In this article, we discuss 14 AI stocks that are making waves on Wall Street
The Road to Superintelligence
In a recent blog post, OpenAI CEO Sam Altman said that as OpenAI continues to advance it has moved beyond research to product development, with a focus on AGI’s future and safety. He said that the goal is to make sure that AGI benefits humanity by regularly releasing technology and refining its safety. For the future, OpenAI aims to reach superintelligence, believing it could greatly accelerate scientific and societal progress. OpenAI remains committed to its mission, confident in the transformative potential of AI. He wrote:
“We are beginning to turn our aim beyond that, to superintelligence in the true sense of the word. We love our current products, but we are here for the glorious future. With superintelligence, we can do anything else. Superintelligent tools could massively accelerate scientific discovery and innovation well beyond what we are capable of doing on our own, and in turn massively increase abundance and prosperity.
This sounds like science fiction right now, and somewhat crazy to even talk about it. That’s alright—we’ve been there before and we’re OK with being there again. We’re pretty confident that in the next few years, everyone will see what we see, and that the need to act with great care, while still maximizing broad benefit and empowerment, is so important. Given the possibilities of our work, OpenAI cannot be a normal company.”
AI’s Rapid Evolution Could Reshape Business Productivity by 2025
In a CNBC interview, John Chambers, founder and CEO of JC2 Ventures agreed with Sam Altman that AI will soon have a major impact on business and made the forecast that by 2025, AI agents could integrate into the workforce and significantly increase productivity. Chambers believes that AI will boost productivity by 7-10% annually and will contribute to earnings growth and drive the stock market for the next decade. He also pointed out that the U.S. is well-positioned as a leader in AI, with half of the world’s computing power and data centers, excluding China.
Chambers believes the AI shift will happen much faster and deliver greater economic benefits than the internet, emphasizing that companies must adapt rapidly to avoid being left behind. He said that this acceleration will be crucial for both startups and large corporations, as the most innovative will rise ahead of their competitors.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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).
14. Arbe Robotics Ltd. (NASDAQ:ARBE)
Number of Hedge Fund Holders: 3
Arbe Robotics Ltd. (NASDAQ:ARBE) designs 4D imaging radar solutions to improve autonomous vehicle safety. The company has partnered with NVIDIA to improve its AI-driven, ultra-high-definition radar, in order to enhance vehicle safety and autonomy. At CES 2025, Arbe will showcase its radar system, which is capable of high-resolution point cloud processing and long-range detection in all weather and lighting conditions.
The technology excels at identifying small obstacles and managing urban complexities, which are crucial for ADAS and autonomous driving. Additionally, Arbe’s radar integrates with NVIDIA’s DRIVE AGX platform for advanced free space mapping, enabling safer, AI-driven vehicle perception and decision-making. Live demos at CES will highlight its real-time mapping, object detection, and integration with other sensors for smarter mobility solutions.
13. Logitech International S.A. (NASDAQ:LOGI)
Number of Hedge Fund Holders: 18
Logitech International S.A. (NASDAQ:LOGI) designs and markets software-enabled hardware solutions for gaming, streaming, and productivity, including peripherals, accessories, and audio devices globally.
Logitech G’s Streamlabs introduced an AI-powered streaming assistant at CES 2025 in collaboration with NVIDIA and Inworld AI. It is designed to improve live streaming and the assistant functions as a 3D sidekick, producer, and technical assistant. It engages audiences by answering questions, commenting on events, and adapting its personality to the streamer’s style. As a producer, it adjusts scenes, plays cues, and creates replays. It also assists with technical tasks, like setup and troubleshooting.
The assistant simplifies workflows and improves viewer engagement and is powered by NVIDIA ACE for rendering and AI vision, alongside Inworld’s cognitive engine for real-time interaction. The tool is set for release in early 2025, with updates available on the Streamlabs platform.
12. Pure Storage, Inc. (NYSE:PSTG)
Number of Hedge Fund Holders: 31
Pure Storage, Inc. (NYSE:PSTG) offers data storage solutions, including hardware and cloud-native services, for managing and processing various data workloads globally.
Pure Storage (NYSE:PSTG) has expanded its strategic partnership with Micron Technology to improve data storage solutions for hyperscalers. It integrates Micron’s G9 QLC NAND technology into Pure Storage’s DirectFlash Module products and aims to offer high-capacity, energy-efficient solutions with improved performance and low latency.
