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Cantor's Top SaaS Stocks for AI Growth
Source: finance.yahoo.com
Published on June 7, 2025
Updated on June 7, 2025
AI SaaS Stocks: Cantor Highlights Top Picks for Growth
The AI SaaS market is rapidly expanding, with cloud-based AI tools becoming a critical driver of growth. Cantor analyst Matthew VanVliet has identified two standout companies—Klaviyo and HubSpot—as leading players in this space, offering innovative AI solutions that are reshaping industries.
According to VanVliet, the AI SaaS market, valued at $115.22 billion, is projected to soar to $2.97 trillion by 2034. This growth is fueled by the integration of machine learning and natural language processing into cloud-based services, providing scalable and cost-effective solutions for businesses.
Klaviyo: AI-Powered Marketing Automation
Klaviyo specializes in AI-driven marketing automation, offering tools for customer relationship management (CRM), data analysis, and customer service. Its AI insights enable businesses to enhance customer interactions through personalized campaigns and automated content generation. With over 169,000 customers, including 3,030 large clients, Klaviyo reported a 33% year-over-year revenue increase in Q1 2025, reaching $279.8 million.
VanVliet highlights Klaviyo's strong market position and growth potential, noting its low penetration in the $16 billion ecommerce/retail market. The company's AI-driven email and SMS marketing services are designed to optimize customer engagement and revenue generation.
HubSpot: AI Enhancements in Marketing Software
HubSpot provides a comprehensive marketing software platform, now enhanced with AI tools like the Breeze AI toolkit. This toolkit includes the Breeze Customer Agent, which acts as a 24/7 AI concierge, improving ticket resolution times and automating customer interactions. HubSpot's AI enhancements have led to significant improvements in client operations, with up to 50% of customer conversations resolved automatically.
HubSpot's Q1 2025 financial report showed a 16% year-over-year revenue increase to $714.1 million, with strong cash reserves of $2.2 billion. VanVliet praises HubSpot's successful expansion into new markets and its ability to leverage AI to strengthen its competitive edge.
Market Outlook and Investment Opportunities
Both Klaviyo and HubSpot are well-positioned to capitalize on the growing AI SaaS market. VanVliet's analysis suggests that AI represents a greater growth catalyst than previous investments in work-from-anywhere technologies, with significant potential for multiple expansion.
Investors are optimistic about the future of AI SaaS stocks, with both Klaviyo and HubSpot receiving Strong Buy ratings from Wall Street analysts. As AI continues to transform industries, these companies are expected to play a pivotal role in driving innovation and delivering value to their customers.