According to Goldman Sachs, the AI-powered rally in Chinese equities could boost other markets as well. Consequently, the firm has raised its 12-month target for MSCI Emerging Markets Index by 3%, reaching 1,220 from 1,190, and reflecting an 11% potential upside from current levels. This increase reflects the impact of AI adoption on valuations through earnings, multiples and portfolio flows.
The firm further noted that China’s stock market rally has the potential to boost emerging markets that are linked to China but have been lagging previously. This could also be supported by a stimulus-driven catch-up in A-shares. In this regard, the firm said that the recent fiscal stimulus announced at China’s “Two Sessions” meeting is anticipated to stabilize growth and improve market confidence, Reuters noted.
READ ALSO: 10 High-Potential AI Stocks to Watch Right Now and 12 AI Stocks Making Headlines: Latest News and Ratings
With regard to the AI arms race, another region aiming to address the competitiveness gap is Europe. Reuters has reported how AxeleraAI, one of the few companies in Europe making computer chips for artificial intelligence, has been awarded a grant of up to 61.6 million euros ($66 million).
This grant aims to develop a chip for use in data centers, aiming to uplift EU efforts to boost the sector. Europe is increasingly trying to fund domestic chipmakers and build publicly funded data centers, known as “AI factories,” making them accessible to European scientists, companies and startups.
“It’s a moment of pride.”
-Axelera CEO Fabrizio Del Maffeo in a phone interview
Axelera has won funding from EuroHPC, which is an agency overseeing the European Union’s network of supercomputers and AI factories – to bring out a chip efficient at “inference” AI computing.
“We are not here to challenge Nvidia in the data centre space, in the training. But when the network is ready and you want to run it, we are developing a solution that can deliver extremely high performance … we can do that.”
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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A Wall Street trading floor, chaotic with activity as traders and financial analysts analyze the company’s impact on the markets.
10. ARB IOT Group Limited (NASDAQ:ARBB)
Number of Hedge Fund Holders: 2
ARB IOT Group Limited (NASDAQ:ARBB) offers Internet of Things (IoT) system solutions, and system integration and support services in Malaysia. On March 4, the company announced that it has signed an artificial intelligence (AI) Products Supply Agreement through its indirect wholly owned subsidiary, ARB IOT Group Sdn Bhd. The agreement has been signed with Gajah Kapitalan Sdn Bhd (“GKSB”), a Malaysian enterprise technology innovator, and aims to deliver advanced computing systems for enterprises, research institutions and developers in Malaysia. The deal, valued at US$45.0 million, requires RB IOT to supply 500 units of state-of-the-art ARB-222 AI servers (“AI Products”) to provide high-performance immersible computer servers to GKSB. Through this agreement, ARB IOT is strategically expanding its presence into the growing data center sector.
“Our collaboration with GKSB strengthen our mission to provide leading-edge AI server solutions and to deliver significant cost savings and operational efficiencies to the customers. Such order represents a significant milestone for the Company and highlights the growing demand for the AI Products. This not only strengthens our collaboration but also drives our continued growth and expansion in the market. As we carry out this agreement with GKSB, our commitment to excellence and innovation remains unwavering. The trust placed in ARB IOT to deliver these state-of-the-art AI Products reflects our shared dedication to enhancing the operational capabilities. We look forward to enhancing our technological capabilities and providing valuable market insights that will enable ARB IOT to better serve the needs of our target audience where AI is universally accessible, leading to diverse applications and breakthroughs across industries.”
-Muhammad Badrun Almuhaimin Bin Baharon, Director of GKSB.
9. Lantronix, Inc. (NASDAQ:LTRX)
Number of Hedge Fund Holders: 17
Lantronix, Inc. (NASDAQ:LTRX) designs and sells IoT products and services globally. On March 6, the company announced that it will demonstrate its SmartLV, the first AI-enabled IoT Edge Compute Cellular Gateway, at Embedded World, March 11–13, 2025, in Nuremberg, Germany. The innovative device, powered by Qualcomm Dragonwing™ IQ-615, aims to tackle challenges within smart grids by providing Distribution System Operators (DSOs) the capability to manage and steer energy when and where it’s needed.
The device is a testament to Lantronix’s long-standing collaboration with Qualcomm Technologies, integrating Qualcomm Technologies’ industry-leading AI and connectivity capabilities with Lantronix’s expertise in IoT solutions. This way, utilities can manage electricity more effectively. The SmartLV is built with cybersecurity protocols and AI capabilities, empowering it to be a secure and intelligent solution specifically designed for low-voltage substations and Distributed Energy Resources (DERs).
“Integrating advanced sensors, AI and decentralized computing enhances efficiency, reliability and sustainability. Powered by the Dragonwing IQ-615, the SmartLV delivers Edge AI computing features to help bring power grids into the future.”
-Tom Thornton, director of Embedded Compute at Lantronix.
8. 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 5th, Jefferies maintained its “Underperform” rating on the stock, citing its concerns over insider selling patterns and valuation multiples. While many analysts are bullish on the stock owing to its AI-driven growth, the firm has flagged heavy insider selling in Palantir Technologies’ (NASDAQ:PLTR) stock instead. Analyst Brent Hill noted that the company’s CEO, Alex Karp, has offloaded $45 million in shares over the past two weeks. This move follows his previous over $2 billion in stock sales throughout 2024. In contrast, Salesforce’s incoming Chief Financial Officer has been purchasing shares, implying differing confidence levels in the respective companies’ futures.
7. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 70
MongoDB, Inc. (NASDAQ:MDB) provides a general-purpose database platform worldwide that integrates operational, unstructured, and AI-related data to streamline building applications. On March 6, JMP Securities analyst Patrick Walravens maintained a “Buy” rating on the stock with a price target of $345.00. The rating, issued after the earnings print, reflects MongoDB’s potential for growth. Even though there was a decline in stock price due to mixed guidance, the company has reported a significant revenue beat and a notable increase in non-GAAP operating margin.
