12 Stocks That Will Benefit From AI

Published on August 9, 2023 at 6:31 am by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at 12 stocks that will benefit from AI. To skip our detailed analysis of the artificial intelligence sector, you can go directly to see the 5 Stocks That Will Benefit From AI.

Market Slowdown In August

August has been off to a slow start for most stocks. On August 8, the S&P 500 healthcare sector was the only sector in the green, while 10 remaining sectors were all down – even tech. Healthcare was up by 6.08 basis points or 0.38%, while tech was down by 41.45 basis points or 1.36%. While some observers are seeing this slow market activity as a sign that the bull market many were welcoming did not even start, others believe the only reasons behind the downward trend in stocks this month are high valuations and summer seasonal issues.

At a time like this, most investors would be tempted to hold off on the buying spree and wait for stocks to settle down before they swoop in. However, buying up stellar stocks, most notably artificial intelligence-related or technology stocks, right now when they seem to be down may be a strategy worth considering. Companies that have been working tirelessly to keep up with their competitors in the artificial intelligence arms race are in the red today, but there’s no telling how long they’ll stay there. For instance, Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) are three stocks that were down by 3.34%, 2.54%, and 0.41%, respectively, on August 8. These are companies that have been contributing to the artificial intelligence space this year, whether in the realm of generative AI or the provision of essential AI-related semiconductor chips, among more. Despite this, they are taking a beating alongside many other tech and AI stocks that analysts and investors are bullish on to this day.

Considering the way artificial intelligence has revolutionized the tech industry and the world, in general, this year, particularly with the advent of ChatGPT and other generative AI products, it’s far too soon to write off the companies that are working in this space. It’s likely that companies working with AI this year will profit immensely in the near future, which will ensure that their shareholders will profit just as much when the time to reap the benefits of their hard work finally rolls around. Considering this, we have compiled a list of such top stocks that will benefit from AI this year. They include some of the best AI stocks to buy now alongside other tech stocks that are introducing new AI products and services as part of their suite of products.

Our Methodology

We have selected companies that have been actively investing and innovating in the AI space this year and have mentioned their specific contributions to the sector below. The companies are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number of hedge fund investors. We used Insider Monkey’s hedge fund data for the first quarter to rank them.

Stocks That Will Benefit From AI

12. C3.ai, Inc. (NYSE:AI)

Number of Hedge Fund Holders: 24

C3.ai, Inc. (NYSE:AI) is an application software company offering a platform that enables customers to design, develop, and deploy enterprise AI applications. It is based in Redwood City, California. As a pure-play AI company in the market, it is likely to benefit immensely from the AI boom.

As of July 24, Joe Goodwin, an analyst at JMP Securities, maintains an Outperform rating on shares of C3.ai, Inc. (NYSE:AI). He also raised the firm’s price target on the stock from $38 to $40.

At the end of the first quarter, 24 hedge funds held stakes in C3.ai, Inc. (NYSE:AI), with a total stake value of $151.9 million.

In its March 2023 investor letter, Kerrisdale Capital said the following about C3.ai, Inc. (NYSE:AI):

“We are short shares of C3.ai, Inc. (NYSE:AI), a $4 billion market capitalization enterprise software company that has risen from the ashes of its busted IPO based on the misconception that its self-proclaimed “AI leadership” somehow positions it to benefit from Silicon Valley’s current tech theme du jour: generative AI as represented by media obsession ChatGPT. We believe these speculative flames won’t burn bright much longer, as the realities of C3’s poor customer traction, failing sales partnerships, and financial pressures will catalyze what is likely to be a painful reality check.

This isn’t the first time C3 has sought to ride a hot investment theme. The company was originally founded as C3 Energy to develop analytics solutions for public utilities preparing for the emergence of cap-and-trade and smart grids. C3 pivoted in 2016, renaming the company C3 IoT to capitalize on that buzzy opportunity. But management’s master stroke was rebranding operations as C3.ai in 2019 and going public with the “AI” stock ticker, thus securing its place as the default artificial intelligence stock play for the undiscriminating investor despite the bulk of its business coming from relatively dated analytics models built for a very small number of utility, energy, and government customers. C3 is a minor, cash-burning consulting and services business masquerading as a software company, and its true value is a fraction of its current market capitalization…” (Click here to read the full text)

11. Baidu, Inc. (NASDAQ:BIDU)

Number of Hedge Fund Holders: 43

Broad Peak Investment Holdings was the most prominent shareholder in Baidu, Inc. (NASDAQ:BIDU) at the end of the first quarter, holding 425,000 shares in the company.

A Buy rating was reiterated on shares of Baidu, Inc. (NASDAQ:BIDU) on July 17 by analyst Lincoln Kong at Goldman Sachs. The analyst also raised the price target on the stock from $183 to $197.

Baidu, Inc. (NASDAQ:BIDU) is a communication services company based in Beijing, China. The company was the first big Chinese company to release a generative AI product, the Ernie Bot, as competition for ChatGPT.

We saw 43 hedge funds holding stakes in Baidu, Inc. (NASDAQ:BIDU) in the first quarter. Their total stake value in the company was $2.1 billion.

Tweedy, Browne said the following about Baidu, Inc. (NASDAQ:BIDU) in its first-quarter 2023 investor letter:

“Many, if not most, stocks held in the Funds’ portfolios performed quite well in the first quarter. This was particularly true for the Funds’ non-US equity holdings, many of which have come into their own over the last two quarters, despite years of underperformance versus their US counterparts – a welcome shift given that our Funds’ portfolios have been somewhat non-US-centric in terms of their portfolio allocations for well over a decade. The Funds also received a long overdue boost from their Chinese and Hong Kong-based holdings in the wake of China’s reopening and the government’s signaling of a relaxation of their interventionist policies. This included strong returns in Baidu, Inc. (NASDAQ:BIDU) among others.”

