June was a big month for AI regulation. Lawmakers are finally stepping in to set some rules around how this fast-growing technology should be used.
On June 12, New York introduced the Responsible AI Safety and Education (RAISE) Act. This law is aimed at companies that create powerful AI models. Its goal? To stop dangerous misuse—like using AI to cause mass harm or develop weapons.
Just ten days later, Texas passed its own law, the Responsible Artificial Intelligence Governance Act (TRAIGA). This one sets standards to prevent AI from being used to promote discrimination, violence, or illegal activity.
These new rules show that governments are starting to take AI seriously—and we’re likely to see even more regulation in the near future.
Best AI Stocks to Watch in July 2025
(All data as of June 24, 2025)
💸 Best-Value AI Stocks
Value investors love a good deal. They look for stocks that are trading for less than what they’re really worth. One common measure is the price-to-earnings (P/E) ratio—a lower P/E could mean the stock is undervalued.
But don’t rely on that number alone. Some stocks stay cheap for a reason (called a value trap) and never recover. Before buying, ask:
- Why is the stock cheap?
- Is the company turning things around?
- Will the market realize its true value?
| Company | Price ($) | Market Cap ($B) | P/E Ratio |
|---|---|---|---|
| Yiren Digital (YRD) | 6.07 | 0.5 | 2.9 |
| i3 Verticals (IIIV) | 25.58 | 0.8 | 5.5 |
| Baidu (BIDU) | 86.68 | 29.6 | 8.6 |
Yiren Digital – Based in China, Yiren is a digital platform offering financial services, insurance, and lifestyle products. It uses AI to help with fraud detection, security, onboarding, and debt collection.
i3 Verticals – This company creates and manages software for government and healthcare clients. Its AI tools improve customer service, boost efficiency, and streamline daily operations.
Baidu – Once just a search engine, Baidu is now a major AI player. Its tech powers everything from cloud computing to self-driving cars. One standout: Apollo Go, China’s largest robotaxi service.
Also Read: Should You Reinvest Dividends or Take the Cash?
🚀 Fastest-Growing AI Stocks
Growth investors want to see rising revenue and earnings. These numbers often signal a strong, expanding business. But one number alone doesn’t tell the whole story.
That’s why we picked stocks with strong year-over-year growth in both EPS and revenue, while avoiding extreme outliers.
| Company | Price ($) | Market Cap ($B) | EPS Growth (%) | Revenue Growth (%) |
|---|---|---|---|---|
| Innodata (INOD) | 46.60 | 1.5 | 626% | 120% |
| Clearwater Analytics (CWAN) | 22.35 | 6.3 | 255% | 24% |
| EverQuote (EVER) | 24.07 | 0.9 | 291% | 25% |
Innodata – This company supports AI development by supplying high-quality training data and software. Its platform, Goldengate, and a team of 6,000+ experts help fine-tune large language models.
Clearwater Analytics – It offers cloud-based investment tracking for big companies and insurers. Its AI tools process over $8.8 trillion in assets daily, replacing outdated systems with smarter, faster data tools.
EverQuote – An online insurance marketplace that uses AI to match shoppers with insurers more effectively. It also uses AI to reduce fraud and run its operations more smoothly.
📈 AI Stocks With the Most Momentum
Momentum investors love riding the wave. They focus on stocks that have already seen big gains, hoping they’ll keep going up—especially if strong fundamentals are behind the surge.
AI stocks are known for fast growth, and right now, a few are really catching fire.
| Company | Price ($) | Market Cap ($B) | 12-Month Return (%) |
|---|---|---|---|
| Quantum Computing (QUBT) | 17.52 | 2.5 | 2,757% |
| TSS, Inc. (TSSI) | 28.87 | 0.7 | 1,281% |
| Diginex Limited (DGNX) | 46.56 | 1.1 | 993% |
Quantum Computing, Inc. – They’re developing advanced AI hardware that uses light and electricity together, promising faster processing than traditional computers.
TSS, Inc. – This company provides high-tech solutions for data centers. It recently signed a big deal to produce AI server racks and is investing $30 million to expand its production capacity.
Diginex – A UK-based company combining AI, blockchain, and data analytics to improve ESG and sustainability reporting. In June, it signed a $2 billion deal to acquire Resulticks, an AI-powered marketing platform.
Also Read: What’s the Difference Between Growth and Value Stocks?
👍 Pros of Investing in AI Stocks
Massive Potential – AI is changing industries like healthcare, finance, and cybersecurity. As more businesses adopt AI, leading companies could see massive growth.
Innovation – AI improves efficiency and reduces costs. Companies that lead in AI tech can gain a long-lasting edge over the competition.
Investor Excitement – AI stocks often attract strong interest, pushing prices higher. This momentum, driven by optimism and new breakthroughs, can fuel fast gains.
⚠️ But There Are Risks Too
High Valuations – Many AI stocks are priced high based on future expectations, not current profits. If those expectations fall short, the stock price can crash.
Tighter Regulations – Governments are paying more attention to AI risks, like job loss, privacy concerns, and national security. New laws could limit how companies use or develop AI.
Cutthroat Competition – Big players like Google, Microsoft, Nvidia, and OpenAI are moving fast. Even strong companies can get left behind—or wiped out by newer, faster startups like DeepSeek.
Also Read: Can You Really Make Money with Penny Stocks?
Final Thoughts
AI stocks offer exciting opportunities, but they also come with serious risks. Whether you’re hunting for value, chasing growth, or riding the momentum wave, make sure to look beyond the hype. Do your research, stay aware of industry trends, and be prepared for the ups and downs.
Want help picking which AI stocks fit your investing style? I can also break these down into beginner, moderate, or advanced risk categories—just say the word!