Keep Calm And Carry On: Top 5 AI Stocks For April 2025

Despite Growth, AI Stocks Dip Amid Global Tariff Turmoil

Tariff-induced turmoil continued to grip the market on Tuesday after a brief rally by U.S stocks—pushed higher on hopes that the U.S. would strike trade deals to lower Donald Trump’s aggressive tariffs—quickly fizzled out in afternoon trading. After nearing their best sessions since November 2022, the S&P 500 and Nasdaq Composite shed most of their gains from earlier in the session.

The latest volatility follows three days of sweeping losses after the president signaled that he would not back down from tariffs despite pleas from billionaire backers and fears of a global recession. Trump is now threatening that new 50% tariffs will be imposed on China unless it cancels its own retaliatory levies on U.S. exports, while his administration signals that it is open to negotiations.

“Over those following few days from April 2 we had, I think we’re up to 70 countries, contact the White House for how to come and negotiate,” Treasury Secretary Scott Bessent told CNBC on Tuesday. The latest messaging from team Trump comes after Goldman Sachs has raised the odds of a recession from 35% to 45%, and Federal Reserve chair Jay Powell warned that the tariffs will spark “higher inflation and slower growth” if they continue to go on as planned.

“It is now becoming clear that the tariff increases will be significantly larger than expected,” Powell said during a conference in Virginia earlier this month. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.” Until more is known about the fallout from the tariffs, the U.S. central bank will likely keep its interest rates between 4.25% and 4.5%, despite a recent Truth Social post from Trump arguing that “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates.” Despite the negative news on the market and the economy, AI is still full steam ahead as can be seen on Seeking Alpha’s AI Tech Newswire with reports of increased capex spending, acquisitions, and capital commitments.

AI: a Bright Spot in Dark Times

As doom and gloom permeates Wall Street, there have been some bright spots in Silicon Valley as new artificial intelligence advancements power the industry forward. MSFT’s OpenAI raised $40bn in new funding from SoftBank and other investors earlier this month, securing a $300B valuation. The latest injection will “push the frontiers of AI research even further,” the ChatGPT maker stated, as it revealed it was building an “open weight” generative AI model in the face of fierce competition from China’s DeepSeek and domestic rivals like Meta (META), whose lower-cost models are freely available and can be adjusted by users.

Even as markets take a beating and DeepSeek continues to flex its low-cost, self-improving AI models, Silicon Valley’s AI spending spree shows little sign of slowing down. U.S. tech leaders plan to spend upwards of $320B on AI initiatives this year, up from $246B in 2024, as they race to expand sprawling data centers and invest heavily in specialized chips to power the latest innovations.

For some, those investments have already begun to pay off. Alphabet’s (GOOG) (GOOGL) decision to combine its Gemini and DeepMind AI has helped propel 30.6% year-over-year growth from its cloud business in Q4 as AI features begin to popup across its suite of applications. As SA analyst Motti Sapir recently wrote:

This isn’t a trade for next week. It’s a long-term position for people who care about fundamentals, not headlines. Alphabet is turning AI from a research project into a revenue stream, and the market hasn’t caught up.

Sapir’s outlook could not resonate more as tariffs, sticky inflation and slowing economic growth stoke fears that the U.S. could be on the fast track to a ‘stagflation’ or a full-blown recession. Uncertainty is a headwind to growth, and as long as Trump’s economic agenda breeds chaos in the market, falling shares are inevitable. That’s why it is imperative to look beyond current volatility and invest for the long-term, prioritizing “fundamentals, not headlines.”

‘Fundamentals, Not Headlines’

Trump tariffs have taken markets on a roller coaster of volatility, and it’s understandable why investors might want to get off the ride altogether. But in times of economic uncertainty, panic selling often results in higher losses. In my latest webinar, Investing During a Correction, I discussed the importance of maintaining a disciplined investment process and removing emotion from the equation. Take it from me: fear fades and the market always returns to fundamentals.

You may be familiar with the old adage, “Fear creates losses.” However, intelligent investors can use fear to their favor. History shows us that it can often be true. Since 2010, the market has pulled back five times by more than 15% (July 1, 2010; August 8, 2011; December 20, 2018; March 9, 2020; and May 9, 2022). Investors who purchased the top 10 Quant Strong Buy stocks during these 15% downturns and held them for 2 years saw 117% gains on average vs. the S&P 500’s 50% return, according to an analysis of SA Quant data.

