Here Are 6 Stocks Leading the AI Race! And 6 Stocks that are Losing it!

Stocks Leading the AI Race are going far better than Stocks Losing the AI Race! No company will come our and tell their investors that it is losing the battle – but some investors are harder to persuade than others. Or perhaps companies are actually falling behind in the race. Whatever Google says, the fact that it is losing traffic for the first time in its history, direct to ChatGPT, is making its investors panic.

In this article we recap 6 stocks winning the race, and 6 that are lagging in the race (right now).

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6 Stocks leading the AI race:

Oracle (NYSE:ORCL)

Oracle is the world’s largest database management company, providing services through the Cloud and on-premise. Oracle’s software helps businesses manage and organise their data more effectively.

Last week’s US$300bn contract with OpenAI to secure cloud computing power over the next five years says it all about where this company is. It involves 4.5 gigawatts of power capacity – the output of 20 solar farms the size of Australia’s largest; and US$317bn in future contract revenue. The company is now over US$850bn and has gained over 90% in the last 12 months.

Broadcomm (NDQ:AVGO)

Capped at $1.7tn and up 120% in 12 months, Broadcom designs, develops, and supplies a wide variety of semiconductor products and infrastructure software. Its hardware side includes chips for networking, wireless, storage, broadband, data center interconnects. On the software side, it owns infrastructure & enterprise software (e.g. virtualisation via VMware, cybersecurity, etc.).

Things that have encouraged revenues have included a US$10bn chip order from an unnamed customer (that is widely speculated to be OpenAI), its growth in segmented AI revenue and how it has tied CEO Hock Tan’s share-based compensation to AI revenue targets. Beyond those obvious signs, we think investors are speculating that it is less exposed to supply constraints and pricing pressure compared to pure GPU makers like Nvidia (which is why Nvidia is not on this list). It doesn’t only make chips but supporting infrastructure and its M&A activity has boosted it further.

Palantir (NDQ:PLTR)

Never mind that it is down 10% in a month, it has more than quadrupled in 12 months. It builds software platforms for data analytics, operations, and AI‑enabled decision systems. Palantir was originally founded to help agencies integrate, analyse, and act on large, complex data sets for things like national security, surveillance, counter‑terrorism. Over time it’s expanded into commercial work (energy, mining, industrials, healthcare, etc.). It makes its money through software subscription and licensing fees but also has major government contracts.

Being government focused has given it an advantage over its peers. Extensions like with the U.S. Army’s “Vantage” platform also show expanding usage of its systems by the military. Not just new contracts but extensions – its Maven Smart System got extended through to 2029 for US$1.3bn. Moreover, Palantir is pushing into more commercial sectors beyond defence/intel (industrials, mining, energy, healthcare), which can significantly enlarge its market.

Cloudflare (NYSE:NET)

Cloudfare is a relative minnow at only US$78.3bn but is up 184% in the last year. Its bread and butter business is providing services that make the Internet faster, more reliable, and more secure. Its products include its Content Delivery Network (CDN), its Web Application Firewall (WAF) and edge computing at the edge.

It has some unique angles. Cloudflare is launching its “Workers AI” — letting developers deploy AI inference and features closer to users using its edge infrastructure. This helps with latency, privacy, offloading cloud backend. Another is a “Pay‑per‑Crawl” model for AI data access: this is a newer revenue stream where Cloudflare may charge AI/ML model makers for crawling or indexing content or data through its network, helping monetise its infrastructure. But its edge AI applications will be crucial too as many AI-driven applications benefit from it. Cloudflare’s global presence, edge network, and existing CDN & compute infrastructure mean it can provide services that reduce latency and cost for AI inference and serving.

Tempus AI (AITEM)

This is a unique company on this list. It has a variety of products focused on the healthcare sectors that do things such as helping researchers analyse data, providers manage and plan workflows and suggesting what should be done next. But what has got investors most excited is its Tempus Pixel, an AI-powered imaging platform that was recently FDA-cleared for updated MRI capabilities which improves its ability to analyse MRI images for cardiac tissue characteristics (i.e. inflammation and fibrosisis).

Getting FDA cleared is a concrete. But with that as a given, The value in many healthcare/AI companies is in having large, high‑quality datasets. Tempus is building that. They combine diagnostics (tests), imaging, clinical history, which gives richer context than just one data type. This helps in building more accurate predictive models or personalised diagnostics.

Credo Technology (NDQ:CRDO)

Credo is a semiconductor company that focuses on high‑speed connectivity / interconnect / signal integrity technologies for data infrastructure, notably for data centres, cloud computing, hyperscalers, and AI workloads. Its products include SerDes IP & Chiplets, Active Electrical Cables (AECs), Optical DSPs (Digital Signal Processors) and others. These are all needed in data transmissions and there’s a lot of data transmission in AI!

