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.
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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.
16. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest media reports indicate that Intel lost a contract to design and manufacture the processors for the upcoming Sony PlayStation 6 gaming console to rivals AMD and Taiwan Semiconductors. According to a report by news agency Reuters, the loss of the two contracts — AMD won the design contract while Taiwan Semi won the manufacturing portion — could have amounted to roughly $30 billion in revenue for Intel. Intel and Sony disagreed over profit terms during their negotiations in the chip deal.
Investment advisory Bernstein has a Market Perform rating on Intel Corporation (NASDAQ:INTC) stock and recently lowered the price target to $25 from $35. In an investor note, the advisory noted that the Q2 results of the firm were challenged and Q3 outlook was awful as the company saw the second half of 2024 recovery more muted than prior expectations amid weaker macro and some client inventory channel adjustments.
15. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 78
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The company recently announced that it had entered into a partnership with medical device maker Masimo to develop a smartwatch reference platform for original equipment manufacturers building Wear OS by Google smartwatches. The medical device maker is presently embroiled in a patent lawsuit with tech giant Apple over the blood oxygen technology used in Apple smartwatches. QCOM is one of the leading suppliers of chips to the California-based electronics giant as well as other smartphone firms.
QUALCOMM Incorporated (NASDAQ:QCOM) is attracting the attention of analysts on Wall Street. Rosenblatt recently raised the price target on the shares to $250 from $240 and kept a Buy rating, noting that the company was taking market share in premium Android handsets, Automotive cockpit, and the PC and the next phase of AI growth was at the network edge, where the company was well positioned.
14. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 77
Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for the semiconductor industry. The firm is one of the most well-positioned in the semiconductor equipment market to take advantage of the AI boom, driven by growth in HBM, DRAM, and advanced packaging. Some of the factors expected to hold the firm in good stead include investments in advanced technologies and energy-efficient computing solutions. With 5.5% revenue growth and 7.4% adjusted operating profit growth in the latest quarter, the firm has guided revenue forecast of $27 billion for this fiscal year.
Applied Materials, Inc. (NASDAQ:AMAT) is one of the most followed stocks on Wall Street. JPMorgan analyst Harlan Sur recently raised the price target on the shares to $250 from $240 and kept an Overweight rating, noting that the company reported solid July quarter results driven by accelerating demand in advanced foundry/logic, DRAM, high bandwidth memory and ICAPs combined with sustained strength in services. The analyst further added that the company was well positioned to benefit from multiple upcoming technology inflections that should drive continued outperformance versus wafer fab equipment over the next several years.
13. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 38
Celestica Inc. (NYSE:CLS) offers a range of product manufacturing and related supply chain services. Stifel recently upgraded the company to Buy from Hold. In an investor note, the analysts from the advisory noted that the firm could achieve the FY25 EPS estimate of $4 despite an expected decline in server sales due to a technology transition at a top customer. The analysts added that the expected decline would be more than offset by growth in the communications segment of the firm, with the expected 800-G switch investment cycle. In the note, Stifel underlined that the selloff concerns were primarily due to worries of slowing AI investments from hyperscale customers after the earnings reports of key suppliers.
Celestica Inc. (NYSE:CLS) is attracting bull calls from other analysts on Wall Street. Canaccord analyst Robert Young recently raised the price target on the stock to $70 from $53 and kept a Buy rating, noting that the company reported another strong quarter with Q2 results ahead of consensus on all metrics. The analyst added that in addition to a strong Q3 outlook, guidance for the next fiscal year was raised across the board.
12. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 156
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. JP Morgan has highlighted the strong sales in August for the chipmaker and suggested the global foundry could surpass third-quarter guidance. In a recent investor note, the advisory kept an Overweight rating on the stock with a NT$1200 price target. Analysts at JP Morgan noted that September revenues were likely to remain flattish or grow slightly month-over-month, helped by the ramp for iPhone processors and continued strength in N3/N5 demand. The August sales for TSM grew about 33% year-over-year to NT$250 billion, and reached 68% of JPM estimates for the third quarter of 2024.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) could post a healthy 10% quarter-over-quarter growth as well, helped by continued iPhone processor demand and new Android SoC launches from Qualcomm and Mediatek helping to steer further upside in N3, per the analysts, who added that they expected Street consensus to continue to be revised up in the next 12 months due to better revenue momentum and upside in gross margins due to price hikes and better N3 yields.
11. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. Earlier this month, an electronics company in Taiwan, a hub of global chipmaking, confirmed that it had agreed to sell two factories it owned in the country to Micron in a deal worth $254 million. Previous estimates had put the value of this deal around $620 million. The deal, expected to close before the end of this year, will enable Micron to take over factories in Taichung and Tainan regions of Taiwan. The facilities would be used to expand the integrated circuit packaging and testing services for the company, along with increased production of high bandwidth memory.
Micron Technology (NASDAQ:MU) is being viewed with caution on Wall Street. Needham has a Buy rating on the shares with a price target of $140. In a recent investor note, the advisory noted that the bit shipment commentary offered by the firm in the latest earnings call was incrementally more cautious than guidance given on the previous earnings call, creating a risk to November-quarter consensus estimates.
10. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. The shipments of the new iPhones are expected to boost investor interest in the stock as the new phones are powered by chips designed on Arm architecture. The iPhones are powered by V9 chip technology, which boosts royalty revenues and supports strong growth projections for the chip designer. The company has growth potential in several markets, including smartphone, data center, and autos. The revenue of the firm is projected to grow at a 27% CAGR through FY26, with operating margins expanding.
Arm Holdings plc (NASDAQ:ARM) is thus turning heads on Wall Street. Daiwa recently upgraded the stock to Outperform from Neutral with a $130 price target, noting that following a few interesting and volatile quarters, the bad news of a possible recession was out and tech was settling post the big recent selloff, though AI expectations were still strong. The analyst expected Arm shares to trend further upwards in the next few months.
9. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations. The company recently announced that it had entered into a five-year strategic collaboration with energy giant BP to introduce new artificial intelligence capabilities in the energy sector through the AIP software. BP has used Palantir software since 2014 to support energy production operations. Under the new deal, the AIP software will assist BP to safely and reliably harness large language models, or LLMs, to improve and accelerate human decision-making with suggested courses of action based on automated analysis of the underlying data.
Analysts on Wall Street have noticed the new developments regarding Palantir Technologies Inc. (NYSE:PLTR). Northland recently initiated coverage of the stock with a Market Perform rating and $35 price target, noting that the artificial intelligence operating system of the firm, powered by the Ontology software, had overcome myriad roadblocks to adoption and was igniting AI use across the enterprise landscape.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The firm has become famous in the AI space over the past few years as it leads the industry in developing application-specific integrated chip (ASIC), a specialized 5 nanometer chip that is designed to run AI tasks. Chinese internet-tech firm ByteDance recently announced that it would be partnering with Broadcom for the production of these chips, with the designs of the latter helping the former with manufacturing outside the US. Tech giants like Amazon, Alphabet, and Meta, all customers of Broadcom, are set to increase their spending on these chips for the development of their AI data centers in the coming months.
The AI buzz around Broadcom Inc. (NASDAQ:AVGO) has reached Wall Street as well. TD Cowen recently raised the price target on the shares to $210 from $175 and kept a Buy rating, noting that the stock offered broad revenue exposure to hyperscale, artificial intelligence, telecom, and enterprise, with investors willing to pay a premium for a unique quality semis/software franchise with industry-leading margin.
7. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 92
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. The company recently announced that it had formed a partnership with solar firm Sunrun on a residential battery aggregation program in Texas. Under the terms of the deal, the flagship TXU Energy retail electricity brand of Vistra would be paired with the Battery Rewards program of Sunrun for supporting grid reliability in Texas by aggregating power from residential solar-connected batteries. According to the deal, TXU Energy customers with Sunrun home solar panels and batteries will receive financial incentives for participating while retaining control of their systems during power outages or severe weather conditions.
The new deal is just one of the many reasons to be bullish on Vistra Corp. (NYSE:VST) stock in the long term. Seaport Research analyst Angie Storozynski recently raised the price target on the shares to $116 from $110 and kept a Buy rating, noting that even after a price rally this year, the firm continued to trade at attractive double-digit free-cash-flow yields.
6. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 47
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. A few weeks after a report by investment firm Hindenburg led to a significant drop in the share price, another research firm, Glasshouse, has said that the short-selling viewpoint of the former regarding SMCI had missed the mark. In an investor note, the research firm noted that the risk-reward at current levels for the artificial intelligence server company was highly favorable, and that Glasshouse was bullish on the stock for the foreseeable future.
