In this article, we discuss the 15 trending AI stocks on latest news and ratings.
Technology giants in the United States have pledged tens of billions towards building AI data centers in the next few years. These announcements have served to bolster the hype around companies that build data centers. For example, Crusoe Energy, a startup building data centers for large AI firms, plans to raise more than $800 million in funding, per regulatory filings. The filings detail that the company has already raised close to $685 million of the $818 million in total that it is seeking, with seventy investors contributing to the funding. Crusoe is one of many crypto-origin firms that have pivoted to AI in recent months.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
A report by consulting firm McKinsey reveals that global demand for data center capacity could rise at an annual rate of between 19%-22% from 2023 to 2030 to reach an annual demand of 171 to 219 gigawatts. McKinsey analysis suggests that demand for AI-ready data center capacity will rise at an average rate of 33% a year between 2023 and 2030 in a midrange scenario. Per the consulting firm, this means that around 70% of total demand for data center capacity will be for data centers equipped to host advanced-AI workloads by 2030. Gen AI, currently the fastest-growing advanced-AI use case, will account for around 40 percent of the total, the report underlines.
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 senior executive looking up at a large boardroom filled with the stocks their company manages.
Trending AI Stocks on Latest News and Ratings
15. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV)
Number of Hedge Fund Holders: 18
Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) provides artificial intelligence-based weapons detection for security screening in the United States and internationally. The company recently announced the results of an internal investigation into certain sales practices that impacted revenue recognition and other metrics. Per the firm, the results show that accounting for certain transactions, including sales to one of the company’s largest channel partners, was inaccurate and that, among other things, revenue was prematurely or incorrectly recognized in connection with financial statements prepared for the periods between the second quarter of 2022 and the second quarter of 2024.
14. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Hedge Fund Holders: 38
Monolithic Power Systems, Inc. (NASDAQ:MPWR) engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. On November 22, Wells Fargo analyst Joe Quatrochi initiated coverage of the stock with an Equal Weight rating and $610 price target. While the recent pullback in the shares presents an interesting entry point, the stock will remain volatile given the significant focus on Nvidia supply chain data points as investors try to better understand Monolithic’s share of Nvidia’s Blackwell platform, the advisory told investors in a research note.
13. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 38
Rockwell Automation, Inc. (NYSE:ROK) provides industrial automation and digital transformation solutions. The company focuses on AI-driven analytics and machine learning to optimize processes, improve decision-making, and boost productivity across various sectors. On November 22, Loop Capital analyst Chris Dankert raised the price target on the stock to $260 from $250 and kept a Hold rating on the shares after attending the company’s Annual Automation Fair event. Investor-centric presentations spent the vast majority of time on Rockwell’s differentiated growth drivers rather than cost optimization, which was further driven home by the company’s show floor demonstrations, the advisory told investors in a research note. This was encouraging, with the management explicitly indicating that the focus is on reaccelerating organic growth where leverage on core volumes can provide the greatest earnings upside, Loop adds.
12. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 44
NXP Semiconductors N.V. (NASDAQ:NXPI) makes and sells various products related to semiconductors. NXP offers a comprehensive portfolio of microcontrollers and processors optimized for AI and machine learning applications in automotive, smart industrial and IoT industries. On November 22, Wells Fargo initiated coverage of the stock with an Overweight rating and $250 price target. While semiconductor demand continues to bounce along the bottom, NXP’s competitive positioning and diverse manufacturing strategy can drive continued market share gains and further its gross margin leverage toward its new 57%-63% 2027 target, the advisory told investors in a research note.
11. 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 21, investment advisory UBS underlined that storage demand for Dell was up year over year, and stronger than competitors, according to a latest survey of 76 senior IT executives from around the globe. Per UBS, Dell all-flash storage demand was rated as strong by 71% of respondents, ahead of competitors such as NetApp at 53%, Hewlett Packard Enterprise at 32% and Pure Storage trailing at 20%.
10. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. As the company struggles to reinvent itself in the AI space, other chip makers have overtaken the dominance it once held in the semiconductor industry. The latest indication of this is that rival NVIDIA, now the most valuable firm in the world, will replace Intel on the Dow Jones Industrial Average. S&P Dow Jones Indices recently said that the change was initiated to ensure a more representative exposure to the semiconductors industry.
9. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 69
Amphenol Corporation (NYSE:APH) primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors. It has a range of product offerings for AI firms, including chipsets, networking products, and server and GPU solutions. On November 21, investment advisory Evercore released an investor note on the AI industry, noting that the strong earnings and guidance of NVIDIA had wide-ranging implications for a number of other companies, including Amphenol Corporation. Per the advisory, ramping Blackwell shipments in the Jan-qtr and through FY26, as well as management commentary on being on track to exceed prior Q4 shipment expectations, is a positive read through for Amphenol, given it is a supplier to the system.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The AI-capable chips of QUALCOMM are now making their way into cars and IoT devices, after powering smartphones globally. On November 20, Cristiano Amon, the CEO of the firm, appeared on news platform Bloomberg. When asked about the recent rumors of his company being interested in buying out rival Intel, Amon underlined that no large acquisition targets had been identified right now. Intel is struggling to compete financially and technologically with rival AI chip firms, and is considering takeover offers.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. AMD CEO Lisa Su is on a visit to India. Indian news publication Times of India recently reported that the CEO has lauded the role of the AMD design team in India for the role played in shaping the AI revolution. Per the CEO, a significant chunk of the company’s workforce – around 8,000 engineers, or about 25% of the total – is based in India. When quizzed about semiconductor plans in the country, Su said the current focus was on assembly and test facilities and progressing to mature nodes before advanced nodes.
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. Latest reports, published by news agency Reuters, suggest that Huawei, the Chinese tech giant, is planning to start mass-production of the most advanced AI chips it manufactures in the first quarter of 2025. The Chinese firm has sent samples of Ascend 910C, the latest chip, to tech businesses and started taking orders. Previously, Huawei marketed the 910B processors, which featured TSM chips. The US government has since barred TSM from supplying AI chips to Chinese firms.
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 21, JPMorgan analyst Doug Anmuth maintained an Overweight rating on the stock with a price target of $212. In an investor note, the analyst noted that proposed DOJ remedies in a Google antitrust case are more punitive than expected. Per the analyst, the DOJ seeks to prohibit Google from offering anything of value to Apple and other third-party distributors, which could push Apple to explore other options, including shifting default search from Google to a competitor such as OpenAI.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 21, Citi analyst Asiya Merchant noted that the chipmaker had reported solid results and that guidance of $37.5 billion implied revenue growth of 70% year-over-year, exceeding consensus expectations. The analyst further highlighted that the chipmaker said Blackwell production shipments were scheduled to begin next quarter and would continue to ramp with current demand indicators expected to exceed supply for several quarters over the next year. Per the advisory, during the call, management also noted strong traction of AI in enterprise environments with full-year AI enterprise revenues expected to more than double from last year and the pipeline continuing to build.
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. Latest reports suggest that the company is building a new AI data center in Louisiana. Local media is reporting that the facility will need huge amounts of electrical power and water to function. News platform The Shreveport-Bossier City Advocate recently referenced data from energy firm Entergy which shows that the single AI plant will use 30% of all the power the company generates for the state of Louisiana. To offset concerns, Entergy will build two new power plants in the area and one north of Baton Rouge at a cost of $3.2 billion.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 21, Jefferies analyst Brent Thill reiterated the stock as a Top AI Pick with a Buy rating and a $550 price target. In an investor note, the analyst noted that Microsoft was uniquely positioned in the market as it infused GenAI across both the application and infrastructure stack, with core areas of AI product development spanning Microsoft Copilots and Agents at each layer of its product suite, as well as other AI innovations across M365, Azure, Windows, Devices, Hardware, Security, Data & Analytics, and many other areas.
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 19, the company announced that it would be the AWS Amplify AI kit for Amazon Bedrock. Per the firm, the kit is the quickest way for full-stack developers to build web apps with AI capabilities such as chat, conversational search, and summarization. The kit will allow developers to easily leverage their data to get customized responses from Amazon Bedrock AI models.
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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
