As we close the curtain on 2024, a strange phenomenon is creeping into the market. I call it AI fatigue. There is a feeling that artificial intelligence may be a bubble that has run its course.

Some analysts want to move past the novelty of generative AI and large language models and move on to the good things that, to them, mean how companies can make money with AI.

No one can predict the future, but the next wave of AI will include interactive and autonomous AI. Although the actual benefits are still years away, several companies are moving into these areas today. Here’s why investors should consider these three stocks for their portfolios in 2025.

UiPath today

$14.07 +0.06 (+0.43%)

(As of 2:16 p.m. ET)

52 week range

$10.37

▼

$27.87

Price target

$17.50

UiPath Inc. NYSE: PATH is a software company specializing in Robotic Process Automation (RPA) technology. This technology gives users the tools to automate regularly occurring processes. The company’s UiPath platform advances the path to agent automation, a state in which agents, robots, people and models are seamlessly integrated to enable autonomous processes that lead to smarter decision making.

Although the company is not consistently profitable, sales have increased year on year. Growth is slowing, but that was to be expected after the rapid growth in 2023. However, the company faces competition in this area from more established players such as Microsoft. To this end, UiPath continues to invest in marketing and research and development.

Nevertheless, the company is well capitalized and has no debt. Analysts have raised their price targets on PATH stock, with a consensus price target of $17.71. This gives investors a 21% premium over the December 11 closing price.

Intuitive surgery today

ISRG

Intuitive surgery

$545.16 +5.58 (+1.03%)

(As of 2:21 p.m. ET)

52 week range

$320.26

▼

$556.23

P/E ratio

87.65

Price target

$550.28

Intuitive Surgical Inc. NASDAQ: ISRG is a leader in robotic surgical assistance. The company is the brains behind the Da Vinci robotic surgery system, which is now in its fifth generation. Intuitive Surgical uses AI and machine learning (ML) technologies to generate insights that can help surgeons learn from cases ranging from simple to more complex, including those with anomalies and complications.

ISRG stock is up 61% in 2024, significantly outperforming the broader market. However, the stock is a good example of how expensive a stock can be while still offering good value for money. In this case, Intuitive Surgical has a forward P/E ratio of over 100x. With the company expected to generate full-year earnings per share of around $6.57, you can understand why analysts are raising their price targets up to $650 per share.

iRhythm Technologies today

IRTC

iRhythm Technologies

$89.42 +2.99 (+3.46%)

(As of 2:13 p.m. ET)

52 week range

$55.92

▼

$124.11

Price target

$107.82

Digital health company iRhythm Technologies Inc. NASDAQ:IRTC develops and manufactures medical devices for ambulatory cardiac monitoring to help patients diagnose cardiac arrhythmias. The company says its latest product, Zio, features the most advanced AI in cardiac monitoring, based on over a million hours of heart rhythm data.

The Company’s current products are used by 6.4 million patients in the United States. However, iRhythm plans to expand its market to include a broader range of symptomatic patients. In addition, international expansion is planned to increase sales the total addressable market to over one billion. Sales are growing, but the company is not profitable and is not expected to be profitable next year.

Despite rising nearly 20% in the past three months, IRTC stock is still down 15% in 2024. That doesn’t stop analysts from bidding the stock higher. The consensus price target of $107.82 is nearly 20% higher than the stock’s December 11 closing price. However, several analysts have a much higher price target, including Canaccord Genuity Group, which raised its price target from $125 to $152.