The company’s robust on-premises and cloud-hosted product offerings position it well to capitalize on the growing database management market. In addition, the company is also poised to benefit from artificial intelligence advancements driven by its AI-tooling capabilities and strategic acquisition of Voyage AI. Voyage AI, a leader in embedding and reranking models, integrates advanced AI search and retrieval functionalities into MongoDB’s database system. Lastly, the leadership at MongoDB is also viewed favorably, contributing to the positive outlook for the stock.
6. 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 5th, TD Cowen analyst Shaul Eyal reiterated a “Buy” rating on the stock with a $450.00 price target. The firm is optimistic on the stock based on its strong financial performance and strategic positioning. In particular, the analyst highlighted CrowdStrike’s strong year-end performance, noting a 40% year-over-year increase in total FY25 contract value, reaching a robust $6 billion.
This growth was backed by a 25% rise in revenue and a 23% increase in Annual Recurring Revenue (ARR), both metrics surpassing market expectations. The company is also well-positioned to capitalize on the robust demand in cybersecurity and artificial intelligence. The company has been using AI across its operations, particularly in cloud and identity security, which has witnessed significant ARR growth. Furthermore, CrowdStrike has been managing to secure large deals, including over 20 transactions exceeding $10 million, which demonstrates its market strength.
5. 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 6, Baird lowered the firm’s price target on the stock to $370 from $440 and kept an “Outperform” rating on the shares. The firm has deemed Tesla as a “Bearish Fresh Pick” due to “near-term headwinds” related to production challenges and demand uncertainty.
The analyst told investors in a research note that Tesla’s consensus Q1 delivery estimate of 437,500 is at risk due to weak intra-quarter sales data from Europe, the U.S., and China. Model Y refresh production downtime associated with the “complicates the supply-side of the equation while at the same time, Musk’s involvement with the Trump administration adds uncertainty to the demand-side.” Despite these concerns, the firm remains bullish on Tesla due to “long-dated initiatives such as the launch of the Optimus robot, robotaxi service/expanding FSD, and ramping sales of the more affordable vehicle(s).”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. On March 5th, the company unveiled new MacBook Air models featuring the latest M4 chip, artificial intelligence features, up to 18 hours of battery life, a new 12MP Center Stage camera, and a lower starting price. The strikingly thin and light device is now available in a beautiful sky blue color, joining the midnight, starlight, and silver family. These 13- and 15-inch MacBook Air models are now available to pre-order, with availability beginning Wednesday, March 12. The introduction of these AI-enabled personal computers is expected to drive a recovery in the PC market, persuading customers to upgrade their devices in the process.
“MacBook Air is by far the world’s most popular laptop, and today we’re giving everyone even more reasons to love it, including a big boost in performance with the M4 chip, a new Center Stage camera, and a beautiful new sky blue color. Combined with its thin and light, fanless design, all-day battery life, and the incredible capabilities of macOS Sequoia with Apple Intelligence, MacBook Air is unlike any other laptop. And with a new lower starting price of $999, MacBook Air delivers more value to consumers than ever before, making this the perfect moment to upgrade or experience the Mac for the first time.”
-Greg Joswiak, Apple’s senior vice president of Worldwide Marketing.
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. On March 5th, the company announced that GTC 2025, the world’s premier AI conference, will return March 17-21 to San Jose, California. The annual conference will be showcasing breakthroughs happening now in physical AI, agentic AI, and scientific discovery. NVIDIA founder and CEO Jensen Huang will deliver the keynote from SAP Center on Tuesday, March 18, at 10 a.m. PT.
“AI is pushing the limits of what’s possible — turning yesterday’s dreams into today’s reality. GTC brings together the brightest scientists, engineers, developers and creators to imagine and build a better future. Come and be first to see the new advances in NVIDIA computing and breakthroughs in AI, robotics, science and the arts that will transform industries and society.”
-Jensen Huang
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On March 5th, Google announced that it has launched an experimental version of its search engine that eliminates its classic 10 blue links in favor of an AI-generated summary. Known as the “AI Mode,” the new Search mode expands AI Overviews with more advanced reasoning, thinking and multimodal capabilities, prompting helpful AI-powered responses that can go even further with follow-up questions and helpful web links.
The AI Mode uses a custom version of Gemini 2.0, a family of multimodal LLMs from Google, and integrates it with Google’s best-in-class information systems. The new feature is currently available to subscribers of Google One AI Premium and can be used via the results page for any search query by clicking on a tab labeled “AI Mode” to the side of existing options.
“We’ve heard from power users that they want AI responses for even more of their searches.”
-Robby Stein, a vice president of product, said in a blog post.
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 5th, Amazon.com’s Prime Video announced that it will begin offering AI-aided dubbing in English and Spanish on licensed movies and series starting Wednesday. The AI-aided dubbing will be available initially on 12 licensed movies and series, including titles such as El Cid: La Leyenda, Mi Mamá Lora, and Long Lost.
According to the company, this pilot program is a hybrid approach to dubbing where localization professionals collaborate with AI to ensure quality control. The feature will only be available on titles that do not already have dubbing support. This move marks the latest by Amazon to integrate AI into their offerings in order to improve user experiences.
“At Prime Video, we believe in improving customers’ experience with practical and useful AI innovation. AI-aided dubbing is only available on titles that do not have dubbing support, and we are eager to explore a new way to make series and movies more accessible and enjoyable.”
-Raf Soltanovich, VP of technology at Prime Video and Amazon MGM Studios.
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.
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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