Ivan Tsarynny, Feroot Security CEO, joined CNBC’s ‘The Exchange’ to discuss his Congressional testimony about TikTok. According to Tsarynny, China is collecting information on Americans through applications such as TikTok to train AI. This training is being done in hopes of helping them win the AI race. He said that TikTok is present in a lot of websites and places where it can obtain information on Americans who don’t even use the app. He also said that it is required under Chinese law to disclose data when requested and that companies that are required to share the information may also need to keep it confidential so we may not even know that the data was shared with the CCP.
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This is probably why the Supreme Court said that the application needs to be divested considering that it may be collecting information on Americans and diverting it to China. When asked whether Tiktok is the only application that is suspected of doing so, he said that Tiktok is probably the biggest application, but not the only one. Tsarynny also said that the kind of information being collected includes everything you do on the app and anything it might be able to access on the phone. Another area is data collection on websites where tracking pixels collect your details. While not easy or commonly done, users can use privacy browser extensions or tools to block pixel trackers and other tracking tools.
Banned for a short period over data security concerns, TikTok began restoring its services on Sunday after President-elect Donald Trump said he would revive the app’s access in the U.S. after he returns to power, which is today, January 20th. In response, TikTok thanked Trump for “providing the necessary clarity and assurance to our service providers that they will face no penalties (for) providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive”. This gratitude comes at a tense moment in US-China relations.
Amidst all these events, U.S. search engine startup Perplexity AI also submitted a bid on Saturday, January 18, to TikTok’s Chinese parent ByteDance. The bid suggested Perplexity to merge with TikTok U.S., creating a new entity by combining the merged company with New Capital Partners. The company believes that its bid may be successful since the proposal is a merger rather than a sale.
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.
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A technician operating a robotic arm on a production line of semiconductor chips.
10. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation. On January 16, Truist raised the firm’s price target on Bloom Energy (BE) to $22 from $11 but maintained a “Hold” rating on the shares. The rating was issued as part of a broader research note related to the 2025 outlook for the firm’s Energy Transition/Sustainability sector. According to the firm, policy changes from the Trump administration aren’t going to be as harmful as currently implied by group multiples, but it still chooses to be “highly selective” into the first 100 days of the new government. Particularly for Bloom Energy, the firm indicates strong demand from data centers and associated higher trading multiples. At the same time, it also believes that expanding in the data center market is going to take time and isn’t going to be without potential near-term headwinds.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On January 16, The Information reported that Palantir Technologies Inc. (NASDAQ:PLTR) is in discussions with Shield AI, a maker of drones and software, to raise hundreds of millions of dollars in a new fundraising round. This potential investment supports Palantir’s strategic focus on strengthening its AI capabilities, particularly in the defense sector. The San Diego-based startup will likely be valued at around $5 billion. According to the Financial Times, Venture capital firms such as Andreessen Horowitz, Point72, and Riot Ventures are also anticipated to take part in the investment.
8. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders: 44
Atlassian Corporation (NASDAQ:TEAM) is a global software company that designs, develops, licenses, and maintains various software products worldwide. On January 15, analyst Gregg Moskowitz of Mizuho Securities reiterated a “Buy” rating on Atlassian with a price target of $285.00. Atlassian’s promising growth prospects and robust pricing power are two of the reasons for the rating upgrade. Moreover, the firm noted that Atlassian has announced significant price hikes for its on-premise Data Center products, such as Jira, Confluence, and Jira Service Management, exceeding previous expectations. The firm also pointed out Atlassian’s strategy of offering advanced technology offerings such as AI and analytics, along with a compelling suite of cloud-exclusive products. It is expected that the strategy will enable migrations from Data Centers to Cloud platforms, thereby enhancing future revenue streams.
7. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 49
monday.com Ltd. (NASDAQ:MNDY) develops software applications globally, offering a cloud-based Work OS for creating work management tools. On January 6, Piper Sandler analyst Brent Bracelin maintained a Buy rating on Monday.com and lowered the firm’s price target on Monday.com (MNDY) to $345 from $350. According to the firm, the next $1 trillion annual spend could occur within 7 years with artificial intelligence and digital labor driving major growth in software spending. In particular, large companies have the advantage of bringing AI features to businesses. The firm also added that 2025-2026 could bring in a renewed appetite to invest in the application and data layers after three years of tempering growth. Similarly, on January 17, Cantor Fitzgerald initiated coverage of Monday.com (MNDY) with an “Overweight” rating and a $292 price target. The firm believes it stands out in workflow automation, turning $161M in 2023 into nearly $1B in 2024.
6. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
International Business Machines Corporation (NYSE:IBM) is a multinational technology company offering AI consulting services and a suite of AI software products. On January 16, the company announced a collaboration with L’Oréal, the world’s leading beauty company, to improve cosmetic formula and encourage sustainability. IBM’s generative artificial intelligence (GenAI) technology and expertise will be leveraged for uncovering insights in cosmetic formulation data, enabling L’Oréal’s use of sustainable raw materials, for energy and material waste reductions. A custom AI foundation model will be engineered to improve L’Oréal Research & Innovation teams’ performance and consumer satisfaction in every cosmetic category. In essence, L’Oréal’s unparalleled expertise in cosmetic science will be amalgamated with IBM’s cutting-edge artificial intelligence technologies for scientific discoveries, bringing forth “ecologically responsible” and “innovative” solutions. The collaboration will also allow L’Oréal to meet its L’Oréal for the Future’s target which requires the company to source most of its product formulas based on bio-sourced materials and/or the circular economy by 2030.
