyberattacks faster than humans can.

“Unlike traditional diagnostic labs, we can incorporate unique patient information, such as clinical, molecular, and imaging data, to make our tests more intelligent,” the company reports in filings.

Tempus AI: Focused on using AI to enhance the accuracy of medical diagnoses. Tempus uses AI to sift through a broad array of patient data, clinical trial results, genomic data, and other outcomes to improve diagnostic precision.

“This could potentially double the stock from here,” says Gwirtzman.

Previously, Kazinform News Agency reported on how AI is set to transform the future of libraries and research institutions.