SA Quant Strong Buys Surged An Avg. 117% Following 15% Market Corrections

Here at Seeking Alpha Quant, we use the GARP strategy, aka Growth At A Reasonable Price. This approach can be especially helpful in a downmarket because it strips away fear and outside noise from the investment process. Using a combination of powerful computer processing and what I like to call our special ‘Quantamental’ analysis, our proprietary algorithm separates the weak companies from the strong ones based on their historical financials, analysts’ consensus growth estimates, and hundreds of financial metrics. Using these insights, it ranks them in terms of valuation, growth, profitability, momentum, and EPS revisions, assigning letter grades to each category to help contextualize thousands of data points.

If the proper fundamentals are there, our system can help detect stocks with the highest return-generating potential—often before the rest of the market—-because it doesn’t get distracted by falling shares or other emotion-inducing events. With that in mind, I’ve selected five top AI stocks for April, all of which have impressive growth rates, strong valuation frameworks, solid profitability, increasing upward EPS Revisions by analysts, and excellent momentum despite falling shares.

How I Picked the Top AI Stocks

To identify the top-performing stocks in the AI universe, I’ve used the Quant system to analyze securities from three of the largest AI ETFs—the Global X Robotics & Artificial Intelligence ETF (BOTZ), the Robo Global® Robotics and Automation Index ETF (ROBO), and the Global X Artificial Intelligence & Technology ETF (AIQ)—and selected five top-performing stocks to represent a diverse range of AI opportunities. They include tech companies that sell AI-powered solutions and non-tech firms that employ AI to boost productivity, improve products, and streamline operations. The five AI-leveraging stocks have returned an average of around 18.8% over the past 12 months vs. the S&P’s -0.66%. and are well-positioned to build upon that performance once the market begins to stabilize.

Top 5 AI Stocks for April, by Quant Rating (as of 4/8/25)

Let’s examine each stock in further detail.

1. Amazon, Inc. (NASDAQ: AMZN)

• Market Capitalization: $1.86T
• Quant Rating: Strong Buy
• Sector: Consumer Discretionary
• Industry: Broadline Retail
• Quant Sector Ranking (as of 4/8/25): 14 out of 481
• Quant Industry Ranking (as of 4/8/25): 3 out of 27

Amazon (AMZN)—down more than 13% over the past month—has been no exception from the sell-off that has gripped global markets, and its deliveries from China will inevitably take a hit from Trump’s tariffs on China. However, the e-commerce giant’s mammoth size, strong profitability, and powerful growth-value proposition keep it high on my list.

Highlighted within my recent piece, Turmoil to Opportunity: Top 10 Quant Stocks for April, AMZN crushed Q4 revenue estimates by over $500M while beating earnings by $0.38. Its Amazon Web Services unit demonstrated impressive performance, with 48% Y/Y operating income growth and $39.8B in trailing operating income. The cloud business, which operates sprawling data centers, is well positioned to profit from global advancements in AI as U.S. tech superpowers like GOOG and OpenAI rise to meet the challenge posed by DeepSeek and increasing domestic competition.

Amazon Web Services Reports Strong Operational Performance in Q4

As SA analyst JR Research wrote on Monday:

Amazon’s fundamentally strong business might help it to fend off the most debilitating effects on its supply chain even as smaller peers suffer. AWS is another highly profitable business that should underpin the tariff tirade, allowing Amazon to capitalize in its scale to gain market share as others reel from the damage.

AWS also recently unveiled a new quantum computing chip to compete with the likes of GOOG and MSFT, further boosting the company’s overall profitability and resilience in the fast-growing sector.

AMZN Stock Quant Breakdown

AMZN’s ‘B’-rated PEG (FWD) of 1.3 suggests it is evenly valued compared to its peers in the consumer discretionary sector—a rare occurrence for the notoriously overvalued company. Its forward P/E of 27 is an 87% premium to the sector, but that still looks compelling given AMZN’s multi-trillion-dollar market cap. Zooming out, the company’s overall valuation has improved from a ‘D-’ to a ‘D’ over the past six months, highlighting a window of opportunity that could close when markets improve.

The tech giant registers an ‘A-’ Growth Grade overall, pushed higher by forward EPS diluted growth of 38%, a 477% difference from the sector median. Enduring profitability is underscored by its massive 116B cash in operations and a 24.29% return on common equity.

Thanks to its low valuation, strong growth outlook powered by AI tailwinds, and powerful cloud business, it could be a great time to buy the dip on AMZN. Similar to the retail heavyweight, my next selection packs a punch despite its falling shares.

