20 Trending AI Stocks on Latest News and Ratings

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12. Elastic N.V. (NYSE:ESTC)

Number of Hedge Fund Holders: 58

Elastic N.V. (NYSE:ESTC) is an American-Dutch search artificial intelligence (AI) company, delivering hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments in the United States as well as internationally. The data analytics company leverages AI across its product offerings, particularly within its “Elastic Stack” comprising Elasticsearch, Kibana, Beats, and Logstash (also known as the ELK Stack) and more.

At the end of Q1 2025, over 1,300 customers were using Elastic Cloud for generative AI use cases while approximately 200 of their 100k customers were using their platform for generative AI use cases. Elastic Cloud is a fully managed service that includes hosted Elasticsearch, app search, and site search. Elastic’s Copilot now uses ELSER, the company’s proprietary retrieval model for semantic search, enabling customers to create personalized content with faster and more accurate retrieval-augmented generation. This has led to a more than twofold increase in the Elastic consumption in six months.

On October 14, William Blair analyst Jake Roberge upgraded Elastic N.V. (NYSE:ESTC) from “Market Perform” to “Outperform”. In a note to clients, Roberge notes that Elastic NV has a large opportunity ahead, with its vector and hybrid search solutions poised to benefit from the rise of more AI applications over the next few years. He further states how Elastic’s recent go-to-market “noise” provides a “nice entry point” for a “quality” long-term story,

Roberge further added that Elastic’s management has said the Elasticsearch Relevance Engine is seeing “solid” demand trends and presents a large opportunity for existing customers to upgrade to premium platform tiers. Moreover, it will also allow the company to get new customers onto the platform and drive increased consumption.

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