Nowadays, barely a day goes by without a huge headline touching artificial intelligence (AI). Three main factors are driving the rising interest in AI. First, it is now easier to train new machine learning (ML) models because training data is easily available. The DeepSeek R1 breakthrough is evidence of this. Second, smaller companies can access computing power with relative ease. AI models use this power to organize and process information. Third, there are enough AI solutions to bridge the gap between AI and organizations. Although organizations still need to hire skilled professionals like Data Scientists, the overall cost to design AI solutions is significantly lower because of the existence of free open-source AI platforms.
However, if you look at it from another angle, the rising interest in AI arises from increased adoption. A recent McKinsey report found that 65% of organizations are now using generative AI. The high demand for AI models and related services is reflected in the AI market as ever-higher growth numbers. For instance, a Markets and Markets analysis valued the global AI market at $214.6 billion in 2024 and projects that it will reach $1.3 trillion in 2030.
What is happening in the AI market is only one side of the coin; the other side is what the AI revolution is doing to human life. Great things are happening. According to a PwC analysis, AI could contribute up to $15.7 trillion to the global economy in 2030. This will happen in the form of increased GDP for local economies resulting from increased productivity and consumption of AI-related products and services.
Interestingly, this impact doesn’t come from traditional AI companies—those at the forefront of training AI models—alone. Instead, the global economy will experience an income boost from AI through partnerships between core technology developers and other businesses. What this means is that AI is no longer just a chatbot. Rather, it has changed how companies create value.
“This is exactly what we are seeing in our work with clients as well. AI transforms companies’ ability to apply intelligence and information at speed and scale, enabling them to build new business models and tap different value pools. Pioneering companies in areas from AI-supported healthcare to AI-enabled mergers & acquisitions are using the technology to create breakthroughs in the value their people can deliver,” says Carol Stubbings, the Global Chief Commercial Officer at PwC.
As AI continues to reshape the global economy, certain companies are emerging as key players in this transformation. Let’s look at 10 AI companies that are making headlines and driving significant changes in their respective sectors.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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10. Blaize Holdings, Inc. (NASDAQ:BZAI)
Number of Hedge Fund Holders: N/A
Blaize Holdings, Inc. (NASDAQ:BZAI) provides AI-enabled edge computing solutions that allow organizations to process and analyze data directly at the source rather than in centralized data centers. Burkhan World Investments (BWI), a single-family office based in Miami, believes the company is well-positioned to redefine industry standards and expand the accessibility of AI-powered technologies across the globe.
The remarks come on the investment firm confirming strategic investment on January 28th. While investing, BWI reiterated that Blaize Holdings, Inc. (NASDAQ:BZAI) stands out owing to its low-cost energy and efficient chips designed for Edge AI applications. Unlike traditional large language models (LLMs), which are quickly becoming commoditized, Blaize prioritizes smaller, highly specialized language models, offering greater applicability across industries. This strategy lowers the obstacles to AI adoption and quickens the transition to more useful, real-world AI applications.
9. GSI Technology, Inc. (NASDAQ:GSIT)
Number of Hedge Fund Holders: 2
GSI Technology, Inc. (NASDAQ:GSIT) designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers. The company sentiments were boosted on January 31st amid solid third-quarter results that affirmed strong demand for memory solutions. Revenue in the quarter was up 2% and 19% sequentially, thanks to strong core SRAM sales.
The semiconductors company is recording strong demand from a key customer whose systems are integral to coming up with AI chips. Amid the artificial intelligence frenzy, the company is expected to become GSI Technology, Inc.’s (NASDAQ:GSIT) most significant revenue contributor in 2025. Additionally, the company is launching a Gemini-II chip designed to take AI to the next level by combining advanced neural networks with cutting-edge radar and imaging technology.
8. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) designs, develops and operates digital infrastructure solutions and cloud services in high-performance computing (HPC) and artificial intelligence industries. On February 4, analysts at Northland Capital Markets raised the stock’s price target to a Street-high of $20 from $12 and maintained an Outperform rating, as reported by Benzinga. APLD shares rose 2% on Tuesday, following the report.
Analysts at Compass Point are also bullish on APLD stock. The firm initiated coverage of the stock with a Buy rating and a $10 price target on January 28. Compass Point analysts are optimistic about the company’s recently penned partnership with Macquarie Asset Management that will support the build-out of its Ellendale HPC Campus. According to the analysts, now is “an interesting opportunity to again buy into the stock to play the HPC datacenter lease signing catalyst”.
Northland’s new target implies an upside of 160% for the stock from current levels, while Compass Point analysts see a 30% upside.
7. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) is a technology company that offers applications technology for finance, risk and project management, procurement, manufacturing and supply chain. It is one of the stocks moving higher amid the artificial intelligence frenzy and spending spree. On February 3rd, the company unveiled a new range of customers and go-lives, affirming strong demand for its cloud and artificial intelligence solutions across Asia Pacific and Japan.
NTT DATA, a leading technology and business service company, is the latest to leverage the company’s RISE and SAP Business AI applications. India’s Premium Transmission Limited and Ashok Leyland India have also chosen GROW with SAP and SAP Business AI. The growing clientele base comes as SAP pursues 400 embedded AI use cases, boosting productivity by up to 30%. According to SAP ASIA Pacific president Paul Marriott, AI is increasingly moving from hype to reality for SAP SE (NYSE:SAP) customers.