2. Uber Technologies, Inc. (NYSE: UBER)

• Market Capitalization: $137.3B
• Sector: Industrials
• Industry: Passenger Transportation
• Quant Rating: Strong Buy
• Quant Sector Ranking (as of 4/8/25): 15 out of 613
• Quant Industry Ranking (as of 4/8/25): 1 out of 8

Uber (UBER) is a top-performing Alpha Pick, having generated more than 70% to the portfolio since it was added in June, 2023. The rideshare and tech group received a major boost in February after Ackman’s Pershing Square disclosed a stake in the company, posting on X:

We believe that Uber is one of the best managed and highest quality businesses in the world. Remarkably, it can still be purchased at a massive discount to its intrinsic value. This favorable combination of attributes is extremely rare, particularly for a large-cap company.

UBER is investing heavily in AI-powered autonomous driving technology, forming partnerships with AI tech firm Wayve and Nvidia (NVDA) among others. “Generative AI will power the future of mobility, requiring both rich data and very powerful compute,” UBER CEO Dara Khosrowshahi said in January. “By working with NVIDIA, we are confident that we can help supercharge the timeline for safe and scalable autonomous driving solutions for the industry.”

UBER Stock Quant Breakdown

Ackman is right regarding UBER’s valuation: its forward PEG of 0.55 comes at a near 61% discount to the 1.48 sector median. As SA analyst YR research noted mid-March:

At $72 a share, Uber trades at 29 times forward earnings, and 21 times ’26 estimates. It’s also trading at 26 times free cash flows (adjusted for SBC). I challenge you to find a non-cyclical company, growing revenues at a mid-teens pace, with a significant margin expansion trajectory, that’s trading at a more attractive valuation.

The rideshare group boasts fantastic growth metrics, including ‘A+’ EPS GAAP growth of 56%, a 450% difference from the 10% sector median. ‘A+’ profitability is lifted higher by return on common equity of 60% (a 371% difference vs. the sector) and $7.1B in cash from operations.

UBER also maintains strong momentum; its nearly flat three-month price performance is still an impressive feat compared to the -15% sector median. My next selection has suffered a blow from the market sell-off but remains resilient thanks to sector-leading fundamentals.

3. Celestica Inc. (NYSE: CLS)

• Market Capitalization: $8.2B
• Sector: Information Technology
• Industry: Electronic Manufacturing Services
• Quant Rating: Strong Buy
• Quant Sector Ranking (as of 4/8/25): 13 out of 543
• Quant Industry Ranking (as of 4/8/25): 1 out of 16

Also included among my Top AI Stocks for March, Celestica (CLS) manufactures critical electronic parts for data centers. The group has dominated a lucrative portion of the AI supply chain as tech companies’ insatiable demand for hyperscalers continues to be a powerful growth tailwind in volatile markets. A two-time Alpha Pick, the Toronto-based company is down 20% year to date but has generated more than 178% for the Alpha Picks portfolio since being added in October 2023.

Celestica Inc. 1-year Trading Chart (as of 4/8/2025)

CLS reported expansive revenue growth in Q4 powered by surging AI demand and expanding margins, with adjusted EPS of $1.11, beating analysts’ expectations of $1.06. While tariffs have undoubtedly weighed on CLS’s celestial rise, its strengthening balance sheet and powerful growth outlook should see it through the bear market. As SA analyst Star Investments wrote over the weekend:

Despite some backward valuations appearing high, forward-looking valuation ratios and peer comparisons indicate CLS may be undervalued, especially considering its growth prospects…Tariffs and a potential trade war may continue to negatively impact investor sentiment, and the stock may continue to decline over the near and medium term.

The Canadian group forecasts $10.7B in revenue and 22% EPS growth for 2025. While that may seem like an ambitious goal, explosive AI and data center demand reiterate SA Quant’s Strong Buy rating as the largest U.S. tech companies continue pouring hundreds of billions into the sector.

CLS Stock Quant Breakdown

CLS’s valuation has only grown more attractive as the selloff has dragged down its share price, improving from a ‘C+’ to a ‘B+’ over the past three months. Its forward PEG has decreased from 0.8 to 0.47 since I rolled out last month’s top AI picks, now representing a 64% discount to the sector median. Its forward P/E of 15.2 comes at a 32% discount.

CLS earns gold stars in terms of growth and profitability, with forward EPS GAAP Growth of 38.6% (a 240.07% difference from the sector) and 23% return on common equity (TTM) (a 413.8% difference) among other positive metrics. And while tariffs may have taken a temporary toll, CLS’s star power continues to shine through with strong momentum.

Finally, 10 positive EPS revisions over the past 90 days suggest that Wall Street analysts share my continued faith in this AI innovator. Like CLS, this next stock has charted a celestial rise in the AI universe by carving a unique niche in the sector.