With higher speeds, power consumption and heat/delay become big problems. But Credo’s solutions play big part in it and this is why its share price has been gaining and its revenue has been too (i.e. 180-200% year over year). Credo has “hyperscaler” customers (cloud providers, big data centre operators) who are pushing large scale AI deployment. Demand from those customers is a strong signal. The fact Credo is not just selling one piece but has multiple product lines (AECs, optical DSP, retimers, SerDes IP) gives it multiple levers for growth and mitigates risk of any one product being displaced. Also IP (SerDes) gives competitive advantage.

Stocks lagging in the AI race

Amazon (NDQ:AMZN)

Some might say ‘lagging’ is too harsh a word to use towards ‘The Everything Store’. After all, has always spent a lot to keep up with competitors and the current era is no different – this company is building its own computer chips! But Amazon is only 4% up in CY25 and has some issues that we think investors are worried about. Rivals like Microsoft (via OpenAI), Google (Gemini, etc.), and others have more visible breakthroughs in large foundation models, generative AI experiences, etc. Amazon’s “Nova” models, Bedrock and others, are steps, but the investor perception is that those others are “ahead.”

Amazon has publicly acknowledged that supply of chips, availability of power, getting new data centres online, etc., are limiting how fast it can deploy AI infrastructure and scale. Also consider that some of Amazon’s AI business is still “enabling others” (via AWS and Bedrock), rather than always having Amazon‑branded “killer apps” that consumers immediately see. That might affect how quickly investors believe in its potential.

Google (NDQ:GOOG)

Another company where it is up for debate as to where it is in this race. The key headline about it losing traffic to ChatGPT has scared many. There’s no doubt that Google has lost its allure, or at least its bread and butter business. There have also been suggestions that Google’s large, fragmented teams and product silos can slow down decision making or make cohesive integration of AI harder

Even though Google is pushing many AI enhancements, turning those into profitable, high‑marginal‑return business lines is non‑trivial. Investors will be looking for clear metrics: revenue growth, margins, customer adoption, and others. Google has to balance investment cost vs payoff.

Adobe (NDQ:ADBE)

The company behind Photoshop successfully transitioned to a subscription revenue model, but is facing significant threats right now. Tools like Canva, Figma and Runway have come into existence. They can be easier to use, are sometimes cheaper (even free) and are more nimble – some even have generative image or video capabilities. If these tools can do and/or automate what Adobe’s software can only do slower and at a higher cost, investors should be worried.

This is not to say Adobe hasn’t been striving to keep up – hence its launch of Firefly and Adobe has claimed 90% of its top 50 enterprise clients use at least one AI-first features. But there were concerns about how Firefly was being trained on user-created content without clear consent or compensation. Adobe is not the only stock vulnerable: Shutterstock and HubSpot are too.

Atlassian (NDQ:TEAM)

Atlassian’s products enable software developers and other tech professionals to track issues and collaborate with one another. This company has had several issues including Scott Farquhar formally standing down as ceo-CEO, president Anu Bharadwaj standing aside too, competition with similar tools from Microsoft and Oracle, a lack of profitability and a number of earnings misses.

You could argue investors’ concern isn’t that AI will make this company extinct, but it could make its customer base (i.e. software developers) extinct. While Atlassian has introduced tools like AI assistant Rovo and Atlassian Intelligence features, this has not excited investors as much. Larger peers are releasing AI models, integrated models and ecosystem features much faster. Atlassian’s tools are more about augmenting workflow/productivity within its collaboration/issue tracking tools rather than being broad‑purpose foundation models, so the “wow” factor might be lower. This may ironically leave the company more vulnerable to more nimble startups.

Accenture (NYSE:ACN)

On June 26 2025, the Economist published an article about this consulting firm headlined,’ Who needs Accenture in the age of AI?’ The company’s shares are down 30% this year amidst falling bookings, particularly in the US federal services unit (it is a major part of its revenue). The company is still expecting revenue growth but there is uncertainty ahead. The economic uncertainty makes clients more cautious about big consulting projects and perhaps whether or not they’re worth it (or at least paying a traditional management consultancy is).

Robert Half (NYSE:RHI)

Many Australians may not have heard about this company, but it is one of the biggest staffing/talent solutions company with over 300 locations worldwide, specialising in white collar workers. Shares are down over 40% this year. There is a stereotype that AI will take over a lot of HR functions (ie. matching, screening, some preliminary interviews) and thus threaten firms whose businesses depend on intermediaries. Or maybe clients may prefer in-house automation systems rather than outsource the job.

The share price would suggest concern, and the company’s results show concerns. Revenues in Q1 of 2025 declined over 8% year on year, and its bottom line came in well below expectations. You could also argue it is the uncertain economic cycle given companies freeze hiring and lay off staff at those times.