Top AI Stocks Forecasted to Deliver Strong Compound Annual Sales Growth by 2025

The world of artificial intelligence (AI) is rapidly evolving, and it’s crucial to keep up with the developments and their impact on markets. While it’s easy to complain about disruptive changes, investors should put emotions aside and observe how new AI developments can potentially be profitable.

Below is a list showing a group of AI-oriented companies expected to experience significant sales growth by 2025, based on consensus estimates from analysts polled by FactSet. Additionally, revenue growth rates for the largest AI-oriented companies are also highlighted.

In the long run, AI has the potential to enhance business efficiency, possibly leading to an economic revolution similar to the shift from agricultural labor during the 19th and 20th centuries.

However, the field of AI evolves rapidly, and three months can bring substantial changes. The true impact of AI and machine learning on society remains uncertain, as it depends on how politicians react to perceived or real threats. While major U.S. tech players are actively adopting AI, smaller AI-focused companies may grow faster.

Let’s examine the first five ETFs:

1. Global X Robotics & Artificial Intelligence ETF (BOTZ): Established in 2016, BOTZ has $1.8 billion in assets and tracks an index of companies expected to benefit from robotics and AI utilization. The fund’s largest holdings are Intuitive Surgical Inc. (10%) and Nvidia Corp. (9.4%).

BOTZ is designed to track the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index, which includes companies from around the world that are at the forefront of robotics and AI innovation. The index comprises both established players and emerging companies involved in various aspects of the robotics and AI ecosystem, such as industrial automation, autonomous vehicles, healthcare robotics, and AI software.

Investing in BOTZ allows individuals and institutions to gain diversified exposure to the robotics and AI sector without having to select individual stocks. The ETF offers a convenient way to invest in a portfolio of companies that are driving technological advancements and shaping the future across multiple industries.

The robotics and AI industry has witnessed significant growth in recent years and is poised for further expansion. Companies in this sector are revolutionizing manufacturing processes, enhancing healthcare systems, improving logistics and transportation, and transforming various other sectors through automation and intelligent systems.

BOTZ provides investors with the opportunity to participate in this growth potential. By investing in the ETF, individuals can access a range of companies involved in robotics and AI, including industry leaders like Nvidia, Intuitive Surgical, and ABB Ltd., among others. These companies are at the forefront of developing innovative technologies and are positioned to benefit from the increasing demand for robotics and AI solutions.

Furthermore, the ETF’s global focus allows investors to capture opportunities in various regions, including North America, Europe, Asia, and other emerging markets. This diversification helps mitigate country-specific risks and potentially enhances returns.

2. iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): Launched in 2018, IRBO holds 116 stocks equally weighted. It tracks a global index of companies generating at least 50% of revenue from robotics or AI, or having significant exposure to related industries. IRBO has $304 million in assets.

The iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) is an investment fund designed to provide exposure to companies involved in the robotics and artificial intelligence (AI) industries. Launched by BlackRock, the world’s largest asset management firm, IRBO offers investors a convenient way to access the growing opportunities in these sectors.

With the increasing integration of robotics and AI technologies into various industries, IRBO aims to capitalize on the potential for growth and innovation. The ETF invests in companies that are engaged in the development, production, or implementation of robotics and AI technologies across sectors such as healthcare, manufacturing, transportation, and more.

By investing in IRBO, individuals and institutions can gain exposure to a diversified portfolio of global companies at the forefront of robotics and AI. These companies may include manufacturers of robotics hardware, providers of AI software and algorithms, and firms that specialize in automation solutions. The fund’s diversified approach helps reduce the risk associated with investing in individual companies, as it spreads the investment across multiple holdings.

IRBO’s performance is closely tied to the overall performance of the robotics and AI sectors. As these industries continue to grow and evolve, the ETF aims to capture their potential upside. However, it’s important to note that like any investment, IRBO carries certain risks, including market volatility and fluctuations in the performance of underlying companies.

3. First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT): Established in 2018 with $246 million in assets, ROBT holds 107 stocks with a modified weighting based on companies’ direct involvement in AI or robotics.

The First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT) is an exchange-traded fund designed to track the performance of companies involved in the artificial intelligence (AI) and robotics sectors. Launched by First Trust Advisors, ROBT aims to provide investors with exposure to the potential growth and innovation in these industries.