10. Micron Technology Inc. (NASDAQ:MU)

Chris Caso, an analyst at Wolfe Research, initiated coverage on Micron Technology Inc. (NASDAQ:MU) shares with an Outperform rating on July 20. The analyst also announced an $80 price target on the stock.

Micron Technology Inc. (NASDAQ:MU) is a semiconductor company based in Boise, Idaho. The company is one of three companies making DRAM and NAND flash memory chips, which are vital for artificial intelligence systems today.

There were 73 hedge funds long Micron Technology Inc. (NASDAQ:MU) in the first quarter. Their total stake value in the company was $2.7 billion.

Like Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Micron Technology Inc. (NASDAQ:MU) is a stock that has much to gain from the AI boom this year.

9. Palo Alto Networks, Inc. (NYSE:PANW)

Number of Hedge Fund Holders: 87

Palo Alto Networks, Inc. (NYSE:PANW) was spotted in the 13F holdings of 87 hedge funds in the first quarter, with a total stake value of $3.9 billion.

Palo Alto Networks, Inc. (NYSE:PANW) is a systems software company providing cybersecurity solutions globally. It is based in Santa Clara, California. The company has been working on a proprietary AI model to be used for specific security use cases and is likely to benefit from the popularity of AI as it attempts to introduce this technology in its cybersecurity operations.

An Outperform rating was maintained on shares of Palo Alto Networks, Inc. (NYSE:PANW) by Matthew Hedberg, an analyst at RBC Capital, on August 7. The analyst also placed a price target of $250 on the stock.

Like Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Palo Alto Networks, Inc. (NYSE:PANW) is a highly popular stock that can offer great returns with its AI operations.

8. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 99

Adobe Inc. (NASDAQ:ADBE) is an application software company based in San Jose, California. It is offering a family of generative AI products on its creative products under the name of Adobe Firefly.

Our hedge fund data for the first quarter shows 99 hedge funds long Adobe Inc. (NASDAQ:ADBE). Their total stake value in the company was $7.3 billion.

Morgan Stanley analyst Keith Weiss upgraded shares of Adobe Inc. (NASDAQ:ADBE) from Equal Weight to Overweight on July 31. The analyst also raised his price target on the stock from $510 to $660.

Bailard Inc was the largest shareholder in Adobe Inc. (NASDAQ:ADBE) at the end of the first quarter, holding 47,068 shares in the company.

Polen Capital mentioned Adobe Inc. (NASDAQ:ADBE) in its second-quarter 2023 investor letter:

“On a relative basis, based on total attribution, the top performers in the quarter were Amazon, Netflix, and Adobe Inc. (NASDAQ:ADBE). Adobe has had several cross-currents this year with slightly slower revenue growth, the announcement of a sizeable potential acquisition of Figma, and the introduction of generative AI functionality into many of its products. These issues seem to be a net positive, although we are cautious about the company’s ability to achieve regulatory approval for the Figma acquisition. Generative AI also poses some potential competitive challenges for Adobe, which we will describe in more detail later.”

7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 102

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was seen in the portfolios of 102 hedge funds in the first quarter, with a total stake value of $8.9 billion.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is another semiconductor company on our list. It is based in Hsinchu City, Taiwan. The company is expected to benefit from a rising demand for its chips amid the generative AI boom.

Charles Shi, an analyst at Needham, maintains a Buy rating on shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as of July 21. The analyst also placed a price target of $115 on the stock.

6. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 128

Holding about 1.9 million shares in the company, Segantii Capital was the most prominent shareholder in Alibaba Group Holding Limited (NYSE:BABA) at the end of the first quarter.

An Outperform rating was reiterated on shares of Alibaba Group Holding Limited (NYSE:BABA) on July 17 by Colin Sebastian, an analyst at Baird. The analyst also maintained a price target of $115 on the stock.

Alibaba Group Holding Limited (NYSE:BABA) is a company providing tech infrastructure and marketing reach to help merchants, brands, retailers, and more in engaging with their customers. The company is based in Hangzhou, China. It has also launched its own generative AI tool, Tongyi Wanxiang, to stay in the AI race.

In the first quarter, 128 hedge funds were long Alibaba Group Holding Limited (NYSE:BABA). Their total stake value in the company was $5.9 billion.

Click to continue reading and see the 5 Stocks That Will Benefit From AI.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

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The AI infrastructure supercycle
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A surge in U.S. LNG exports
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The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

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From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

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12 Stocks That Will Benefit From AI

Published on August 9, 2023 at 6:31 am by Fatima Farooq in Hedge Funds, News

Market Slowdown In August

Stocks That Will Benefit From AI

12. C3.ai, Inc. (NYSE:AI)

11. Baidu, Inc. (NASDAQ:BIDU)

10. Micron Technology Inc. (NASDAQ:MU)

9. Palo Alto Networks, Inc. (NYSE:PANW)

8. Adobe Inc. (NASDAQ:ADBE)

7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

6. Alibaba Group Holding Limited (NYSE:BABA)

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

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12 Stocks That Will Benefit From AI

Published on August 9, 2023 at 6:31 am by Fatima Farooq in Hedge Funds, News

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Market Slowdown In August

Stocks That Will Benefit From AI

12. C3.ai, Inc. (NYSE:AI)

11. Baidu, Inc. (NASDAQ:BIDU)

10. Micron Technology Inc. (NASDAQ:MU)

9. Palo Alto Networks, Inc. (NYSE:PANW)

8. Adobe Inc. (NASDAQ:ADBE)

7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

6. Alibaba Group Holding Limited (NYSE:BABA)

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff