2 Overlooked AI Stocks With Big Upside Potential for 2025

AI Stocks to Watch: Two Undervalued Picks for 2025

Almost three years after ChatGPT's launch, AI continues to fuel market gains, keeping the bull run alive despite worries about tariffs and recession risks. Stocks look set for another strong year in 2025. Yet, several AI-related stocks remain under the radar. Here are two companies that could outperform the market moving forward.

1. Sweetgreen

Sweetgreen (SG 2.17%) is known as a fast-casual salad chain, but it’s taking a distinct approach by integrating AI-driven automation. The company is investing heavily in its “Infinite Kitchen” — a robotic assistant that preps, measures, and dispenses salad ingredients. This technology aims to speed up service, boost output, and lower labor costs.

Sweetgreen plans to retrofit many existing locations and expects at least half of its 40 new restaurants this year to include Infinite Kitchen tech. Despite these innovations, recent financial results have disappointed, and the stock has dropped over the past year. Factors include upfront costs for the new system, weaker consumer spending, high price complaints, and regional setbacks like Southern California wildfires impacting one of its key markets.

However, Sweetgreen’s market cap has shrunk to around $1 billion, setting the stage for a rebound. Comparisons should get easier in the second half of 2025, and as Infinite Kitchen expenses spread over a larger base, operating leverage should improve. The company targets roughly 1,000 restaurants eventually, quadrupling its current footprint. While it’s still losing money and comparable-store sales have slipped, average unit volumes near $3 million show strong brand demand. A healthier economy and better consumer appetite could ignite growth, making Sweetgreen a compelling speculative pick if its automation delivers on efficiency gains.

2. Amplitude

Software stocks haven’t yet matched chipmakers’ gains from the AI boom, but Amplitude (AMPL 4.96%) stands out in product analytics. The cloud-based platform helps businesses understand user behavior on websites and apps, offering insights to improve product design and user experience.

Amplitude recently launched AI agents that analyze data and generate actionable conclusions, increasing the value it provides clients. This capability differentiates it from traditional tools like Google Analytics or Adobe Analytics, positioning it as a leader in product analytics.

With a market cap near $1.5 billion, Amplitude has room to grow as it builds momentum around AI-enhanced offerings. The company is overcoming post-pandemic churn, where some customers overinvested during COVID-19. Now, growth is accelerating again. For investors seeking an AI-related software stock with strong upside potential, Amplitude is worth consideration.

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