The partnership spans a decade and addresses key challenges in data centers such as energy efficiency, storage density, and performance. The joint solution provides benefits like reduced energy consumption, lower operational costs, and scalable systems, offering significant advantages over traditional hard drive-based storage.
11. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and produces advanced server and storage systems, with a focus on AI, cloud technologies, and 5G applications. Lynx Equity maintained a $60 price target on SMCI, noting that the NVDA keynote at CES could serve as a positive catalyst. The firm commented:
“According to media reports, the NVDA keynote at CES today is expected to touch upon next-generation GB300, a platform that will likely require even more stringent cooling specifications than GB200.
A core element of our positive thesis on SMCI is our belief that the company has had a head-start in liquid-cooled technology over its peers, a position we believe it is in no danger of losing in the foreseeable future. Having stood on the sidelines of the nascent GB200 cycle so far, we believe SMCI could re-enter the Blackwell fray with the launch of GB300.”
The company is also positioned to benefit from AMD’s MI325X and Google’s TPU6, both of which require liquid cooling. However, there are concerns about SMCI’s ability to meet regulatory deadlines for financial filings and its need for additional liquidity. The firm further noted:
“While a need for fresh liquidity might concern some shareholders, we view it differently. We think a fresh infusion of liquidity is necessary to address its large inventory and free up working capital for the company’s capital-intensive AI server business. A debt-financed deal could be positive for common shares if the company remains relevant in the growing business of liquid-cooled data centers.
While volatility is likely over the next 6–12 months, we view the NVDA keynote at CES today as a positive catalyst. We reiterate our $60 price target.”
10. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix, Inc. (NASDAQ:EQIX) provides digital infrastructure services that enable smooth connectivity and drive AI-enabled progress for enterprises.
On January 1, Jefferies raised its price target for Equinix (NASDAQ:EQIX) to $1,200 from $1,040 and kept a Buy rating on the stock as part of its outlook for 2025. The firm believes that we’re just starting to see the demand for data centers grow, especially due to AI, but faces challenges like power shortages, delays in new construction, and higher rents. The analyst also pointed out that investments in 5G towers by U.S. carriers haven’t been as strong as expected.
9. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) provides AI-optimized servers and storage systems, focusing on modernizing infrastructure and boosting the performance of business applications.
Dell Technologies has unveiled a simplified, AI-driven portfolio to improve productivity and creativity. Its new offerings include AI-powered PCs with built-in NPU technology and are available across three categories that include Dell, Dell Pro, and Dell Pro Max. The products feature the latest Intel, AMD, and Qualcomm silicon, and are designed for long battery life, durability, and performance.
Dell’s AI solutions, such as the Dell Pro AI Studio, simplify AI development for businesses and reduce deployment times significantly. Additionally, Dell emphasizes sustainability with modular designs and the use of recycled materials. The company is focusing on making AI adoption easier for enterprises.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) develops and produces hardware tailored for AI tasks, such as processors, accelerators, and solutions for performance optimization.
Intel has unveiled its new Intel Core Ultra 200 series processors at CES 2025 which are designed to improve mobile computing for businesses, creators, and gamers. The processors feature AI-driven performance, improved efficiency, and better graphics. The Intel Core Ultra 200V series is focusing on businesses by offering AI-driven productivity, long battery life, and better security through Intel vPro and Microsoft’s Copilot+ integration. The Core Ultra 200HX and H series target creators and gamers with improved performance and power efficiency. Intel’s Core Ultra 200U and 200S series provide a balance of performance and power efficiency for mainstream users and desktops. Furthermore, Intel has introduced edge computing solutions that emphasize scalability and performance for AI workloads. The new processors will be available starting in January 2025, with additional models released later in the year.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) focuses on developing wireless communication technologies and has made significant investments in AI, 5G, and IoT applications, impacting a variety of industries.
Qualcomm has introduced the Snapdragon X Platform, the fourth addition to the Snapdragon X Series which is designed to bring AI capabilities and strong performance to Copilot+ PCs and is priced at around $600. The platform features an 8-core Qualcomm Oryon CPU and a 45 TOPS NPU, offering up to 163% faster performance while using less power than competitors. It targets students, freelancers, and budget-conscious users, with devices expected from brands like Acer, Asus, Dell, HP, and Lenovo by early 2025.
6. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 107
Micron Technology, Inc. (NASDAQ:MU) designs and manufactures memory and storage products, serving various markets including data centers, automotive, consumer electronics, and mobile devices globally.