“This alliance between highly specialized expertise in artificial intelligence and cosmetics seeks to revolutionize cosmetic formulation. It embodies the spirit of AI-augmented research, emphasizing sustainability and diversity”.
-Guilhaume Leroy-Méline, IBM Distinguished Engineer, Business Transformation Services CTO, IBM Consulting France.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 70
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers. On January 17, BofA analyst Vivek Arya raised the firm’s price target on Marvell to $150 from $140 and kept a “Buy” rating on the shares. The firm has raised its multiple on long-term share AI potential. Moreover, the firm sees an increased potential for Marvell Technology, particularly in areas of compute with custom silicon and optics with DSPs. The firm anticipates that Marvell will grow in these areas in the next few years. The analysts further told investors in a research note that the firm believes that custom silicon will maintain about 15% value share of the AI accelerator market and for the company itself to represent about 20% of this over time. AI accelerators speed up artificial intelligence tasks which are critical in data centers and cloud computing. Capturing this market share will position the company as a key player in the industry.
4. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 78
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions. On January 14, Jefferies raised the firm’s price target on Constellation Energy (CEG) to $274 from $234 and kept a “Hold” rating on the shares. The rating has been issued after the Calpine acquisition deal which Jefferies has termed as “positive and value accretive”. The agreement, announced on January 10, aims to offer the broadest array of energy products and services available in the industry. It has resulted in the company being one of the largest clean energy providers by combining emissions-free electricity, low-emission natural gas, and renewable energy to serve 2.5 million customers. According to Jefferies, Constellation prices in a “lot of data center value today”, more than its peers. However, the analyst told investors in a research note that there is “a favorable risk/reward skew in a bullish data center contracting scenario”.
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. One of the biggest analyst calls for Thursday, January 16, was for Tesla, Inc. Goldman Sachs reaffirmed its “Neutral” rating with a steady price target of $345. The company continues to dominate the automotive market with a market capitalization of $1.37 trillion. As such, the firm is optimistic about its full self-driving technology but has also cautioned that it will take time. Analysts have revised their model to include Tesla’s Full Self Driving (FSD) capabilities and robotaxi revenues in the forecast for 2027. It said that internal demos, crowdsourced feedback, and third-party evaluation have revealed how the company has been making strides in FSD technology. Nevertheless, the firm states that these gains also come with some caveats. This is particularly true for Level 3 (L3) autonomy where drivers can turn away their attention from the road safely. Tesla’s robotaxi business is expected to go live in the second half of 2026, generating a revenue of roughly $115 million in 2027. However, the firm expects the Robotaxi segment to have a neutral effect on Tesla’s consolidated (EPS) in the early stages.
“We do not expect FSD to be safer than a human in 2Q of this year, as Tesla targets. However, we believe FSD attach rates/monetization could pick up from what we believe are relatively low levels currently as performance improves, and we assume some increase in Tesla’s automotive gross margin in 2026/2027 in part as a result of higher FSD revenue.”
2. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained traction after the launch of its AI-powered platform called Agentforce. On Friday, January 17, TD Cowen upgraded Salesforce (CRM) to “Buy” from Hold with a price target of $400, up from $380. The firm said that shares of the company went up at the end of 2024 due to the buzz around Salesforce’s AI tool Agentforce. However, now that they have pulled back, it is a good opportunity to buy them. The firm also revealed that its IT Survey came back positive for Salesforce, and that “recent checks” regarding the interest around Agentforce have also been “highly constructive”. The firm also sees “several new growth levers emerging” for Salesforce for 2025 and 2026.
“We upgrade CRM from Hold to Buy and raise our PT to $400. Following a strong end of ’24 rally on the heels of Agentforce excitement, shares have pulled back, creating a compelling entry point”.
1. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) is a technology company known for its custom chip offerings and networking assets. On January 17, Barclays analyst Tom O’Malley raised the firm’s price target on Broadcom to $260 from $205 and kept an “Overweight” rating on the shares. The rating has been issued as part of a 2025 outlook for the semiconductors and semiconductor capital equipment sector. The firm has recently rolled out its numbers for the year 2026, stating how 2025 is going to be a year defined as the artificial intelligence “have and have-nots”. Barclays is more selective in its AI preferences and prefers owning stocks with proprietary serializer/deserializer technology, with Broadcom fitting the criteria. Oppenheimer is another firm that has recently rated Broadcom as one of the top semiconductor stocks for 2025. According to The Motley Fool, the rating upgrade comes the day after TSMC, Broadcom’s fabrication partner, reported earnings that were stronger than anticipated. The earnings indicate how AI-driven demand for chip making is as robust as ever, which is equally good news for other semiconductor stocks such as Broadcom.
While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
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