Artificial intelligence, or AI, has been a game-changer.
AI is responsible for making our lives easier by automating tasks, making search easier, and allowing for more intuitive, natural responses to queries.
This new technology has an impact not just on individuals, but has been harnessed by many corporations to improve their analytics capabilities and enhance their cloud platforms.
Generative AI, which relies on large language models (LLMs), has also changed the way we interact and communicate.
More businesses are now deploying AI agents, also known as agentic AI, to help sift through mountains of data and personalise queries and preferences for their customers.
With AI proving to be a formidable driving force, here are three growth stocks that can allow you to ride on this trend.
Palantir (NASDAQ: PLTR)
Palantir is a software company utilising AI to power big data analytics.
The company operates a platform that allows organisations to integrate, analyse, and utilise and make sense of vast amounts of data to draw insights.
Palantir reported a robust performance for the first quarter of 2025 (1Q 2025).
Revenue climbed 39.3% year on year to US$883.9 million and operating profit more than doubled year on year from US$80.9 million to US$176 million.
Net profit stood at US$213 million, up 103% year on year.
The business also churned out free cash flow of US$304.1 million, up nearly 140% year on year.
Management is optimistic about 2025 and raised the company’s revenue guidance to between US$3.89 billion to US$3.92 billion (previous forecast: US$3.74 billion to US$3.757 billion).
Free cash flow for this year is projected to come in between US$1.6 billion to US$1.8 billion.
The company closed 139 deals of at least US$1 million during the quarter, with 31 deals exceeding US$10 million each.
Palantir’s total customer count has grown by 39% year on year to 769 for 1Q 2025, and its total commercial customers has shot up 46% year on year to 622.
Innodata (NASDAQ: INOD)
Innodata is a data engineering company helping to drive the adoption of generative AI and spearhead AI innovation.
The company provides a range of solutions, platforms, and services for generative AI and AI builders and adopters.
Innodata reported an impressive 1Q 2025 with revenue leaping 120.1% year on year to US$58.3 million.
Net profit soared more than sevenfold year on year from US$989,000 to US$7.8 million.
The business also generated a positive free cash flow of US$17.5 million for the quarter, more than triple the US$5.4 million churned out a year ago.
Innodata is expanding its relationship with existing customers that could result in the award of more than US$30 million in contracts in the near term.
Management is also onboarding a number of potentially significant customers and plans to invest in targeted technologies to support current and prospective customers in their AI journeys.
The company expects to chalk up revenue growth of 40% or more for 2025.
Two months ago in March, Innodata announced the beta launch of its generative AI test and evaluation platform powered by Nvidia (NASDAQ: NVDA) advanced inference technology.
Management believes that generative AI is set to become the next-generation computation platform, and that the addressable market opportunity will grow by 42% per annum from just US$217 billion in 2025 to US$1.3 trillion by 2032.
Verint Systems (NASDAQ: VRNT)
Verint Systems provides actionable solutions and services by harnessing AI and focuses on customer experience (CX) automation, cyber intelligence, and business analytics.
The company reported a commendable set of earnings for its fiscal 2025 (FY2025) ending 31 January 2025.
Revenue stayed flat year on year at US$909.2 million but operating profit surged 56% year on year to US$106.4 million.
Net profit more than tripled year on year to US$65 million.
The business also generated a positive free cash flow of US$129.9 million for FY2025, up 4% year on year.
Healthy AI momentum drove record bookings for Verint as it saw software-as-a-service annual contract value (ACV) bookings from new deals climb 30% year on year.
Subscription annual recurring revenue (ARR) for FY2026 is expected to grow around 8% year on year.
Verint is seeing increasing AI consumption from its customers, with Woolworths (ASX: WOW) expanding its Verint bots from one to six business units.
For AXA Insurance, the business has expanded its existing bots from 100 to 500 licences and plans to grow this to 1,700 licences by the first half of this year.
Management believes that Verint’s long-term growth opportunity remains significant.
There will be US$2 trillion spent to shift manual labour to AI to help automate CX workflows.
The market is in the early stages of doing so and the company is well-positioned for this shift and targeting long-term double-digit ARR growth.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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