For centuries, work has been about physical abilities on farms in the factories and industries. There has been a paradigm shift in recent years, with work being about intellectual abilities. The trend is gathering steam as artificial intelligence increasingly disrupts global industries and workforces.
The emergence of AI is igniting a fresh conversation. As automation assumes more manual jobs and artificial intelligence dominates more cognitive functions, humanity will be characterized by its social skills. “But [generative AI] isn’t just another invention,” said Aneesh Raman, chief economic opportunity officer at LinkedIn. “It’s a turning point, forcing us to rethink not just what work is, but what it means to be human at work.”
If generative AI fulfills its promises, the worldwide job market will be drastically transformed, according to a Goldman Sachs report regarding the rise of AI. The investment firm projects that 300 million jobs may be eliminated or reduced due to this rapidly advancing technology.
Goldman argues that automation fosters innovation, resulting in the emergence of new job categories. AI will bring about cost reductions for businesses, allowing them to allocate their resources towards developing and expanding operations, which could boost global GDP by 7% annually.
Goldman Sachs forecasts that the advancement of AI will reflect the path taken by previous computer and technology innovations. Much like the transition from large mainframe computers to contemporary tech. AI can successfully pass the bar exam for lawyers, excel on the SATs, and create original art pieces.
Administrative assistance in offices, legal services, architecture and engineering, business and financial operations, management, sales, healthcare, and art and design are among the fields that face significant transformation due to AI automation.
According to a scholarly study by the National Bureau of Economic Research, automation technology has been the main factor contributing to income inequality in the United States over the last four decades. The study asserts that 50% to 70% of the fluctuations in U.S. wages since 1980 are linked to wage drops experienced by blue-collar employees who have been replaced or negatively impacted by automation.
Advancements in artificial intelligence, robotics, and other complex technologies have created a significant wealth and income disparity. This problem is set to intensify. Similarly, AI is causing significant changes to the coding workforce after years of hoopla and fear about how many jobs it will eliminate or replace. One of the first applications of generative AI was AI coding tools, which help write more code more quickly by automating large parts of the code development process.
“2025 is going to be a very fascinating year with some of these tools, as we start to scale,” said KeyBank Chief Information Officer Amy Brady. “We’re not far enough on the journey where I can confidently say it’s going to replace all entry-level code generation. Do I think it could replace some? Yes.”
Organizations are buzzing with discussions about artificial intelligence and the applications of generative AI, and numerous companies are progressing with their implementations. However, there is a risk of employee burnout from hastily adopting AI, and businesses must take precautions against this even as they eagerly embrace these technologies.
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 in Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A business executive in a modern office looking over reports detailing artificial intelligence.
10. Yext Inc. (NYSE:YEXT)
Number of Hedge Fund Holders: 17
Yext Inc. (NYSE:YEXT) is a software infrastructure company that organizes business facts to provide answers to consumer questions. It operates the Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions and control the facts about their businesses and the content of their landing pages. On March 3, the company unveiled Yext Scout, a groundbreaking AI search and competitive intelligent agent.
The AI-powered search tool is designed to help brands navigate the evolving search landscape while providing visibility across traditional and AI search platforms. Yext may be the first all-inclusive solution for AI search optimization at scale, thanks to the platform’s integration of monitoring, analysis, and execution capabilities. The ability to apply recommendations across their digital footprint from a single platform represents significant operational efficiency for multi-location brands that oversee hundreds or thousands of locations.
“AI-driven search is redefining how customers discover and engage with brands, yet most companies have limited visibility into how they’re being represented,” said Michael Walrath, CEO and Chair of the Board at Yext Inc. (NYSE:YEXT). “Yext Scout changes that by giving brands the intelligence and control they need to track, optimize, and own their presence across both AI and traditional search. When combined with Yext’s industry-leading digital presence solutions, we believe we provide the only end-to-end platform that delivers comprehensive insights, recommendations, and the ability to take action.”
9. Domo, Inc. (NASDAQ:DOMO)
Number of Hedge Fund Holders: 18
Domo, Inc. (NASDAQ:DOMO) is a software application company that operates a cloud-based business intelligence platform. Its platform digitally connects management to frontline employees with data and systems. It also provides a data experience platform incorporating AI capabilities, allowing businesses to leverage machine learning, natural language processing, and predictive analytics. The company confirmed on March 4 that it is inking a strategic partnership with Koantek to develop tailored data strategies and enhance decision-making.
The two companies are joining forces to make it easier for the Domo and Databricks’ Data Intelligence platforms to manage customer data jointly. By incorporating Domo, Inc. (NASDAQ:DOMO) into its service offerings, Koantek will use its strong AI and analytics capabilities to deliver quick, actionable insights. It should also offer real-time data and encourage AI-driven decision-making that increases business impact.
