In this article, we discuss the 15 AI stocks on the radar of Wall Street analysts.
Uber, the ride-hailing company that has yet to catch onto the AI boom, is reportedly expanding its fleet of gig workers for a new project aimed at AI annotation and data labeling. According to a report by news publication Bloomberg, the ride-hailing company has started hiring contractors for a new AI and data labeling division called Scaled Solutions. The report adds that these workers complete projects for internal business units at the ride hailing company but are also serving outside customers, including self-driving vehicle company Aurora Innovation and video game developer Niantic. The company has started recruiting contractors in countries including the US, Canada, and India, among others.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Over the past few years, even though the firm is yet to launch an eye-catching AI product, it has incorporated AI internally to streamline operations. For example, the AI algorithms of the firm efficiently match riders with drivers to minimize waiting times and maximize driver utilization. These algorithms predict demand, analyze traffic patterns, and estimate trip durations to offer real-time ride assignments. Similarly, the company heavily invests in AI for self-driving car technology. AI systems in these vehicles process data from LiDAR, cameras, and sensors to navigate roads, identify objects, and make decisions in real time.
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).
A technician in a server room of a corporate office surrounded by servers and networking equipment.
AI Stocks on Wall Street’s Radar
15. Iron Mountain Incorporated (NYSE:IRM)
Number of Hedge Fund Holders: 30
Iron Mountain Incorporated (NYSE:IRM) is a real estate investment trust that focuses on storage and information management services. It offers high-performance compute architecture to AI businesses. On November 27, RBC Capital raised the price target on the stock to $139 from $135 and kept an Outperform rating on the shares. The company’s Q3 results met or bettered expectations on key financial metrics, the advisory told investors in a research note. RBC says Iron Mountain posted solid operating metrics across multiple business segments, and augmented its datacenter power bank.
14. Semtech Corporation (NASDAQ:SMTC)
Number of Hedge Fund Holders: 32
Semtech Corporation (NASDAQ:SMTC) develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. On November 26, Benchmark raised the price target on the stock to $82 from $56 and kept a Buy rating on the shares following solid fiscal Q3 earnings and guidance. Semtech is forecasting Q4 sales that handily beat the Street consensus by $9 million, and its Q4 EPS projection of 32c also nicely beat the Street’s estimate by 6c, the advisory told investors in a research note.
13. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. The stock was among the only prominent server firms that managed to rise in premarket trading as rival Dell reported third quarter earnings that fell short of market expectations. Dell shares fell 12%, while shares of other server companies like HPQ and HPE also registered downward. However, SMCI, buoyed by the submission of a recent compliance plan to Nasdaq, managed to rise by 2.5%.
12. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 39
Zoom Video Communications, Inc. (NASDAQ:ZM) provides a unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Following third quarter earnings results, the firm announced it is rebranding as AI-first platform. On November 27, Barclays analyst Ryan MacWilliams raised the price target on the stock to $85 from $70 and kept an Equal Weight rating on the shares. While investors have more confidence that Zoom has found stabilization within its core business, they wanted a stronger revenue or operating margin beat in Q3, the advisory told investors in a research note.
11. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix, Inc. (NASDAQ:EQIX) is a California-based real estate trust that operates data centers and other technology assets. Fiona Mark, an analyst at IT company Forrester, recently spoke to tech news platform Network World and addressed the recent reports that Equinix would be laying off employees even as it intends to invest up to $15 billion in new infrastructure to support AI. Per the analyst, there were mixed signals being received overall from the tech labor market, and the domain was becoming more difficult for those without AI skills. Mark noted that this was one of the reasons for the higher layoff potential in the tech labor world.
10. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. On November 27, Mizuho analyst Vijay Rakesh lowered the price target on the stock to $150 from $155 and kept an Outperform rating on the shares following the earnings report. The advisory still sees Dell as well-positioned with its artificial intelligence server share and PC refresh cycle tailwinds into 2025, the analyst told investors in a research note.
9. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 63
Analog Devices, Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. On November 27, Truist lowered the price target on the stock to $227 from $233 and kept a Hold rating on the shares. Truist says it’s tough to get excited about buying the stock here, even though the advisory loves the company. Analog Devices beat above-seasonal expectations for Q3 on both revenue and EPS, but January guidance is mixed versus consensus, the advisory says.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. News agency Reuters recently reported that the chipmaker could be one of those impacted by a recent decision of the South Korean government to begin providing about $10 billion in low-interest loans next year to boost its chip industry. Per the report, the loans will be rolled out via state-run banks and include finances to install power transmission lines to support companies at a new chip complex. As Intel struggles, South Korea is building a complex in Yongin and Pyeongtaek, near Seoul, calling it the world’s largest high-tech chip making cluster in an attempt to woo chip equipment and fabless companies.
7. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. The firm is harnessing artificial intelligence to streamline and strengthen cyber protection. On November 27, BMO Capital raised the price target on the stock to $380 from $315 and kept an Outperform rating on the shares. Crowdstrike’s results were reasonable, though net new annual recurring revenue upside and implied January quarter ARR likely fell slightly short of consensus expectations, the advisory tells investors in a research note. The ongoing headwinds from more customer commitment packages will likely move consensus ARR estimates lower for the next few quarters, but management continues to execute well, BMO says.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. On November 26, the company announced the launch of the AMD Alveo V80 compute accelerator. Per the firm, the accelerator is aimed at optimizing memory-bound computing tasks in high-performance computing and artificial intelligence applications. According to the chipmaker, this new offering is tailored to meet the increasing demands of large dataset workloads, providing significant advancements in performance and scalability.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. On November 27, IIMA Ventures, a non-profit organization based in India, announced that it had partnered with Google to boost 22 AI startups in the Asian country. Per the non-profit, the partnership aims to help early-stage startups harness AI to address global challenges across sectors like healthcare, climate, agriculture, education, financial inclusion, and infrastructure.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 27, TF International Securities analyst Ming-Chi Kuo said in a post on publishing platform Medium that the tech industry was focusing on NVIDIA’s AI server and RTX 50 series supply chain. Per the analyst, Vishay, a semiconductor manufacturing firm, was the hidden winner of the focus. The analyst further added that Vishay had secured better-than-expected orders for NVIDIA’s Blackwell AI servers and RTX 50 series graphics cards.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. On November 26, tech news platform TechCrunch reported that Ai2, a nonprofit AI research organization, had released an open language model competitive with the Llama model of Meta. Per the report, OLMo 2, the second family of models in its OLMo series, can perform a range of text-based tasks, like answering questions, summarizing documents, and writing code.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 27, the tech giant clarified on social networking platform X that it did not use customer data from Microsoft 365 applications to train AI models. The tech giant was responding to various posts from X users who had claimed that the company was using a default setting to get this data from user accounts. However, the company underlined that the setting in question only enabled features requiring internet access.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. On November 27, Redburn Atlantic raised the price target on the stock to $235 from $225 and kept a Buy rating on the shares. The market is turning attention to sustainable moats within the artificial intelligence ecosystem, and full-stack vertical integration stands out as a defining advantage, the advisory told investors in a research note. Redburn says Amazon Web Services continues to solidify its leadership in this area. With a strong networking backbone and increasingly competitive AI accelerators, AWS is rapidly advancing across the stack, contends Redburn.
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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