4. FARO Technologies, Inc. (NASDAQ: FARO)

• Market Capitalization: $458.41M
• Sector: Information Technology
• Industry: Electronic Equipment and Instruments
• Quant Rating: Strong Buy
• Quant Sector Ranking (as of 4/8/25): 10 out of 540
• Quant Industry Ranking (as of 4/8/25): 2 out of 47

Also included within my top 5 AI stocks for March, Faro Technologies (FARO) is a Lake Mary, Florida-based maker of 3D measuring and scanning technology, leveraging AI to become a leader in “smart factories” and “intelligent automation.” Despite losing around 15% over the past month, FARO’s strong balance sheet and excellent momentum have kept it a top pick of mine.

The company achieved double-digit EBITDA margins for the first time in a decade in 2024, propelled by soaring demand for global 3D scanning—a market poised to grow to $11.85B by 2032 at a CAGR of 13.11%.

Its strong fundamentals, detailed below, reinforce its future growth potential.

FARO Stock Quant Breakdown

FARO’s overall ‘B+’ growth grade is backed by forward EBIT growth of 112.48%—a 1,410.71% difference from the sector median—and Y/Y levered FCF of 30%, 103% above the 14.8% sector median. Forward EBITDA growth of 42.76%, a 639.9% sector from the sector median, foreshadows more growth to follow. Robust momentum is reflected by six-month price performance of 33%, eclipsing the -20% sector median. Even as its shares struggle in the current market, three-month price performance of -10% still beats the sector’s -26%.

Despite its overall ‘C-‘ valuation, FARO still offers an attractive discount to many of its peers. Its enterprise value-to-sales (FWD) and price-to-sales ratio (FWD) are both around 1.3, representing around a 45% discount from the sector median each.

Like FARO, my final selection has supercharged its growth with the power of AI.

5. Upstart Technologies, Inc. (NASDAQ: UPST)

• Market Capitalization: $3.5B
• Sector: Financials
• Industry: Consumer Finance
• Quant Rating: Strong Buy
• Quant Sector Ranking (as of 4/8/25): 84 out of 685
• Quant Industry Ranking (as of 4/8/25): 11 out of 39

Upstart Technologies (UPST) is a cloud-based AI lending platform that offers personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans. Headquartered in San Mateo, California, the fintech group has ridden the wave of strong private credit demand, crushing expectations in Q4 with EPS of $0.26 when Wall Street expected it to lose 4 cents per share. The company also reported incredible sales growth in the fourth quarter, soaring 56% from Q4 2023, while total 2024 sales grew an impressive 24% Y/Y.

The company’s AI-powered underwriting algorithms have also exhibited improvement, allowing it to approve more loans at lower APRs and thus allowing its bank partners to allocate more capital at a higher rate of return. As a result, the company expects to grow its revenues by 57% in 2025, a far higher margin than other fintech lenders. As SA analyst Julian Lin recently wrote:

Management has given strong full-year guidance which implies an acceleration in top-line growth even as the company begins lapping tougher comparables. The company appears poised to return to GAAP profitability, which may also help to offer further support to the valuation.

UPST’s financial improvements have also begun to reflect in its Quant Factor Grades, detailed below.

UPST Stock Quant Breakdown

While SA’s Quant System does not currently display UPST’s PEG, we can estimate the stock’s 2026 PEG by taking its forward 2026 P/E of 15.26 and dividing that by analysts’s estimated 2026 EPS growth of 64.21% (or 64.21, for the purpose of this calculation). 15.26/64.21=0.24. Should analysts’ projections remain intact, a PEG of 0.24 would likely represent an attractive discount from the financial sector median, currently valued at 1.03.

UPST Earnings Estimates

Forward revenue growth of 34%, a 457% difference from the 6.1% sector median, and a levered free cash flow margin (TTM) of 38.4%, a 94.6% difference, reflect solid growth and profitability. Momentum has stalled in recent months given the market sell-off. However, 12 upward EPS revisions from analysts over the past 90 days, 11 upward revenue revisions, and 0 negative revisions in either category reinforce SA Quant’s Strong Buy rating.

Conclusion

Donald Trump’s tariffs have unleashed rampant volatility throughout the markets. While uncertainty will likely continue over the coming months, the market always returns to fundamentals. Instead of selling in fear, consider stocks with strong balance sheets and Quant Factor Grades that are well-prepared to generate returns once conditions stabilize.

Explore AI investing with these five Strong Buys, or go deeper using Seeking Alpha’s ETF Ratings Screener tool to help find stocks that achieve diversification into the desired sectors you like. Alternatively, consider Alpha Picks if you’re seeking a limited number of Seeking Alpha Quant’s best monthly ideas from the hundreds of top quant Strong Buy-rated stocks.

• I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.

This article was written by: Steven Cress, Quant Team