In this article, we discuss 14 AI news and ratings making waves on Wall Street.
According to a Fortune Business Insights report, the global data center market, valued at $242.72 billion in 2024, is expected to grow to $585 billion by 2032, at a compound annual growth rate of 11.7%. North America led the market in 2024, holding a nearly 39% share.
According to the report, generative AI is significantly impacting the sector, as its deep learning models require substantial computing power, scalable storage, and high-performance infrastructure. The market is also shifting towards hybrid and multi-cloud strategies, enabling organizations to integrate public, private, and on-premise solutions efficiently. Additionally, modular data centers are gaining traction due to their cost-effectiveness, scalability, and faster deployment compared to traditional facilities, the report stated.
Meeting AI Demand with Scalable and Sustainable Data Centers
The expansion of AI infrastructure through large-scale data center investments reflects the growing need for computational power. Companies are securing energy sources and developing specialized facilities to address scalability, sustainability, and efficiency challenges. For example, Related Companies is advancing into AI-driven data center development through its new division, Related Digital, using its expertise in renewable energy to meet rising demand from major tech firms.
In an interview at CNBC’s ‘Squawk on the Street,’ CEO Jeff Blau highlighted the company’s strategic move to assemble a specialized team to lead these projects. To support the growth, Related has secured sites with over five gigawatts of power across the U.S., investing $500 million of its own capital while planning to raise an additional $8 billion. With firms like Microsoft and Alphabet significantly increasing their capital expenditures, demand from hyperscalers remains strong. To mitigate risk, Related is securing long-term, 15-year commitments from tenants before beginning construction. Given the limited availability of power on the grid, Blau sees the company’s early investment in securing capacity as a major competitive advantage in the fast-evolving AI infrastructure landscape.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with 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).
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14. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 5
Rezolve AI Limited (NASDAQ:RZLV) offers AI-driven commerce solutions that help businesses engage consumers across various locations and devices.
On March 26, Rezolve AI announced that it completed its acquisition of GroupBy, a commerce search and product discovery platform driving over $30 billion in annual sales. The move strengthens Rezolve AI’s position in AI-driven commerce, site search, and digital engagement. By integrating GroupBy’s technology, Rezolve AI aims to improve personalized shopping experiences and optimize operational efficiency. CEO Daniel M. Wagner highlighted the acquisition as a major milestone, emphasizing GroupBy’s established success and the potential to reshape digital commerce. The deal is expected to accelerate innovation and provide merchants with advanced AI-powered solutions for increased revenue and customer satisfaction.
13. Domo, Inc. (NASDAQ:DOMO)
Number of Hedge Fund Holders: 18
Domo, Inc. (NASDAQ:DOMO) provides a cloud-based business intelligence platform that connects employees with real-time data across multiple devices.
On March 27, Domo announced its partnership with Human Capital Vue, a provider of human capital management data solutions and a UKG partner, to improve HR analytics through Domo’s data and AI platform. The collaboration helps HR teams integrate data from multiple systems, improving efficiency and decision-making. Traditional data management methods often create security risks and inefficiencies, but Domo’s platform consolidates and secures data while enabling real-time insights. Clients previously spent up to 18 months developing HR dashboards, but with Domo, full organizational visibility is achieved in weeks. The partnership allows HR leaders to access key workforce metrics, optimize resources, and improve employee retention insights.
12. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 27
Aurora Innovation, Inc. (NASDAQ:AUR) is a self-driving technology platform integrating hardware, software, and data services.
On March 27, Oppenheimer initiated coverage on Aurora with an Outperform rating and a $15 price target. Analyst Colin Rusch sees Aurora as a leading player in autonomous trucking, highlighting its advanced 4D-Lidar and simulation technology within a broader AI strategy. He noted the company’s steady progress toward driver-out validation, emphasizing its strong partnerships and relatively low competition.
11. TD SYNNEX Corporation (NYSE:SNX)
Number of Hedge Fund Holders: 33
TD SYNNEX Corporation (NYSE:SNX) distributes IT products and provides solutions, including cloud services, logistics, financing, and marketing support for resellers and service providers.
On March 27, Barclays reduced its price target for TD Synnex from $148 to $125 while maintaining an Equal Weight rating. The firm pointed to weaker-than-expected fiscal Q1 results and Q2 guidance, mainly due to temporary demand declines in Hyve (the company’s hyperscale digital infrastructure subsidiary). Barclays believes TD Synnex’s near-term upside is limited by uncertainties in IT spending, trade policy, Hyve demand, and government budget cuts.
