In this article, we discuss the 19 trending AI stocks on latest analyst ratings and news.
Exciting new developments in the artificial intelligence space have continued to pour in over the past few days as the stock market recovers from a major tech selloff. Some of the most trending ones relate to electronics giant Apple, Microsoft-backed AI startup OpenAI, and software firm Adobe. Apple has doubled down on AI with the release of macOS Sequoia, which integrates AI features designed to enhance device performance and user experience. These AI enhancements include real-time content generation and AI-driven privacy tools. With iPhone sales slowing, Apple is banking on AI to reinvigorate interest in its devices, setting itself apart in an increasingly competitive tech market.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.
On September 13, OpenAI released the highly anticipated Strawberry model, which aims to tackle complex challenges in AI development, including more nuanced decision-making and language processing. This model is expected to advance the capabilities of OpenAI in both consumer-facing tools and enterprise applications. Similarly, Adobe is also making major moves with the Firefly AI video tools, set to debut by the end of 2024. These tools allow users to generate videos from text and images, offering functions like Generative Extend to enhance existing videos. This positions Adobe at the forefront of generative AI for content creation, with a focus on commercial safety by using licensed datasets.
Looking ahead, Wall Street analysts project significant revenue and earnings growth for key players in the AI space, particularly in semiconductor companies that power AI applications. NVIDIA, for example, is forecast to achieve an impressive 27% annual revenue growth, outperforming both the semiconductor industry and the broader US market. The total revenue for the chipmaker in 2025 is expected to reach around $123 billion, with earnings projected to grow by over 24%. The upcoming Blackwell GPU architecture, which offers a 3.7x performance improvement over a predecessor, is seen as a critical driver of AI growth for NVIDIA in the next few months.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.
Our Methodology
For this article, we selected AI stocks based on the latest news and analyst ratings. 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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Trending AI Stocks on Latest Analyst Ratings and News
19. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 74
Marvell Technology, Inc. (NASDAQ:MRVL) makes and sells semiconductors. Latest reports indicate that Marvell is planning to buy Altera, the programmable chip unit of Intel, as the latter considers the possibility of selling it as part of a larger plan to cut costs amid mounting losses. Investment advisory Raymond James has noted that such a transaction could provide a modest benefit for Marvell. Srini Pajjuri, one of the analysts at the advisory, highlighted that from a strategic standpoint, a potential acquisition would help MRVL diversify into Industrial/Defense markets and beef up its already strong presence in Telco and Data Center markets. Pajjuri added that higher gross margins associated with FPGA products would also be attractive to MRVL, especially as Al custom silicon becomes a larger portion of its revenues.
AI tailwinds have forced the generally skeptical analysts on Wall Street to turn bullish on Marvell Technology, Inc. (NASDAQ:MRVL) stock. For example, investment advisory KeyBanc has an Overweight rating on the shares with a price target of $95. In a recent investor note, the advisory pointed out that feedback indicates that the demand for optical networking was robust across all segments for the firm, including 800G/400G/200G, and the AI outlook stood to benefit from a meaningful ramp of AWS Trainium/Inferentia and Google Axion.
18. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The company counts many hyperscalers among customers. Investment advisory Citi recently reiterated a Buy rating on the chipmaker as August notebook shipments increased 15% month over month. In an investor note, City analyst Carrie Liu noted that the 15% month-over-month increase was more a reflection of the weak demand recorded in July than a material strengthening of the market. The analyst further forecast notebook demand for the third quarter of calendar year 2024 would show a 4% quarter-over-quarter increase, which was less than the average of 5%.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is trying to compete with AI giant NVIDIA in AI hardware. The high cost of AI chips being sold by NVIDIA have created a market for AMD chips that are cheaper but lag a little in performance. However, tech giants like Oracle have highlighted that some cloud customers were using AMD chips to provide inference for artificial intelligence, including Amazon.
17. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 88
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. In the first quarter of the 2025 fiscal year, the company revealed that orders for the AI-optimized servers it markets had increased to $2.6 billion, with shipments up more than 100% sequentially to $1.7 billion. The firm has shipped more than $3 billion of these AI servers over the last three quarters as the demand for AI products skyrockets. The AI server backlog is $3.8 billion, growing sequentially by almost $900 million.
Dell Technologies Inc. (NYSE:DELL) has attracted the attention of Wall Street analysts in recent weeks. Raymond James has an Outperform rating on the stock with a price target of $160. In an investor note, the advisory noted that following a fiscal Q2 beat and raise, strong AI shipments and improved ISG segment operating margin should outweigh flat AI backlog and a slightly lower PC forecast for Dell in the coming months.
