In this article, we discuss the 20 trending AI stocks on latest news and analyst ratings.
The latest trends in AI stocks reflect optimism about the future of AI technology, with companies like NVIDIA continuing to dominate the space. The stock price of the chipmaker that is famous for selling AI GPUs has surged significantly in the past two years. After tripling in 2023, NVIDIA shares are up another 140% in 2024, pushing the market valuation of the firm close to $3 trillion. Analysts, like those at Bank of America, have increased their price target on the shares to around $1,500, citing the potential of NVIDIA to drive AI growth for years to come. Bank of America analysts believe the conversion of global data centers to AI-accelerated computing could require up to $500 billion annually, with NVIDIA playing a key role in this transformation.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.
Prominent investment firms appreciate the significance of emerging AI trends. According to a report by Financial Times, investment titan Blackrock is exploring the launch of an AI-focused fund, in collaboration with tech powerhouse Microsoft and MGX, an investment firm based in Abu Dhabi. The primary aims of this fund are likely to include focus on creating data centers and funding energy infrastructure to support AI growth. NVIDIA is assisting Blackrock with estimating energy demands for new AI technologies. Analysts have forecast that energy constraints could be a potential roadblock to faster AI adoption. BlackRock will launch the fund with Global Infrastructure Partners, a firm it bought back in January for $12.5 billion.
The AI hype is truly global. Tech giant Amazon 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. Amazon rivals 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. Experts have stressed that AI is not just a short-term trend but a long-term transformative force. Francisco Bido, a top portfolio manager, recently underlined that AI was not a fad, noting the significant impact it had on both the top and bottom lines of many companies.
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).
A technician in a lab coat soldering chipsets to power the company’s infotainment head units.
Trending AI Stocks on Latest News and Analyst Ratings
20. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 65
Arista Networks, Inc. (NYSE:ANET) engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments. Latest reports indicate that the company has been selected by tech giant Meta to provide the networking for a massive AI model training cluster that will be powered by over 100,000 GPUs. Meta aims to 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.
Arista Networks, Inc. (NYSE:ANET) has the potential to disrupt some of the NVIDIA business in the networking domain. Jefferies analyst George Notter recently raised the price target on the stock to $380 from $340 and kept a Buy rating, noting that the company previously talked about having won four out of five major Cloud trials for AI/back-end networking, and a fifth customer, possibly Microsoft, might trial with Arista, giving credence to claims that the firm can displace some InfiniBand usage at the account.
19. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 18
C3.ai, Inc. (NYSE:AI) operates as an enterprise artificial intelligence software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The stock has nosedived in the past couple of weeks after the company missed analyst expectations on guidance numbers for the second fiscal quarter, even though it beat market expectations on revenue and earnings per share for the first fiscal quarter. The firm revealed that fiscal second-quarter sales were expected to be between $88.6 million and $93.6 million, with the midpoint of $91.1 million below the $91.3 million estimate. The company kept its full-year sales guidance, as it expects revenue to be between $370 million and $395 million, with the midpoint of $382.5 million below the $383.9 million estimate.
C3.ai, Inc. (NYSE:AI) is viewed with bullish sentiments on Wall Street. Wedbush recently lowered the price target on the stock to $30 from $40 and kept an Outperform rating, highlighting that the firm delivered Q1 results featuring top and bottom-line beats, which would be largely overlooked by the ASC 606 adjustment where revenue previously called software would now be called services under new guidance, impacting the company’s subscription and services growth going forward.
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 chipmaker recently retained a Buy rating from Citi Research as analyst Carrie Liu noted that August notebook shipments for the firm had increased 15% month over month. In an investor note, the analyst highlighted 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, further underlining that 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) has invested heavily to grab a larger share of the server chip market in the past few years, which is currently dominated by rival Nvidia. The chips made by the latter are highly valued by cloud companies, but the high cost associated with them has forced multiple providers to augment their data centers with the chips of the latter.
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. The company was recently named among a basket of AI stocks that investment advisory Wedbush expects to benefit as the central bank in the US mulls interest rate cuts. Wedbush analysts recently highlighted that a number of information technology stocks that were tied to artificial intelligence had a chance to move higher with the Federal Reserve widely expected to step in and start cutting interest rates this week.
