Artificial intelligence is advancing fast, but is it ready to replace humans? According to Google DeepMind CEO, it is only a matter of time before it becomes a reality.
Demis Hassabis believes that artificial general intelligence (AGI), a type of artificial intelligence which is as smart as or smarter than humans, will start to emerge in the next five or 10 years.
“I think today’s systems, they’re very passive, but there’s still a lot of things they can’t do. But I think over the next five to 10 years, a lot of those capabilities will start coming to the fore and we’ll start moving towards what we call artificial general intelligence”
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According to Hassabis, AGI is “a system that’s able to exhibit all the complicated capabilities that humans can.”
“We’re not quite there yet. These systems are very impressive at certain things. But there are other things they can’t do yet, and we’ve still got quite a lot of research work to go before that.”
Meanwhile, Dario Amodei, CEO of AI startup Anthropic, told CNBC that he sees a form of AI that’s “better than almost all humans at almost all tasks” emerging in the “next two or three years.” Sam Altman, CEO of OpenAI, believes AGI could be reached sometime in the next four or five years.
Regardless of when it will arrive, an undisputed theory about AGI is that its arrival is imminent. This is because the continuous training of AI models using increasing amounts of computational power and data will inevitably lead to AGI. It is only but wise for policy makers and governments to be proactive regarding its arrival, so that it doesn’t lead to bad outcomes, such as human extinction.
“If governments act now, with determination, there is a chance that we will learn how to make AI systems safe before we learn how to make them so powerful that they become uncontrollable.” Stuart Russell, professor of computer science at the University of California, Berkeley.
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. The hedge fund data is as of Q4 2024.
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10. FiscalNote Holdings, Inc. (NYSE:NOTE)
Number of Hedge Fund Holders: 10
FiscalNote Holdings, Inc. (NYSE:NOTE) is a leading AI-driven enterprise SaaS technology provider of global policy and market intelligence solutions. On March 17, the company announced the launch of its Presidential Actions widget, an advanced new feature within its PolicyNote platform. The new widget, designed to enhance the company’s AI-driven policy intelligence capabilities, delivers near real-time tracking and AI-driven insights into Executive Orders, Proclamations, Memorandums, and Fact Sheets issued by the White House.
The widget also provides instant access to the latest Executive Orders through their customizable dashboard. Users can also easily filter and search executive actions by date or keyword. With the current administration issuing more executive orders than ever, this tool will act as a crucial need for organizations who need to navigate and comply with the dynamically shifting federal policy.
“With the launch of the Presidential Actions widget in the central PolicyNote dashboard, we continue to enhance our robust data and proprietary analysis, leveraging an engaging and powerful user experience in PolicyNote to push the boundaries of AI-powered policy intelligence, giving our customers a decisive advantage in monitoring, interpreting, and responding to rapidly evolving government actions. By combining near real-time tracking of these critical Presidential actions with AI-driven analysis, we’re not only enhancing agility, transparency,and accessibility but also reinforcing our leadership in delivering innovative, product-led solutions that drive better decision-making. In an era when executive orders can shape industries overnight, organizations can use PolicyNote to cut through the noise, act decisively, and maintain a competitive edge.”
-Josh Resnik, FiscalNote CEO and President.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On March 13, the company announced that it has onboarded six new customers deploying its Warp Speed program to make key machinery manufacturing more efficient. The newest Warp Speed customers, Epirus, Red Cat, Saildrone, Saronic, Ursa Major, and SNC, will be able to accelerate onshore manufacturing capabilities, optimize maintenance, and enable advanced fleet management.
“We designed Warp Speed to enable faster, safer, and more efficient production of formidable machinery that is critical to America’s leadership — from sea vessels, to drones, to propulsion systems. Epirus, Red Cat, Saildrone, Saronic, SNC, and Ursa Major represent the most visionary leaders, technologies, and manufacturing operations — and we are extremely proud to enable the companies who share our sense of responsibility for the power of American production.”
-Emily Nguyen, Palantir’s Head of Industrials.
8. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection. On March 17, the company announced an expanded partnership with NTT DATA, a global digital business and IT services leader, to enhance NTT DATA’s managed cybersecurity services through Crowdstrike’s Falcon® cybersecurity platform. NTT DATA’s world-class managed services will be integrated with the Falcon platform to help strengthen AI-powered cyber resilience. Through the collaboration, organizations will be able to leverage advanced threat detection and response across their digital environments, achieve proactive threat hunting and incident response support from experts, and leverage the ecosystems from both companies to ensure seamless cybersecurity solutions and services for clients.