Micron Technology revealed new additions to its Crucial consumer memory and storage lineup. The highlights include the high-speed Crucial P510 SSD, which offers very high read and write speeds, making Gen5 performance accessible to more consumers. Additionally, Crucial expanded its DRAM offerings with new high-density and form factor options, including the 32GB Crucial DDR5 Pro Overclocking Gaming Memory, and a 64GB DDR5 Pro Plug-and-Play Memory for easier performance upgrades. These products cater to a wide range of users, from gamers to professionals, offering faster, power-efficient solutions for gaming, creative work, and AI-driven applications.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) is recognized for its semiconductor products, offering processors and graphics units for data centers, gaming, and embedded systems. The company focuses on providing high-performance computing solutions tailored for AI-powered applications.
AMD announced that its Ryzen AI PRO processors will power new Dell Pro devices, marking a milestone in their collaboration. The devices will be the first commercial PCs from Dell which will feature AMD’s Ryzen AI PRO processors, which are designed to improve business productivity with features like live captioning, language translation, and AI-driven image generation. The processors offer advanced AI capabilities, strong performance, and improved efficiency, privacy, and connectivity. Dell’s new Pro portfolio will include both notebooks and desktops equipped with these processors, and will support better battery life, AI-driven experiences, and productivity for enterprise users.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven technologies, offering platforms for data centers, self-driving vehicles, robotics, and cloud services.
At CES 2025, NVIDIA announced updates to its Omniverse platform, focusing on integrating generative AI models and blueprints for robotics, autonomous vehicles, and vision AI applications. Companies like Accenture, Siemens, Altair, and Microsoft are incorporating Omniverse into their software and services to advance industrial AI.
New models, including NVIDIA Edify SimReady, accelerate tasks like labeling 3D assets and generating synthetic data. Four new blueprints were introduced for developing digital twins, including tools for robotics, autonomous vehicles, spatial streaming, and real-time physics visualization. Free OpenUSD courses were also announced. Industry leaders are using Omniverse for many applications, for example, Nissan, Volkswagen, and Syntegon are using Omniverse for immersive design, virtual testing, and customer experience improvements.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) offers AI-powered solutions across multiple platforms, enhancing cloud offerings, business collaboration tools, and consumer products, while also prioritizing progress in AI research.
Google DeepMind has launched a new initiative to develop AI models that are capable of simulating the physical world, led by Tim Brooks, who joined the organization in October after working on OpenAI’s video generator, Sora. The initiative is aiming to create advanced generative models capable of real-time simulations, 3D environment creation, and video game interactions. The team will collaborate with Google’s Gemini, Veo, and Genie projects, focusing on scaling AI for tasks like visual reasoning and robotic planning, with potential applications in gaming and robotics. The “world models” are considered a key step toward achieving artificial general intelligence (AGI), capable of performing complex human-like tasks.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) integrates AI into its cloud platforms, productivity applications, and enterprise solutions to enhance automation, security, and user experience. The company’s AI efforts cover cutting-edge cloud services, AI-powered business software, and advanced language processing and computing technologies.
As reported by Reuters, Microsoft CEO Satya Nadella announced a $3 billion investment to expand Azure cloud and AI capabilities in India, marking the company’s largest commitment in the country. Over two years, this investment will also focus on upskilling Indians in AI, and complement a broader plan to invest $80 billion in AI-enabled data centers in fiscal 2025. Nadella highlighted India’s significance as a tech hub, with its developer community on GitHub being second only to the U.S. and projected to lead globally by 2028.
The company aims to train 10 million people in AI by 2030, and have already upskilled 2.4 million in the past year. During the “Microsoft AI Tour” in Bengaluru, the CEO emphasized India’s contributions to AI projects like GitHub Copilot, which has generated $2 billion in annual revenue.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) is one of the leaders in AI innovation, applying the technology to revolutionize shopping experiences, entertainment, and operational management
Analyst Deepak Mathivanan from Cantor Fitzgerald increased Amazon’s (NASDAQ:AMZN) price target from $240 to $270 while keeping an Overweight rating. He shared a positive outlook for internet stocks in 2025, despite challenges like tariffs. Key areas like digital ads, online shopping, and mobility are expected to grow and improve profits. The report also noted faster progress in AI, robotics, and other technologies. Amazon is highlighted as a top choice for its strong position in AI development and future potential.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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