10. Lumen Technologies, Inc. (NYSE:LUMN)
Number of Hedge Fund Holders: 44
Lumen Technologies, Inc. (NYSE:LUMN) provides networking solutions, including cloud, security, voice, broadband, and managed services for businesses and residential customers.
On March 27, Lumen Technologies and the network technology company Ciena announced that they have completed a 1.2 terabit wavelength service trial over 3,050 kilometers on Lumen’s Ultra-Low-Loss fiber network, setting a record for the longest non-regenerated signal at this capacity. Using the network technology company’s WaveLogic 6 Extreme technology on the Waveserver platform and Juniper PTX10002-36QDD routers, the trial demonstrated high-speed data transmission with minimal latency and no packet loss.
The advancement supports AI, cloud, and data-intensive applications by increasing network scalability and efficiency. Lumen’s continued investment in next-generation fiber aims to enhance connectivity for AI, financial trading, cybersecurity, media, and cloud services across its 78,000-route-mile network.
9. Zebra Technologies Corporation (NASDAQ:ZBRA)
Number of Hedge Fund Holders: 45
Zebra Technologies Corporation (NASDAQ:ZBRA) provides enterprise asset intelligence solutions, including barcode scanners, RFID systems, mobile computing, printing, and automation for various industries.
On March 27, Zebra Technologies and Merck KGaA, Darmstadt, Germany, announced that they have formed a partnership to develop solutions that improve product verification, authenticity, and trust. Their collaboration integrates Zebra’s expertise in mobile computing and asset visibility with Merck’s authentication technologies to strengthen security and traceability in manufacturing. A major result of this effort is a handheld reader that works with Merck’s M-Trust platform, a cyber-physical trust solution launched in January. The platform is powered by Web 3.0, which ensures secure digital twins, product quality, and regulatory compliance while supporting AI systems by providing high-quality data for training and analytics.
The new handheld device is built on Zebra’s TC58 mobile computer and Merck’s SEC-Reader, and it verifies products through Wi-Fi 6E or 5G and includes features such as a barcode scanner and two-way communication. A prototype will be presented at Hannover Messe 2025, demonstrating its role in AI-driven data integrity and supply chain automation.
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and sells high-performance server and storage solutions, including modular systems, networking devices, and management software for different IT markets.
On March 27, Super Micro introduced new single-socket servers designed to handle workloads that previously required dual-socket systems, offering cost savings and improved efficiency for data centers. The latest servers, featuring Intel Xeon 6 processors with P-cores, provide higher core counts, faster memory, and increased PCIe 5.0 lanes, allowing improved performance without the need for dual processors. The architecture reduces power consumption, cooling demands, and physical space requirements while eliminating CPU interconnect latency.
The new product lineup includes SuperBlade for high-performance computing, Hyper for AI workloads, CloudDC for cloud data centers, WIO for flexible I/O configurations, Top-loading Storage for dense storage needs, GrandTwin for memory-intensive applications, and Edge for compact deployments. These solutions cater to industries such as AI, cloud computing, networking, and enterprise infrastructure, providing optimized performance with a lower total cost of ownership. Charles Liang, president and CEO of Super Micro commented:
“Our new single-socket servers support 100% more cores per system than previous generations and have been designed to maximize acceleration, networking, and storage flexibility. Supporting up to 500-watt TDP processors, these new systems can be configured to fulfill a wide range of workload requirements.”
7. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) provides integrated IT solutions, including servers, storage, networking, PCs, and related services for businesses, governments, and consumers worldwide.
On March 27, Morgan Stanley reaffirmed its Overweight rating on Dell with a $128 price target, pointing toward a likely increase in AI server orders from a major Tier-2 cloud service provider. Analyst Erik Woodring referenced Howard Kao’s revised forecast for Wistron’s GB200 rack shipments, which rose from 2.5K to around 4K due to rising demand from major U.S. enterprise customers. With Wistron as Dell’s primary GB200 ODM partner, the increase is seen as a positive indicator for Dell’s AI server backlog and revenue in FY26. While the specific customer remains unclear, the firm expects shipment momentum to build in Q2 2025.
6. Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 71
Coherent Corp. (NYSE:COHR) develops and manufactures engineered materials, optoelectronic components, and laser systems for industrial, communications, electronics, and instrumentation markets.
