In this article, we discuss the 35 trending AI stocks on latest news and analyst ratings.
Two years after the public debut of ChatGPT, the generative AI landscape has evolved rapidly, igniting substantial investments in artificial intelligence and lifting valuations for startups and major tech companies alike. This surge in interest has primarily centered on cloud-based AI, where services like OpenAI’s models operate on extensive data infrastructures. However, as these models grow in complexity, the demand for larger and more advanced data centers intensifies, leading to a race among companies to construct expansive facilities. Significant investments are projected, with estimates suggesting that major players will collectively spend around $160 billion in capital expenditures next year, primarily for acquiring powerful GPUs and related infrastructure necessary for training AI models. Top executives have even forecasted that global data center investments could double to $2 trillion within the next few years. Nevertheless, the sustainability of this spending spree raises questions about whether the revenue generated from AI applications can match the high costs of development and infrastructure.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Amid these challenges, a new trend in edge AI is emerging. This concept involves running AI algorithms directly on personal devices like smartphones and computers rather than relying on centralized cloud servers. Edge AI offers numerous benefits, including real-time response capabilities without requiring a high-speed internet connection and enhanced privacy since user data remains on personal devices. Analysts project that nearly 50% of smartphones will have generative AI capabilities by 2027, a significant increase from the current 4%. However, implementing edge AI presents technical hurdles, primarily due to existing devices lacking the necessary computing power and memory to support large AI models. For instance, running OpenAI’s GPT-4 model, which contains approximately 1.8 trillion parameters, is not feasible on typical smartphones today. Nevertheless, smaller, task-specific AI models are gaining traction, as they require less training data and can outperform larger, more generalized models in certain applications. These lightweight models are often open-source and designed for specific functions, making them easier to implement on consumer devices.
As semiconductor companies continue to innovate by increasing processing power and memory in smartphones and PCs, the capacity for running AI models on these devices is expected to grow. Research indicates that the proportion of smartphones capable of supporting large AI models could rise significantly within the next few years. Major chip manufacturers are advancing technologies such as chipset designs, allowing them to create more powerful processors without needing to shrink the circuitry. For investors, the rise of edge AI could lead to new opportunities and growth within the consumer electronics market, as users are likely to upgrade their devices to take advantage of enhanced AI functionalities. UBS analysts project that combined sales of smartphones and PCs could exceed $700 billion by 2027. Ultimately, the success of edge AI hinges on the development of compelling applications that consumers find valuable enough to invest in.
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.
Stocks
Our Methodology
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).
Trending AI Stocks on Latest News and Analyst Ratings
35. Exscientia plc (NASDAQ:EXAI)
Number of Hedge Fund Holders: 6
Exscientia plc (NASDAQ:EXAI) is an AI-driven pharma-tech company that engages in design and development of differentiated medicines for diseases with high unmet patient needs. Back in August, NVIDIA-backed biotech firm Recursion had announced that it would be purchasing rival Exscientia in an all-stock deal. NVIDIA, one of the largest AI firms in the world, has invested close to $50 million in Recursion over the past year. Latest reports suggest that the two biotech companies are now soliciting shareholder support for their proposed merger agreement at upcoming investor meetings next month. David Hallett, the CEO of Exscientia, had earlier said that by merging the two companies, the duo would be able to discover better drugs for patients faster and at a lower cost.
34. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 9
BigBear.ai Holdings, Inc. (NYSE:BBAI) provides artificial intelligence-powered decision intelligence solutions. The company recently announced that it was appointing Carl Napoletano as the Chief Operating Officer. Napoletano previously served as Vice President of Special Projects, where he oversaw the strategic integration of major acquisitions, including Pangiam. This acquisition was important as Pangiam strengthened the BigBear AI portfolio for national security, supply chain management, and digital identity solutions. Napoletano has been at the AI firm for close to four years. Investment advisors are bullish on BigBear, with HC Wainwright recently reiterating a Buy rating on the stock with a price target of $3.
33. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 15
SoundHound AI, Inc. (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. The company recently announced that the Amelia conversational AI platform it markets had received the XCelent Advanced Technology 2024 Award from research and advisory firm Celent. Back in August, SoundHound had purchased Amelia in a $80 million deal. It said the combined revenue for the two firms in 2025 was expected to exceed $150 million, with Amelia contributing over $45 million in recurring AI software revenue, plus other non-software revenues such as professional services and agent-related fees.
32. SiTime Corporation (NASDAQ:SITM)
Number of Hedge Fund Holders: 18
SiTime Corporation (NASDAQ:SITM) provides silicon timing systems. The firm markets micro-electromechanical systems that are designed to improve performance in data centers, 5G networks, and AI-driven applications. Barclays analyst Tom O’Malley recently downgraded the stock to Underweight from Equal Weight with an unchanged price target of $90. The advisory said SiTime was one of the more expensive names in its coverage with estimates likely still too high for 2025. Barclays agreed that a recovery from the pandemic correction was underway, but struggled to see how the stock’s valuation at these levels made sense. SiTime has admitted to broadening its sales pipeline to more multi-sourced opportunities, which will pressure gross margins into next year, the advisory told investors in a research note.
31. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV)
Number of Hedge Fund Holders: 19
Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) provides artificial intelligence-based weapons detection solutions for security screening in the United States and internationally. The shares of the firm are on a downward spiral after reports in the US media, published by New York Daily News, indicated that the New York Department of Investigation was probing allegations of improper deployment of a weapons detection system in the New York City subway system by Mayor Eric Adams. The weapons detection system in question is made by Evolv. The firm claims that with the help of advanced sensor technology and AI, the system can detect weapons much faster than traditional metal detectors. The company has been testing this system in New York over the past few months, with mixed results.
30. Synaptics Incorporated (NASDAQ:SYNA)
Number of Hedge Fund Holders: 20
Synaptics Incorporated (NASDAQ:SYNA) operates as a semiconductor manufacturer. KeyBanc analyst John Vinh recently downgraded the stock to Sector Weight from Overweight without a price target. The analyst believes Synaptics will underperform its internet of things peers given limited growth catalysts within its enterprise and automotive segment, which represents almost 60% of its overall revenue. This segment represents the highest margin segment for the company, and without it returning to normalized run rates, it will be extremely difficult for Synaptics to get back to its model target of 57% gross margin, the analyst told investors in a research note. KeyBanc says enterprises had benefited from a pull-forward in demand during the pandemic, but now that the market had transitioned back to the office or to a hybrid environment, demand for these products is unlikely to return and likely to lag any recovery in enterprise spending.
29. Aspen Technology, Inc. (NASDAQ:AZPN)
Number of Hedge Fund Holders: 24
Aspen Technology, Inc. (NASDAQ:AZPN) provides industrial software that focuses on helping customers in asset-intensive industries worldwide. The firm focuses heavily on integrating AI to help customers in industries such as energy, chemicals, and manufacturing improve efficiency, enhance sustainability, and reduce operational risks. Baird analyst Rob Oliver recently maintained an Outperform rating on the stock with a price target of $250. In an investor note, the analyst noted that the management of the firm had introduced a long-term operating model of double-digit ACV growth along with 45-47% ACV margin. According to the analyst, Aspen had come a long way from the early days of E&P-only exposure, and after a challenging EMR integration, the company was poised to break through to new markets, new growth.
28. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 24
AeroVironment, Inc. (NASDAQ:AVAV) designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. The firm focuses on integrating artificial intelligence into its unmanned aircraft systems (UAS) and robotic solutions. It uses AI to enhance the autonomy, decision-making capabilities, and data processing of its drones, which are used in defense, surveillance, and precision agriculture. Jefferies analyst Greg Konrad has a Buy rating on the stock with a price target of $230. In a recent investor note, Konrad noted that a 8-K disclosure by the firm that the US Army has lifted the stop work order on a $990 million contract pointed to the importance of loitering munitions and the immediacy of demand.
27. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 29
Symbotic Inc. (NASDAQ:SYM) is an automation technology company that engages in developing technologies to improve operating efficiencies in modern warehouses. The AI business focuses on automating supply chain and warehouse operations. The company integrates advanced AI, machine learning, and robotics to optimize inventory management and streamline workflows. The firm recently announced that it had entered into a commercial agreement with Walmex, the Mexican and Central American Walmart division, to implement warehouse automation systems in two locations near Mexico City. Under the agreements, Symbotic will deploy the end-to-end systems at two greenfield distribution centers, with the first site currently breaking ground in the Bajio region of Mexico.
26. Ambarella, Inc. (NASDAQ:AMBA)
Number of Hedge Fund Holders: 29
Ambarella, Inc. (NASDAQ:AMBA) develops semiconductor solutions for video that enable high-definition and ultra HD compression, image processing, and deep neural network processing worldwide. Latest reports, first published by news platform The Elec, claim that the company has asked electronics giant Samsung to produce the latest 2nm chips for the semi firm. The firm already contracts Samsung for 5nm chips. Earlier this year, Samsung Foundry had showcased a new 2nm technology process called SF2A, specifically designed for automotive semiconductor chips. The company said it plans to fully ready SF2A in 2027. However, Ambarella expects these chips to begin production in 2026.
25. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 29
UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. Daniel Dines, the CEO of the firm, said during the second quarter earnings call earlier this month that the firm exceeded the high end of guidance across all key financial metrics in the second quarter, a testament to improved execution and the compelling value that AI-powered automation platform delivered to customers. Dines detailed that his company ended the quarter with ARR of $1.551 billion, an increase of 19%, driven by net new ARR of $43 million. Second-quarter revenue was $360 million, and the company delivered non-GAAP adjusted free cash flow of $49 million.
24. Cognex Corporation (NASDAQ:CGNX)
Number of Hedge Fund Holders: 31
Cognex Corporation (NASDAQ:CGNX) delivers machine vision products designed to capture and analyze visual data, automating manufacturing and distribution processes globally. Robert Willett, the CEO of Cognex Corporation (NASDAQ:CGNX), said during the second quarter earnings call that the company expected growth in semis as well as memory as AI made customers invest in chips and related offerings for growth in the latest tech domain. The company leads in AI integration for machine vision products, having launched the Insight L38, the world’s first AI-enabled 3D industrial vision system. According to the company, this system has already gained twice the customer interest compared to its predecessor. They also offer AI-enhanced modular tunnel vision systems and barcode readers.
23. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 33
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. Their offerings include AI solutions for predictive maintenance, quality control, and operational efficiency. JPMorgan analyst Stephen Tusa recently raised the price target on the stock to $251 from $227 and kept an Underweight rating on the shares. The firm updated models in the multi-industry group to reflect its preliminary 2025 outlook.
22. 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. Arm Holdings stock hits all the right notes for AI investors. It has a high historical revenue growth rate of 18% and analysts expect this growth to accelerate moving forward to 22% annually. These numbers are supported by strong license and royalty revenue, as well as increasing adoption of the chip architecture of the firm that competes on cost and energy efficiency. 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 advisory expected Arm shares to trend further upwards in the next few months.
21. Entegris, Inc. (NASDAQ:ENTG)
Number of Hedge Fund Holders: 37
Entegris, Inc. (NASDAQ:ENTG) develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions. The firm markets specially mixed liquids and gasses that are used in semiconductor manufacturing facilities. Citi analyst Atif Malik recently upgraded the stock to Buy from Neutral with a price target of $130, up from $119. The firm updated its semiconductor equipment sector view and believes the equipment group is heading into a mid-cycle correction in the first half of 2025. While server artificial intelligence demand remains strong, consumer demand across PCs, smartphones, and auto appears lackluster, the advisory told investors in a research note. However, Citi believes Entegris’ wafer starts driven business is less cyclical than the wafer fab equipment market with 75% of the revenue is unit-driven, and that the company is in a good position to benefit from the leading-edge growth in 2025.
20. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 41
Teradyne, Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products globally. In the second quarter earnings call, Greg Smith, the CEO of Teradyne, Inc. (NASDAQ:TER), explained how Cloud AI products were driving strong demand for ATEs across chip and memory markets. In the first half of 2024, the company was able to exceed the revenue it had made from chipmakers in all of 2023. Cantor Fitzgerald recently upgraded the stock to Overweight from Neutral with an unchanged price target of $16 and added the shares to the investment firm’s Top Picks list.
19. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 46
Microchip Technology Incorporated (NASDAQ:MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The firm recently launched its new LAN969x Multi-Gigabit Ethernet Switches alongside the VelocityDRIVE Software Platform, offering OEMs comprehensive Ethernet solutions. The platform, a turnkey software solution with a configuration tool based on standardized YANG models, marks the industry’s first integration of CORECONF YANG. This standard allows designers to separate software development from the hardware network layer, reducing both complexity and cost, and speeding up time to market.
18. 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. Barclays recently maintained an Equal Weight rating and $42 price target on the stock while also reducing the investment firm’s FY25 EPS view to $3.09 from $3.50. The company is tracking towards the midpoint of guidance with softer gross margins due to adverse mix shift, the advisory told investors in a research note. Uncertainty around internal controls and continued 10K filing delay also keeps the investment firm on the sidelines, with a final resolution that is tough to handicap, the advisory added.
17. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 50
Honeywell International Inc. (NASDAQ:HON) operates as a diversified technology and manufacturing company worldwide. The firm recently announced that it would be partnering with energy firm Chevron to enhance oil refining operations with advanced artificial intelligence assisted technologies, including a new generation of alarm management solutions. The companies said their partnership will seek to help operators make decisions that will improve efficiency in refining processes and boost safety within the industrial automation sector. Per the deal, the operators of the latter will be able to infuse AI into the Experion distributed control system, making them future ready and more informed in the control room. Lucian Boldea, a senior executive at Honeywell, claims that advancements in AI will change the way companies like Chevron innovate, learn and solve problems at the plant level.
16. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 56
Equinix, Inc. (NASDAQ:EQIX) is a California-based real estate trust that operates data centers and other technology assets. Mizuho recently raised the price target on the stock to $971 from $873 and kept an Outperform rating on the shares after speaking with management. The company’s cab’s billing growth will improve in the second half of 2024 and when combined with strong pricing power, there is upside to monthly recurring revenue, the advisory told investors in a research note. The investment firm sees multiple levers of earnings and sales growth for Equinix. While still a small part of the business, the company suggested a very robust demand pipeline for its xScale portfolio, added Mizuho.
