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.

Cathie Wood is the CEO and chief investment officer of Ark Invest. Over the last several years, she has earned a reputation for making overly bullish calls on companies that may typically lack the full attention of the rest of Wall Street.

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.