On March 27, Coherent Corp. introduced a new series of pluggable optical transceivers designed for data centers using optical circuit switches (OCSs). These transceivers address the additional 3 dB insertion loss introduced by OCSs while maintaining compliance with IEEE-defined network standards. They support 400G FR4, 2x400G FR4, and 2x400G LR4-6 standards in QSFP-DD and OSFP form factors, catering to high-density 400G and 800G connectivity needs in AI and ML clusters with distances up to 6 km. Coherent also plans to release a 1.6T FR8 transceiver optimized for OCS use. These transceivers work with both standard and OCS-optimized models, providing deployment flexibility. More details will be shared at OFC 2025 in San Francisco.
5. ANSYS, Inc. (NASDAQ:ANSS)
Number of Hedge Fund Holders: 74
ANSYS, Inc. (NASDAQ:ANSS) develops engineering simulation software for product design, analysis, and optimization across various industries.
On March 27, Ansys and GlobalFoundries announced their partnership to certify four Ansys photonic solvers for the GF Fotonix platform, improving simulation capabilities for photonic chip design. The collaboration enables engineers to model both passive and active photonic components with high accuracy, supporting applications in AI, autonomous vehicles, data centers, and IoT. The certified Ansys Lumerical tools allow for comprehensive optical, electrical, and thermal simulations. Both companies emphasize the importance of high-fidelity modeling in addressing design challenges, and helping customers develop advanced, high-capacity chips with greater efficiency.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.
On March 27, Intel’s new CEO Lip-Bu Tan, in his letter to stockholders, acknowledged the company’s challenges while emphasizing opportunities for improvement. His focus is on regaining customer trust, improving execution, and advancing innovation. He highlighted cost-cutting efforts, including a $10 billion savings plan and workforce reduction, to streamline operations while maintaining significant investments.
Intel aims to strengthen its product lineup, with advancements in AI PCs, software partnerships, and upcoming launches like Panther Lake and Nova Lake. The company is also working to regain leadership in data centers with the Xeon 6 portfolio and the upcoming Clearwater Forest. Additionally, Intel is committed to developing a competitive foundry business, ensuring the success of its Intel 18A process, and expanding semiconductor production in the U.S. He further wrote:
“I recognize much work is needed to deliver the kind of results you expect with your investment. The entire leadership team and I are committed to improving our performance and positioning the business for future success. We will do so by putting customers at the center of everything we do — and we are moving ahead with confidence because we have an incredible team of employees that’s up to the challenge.
My pledge to you is that we will continue acting with urgency to strengthen Intel’s competitive position and cultivate a culture of customer-centricity needed to win in our markets. In the process, I’m confident we will deliver a greater return for you, our shareholders.
I am humbled and honored to be Intel’s CEO and appreciate the trust the Board has placed in me to lead our company. Thank you for your investment in Intel.”
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
On March 27, Jefferies downgraded AMD from Buy to Hold and reduced its price target to $120 from $135. Analyst Blayne Curtis noted that while AMD has gained market share in PCs and servers, its AI growth remains weaker than expected, raising doubts about projected AI revenue for 2026-2027. He also views Intel’s improved management as a factor that could increase competition, especially in the Client PC market. Jefferies is taking a more cautious stance until there is more clarity on AMD’s AI progress and Intel’s recovery efforts.
2. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 111
GE Vernova Inc. (NYSE:GEV) provides power generation, wind energy, and electrification solutions across global markets.
On March 27, Truist lowered its price target on GE Vernova to $440 from $470 while maintaining a Buy rating. The firm views the recent stock pullback over DeepSeek concerns as a buying opportunity. Despite the price target reduction to reflect peer valuations, Truist remains optimistic about GE Vernova’s execution and long-term demand growth for its gas turbines. The firm revised its estimates after recent discussions with the company.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) or TSMC manufactures and sells semiconductors, offering advanced wafer fabrication and packaging solutions globally. Former Intel CEO Pat Gelsinger believes TSMC’s $100 billion investment in U.S. manufacturing will not significantly boost the country’s semiconductor leadership, as the company’s core R&D remains in Taiwan, the Financial Times reported on March 26. While acknowledging that U.S. tariffs under the Trump administration encouraged TSMC to expand in the U.S., he emphasized that true leadership requires next-generation transistor research within the country.
While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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 TSM 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 30 Best Stocks to Buy Now According to Billionaires.
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