6. Wix.Com Ltd. (NASDAQ:WIX)
Number of Hedge Fund Holders: 46
Wix.com Ltd. (NASDAQ:WIX) is a cloud-based web development platform provider. Since generative AI is a key factor in business growth, WIX has been concentrating on it. As of the third quarter of 2024, the company had 29 AI businesses and has been integrating AI assistants throughout its platform. On January 31st, it launched Business Launcher, an artificial intelligence (AI)-driven tool designed to help users transform new business ideas into reality.
With just a few questions or a resume uploaded, Business Launcher evaluates users’ goals, experience, and skills to produce customized business ideas. It offers comprehensive insights, such as revenue opportunities, search engine optimization (SEO) tactics, and market potential. After selecting a business idea, users receive a full launch kit that includes a distinctive company name, a personalized website, a logo, domain name options, and marketing materials.
5. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT) is a technology company that provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focused on the convergence of networking, security, and network firewall solutions. While the stock has been flying high, an analyst at Baird reiterated on February 3rd that it has limited upside potential.
Baird has since downgraded the stock to a ‘Neutral’ from an ‘Outperform’ but hiked the price target to $112 from $105. The downgrade comes on concerns that Fortinet, Inc. (NASDAQ:FTNT) is one of the large-cap internet security stocks that benefited from strong growth and expanding profit margins last year but have limited upside in 2025. Nevertheless, it remains a solid long-term play as it makes the most of integrating artificial intelligence (AI) tools within its Security Operation offerings. The company is positioning itself to tap into the growing demand for AI-driven security operations (SecOps) offerings that could hit $163 billion in 2028.
4. Blackstone Inc. (NYSE:BX)
Number of hedge fund holders: 50
Blackstone Inc. (NYSE:BX) is an alternative asset management firm specializing in private equity, real estate, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The investment firm has sought to strengthen its long-term prospects by pursuing investments in the artificial intelligence race. Consequently, it currently owns $80 billion worth of leased data centers.
On January 30th, the alternative asset management firm reiterated that low-cost artificial intelligence models from China will not undermine its massive investments in data centers. The remarks came on the heels of DeepSeek rattling the sector by showing that it is possible to come up with AI models at the lowest cost possible. Likewise, Blackstone remains optimistic that it will be the biggest beneficiary of the AI boom as increasing adoption leads to higher demand for data centers it currently owns.
3. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in cloud-delivered cybersecurity solutions. It provides endpoint protection, threat intelligence, and incident response services. The company’s Falcon platform protects over 300,000 global customers by leveraging AI and machine learning to detect and prevent real-time cyber threats. On February 3rd, analysts at Baird downgraded the stock to a Neutral from Outperform but raised the price target to $430 from $390.
The downgrade comes amid growing concerns that the cybersecurity firm has outperformed over the past six months, which may limit near-term gains. Nevertheless, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has moved to strengthen its long-term prospects with a suite of AI-driven detection and response capabilities eliciting strong interest in cybersecurity.
The stock has already risen to all-time highs amid growing expectations that it will be one of the biggest beneficiaries of strong demand for cybersecurity solutions as AI-triggered attacks escalate. CrowdStrike Falcon cybersecurity has already proven to be more than capable of detecting and thwarting attacks.
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Oracle Corporation (NYSE:ORCL) is an enterprise technology giant that provides database software, cloud infrastructure, and enterprise software solutions. The company has transformed from a traditional database provider to a major cloud computing and AI player, serving over 430,000 customers in 175 countries. On February 3rd, the company was recognized as a leader in coming up with innovative and cost-effective solutions designed to enhance healthcare systems.
The company was named a ‘Leader’ in the Everest Group Life Sciences Clinical Trial Management System (CTMS) Products PEAK Matrix® Assessment 2024. The accolade validated Oracle Corporation’s (NYSE:ORCL) expertise in data and AI, which has helped develop platforms like CTMS that are increasingly addressing unique challenges of Pharma and healthcare systems. The AI-powered Oracle Siebel CTMS platform is a one-stop-shop solution for clinical trial management. It provides flexibility for customization to meet specific organizational needs.
1. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) is a software application company that integrates artificial intelligence into its customer relationship management platform and other enterprise solutions. The company has moved to pursue growth opportunities as AI Agentforce transforms employment and the workplace. On February 3rd, it confirmed a strategic partnership with HCLTech to strengthen the landscape for autonomous and AI-enabled virtual agents.
HCLTech, an Agentforce partner, will use its knowledge of Salesforce, Inc. (NYSE:CRM) digital modernization to assist businesses in a variety of sectors, particularly the financial services sector. Together, they hope to fortify the expanding field of self-governing and artificial intelligence-powered virtual agents, allowing businesses to update their SaaS apps with cutting-edge multi-modal AI technology. Additionally, the two businesses will help organizations adopt AI-driven agents more quickly. Through collaboration, HCLTech can help companies move from the basics.
As we acknowledge the growth potential of Salesforce, Inc. (NYSE:CRM), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