Wedbush analysts, led by Daniel Ives, named Dell Technologies Inc. (NYSE:DELL) as one of the beneficiaries of the emerging trends, noting that the stage was set for tech stocks to move higher into year-end and 2025 as the Fed and Powell kicked off their rate cutting cycle, macro soft landing remained the path, and tech spending on AI remained a generational spending cycle just starting to hit the shores of the tech sector.
16. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. The company recently announced a string of measures that aim to ease investor concerns around the finances and technological prowess in the AI domain. The company revealed that it had struck a deal with tech giant Amazon to manufacture AI chips under a multi-year, multi-billion-dollar framework, starting with a custom artificial intelligence fabric chip utilizing the 18A foundry process technology. Under the deal, Intel will also create custom Xeon 6 chips using the Intel 3 node for Amazon Web Services.
Intel Corporation (NASDAQ:INTC) CEO Pat Gelsinger has commented on the deal, noting that the expansion of a longtime relationship with AWS reflected the strength of the process technology of the chipmaker that delivered differentiated solutions for customer workloads. The CEO added that chip design and manufacturing capabilities, combined with the comprehensive and broadly adopted cloud, AI and machine learning services of AWS, would unleash innovation across the shared ecosystem and support the growth of both businesses, as well as a sustainable domestic AI supply chain.
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 provided a preliminary outlook for the first quarter of 2025 that forecast 5% revenue growth, below market expectations of 9% growth. The outlook spooked investors, but Wall Street analysts have sought to ease these concerns. For example, Bank of America analyst Tal Liani noted that a rebound in the premium part of the smartphone market, along with AI PCs, and better terms for upcoming licensing negotiations should work in the favor of the chipmaker in the coming months.
Latest reports reveal that QUALCOMM Incorporated (NASDAQ:QCOM) is exploring the possibility of buying the chip design business of Intel in a bid to improve the AI product line. One of the favored investments of the mobile chipmaker includes the design operations at the client PC design division of Intel. Analysts have predicted that the server business of Intel does not align with the long-term strategic goals of QCOM. Shipments for AI-enabled PCs are expected to rise in the coming months, with Microsoft and Apple dominating that market.
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 recently reported third quarter fiscal 2024 financial results that beat market estimates, though the outlook for the fourth quarter was mostly in line with analyst expectations. The California-based company reported earnings per share of $2.12 versus the consensus estimate of $2.02. It reported revenue for the quarter was more than $6.7 billion, which was more than the estimate of $6.67 billion. Net revenue from the semiconductor systems segment totaled over $4.9 billion, which represented a year-over-year increase of $248 million.
Applied Materials, Inc. (NASDAQ:AMAT) CEO Gary Dickerson said during the earnings call that his firm was delivering strong results in 2024 with record revenues in the fiscal third quarter and earnings towards the high end of the guided range. The CEO added that the race for AI leadership was fueling demand for a unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term.
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. The company is involved in the manufacture and marketing of connectivity products for AI data centers, which include 400G and 800G switches, and storage solutions. In the second quarter earnings call, Rob Mionis, the CEO of Celestica Inc. (NYSE:CLS), noted that there was strong demand for the Hardware Platform Solutions marketed by the firm, comprising storage, compute, and networking products. This healthy demand, likely to increase in the coming months as hyperscalers invest in AI data centers, had helped the firm post a more than 50% year-to-year increase in connectivity revenues in the second quarter.
Stifel recently upgraded Celestica Inc. (NYSE:CLS) 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.
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. JPMorgan recently noted that the strong sales data for August released by the chipmaker suggests that TSM will surpass third quarter guidance numbers. In an investor note, the advisory maintained an Overweight rating on the stock with a price target of NT$1,200. Analysts at JPMorgan, led by Gokul Hariharan, underlined that September revenues for the firm 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. Earlier this week, TSM released sales numbers for August, reporting 33% year-over-year growth in sales.
Per the analysts, the third quarter revenues of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) could slightly exceed the high-end of the guidance range, due to strong N3 (the 3nm process technology) demand, continued demand for N5 from AI accelerators and other High-Performance Computing, or HPC, products. The analysts expect the fourth quarter to see 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.
11. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. The stock has dipped in the past few days on the back of slowing growth in memory. Morgan Stanley recently lowered the price target on Micron to $100 from $140 and kept an Equal Weight rating on the shares. In an investor note, the advisory acknowledged that Q4 and Q1 of 2025 memory average selling price, or ASP, growth was falling increasingly into question and noted that Micron would continue trading poorly unless that showed signs of reversing. However, despite concerns, the advisory still believed the overall fundamental trajectory at Micron was strong enough to stay Equal Weight rated.
Micron Technology (NASDAQ:MU) recently announced the availability of a new solid-state drive that offers two times faster performance than the previous model. The new drive would give gamers, students and creatives a boost in speed when they boot and use data-intensive applications, per the company. The new solid-state drive has capacities up to 2 terabytes and read and write speeds of 7,100 and 6,000 megabytes per second respectively.
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. Raymond James recently started coverage of the British company with an Outperform rating and a $160 price target. Analysts at the investment advisory noted that Arm, as the dominant supplier of energy-efficient processor/subsystems IP, was well-positioned to benefit from rapid growth of generative Al in the cloud and at the edge. The analysts expect content increases in mobile along with higher penetration of Arm architecture in auto, data center and PC markets to drive sustainable double-digit growth for the next several years.
According to experts at Raymond James, Edge AI was a key catalyst for Arm Holdings plc (NASDAQ:ARM) and for ARMv9, which offered about 2x royalties over prior generation and had a long runway. The analysts added that there was a good possibility that Arm would eventually offer data center Al accelerator IP, which could significantly expand its serviceable addressable market. Competition from RISC-V — an open-source instruction set architecture — was increasing but was unlikely to threaten Arm’s dominance, according to the analysts.
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 new multi-year, multi-million-dollar contract for the artificial intelligence platform it markets to help improve healthcare through transformational technologies. The contract, with health firm Nebraska Medicine, would help the latter build on a year-long partnership that has seen Nebraska implement more than ten applications of AIP, improving patient throughput and expanding claims.
Palantir Technologies Inc. (NYSE:PLTR) chief Peter Thiel recently filed to sell up to $1 billion worth of Palantir shares, per media reports. Thiel made the disclosure last month through an investment vehicle named Rivendell 7 LLC. Thiel last sold Palantir stock just before May, when he sold 13 million shares for an aggregate price of more than $273 million.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The company recently announced earnings results for the third fiscal quarter, and Wall Street analysts were quick to outline their views on the report. Benchmark noted in an investor note that the earnings report of Broadcom was being looked to as some sort of savior of the AI momentum trade following a week of incredibly poor performance in the stock price of NVIDIA and most AI related names. However, the advisory underlined that Broadcom delivered only a tepid beat for the July quarter and provided guidance that was just shy of the consensus estimates.
Per Benchmark, Broadcom Inc. (NASDAQ:AVGO) delivered an earnings report that was solid, without any material soft points, and its AI business lacked the clear upside momentum the Street was looking for. However, the advisory recommended investors take advantage of the near-term share price volatility with Broadcom remaining a key vehicle for participation in the industry’s AI adoption. Benchmark has a Buy rating and $210 price target on the shares.
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 stock has rallied in the past few days after investment advisory Jefferies named the firm the top pick in the power sector and reiterated a Buy rating on the stock. Jefferies analyst Julien Dumoulin-Smith noted that Vistra had many ways to win following years of acquisitions, rationalizations, and lessons learned about risk that had positioned it well for the power markets of the present. The analyst added that the timely acquisition of nuclear portfolio Energy Harbor in 2023 gave the company a coveted nuclear portfolio.
The nuclear portfolio of Vistra Corp. (NYSE:VST) provided a traditional opportunity set of collocating a data center at one of its nuclear plants, per the analyst. The investor note highlighted that the efficient gas fleet of Vistra could profit from higher volume, even though a material increase to natural gas volumes was not the biggest upside angle.
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. Mizuho analyst Vijay Rakesh recently started coverage of the stock with a Neutral rating and a price target of $450. In an investor note, the analyst underlined that the artificial intelligence server market was growing at a 54% compound annual rate, but increased competition was hitting margins, and the stocks of companies that had diverse portfolios stood to benefit more, especially if margins compressed even further, if server architectures were slow to adopt liquid-cooling in favor of cheaper air-cooled servers and as GPU supply improved.