“In a time of rapid AI development, it’s critical that businesses are able to leverage new, evolving technologies while avoiding siloed, expensive and ineffective practices,” said RJ Tracy, Domo’s Chief Revenue Officer. “With a focus on transparency and governance, our flexible AI service layer enables companies to securely engage, automate and act on corporate data through transparent and permission-based AI implementation.”
8. DXC Technology Company (NYSE:DXC)
Number of Hedge Fund Holders: 24
DXC Technology Company (NYSE:DXC) is an information technology services company that provides application development, cloud, and IT outsourcing services. It also provides AI consulting and implementation services to businesses across various industries, helping them leverage artificial intelligence to optimize operations. On March 4, the company unveiled new offerings in partnership with ServiceNow as they look to modernize the insurance industry.
The new AI-powered DXC Technology Company (NYSE:DXC) Assure BPM solution automates manual workflows throughout the policy lifecycle, directly addressing important efficiency issues in insurance operations. The solution combines DXC’s insurance expertise with ServiceNow’s AI platform to transform the insurance industry. The solution should reduce up to 40% of operational costs spent on manual processing through AI integration.
The product furthers DXC’s transition to platform-based, higher-margin business models with the potential for recurring income. Rather than developing proprietary technology, DXC will likely achieve a quicker time-to-market and lower development costs by fusing its industry experience with ServiceNow’s well-established AI platform.
“We are committed to delivering exceptional value to our customers and accelerating business outcomes. Our expanded partnership with ServiceNow will combine our deep insurance expertise with ServiceNow’s advanced AI workflow technology to drive speed, agility and operational transformation for insurers,” said Ray August, President of Insurance Software and Business Process Services at DXC.
7. JFrog Ltd. (NASDAQ:FROG)
Number of Hedge Fund Holders: 32
JFrog Ltd. (NASDAQ:FROG) is a technology company that offers a software supply chain platform that helps organizations manage, secure, and distribute software. It also helps automate software updates. On March 4, the company launched JFrog ML, an integrated MLOps solution within the JFrog Platform. This release, following the QWAK.ai acquisition in 2024, unifies DevOps, DevSecOps, and MLOps practices, enabling scalable enterprise AI application development and deployment.
The platform tackles a significant issue with enterprise AI adoption: the disarray between operations, data scientists, and development teams. Big AI platforms like Hugging Face, AWS Sagemaker, MLflow, and NVIDIA NIM are among those that JFrog ML integrates with.
“As the demand for AI-powered applications continues to grow rapidly, so do the concerns around the ability to control and manage this new domain on all fronts – from MLOps to ML security. In fact, our own team of security researchers were the first to find and help remediate new, zero-day malicious ML models in Hugging Face,” said Alon Lev, VP & GM, MLOps, JFrog.
6. Hut 8 Corp. (NASDAQ:HUT)
Number of Hedge Fund Holders: 34
Hut 8 Corp. (NASDAQ:HUT) operates as a vertically integrated operator of energy infrastructure and Bitcoin miners in North America. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management. The company delivered solid fourth-quarter and full-year 2024 results on March 3. It logged $162.4 million in full-year revenue as net income came in at $331.4 million and adjusted EBITDA at $555.7 million.
According to Chief Executive Officer Ahser Genoot, they delivered on operational experience and bottom-line economics, setting the stage for disciplined growth in 2025. Similarly, Hut 8 Corp. (NASDAQ:HUT) remains well-positioned to generate optimized returns and develop innovation at every stage of the development value chain.
“Together with our robust development pipeline and strengthened team, we believe we are well-positioned to meet the continued and rising demand for energy capacity from applications like AI while building a platform positioned to fuel the world’s most transformative technologies for decades to come,” Genoot said.
5. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 40
UiPath Inc. (NYSE:PATH) is a software company that leverages AI to develop solutions that automate repetitive tasks. Its platform helps businesses transform how they operate by combining AI, automation, and robots. On March 3, the leading enterprise automation and AI software company confirmed a new global consulting agreement with a major Electronic Medical Record platform.
The agreement is proposed to expand the company’s professional services capabilities for healthcare organizations. UiPath Inc.’s (NYSE:PATH) focus on agentic automation capabilities places it at the nexus of advanced AI and healthcare administration, which is strategically aligned with the direction of enterprise technology. The company is also positioned to benefit from the $20 billion EMR market anticipated in 2025 by expanding its professional services capabilities to 16 new nations, including Australia, France, Germany, and Singapore.
“With professional services from UiPath and its qualified partners, healthcare organizations have significantly greater access and resources to drive down costs and automate more end-to-end processes with the ultimate goal of better care and more fulfilling work for healthcare professionals,” said Jason Warrelmann, Vice President of Industry Practice at UiPath.
4. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 51
GitLab Inc. (NASDAQ:GTLB) is a technology company that offers a web-based platform that helps teams manage source code, plan projects, and collaborate on software development. It also provides security, monitoring, and issue tracking. It also utilizes AI through its “GitLab Duo” feature to integrate artificial intelligence across the entire software development lifecycle. Analysts at BTIG reiterated a Buy rating on the stock and an $86 price target on March 4.
The bullish stance comes on GitLab Inc. (NASDAQ:GTLB) delivering robust fiscal fourth-quarter results that outperformed expectations. Revenue was up 29.1% year over year in Q4 2024 to $211.4 million. It also offered a robust 2026 guidance that aligned with expectations. BTIG analysts noted positive trends in big deal activity and emphasized the ongoing strength of GitLab’s premium Ultimate tier. Additionally, new products like GitLab Dedicated and Duo Enterprise are becoming more popular in the market. In the future, BTIG sees several growth drivers for GitLab, such as new product initiatives and more general secular trends in the DevSecOps industry.
“This quarter’s results demonstrate the power of GitLab’s innovative DevSecOps platform,” said Bill Staples, GitLab’s chief executive officer. “AI is fundamentally changing the software development landscape. With the GitLab platform and GitLab Duo, customers can leverage AI that fully takes advantage of the GitLab platform which ensures their software quality, security, privacy, compliance, and governance requirements are met to deliver secure software faster.”
3. Juniper Networks, Inc. (NYSE:JNPR)
Number of Hedge Fund Holders: 56
Juniper Networks, Inc. (NYSE:JNPR) is a communication equipment company that designs, develops, and sells network products and services worldwide. The leader in secure AI native networking confirmed on March 4 that Saudi Telecom Company had selected its 400G routers in its Converged Supercore network and key data centers as it looks to expand 5G connectivity in the kingdom.
Saudi Telecom Company is to leverage Juniper 400G routers to improve network capacity, performance and scale. It should also help reduce energy use, all fully aligned with its ongoing digital transformation agenda. The strategic partnership between Juniper Networks, Inc. (NYSE:JNPR) and Saudi Telecom Company (STC) marks a major commercial deployment in one of the biggest telecom markets in the Middle East. Juniper’s position in the cutthroat market for high-performance networking infrastructure is strengthened by this comprehensive 5G expansion partnership spanning 75 cities and regions.
2. CyberArk Software Ltd. (NASDAQ:CYBR)
Number of Hedge Fund Holders: 57
CyberArk Software Ltd. (NASDAQ:CYBR) is a software company that develops, markets, and sells software-based identity security solutions and services. The company leverages AI, through the “CORA AI” platform, to enhance identity security solutions by providing real-time threat detection, response recommendations, and automated actions to protect against cyber threats. On March 3, analysts at Citi reiterated a Buy rating on the stock and increased the price target to $450 from $410.
Analysts at Citi, led by Fatima Boolani, remain bullish about CyberArk Software Ltd.’s (NASDAQ:CYBR) prospects as investors continue to discuss the potential of machine and agentic AI in the cybersecurity sector. The analysts expect the company to capture significant market share owing to its robust product portfolio, especially in markets poised to benefit from a trend towards software-as-a-service (SaaS) subscription renewals. CyberArk Software boasts an impressive 33.1% revenue growth and 79.2% gross profit margins that should benefit from increased focus on AI-powered solutions in the cybersecurity sector.
1. Fair Isaac Corporation (NYSE:FICO)
Number of Hedge Fund Holders: 60
Fair Isaac Corporation (NYSE:FICO) develops software with analytics and digital decision-making technologies that enable businesses to automate, enhance, and connect decisions. On March 4, the company’s focus on innovation and leadership in operationalizing AI received a significant boost on securing 12 new patents from the US Patent and Trademark Office.
The new patents strengthen Fair Isaac Corporation’s (NYSE:FICO) position in AI, machine learning, and decision management technology. They also address essential topics such as enhanced data privacy, bias analysis in AI models, neural network optimization, and responsible AI measurement. These innovations aim to enhance decision-making in sectors such as retail, healthcare, telecommunications, and financial services.
“These new patents reflect our commitment to developing innovative new AI technologies and solutions that enable our clients to operationalize and make smarter, data-driven decisions,” said Dr. Scott Zoldi, chief analytics officer at FICO. “We innovate to meet and anticipate our clients’ needs, ensuring that the technology we deliver addresses key industry business challenges and supports our clients’ long-term success.”
While we acknowledge the potential of Fair Isaac Corporation (NYSE:FICO) as an investment, our conviction lies in the belief that 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 FICO 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.
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