President Xi Jinping recently held a rare meeting at Beijing’s Great Hall of the People with some of the biggest names in China’s technology sector. Four years back, tech regulations in China and the government’s approach toward the tech sector were quite different than what it is shaping up to be today. Jack Ma, in particular, was once a high-profile target of Chinese regulators, disappearing from public view for several months after his criticizing speech against Xi in 2020.
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According to analysts, this change implies how policymakers are now concerned about slowing growth and the US’s efforts to limit China’s technological development. Meeting with tech leaders such as Alibaba’s Jack Ma, Jinping strongly urged them to “show their talent” and remain confident in the power of China’s model and market.
“The line-up of entrepreneurs suggests that Xi’s priority for the private sector is for it to support his goals of achieving technological self-reliance and supply-chain security”
– Neil Thomas, a fellow on Chinese politics at the Asia Society Policy Institute’s Center for China Analysis.
Gathering business leaders has been a pro-move by the President that underscores the importance of private sector innovation and the role it is playing in the global AI arms race. In light of this, Jinping has noted that private businesses have “broad prospects and great promise” to create wealth and opportunity. There is an inherent advantage in developing new industries with China’s governance and the scale of its market.
“It is the right time for the majority of private business and entrepreneurs to show their talent”.
-President Xi Jinping
Analysts note how gaining ground in technology is crucial for China as it races against the US for AI supremacy.
“It’s a tacit acknowledgement that the Chinese government needs private-sector firms for its tech rivalry with the United States. The government has no choice but to support them if it wants to compete with the United States.”
-Christopher Beddor, deputy China research director at Gavekal Dragonomics in Hong Kong.
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 Q3 2024.
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10. Mercurity Fintech Holding Inc. (NASDAQ:MFH)
Number of Hedge Fund Holders: N/A
Mercurity Fintech Holding Inc. (NASDAQ:MFH) is a digital fintech company that focuses on distributed computing and digital consulting. On February 19, the company announced the formation of a majority-owned subsidiary in Hong Kong, Aifinity Base Limited (“Aifinity”). Aifinity Base will be focusing on manufacturing advanced liquid cooling panels specifically tailored for artificial intelligence (AI) infrastructure, and high-performance computing (HPC).
The panels will also aim to improve the efficiency and performance of Nvidia® chip-powered GPUs and other high-performance AI accelerators. The company will deploy innovative liquid cooling technology and smart components to manage intense heat generated by modern AI computing systems. Looking ahead, it also plans to expand the cooling panel manufacturing further into comprehensive cooling solutions.
“Today’s AI systems generate intense heat, and they need cooling solutions that can keep up. Through Aifinity Base Limited, we would like to enter into the thermal management industry and later arrive at the forefront of thermal management innovation.”
-Shi Qiu, CEO of the Company, the parent company of Aifinity.
9. Amdocs Limited (NASDAQ:DOX)
Number of Hedge Fund Holders: 28
Amdocs Limited (NASDAQ:DOX) is a technology company that offers product-driven information system solutions. On February 18, the company announced amAIz Suite, a generative AI solution for communications service providers (CSPs). The portfolio of products, implementable on any technology stack, allows for unifying data, generating insights, and deploying AI solutions to transform business operations. By integrating machine learning and predictive capabilities over a patented Telco Data Fabric, the solution will be able to manage large amounts of telecommunications data across a CSP’s entire business.
The suite includes Amdocs AI & Data Platform (AIDP) that manages large amounts of data, Customer Experience Insights (CXI) that delivers real-time insights and predicts customer issues, and amAIz Agents that leverage telco-specific expertise for enhancing care, experience, network, operations, sales, services. The company will showcase amAIz Suite and other AI-based solutions at the Mobile World Congress Barcelona, March 3-6, 2025.
“In order to reach a future of agentic experiences, generative AI must be able to autonomously perform tasks, make decisions, and interact with customers. That evolution requires a robust data infrastructure, the ability to extract rich insights from diverse sources, and the orchestration of complex actions across business domains and processes. The new Amdocs’ amAIz Suite enables a significant leap forward for service providers, helping them unify data, generate insights and deploy generative AI applications and agents that transform their business, network, and operations.”
-Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs.
8. 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 February 19, the company announced that it had entered into a multi-year strategic partnership with SAUR Group, an innovator and leader in the global water sector. The partnership aims to revolutionize contract management processes through Palantir Foundry’s advanced Generative AI capabilities.
SAUR will be leveraging both Palantir’s Foundry, the company’s central platform for data-driven decision-making and situational intelligence, and the Artificial Intelligence Platform (AIP), enhancing its ability to analyze and navigate complex contracts, as well as convert vast amounts of data into structured, accessible insights. This implementation has already been deployed to over 300 users, enabling a step forward to responsive, transparent, and streamlined contract management.
“The potential of Foundry and AIP has been harnessed thanks to years of foundational work on data mastery at SAUR—defining a standard language, establishing pragmatic governance for continuous data quality improvement, and centralizing our data to ensure secure and efficient access. This partnership with Palantir allows us to transform contract management by turning vast and complex datasets into clear, actionable intelligence. It represents a major step in our AI-driven transformation, reinforcing our ability to enhance compliance, streamline operations, and better serve our customers”.
-Rony Bejjani, Chief Information Officer at SAUR.
7. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On February 19, Citi raised the firm’s price target on the stock to $600 from $460 and kept a “Buy” rating on the shares. The firm noted how AppLovin has performed well in 2024. Indeed, the stock has soared more than 700% and outperformed even the biggest names in the AI space. In its earnings call, the company noted that it will be divesting its apps business as it aims to move into other verticals for its artificial intelligence-powered AXON advertising software.
