In this article, we discuss the 15 AI stocks that are dominating headlines.
AI stocks are soaring and AI startups are receiving billions in funding from venture capital firms as the new technology sweeps investors off their feet. However, as the AI boom plays out, the central bank in Europe has issued a dire warning about the development of an AI bubble. The warning was included in the biannual Financial Stability Review, a report that lists the risks that could threaten the financial well being of world markets. In the review, the European Central Bank noted that the stock market, particularly in the United States, had become increasingly dependent on a handful of companies perceived as the beneficiaries of the AI boom.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Per the ECB, this concentration among a few large firms raises concerns over the possibility of an AI-related asset price bubble. It added that in a context of deeply integrated global equity markets, it points to the risk of adverse global spillovers, should earnings expectations for these firms be disappointing. The ECB further underlined that investors were demanding a low premium to own shares and bonds while funds had cut their cash buffers. Given relatively low liquid asset holdings and significant liquidity mismatches in some types of open-ended investment funds, cash shortages could result in forced asset sales that could amplify downward asset price adjustments, the ECB said.
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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15. GlobalFoundries Inc. (NASDAQ:GFS)
Number of Hedge Fund Holders: 22
GlobalFoundries Inc. (NASDAQ:GFS) provides a range of mainstream wafer fabrication services and technologies worldwide. On November 20, Washington-based trade body Semiconductor Industry Association released a statement commending the US government for finalization of semiconductor manufacturing investments announced previously. After approving a more than $6 billion grant for chipmaker Intel, the US government recently announced a $1.5 billion grant for GlobalFoundries as well.
14. 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. On November 18, the company announced the launch of SuperCluster, an end-to-end AI data center solution featuring the NVIDIA Blackwell platform. The firm contends that the new SuperCluster will significantly increase the number of NVIDIA HGX B200 8-GPU systems in a liquid-cooled rack, resulting in a large increase in GPU compute density.
13. 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. The firm recently announced that it had acquired two data center development sites in Virginia – adding significant planned capacity to support rapid growth in the data center market. These latest acquisitions bring more than 100 acres to the data center development portfolio of the company, and add an estimated 350 megawatts of planned future capacity – taking the total data center capacity of the firm to over 1.2 gigawatts globally when fully developed.
12. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 34
UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. Şişecam, a Turkish glass production firm, was recently given the AI25 award by UiPath. The award recognizes the use of the UiPath artificial intelligence and automation solutions to improve document management in hiring processes, increase classification accuracy, and maximize efficiency.
11. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 52
Digital Realty Trust, Inc. (NYSE:DLR) brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. The firm recently announced the strategic integration of OVHcloud, a leading European cloud provider, into the ServiceFabric platform. The platform transforms data centers into dynamic AI hubs. The partnership offers enterprises a secure, high-performance cloud solution with private connectivity, empowering them to accelerate digital transformation and seamlessly adopt hybrid IT strategies.
10. 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. The firm helps AI businesses host AI infrastructure for AI model development and offers network-rich interconnected locations for AI inference. Latest reports suggest that the company plans to exit the infrastructure-as-a-service business by shuttering its Metal offering. According to tech news platform Data Center Dynamics, the firm has informed customers that the service will cease in June 2026. As it exits this market, the firm plans to develop two new AI data centers in Thailand. These data centers will be part of a broader $500 million investment in the country over the course of a decade.
9. 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. Geeta Vaghela, the senior director of product management in the Unstructured Data Solutions department at Dell recently spoke to business tech platform theCUBE Research. During the interview, Vaghela noted how AI was changing data management, with the Dell Data Lakehouse serving as one of several solutions the company offered for data-intensive AI workloads. She also noted that although there were a variety of vertical trends for AI applications, including life sciences and autonomous driving, many of the challenges in these trends were the same.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. On November 19, the firm held an annual shareholder meeting, with management forecasting as much as $4 billion in PC-related revenue by 2029. The company expects $8 billion in auto-related revenue in the next five years. In the IoT market, it projects $14 billion in revenue. QUALCOMM processors are AI capable and have been integrated into all these three markets over the past few years.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. Latest reports indicate that the AI-powered Copilot features from Microsoft Windows will not be available on AMD-powered PCs in the coming weeks. According to tech website Windows Central, Microsoft announced at the recent Ignite Conference that the new AI features, which include Click To Do, Recall, and AI-powered search, will be available on Windows Insider Program for Snapdragon-powered PCs.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. On November 20, local news platforms in Arizona reported that TSM, which is operating a brand new chip factory in the region, was using some of the funds obtained from the recent $6.6 billion government chip grant to expand an apprenticeship program in Arizona. The expansion includes new positions, such as equipment, facilities and process technician apprenticeships. Per the reports, the company has invested $5 million in the new program.
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 19, news publication Bloomberg reported that the AI-enabled Google Chrome, which has a user base of more than 3 billion, would be worth $20 billion if the authorities in the US are successful in convincing a judge to order Google to divest the product. Google recently integrated several new AI features into the Chrome browser, which is the most-used web browser in the world with a market share of over 65%.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 20, after posting market-beating earnings numbers, Jensen Huang, the founder and CEO of the company, said that the age of AI is in full steam, propelling a global shift to NVIDIA computing. He added that the demand for Hopper and anticipation for Blackwell – in full production – was incredible as foundation model makers scaled pretraining, post-training and inference. He said that enterprises were adopting agentic AI to revolutionize workflows, industrial robotics investments were surging with breakthroughs in physical AI, and countries had awakened to the importance of developing their national AI and infrastructure.
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 19, local news platforms in Louisiana reported, citing statements from Public Service Commissioner Foster Campbell, that Meta was planning to build a $5 billion artificial intelligence data center in Richland Parish. Per the reports, the data center would be built on the Franklin Farms Megasite in Holly Ridge. As part of the data center plans, the Louisiana Public Service Commission is reportedly being asked to approve three new natural gas power plants for the facility.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 19, the company announced the launch of the Azure AI Foundry, a cloud product that helps businesses build their own artificial intelligence agents and applications. The announcement was made at the Ignite Conference by Jessica Hawk, a senior AI executive at the tech giant. Hawk said that the Azure AI Agent Service would help developers orchestrate, deploy, and scale enterprise AI-powered apps to automate business processes.
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 20, the company announced that it would be launching Rufus, an AI-powered shopping assistant, in beta to a subset of customers on the Amazon mobile app in India. The AI-powered assistant would then be rolled out to customers across the South Asian country in the coming weeks. Per the tech giant, more than 10 million people have used Rufus in India since the beta launch on the web store in August.
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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