The analyst further added that Super Micro Computer, Inc. (NASDAQ:SMCI) faced stiff competition from Dell in the AI server market. Rakesh noted that while AI was a secular driver, diversification across PC/storage generated synergies and value longer term for Dell, even though SMCI had led the market with a 70-80% share with a head start from tight GPU supply, it was now losing share with Dell quickly gaining by leveraging relationships as the server leader.
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 reveal that the company will be reworking plans to build a data center in Chile after authorities in the Chilean government raised concerns about the environmental impact of the project. The $200 million data center was approved in 2020 but has since faced stiff resistance from environmental activists who allege it would have an impact on the parched aquifer in the capital of the country. The US tech giant has informed environmental regulators that it will use air-cooled technology at the original location of the project in a bid to ease concerns about environmental impacts of the data center.
Alphabet Inc. (NASDAQ:GOOG) Cloud CEO Thomas Kurian recently said that 60% to 70% of AI startups were using AI hardware clusters made by his company to train their AI models. Kurian made the comments during a Goldman Sachs technology conference. Kurian said his company had monetized compute instances on a consumption basis and had established a price platform on a token basis for the purpose.
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. Investment advisors at DA Davidson recently initiated coverage of the stock with a Buy rating and listed it as a top pick within the mega-cap space. In an investor note, analysts at the advisory underlined that Meta had set itself up to be the open source leader for the next two major technology platforms — AI Foundation Compute and Spatial Compute.
The analysts added that Meta Platforms, Inc. (NASDAQ:META) has the pole position on the open source side of the AI world, while other tech giants like Alphabet, Apple, Amazon, and Microsoft were crowding into the closed garden side of AI platforms. The research firm said unlike previous tech innovations, the aforementioned future platforms could only be won by a megacap and praised the choice of Meta to open source AI compute elements.
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. As the company integrates AI features into the cloud, the software side of the business paints a compelling growth story. The web services section of the firm has an operating margin of more than 34%, far higher than the 5% operating margin of the ecommerce side of the business. The company aims to boost the AWS segment in the coming months with an extensive partner ecosystem and AI capabilities. On the ecommerce side, the firm is focused on growing the international segment.
Amazon.com, Inc. (NASDAQ:AMZN) might be one of the biggest beneficiaries of a new US government order to increase tariffs on low priced goods entering the country from abroad. In the past few years, Chinese ecommerce giants have had a competitive advantage over Amazon due to the lower taxes and tariffs on low priced goods. Deutsche Bank recently said in an investor note that US President Biden intends to take executive action while waiting for Congress to pass a bill related to the de minimis provision on trade.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. The company recently launched the latest models of the iPhone with AI features as it seeks to capitalize on growing AI interest in the smartphone business. However, with pre-orders for the new phones down from last year and Chinese firms offering the new models at a discount due to soft demand, it seems like Apple Intelligence, a suite of AI features that come preloaded on the new iPhones, have not been enough to revive the slowing demand for the Apple phones. Apple Intelligence will be available on new devices in English later this year, with support for other languages coming next year.
Demand for new Apple Inc. (NASDAQ:AAPL) phones have slowed in China amid increased competition in the Chinese market, which is the largest smartphone market in the world. Apple is competing with Chinese firms like Huawei for phone supremacy. Last week, Huawei unveiled a Z-shaped trifold phone Mate XT just a few hours after Apple launched the iPhone 16 models. The phone shipments for the former have soared 41% year-over-year in the second quarter of 2024, as those for the latter dipped by about two percentage points in the same period.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Latest reports indicate that Sakana AI, an AI startup backed by NVIDIA, has raised more than $210 million in a Series A funding round. The startup had aimed to raise $100 million in funding. The latest round of funding values the startup at more than $1.5 billion, just a year after it first launched. The NVIDIA-backed firm has become popular since it developed a way to automate the integration of multiple foundational models, including large language models, or LLMs, and discovered a way to use LLMs to train LLMs more efficiently.
NVIDIA Corporation (NASDAQ:NVDA) might be allowed to export advanced AI chips to Saudi Arabia as the government of the Middle Eastern country aims to train powerful AI models using these chips. The US government might consider easing export rules around these chips which have been put in place over the past few years in a bid to limit the transfer of sensitive technology to Chinese and Russian entities.
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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