Even though Citi has raised the price target on AppLovin, it said that it sees “one small risk,” potentially in the second half of 2025, as well as “many potential opportunities” beyond 2025. The small risk that the firm has highlighted is Unity’s new advertising technology solution within its Grow segment. The analyst told investors in a research note that if Unity’s Grow segment improves, the potential revenue headwind for AppLovin is likely to be small. Unity and AppLovin are competitors, and despite competitive pressure from Unity, the growth potential for AppLovin remains strong.
6. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 60
Cisco Systems, Inc. (NASDAQ:CSCO) is an American technology company that provides information technology and networking services. On February 17, DZ Bank upgraded the stock to “Buy” from Hold with a $71 price target. The rating has been issued as the company reported fiscal second-quarter results and guidance that beat Wall Street’s expectations. Cisco has reported adjusted earnings per share of 94 cents, topping analyst expectations of 91 cents.
It also surpassed revenue projections, generating a revenue of $13.99 billion compared to the expected $13.87 billion. Cisco highlighted that the company had orders for artificial intelligence infrastructure that exceeded $350 million in the quarter. Looking ahead, it sees adjusted earnings of $3.68 to $3.74 for the 2025 fiscal year compared to analyst estimates of $3.66. It also forecast $56 billion to $56.5 billion in revenue versus the $55.99 billion projected by analysts polled by LSEG.
5. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained popularity after the launch of its AI-powered platform called Agentforce.
On February 19, Redburn Atlantic analyst Omar Sheikh initiated coverage of the stock with a “Buy” rating and a $400 price target. On the same day, Stifel Nicolaus analyst J. Parker Lane maintained a “Buy” rating on the stock and set a price target of $425.00.
Lane’s buy rating stems from the growing interest and optimism around Salesforce’s AI-powered Agentforce. Albeit still being tested and deployed by customers, the analyst stated that it has garnered significant attention.
Salesforce is doing everything it can to promote Agentforce’s broader adoption, including promoting it in its customer base, dedicating resources to research and development (R&D), and implementing go-to-market strategies.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On February 18, Wells Fargo analyst Aaron Rakers highlighted that there has been an abundance of media reports debating whether a TSMC and Broadcom Inc. (NASDAQ:AVGO) takeover via separation of Intel would be possible and/or feasible. Even though the firm is skeptical, it noted that such a move would be positive.
It further noted that if such a transaction were to take place, the main question would be whether Intel management can extract a break-down value greater than its current $125B enterprise value. Broadcom has been examining Intel’s chip design and marketing business, discussing a potential bid with its advisers that it would likely proceed with if it found a partner for Intel’s manufacturing business, notes The Wall Street Journal. Broadcom and TSMC are not working together.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $250 implies a 9% upside, however, the Street-high target of $300 implies an upside of 31%.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL) is a technology company. On February 19, the company unveiled the newest member of its family: the iPhone 16e. Featuring its agile A18 chip, Apple Intelligence, an extraordinary battery life, and a 48MP 2-in-1 camera system, the new addition to the iPhone 16 lineup promises powerful capabilities at an affordable price point.
This phone aims to capture mid-market customers at home and in crucial growth markets in China and India. The 16e will cost $599, boasting features closer to Apple’s flagships and a chip powerful enough to run Apple Intelligence, its personal intelligence system, with access to ChatGPT.
“iPhone 16e packs in the features our users love about the iPhone 16 lineup, including breakthrough battery life, fast performance powered by the latest-generation A18 chip, an innovative 2-in-1 camera system, and Apple Intelligence. We’re so excited for iPhone 16e to complete the lineup as a powerful, more affordable option to bring the iPhone experience to even more people.”
-Kaiann Drance, Apple’s vice president of Worldwide iPhone Product Marketing.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On February 19, Nvidia announced the launch of Evo 2, a powerful new AI model built using NVIDIA DGX Cloud on Amazon Web Services (AWS). The company claims that Evo 2 is the largest publicly available AI model for genomic data, a foundational model that understands the genetic code for all domains of life.
The Evo 2 has been developed in a collaboration led by nonprofit biomedical research organization Arc Institute and Stanford University, and is available to global developers on the NVIDIA BioNeMo platform, including as an NVIDIA NIM microservice for easy, secure AI deployment. Building on its predecessor Evo 1, Evo 2 has been trained on an enormous dataset of nearly 9 trillion nucleotides which are the the building blocks that make up DNA or RNA. The model can predict genetic mutations and design new genomes, enabling researchers to predict the effects of all types of genetic mutations.
“Our development of Evo 1 and Evo 2 represents a key moment in the emerging field of generative biology, as the models have enabled machines to read, write and think in the language of nucleotides. Evo 2 has a generalist understanding of the tree of life that’s useful for a multitude of tasks, from predicting disease-causing mutations to designing potential code for artificial life. We’re excited to see what the research community builds on top of these foundation models.”
-Patrick Hsu, UC Berkeley assistant professor of bioengineering, Arc Institute co-founder and co-senior author.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On February 18, the company announced that its developer conference for 2025, LlamaCon, will take place on April 29. The conference will be discussing Meta’s latest open-source AI developments, an event driven by the growth and interest in Meta’s open-source Llama collection of models and tools.
These developments will in turn help developers build amazing apps and products, whether as a start-up or at scale. Meta has also highlighted September 17 – 18 as dates for another key event. With Meta Connect en route, this annual conference will be showcasing its latest virtual reality (VR), augmented reality (AR), mixed reality (MR), and artificial intelligence (AI) innovations.
While we acknowledge the potential of META 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 META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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