Bank of America analyst Ruplu Bhattacharya recently downgraded the stock to Neutral from Buy with a price target of $700, down from $1,090. The analyst noted that the next several quarters remained challenging for the company in terms of margins, largely due to a competitive pricing environment, delayed shipment of Blackwell GPU systems that require higher margin liquid cooled racks, and on-going issues with component availability.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. Latest reports indicate that the authorities in Ireland have initiated a cross-border inquiry into an AI model marketed by Google. The data protection department in Ireland has said that it will review whether Google complied with EU obligations before processing personal data of EU users to help develop the foundational AI model named Pathways Language Model 2 (PaLM 2). The Irish government has previously conducted such inquiries against social media platform X as well.
Alphabet Inc. (NASDAQ:GOOG) has received bullish calls from Wall Street. Stifel analyst Mark Kelley raised the price target on the stock to $199 from $196 and kept a Buy rating, detailing that the company reported revenue and operating income ahead of expectations with continued strength in Search and a slight beat in Google Cloud, though YouTube growth slowed relative to Q1. The analyst further added that the AI commentary of the management was encouraging.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. Latest reports indicate that the company has chosen Arista Networks to provide the networking for a massive AI model training cluster that will be powered by over 100,000 GPUs. Meta will use NVIDIA H100 GPUs for the cluster that features $2 billion worth of chips. It will train the Llama 4 large language model. Investment advisory Evercore ISI claims the deal would represent a $250 million revenue opportunity for Arista Networks.
This AI monetization by Meta Platforms, Inc. (NASDAQ:META) has been appreciated by analysts on Wall Street. Tigress Financial recently raised the price target on the stock to $645 from $575 and kept a Strong Buy rating, noting that the increasing cash flow of the firm was enabling ongoing investments in artificial intelligence initiatives that drive increasing user engagement, better content, and a more effective advertising experience.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. The company recently announced that it would invest £8 billion in the United Kingdom over the next five years as part of a major push to expand data center infrastructure across the country. Other tech giants, like Google and Microsoft, have also previously announced plans to boost data center infrastructure in the UK. The former plans to invest $1 billion in the UK while the latter has confirmed around £2.5 billion to expand AI growth. The cloud departments of these tech giants are leading these investments.
Wells Fargo recently lowered the price target on Amazon.com, Inc. (NASDAQ:AMZN) stock to $225 from $232 and kept an Overweight rating. In an investor note, the advisory noted that heavy upfront costs related to satellite launches, commencing in the second half of 2024, reduce operating income forecasts for Amazon from 2025 through 2027. The note further detailed that Kuiper presented an attractive opportunity longer term for Amazon, but also unclear synergy with core operations.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. The stock has been hit in recent days following reports that the pre-orders for the much-awaited iPhone 16 series have been below analyst expectations and are down more than 10% compared to pre-orders for the previous version of the phone. According to reports, 37 million units of the new iPhone have been ordered, and one of the main reasons behind the slowdown in orders has been the lower-than-expected demand for the iPhone 16 Pro. In the Pro version of the new iPhone, Apple Intelligence, the AI-powered features of the new Apple software, are not available at launch. China competition has also impacted iPhone sales.
When it comes to Apple Inc. (NASDAQ:AAPL), Wall Street analysts have bullish views. Investment advisory Loop Capital has a Buy rating on the shares with a price target of $300, implying upside potential of a handsome 32%. In a recent investor note, data cited by Loop Capital supply chain analyst John Donovan suggested that iPhone shipments for the September quarter were above market expectations.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The company is a leader in the AI hardware space, controlling nearly 90% of the market for AI GPUs. However, the AI software capabilities of the firm often go under the radar. NVIDIA has a distinct advantage over competitors like Intel and AMD when it comes to AI software offerings. Some examples of this include the CUDA and AI Enterprise software marketed by the chipmaker. The company charges $4,500 per GPU per year for AI software and tech giants that pay for NVIDIA GPUs also pay for these software features in advance. Within the AI software, the firm also markets the DGX Cloud, a cloud service that allows users to train and deploy AI models over the cloud. This service costs a whopping $37,000 per month.
Wall Street analysts have been monitoring NVIDIA Corporation (NASDAQ:NVDA) closely. Morgan Stanley has an Overweight rating on the shares with a price target of $144. In a recent investor note, analyst Joseph Moore detailed that the advisory expected initial volumes of Blackwell in the October quarter, as the initial product was functional but with somewhat lower yields, and still expected a volume ramp of the next revision of silicon through January – all of which was still within the broad brush strokes of guidance.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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