ROBT seeks to replicate the performance of the Nasdaq CTA Artificial Intelligence & Robotics Index, which includes companies that are primarily engaged in the development, production, or implementation of AI and robotics technologies. The index utilizes a rules-based methodology to select and weight the underlying securities.

Investing in ROBT offers individuals and institutions a convenient way to access a diversified portfolio of global companies that are leading the way in AI and robotics. The fund’s holdings may include companies involved in the manufacturing of robotics hardware, providers of AI software and algorithms, and firms specializing in automation solutions.

By investing in a basket of companies rather than individual stocks, ROBT helps mitigate some of the risks associated with investing in a single company. The fund’s diversified approach allows investors to spread their investment across multiple holdings, reducing the impact of any single stock’s performance on the overall portfolio.

4. Robo Global Artificial Intelligence ETF (THNQ): With $26 million in assets and established in 2020, THNQ holds 69 stocks, employing a scoring system to weight holdings based on the percentage of revenue derived from AI. Minimum market capitalization and liquidity requirements also apply.

The Robo Global Artificial Intelligence ETF (THNQ) is an exchange-traded fund that aims to provide investors with exposure to companies at the forefront of the artificial intelligence (AI) industry. THNQ, created by Robo Global, tracks the performance of the proprietary Robo Global Artificial Intelligence Index.

THNQ invests in a diversified portfolio of global companies that are involved in various aspects of the AI industry. These companies may include AI software and hardware developers, data analytics firms, robotics manufacturers, and companies utilizing AI technologies across different sectors. The fund’s holdings are selected based on a rules-based methodology that considers factors such as revenue, market capitalization, and liquidity.

By investing in THNQ, individuals and institutions gain access to a broad range of companies that are driving innovation and advancement in the AI field. The fund offers investors exposure to cutting-edge technologies and solutions that have the potential to reshape industries and improve productivity.

One of the advantages of investing in THNQ is its focus on pure-play AI companies. The fund specifically targets companies that derive a significant portion of their revenue from AI-related activities. This focus provides investors with a more concentrated exposure to the AI industry compared to other ETFs that have broader technology or thematic mandates.

However, it’s important to note that investing in THNQ carries certain risks. The performance of the fund is subject to market volatility, changes in the AI industry, and the performance of its underlying holdings. Additionally, the fund’s focus on a specific industry may result in greater volatility and potential for losses compared to more diversified funds.

5. WisdomTree Artificial Intelligence and Innovation Fund (WTAI): Established in December with $13 million in assets, WTAI holds 73 stocks in an equal-weighted portfolio. Stocks are handpicked, focusing on companies generating at least 50% of revenue from AI and innovation activities.

The WisdomTree Artificial Intelligence and Innovation Fund (WTAI) is an exchange-traded fund (ETF) that focuses on providing investors with exposure to companies involved in the field of artificial intelligence (AI) and innovation. WTAI, created by WisdomTree Investments, aims to capture the potential growth and advancements in these sectors.

WTAI seeks to replicate the performance of the WisdomTree Artificial Intelligence Index, which is composed of global companies that are leaders in AI and innovative technologies. The index utilizes a rules-based methodology to select and weight its holdings. The selection process includes factors such as revenue growth, research and development (R&D) expenditure, and patent filings.

By investing in WTAI, individuals and institutions gain access to a diversified portfolio of companies at the forefront of AI and innovation. The fund’s holdings may include firms involved in AI software development, data analytics, cloud computing, robotics, and other cutting-edge technologies. The ETF’s broad approach allows investors to benefit from the potential growth of multiple sectors impacted by AI and innovation.

One of the distinguishing features of WTAI is its inclusion of companies that not only use AI but also invest significantly in R&D to drive innovation. This focus on innovation provides investors with exposure to companies that are actively pushing the boundaries of AI technology and its applications.

Investing in WTAI, like any investment, carries certain risks. The fund’s performance is subject to market volatility, changes in the AI and innovation sectors, and fluctuations in the performance of its underlying holdings. Investors should carefully review the fund’s prospectus to understand its investment strategy, fees, and risks before making investment decisions.

In total, the five ETFs collectively hold 270 stocks from 23 countries. Initially, the list was narrowed down to 197 stocks covered by at least nine analysts, with consensus sales estimates available through calendar 2025. Calendar-year estimates were used to accommodate companies with fiscal years differing from the calendar.

Understanding the landscape of AI-focused companies and staying updated on market trends is essential for investors seeking potential financial gains in this rapidly evolving field.

Here are some more 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.

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.