“Together, NTT DATA and CrowdStrike are transforming cybersecurity for organizations of all sizes. NTT DATA continues to expand its hyper growth business with CrowdStrike and we look forward to driving cybersecurity transformation with the industry’s leading AI-native platform.”
-Daniel Bernard, Chief Business Officer, CrowdStrike.
7. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On March 17, Needham analyst Bernie McTernan reiterated a “Hold” rating on AppLovin shares. By introducing the initial APP Ecommerce Tracker, the analyst assessed APP’s expansion beyond mobile advertising into ecommerce. After reviewing 2,200 ecommerce websites for the Axon pixel, an AI-powered tracking tool that optimizes ad targeting, the analyst found 297 sites using APP. They reflect common industries such as health & personal care, apparel, and furniture, and notable advertisers such as W, Marine Layer, and Bombas.
APP works across a diverse range of product categories, with over 40% of the websites in the Health & Personal Care sector, while 25% in apparel, footwear, and accessories. The 2,200 websites also include 60 major brands such as Nike, Amazon, and Etsy. The analyst sees strong growth potential for AppLovin, driven by the transition toward in-app advertising (IAA) and the importance of first-party consumer data. Based on these factors, there is significant growth potential in in-app advertising, particularly within casual gaming apps.
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On March 17, Mizuho reiterated the stock as “Outperform” and lowered its price target on the stock to $415 per share from $515.
“We believe TSLA’s sales woes are the result of a deterioration in geopolitics, brand perception (US/EU), share loss due to stronger competition.”
According to LSEG data, 28 of 54 analysts covering the stock have a “Hold” rating, “Underperform” or “Sell”. The remaining 26 have a buy or strong buy rating. Previously, the stock had been riding high on the heels of President Donald Trump’s election win, particularly its AI and autonomous story.
5. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. On March 17, Scotiabank lowered the firm’s price target on the stock to $345 from $400 and kept an “Outperform” rating on the shares. According to the analysts, the market is witnessing worsening demand trends and rising odds of a recession. Under these circumstances, the firm is favoring market leaders in the software and services sector; particularly those with strong free cash flow and that are in a better position to capitalize on artificial intelligence.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. On March 17, Melius reiterated the stock as “Buy”, stating how Apple shares have several ways to get back on track. Analysts said that the delays to AI-enhanced Siri are disappointing, but there is still see a path to get the stock back on track. Melius also argued that Apple’s free cash flow helps make the stock defensive.
“In September 2025, we expect Apple to ship a new form factor in the ‘iPhone Air’ that could replace the ‘Plus’ and altered designs for the flagship Pros and Max’s that could all drive customers to “mix-up” to tiers with higher ASP’s [average selling price] given new components.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $255 implies a 19% upside, however, the Street-high target of $325 implies an upside of 52%.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the most notable analyst calls on Monday, March 17, was for Nvidia Corporation. Morgan Stanley reiterated the stock as “Overweight”, stating that it is standing by the stock ahead of its Global AI Conference this week.
“NVDA roadmap is well understood but still see GTC [Global AI Conference] as a positive.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On March 17, one of the most notable analyst calls on Monday, March 17, was for Meta Platforms, Inc. Wolfe reiterated the stock as “Outperform”, stating that it is bullish on the company’s business messaging opportunity.
“In the near term, we think Meta’s core product- driven initiatives have the highest potential to driving estimates upside. However, in the medium term, we believe Threads monetization and Business Messaging will likely emerge as more meaningful growth catalysts, in addition to Meta AI monetization and the option value of potentially lowering Reality Labs losses over time.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $775 implies a 28% upside, however, the Street-high target of $900 implies an upside of 49%.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On March 17, Barclays’ analyst Kannan Venkateshwar maintained a “Buy” rating on the stock and set a price target of $265.00.
Several analyst firms are bullish on the stock, including Evercore ISI, who named Amazon a “Top Pick” and expressed optimism on Amazon Web Services. According to analyst Mark Mahaney, investors are underestimating the AI boost Amazon is going to get moving forward. Amazon shares are attractively valued following a nearly 15% pullback over the past month. Currently, the firm has a “Buy” rating on the stock with a $270 price target.
“Shares traded off on the Q4 print, but we viewed that as an Expectations Correction and not a Fundamentals correction.”
While we acknowledge the potential of AMZN 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 time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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