In this article, we discuss the 11 trending AI stocks on latest news and ratings.
The extent to which AI tech may disrupt life as we know it in the coming years is still shrouded in mystery. However, multiple organizations have been making an effort to quantize these changes for a better understanding of the evolving business landscape. For example, the Tony Blair Institute for Global Change, a London-based non-profit group, recently released a report detailing that AI may displace between 1 million to 3 million private sector jobs in the United Kingdom alone in the coming years. However, the report also stressed that the ultimate rise in unemployment will be in the low hundreds of thousands as growth in technology also creates new roles. Estimates from the non-profit suggest that at the peak of AI-led disruption, between 60,000 and 275,000 jobs will be displaced every year over a couple of decades.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
This number was put into larger context by the institute by highlighting that the average number of job losses in the European country over the past decade had been 450,000 a year. The AI-led disruption seems modest compared to these figures, per the report. The report further underlined that a common lesson was that AI was likely to increase the dynamism of the labor market by prompting more workers to leave existing jobs and start new ones. The institute noted that administrative and secretarial jobs would be the most exposed to the new technology, followed by sales and customer service, and banking and finance. The think tank research further claimed that deployment of AI could raise GDP by up to 1% over the next five years, rising to up to 6% by 2035.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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11. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. On November 7, Susquehanna raised the price target on the stock to $118 from $115 and kept a Neutral rating on the shares. The advisory said consistent with their preview, the company’s report and guide implies roughly 5% downside risk to Q4 FY25 consensus EPS, a trend that is expected to sustain and thus lead to additional 5% downside risk to FY26 consensus EPS.
10. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) is an American company that specializes in software platforms for big data analytics. On November 7, Argus downgraded Palantir to Hold from Buy. In an investor note, the advisory highlighted that the company had been dramatically improving its profitability and cash flow over the past year, but shares had about tripled in value this year and might be getting ahead of what the company fundamentals could support. Palantir also specializes in catering to a small segment of organizations with highly complex IT challenges, which could lead to uneven results that the market tends to punish in highly valued tech stocks, the advisory added.
9. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 47
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. On November 6, Susquehanna analyst Mehdi Hosseini lowered the price target on the stock to $15 from $32.50 and kept a Negative rating on the shares. The advisory updated estimates based on the preliminary results and the guide. In an investor note, the advisory noted that despite a lack of a detailed financial statement and inability to file with the SEC, the updated estimates should still help investors with margin trends, the company’s earnings direction, and the implied downside risk to consensus.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 100
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. On November 7, Morgan Stanley analyst Joseph Moore lowered the price target on the stock to $204 from $207 and kept an Equal Weight rating on the shares. In the September quarter, Qualcomm benefited from increased content, a stable and growing premium tier handset market, and normalized inventory dynamics, noted the analyst, whose numbers are roughly unchanged following the report. The analyst now forecasts revenue of $10.3 billion for the March quarter and $2.66 EPS and for calendar 2025 it now models $42.6 billion and $11.32 in terms of revenue and EPS, respectively.
7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 156
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. On November 7, the chipmaker posted sales numbers for the month of October, reporting monthly sales in excess of $9.8 billion. This represents an increase of more than 29% compared to the previous month, but is below the more than 30% increase recorded for every month this year between March and September. Analysts on Wall Street are still backing the chipmaker, which counts the biggest tech firms in the world among customers, to hit over 36% growth in sales through the coming months of the year.
6. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. On November 6, Loop Capital raised the price target on the stock to $185 from $170 and kept a Hold rating on the shares. In an investor note, the advisory underlined that it was rolling forward its valuation framework to 2026 targets, also noting that the tech company was doing many things right, especially with spending discipline and increasing stock repurchase through this period of longer-term uncertainty and valuation pressure. The note further added that besides evidence of revenue growth acceleration driven by AI search, which does not seem likely in the near term, the advisory did not see a catalyst for reversal of positive sentiment.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 5, news publication Financial Times reported that large financial institutions on Wall Street had loaned more than $11 billion to a niche group of tech firms due to the fact that these firms possessed AI chips made by NVIDIA. These chips are crucial for AI firms that want to develop and train their own AI models. Per the report, firms that provide cloud computing to AI firms are the recipient of this funding, provided by groups like Blackstone, Pimco, Carlyle, and BlackRock, among others.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. On November 7, the tech titan officially released the public beta for iOS 18.2, the mobile operating system it uses on iPhones, with a host of new features that the firm claims are geared towards productivity, creativity, and usability for iPhone users. However, the most important part of the update is an array of functionalities powered by Apple Intelligence, the AI features that Apple announced earlier this year that have still yet to fully make their way to their new devices. Access to some advanced AI features is even locked in the beta version.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. On November 6, Loop Capital analyst Rob Sanderson raised the price target on the stock to $655 from $575 and kept a Buy rating on the shares. In an investor note, Sanderson detailed that the company delivered a solid beat-and-raise Q3 as its AI leadership driven by a massive infrastructure moat and superior data scale was becoming more apparent. He added that Meta’s continued improvement in near-term results, driven by AI and longer-term opportunities from a multitude of gen-AI efforts, could sustain the upward motion of the stock’s valuation beyond the 30-times earnings multiples seen among other mega-cap tech leaders.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 7, Mustafa Suleyman, the CEO of the AI unit at the tech giant, said that 2025 might be the year that AI achieves persistent memory, a breakthrough that, per the executive, would fundamentally change how the world interacts with AI systems. He made the comments during a tour to India, as reported by news publication Times of India. Suleyman also said that his company had been working on prototypes that had near infinite memory, a trait that would help the new maintain a constant and evolving dialogue with users.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. Latest reports, published by news website The Information, claim that the tech giant is considering an additional investment in Anthropic, the generative AI startup. Earlier this year, Amazon had announced plans to invest up to $4 billion into the AI startup. The Information reported that the latest investment could also be in multi billion dollars. Anthropic, which has developed one of the most famous AI training models worldwide, might have to use servers powered by AI chips developed by Amazon if this latest round of investment talks bear fruit, per the news outlet.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is more promising than Amazon.com, Inc. (NASDAQ:AMZN) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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