15. Cadence Design Systems, Inc. (NASDAQ:CDNS)
Number of Hedge Fund Holders: 64
Cadence Design Systems, Inc. (NASDAQ:CDNS) provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. It uses AI to develop simulations for physical phenomena, like air flows around jet aircrafts. Oppenheimer recently initiated coverage of the stock with an Underperform rating and $225 price target. The investment firm sees too many long-term uncertainties around the company’s core technology transitions. These have yet to be reflected in Cadence’s premium valuation, the advisory told investors in a research note. In addition, Oppenheimer does not see Cadence outpacing wafer fab equipment over the next three years with low double-digit revenue growth. As such, the stock looks rich at current levels, the investment firm said.
14. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 67
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care. The firm uses AI in robotics and tools that predict risks in surgeries. RBC Capital analyst Shagun Singh recently raised the price target on the stock to $525 from $515 and kept an Outperform rating on the shares as part of a broader research note previewing Q3 results. The advisory’s industry checks suggested that Q3 underlying utilization trends were positive despite typical summer seasonality driving a sequential step-down in elective procedures. Investor sentiment was also positive for MedTech stocks going into the earnings season, and investors were likely to continue to chase winners and catalyst-driven names into the year-end, RBC added.
13. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) will post third quarter earnings later this month. In the second quarter, the firm delivered disappointing earnings results, falling short of market estimates on nearly all financial metrics. It also initiated a 15% reduction of the workforce and plans to suspend dividends. Since then, reports have emerged that the company is planning to split the foundry business and entertaining bids from several competitors in this regard, with regulatory hurdles the main roadblock in completing the transactions. Investment firm Bank of America has an Underperform rating on the chipmaker stock.
12. 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 will release third quarter earnings results next month and investors are eagerly waiting for another beat and raise quarter. In the second quarter, the firm beat market expectations on earnings per share and revenue by $0.18 and $910 million respectively. The standout performer was the infrastructure solutions division of the firm, which supplies products to AI data center customers. The infra solutions group delivered $11.6 billion in revenue for the quarter, up 38% year-over-year. This included an 80% rise in servers and networking revenue at $7.6 billion, well above the $5.9 billion estimate.
11. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 100
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The stock has been trending since IoT firm Lantronix introduced new System-in-Package (SiP) solutions powered by QUALCOMM chipsets, enhancing the position of the former in industrial and enterprise IoT. These solutions bring advanced AI and machine learning capabilities to the edge, leveraging QUALCOMM processors to deliver reliable, industrial-grade systems. According to Dev Singh, the VP of Business Development at the chipmaker, the product showcases the strong relationship of the two firms that stretches back over 15 years, and highlights Lantronix’s expertise in embedded computing and IoT to enable seamless deployment of AI solutions at the edge for industrial applications.
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. Investment advisory Oppenheimer recently penned an investor note on the firm after attending the AMD AI Day. In the note, the advisory underlined that the artificial intelligence day was largely uneventful, noting that management recapped already well understood product roadmaps. Discussions with investors revealed MI3XX family revenue expectations in 2025 were around $10 billion, but actual sales could come closer to $8 billion, the advisory told investors in a research note.
9. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. Sanjay Mehrotra, the CEO of the firm, said during the fourth quarter earnings call that the firm was focused on translating the opportunities from AI demand into value capture for all stakeholders. Per the executive, demand from data center customers continued to be strong and customer inventory levels were healthy. Industry server unit shipments were expected to grow in the mid- to high single-digit percentage range in calendar 2024, driven by strong growth for AI servers as well as low single-digit percentage range growth for traditional servers. The CEO also saw increasing DRAM and NAND content both in traditional as well as AI servers. He highlighted that the mix of data center revenue for the firm reached a record level in fiscal 2024 and would grow significantly in fiscal 2025.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor and infrastructure software solutions. The firm is advancing its AI infrastructure vision through open standards, scalability, and power-efficient solutions. At the 2024 Open Compute Project Global Summit, Broadcom will showcase innovations like the Tomahawk 5 and Jericho3-AI Ethernet switches for AI/ML workloads, and the Trident4-X11 switch to connect AI fabrics. Other highlights include the world’s first 51.2 Tbps CPO Ethernet switch, 400G PCIe Gen 5.0 Ethernet adapters, PCIe Gen 5.0 switches, and PCI Express Gen5/Gen6 retimers, all designed for enhanced AI cluster connectivity and efficiency.
7. 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. The firm recently announced that it had partnered with software firm Ansys and tech giant Microsoft to significantly accelerate the simulation of silicon photonic components, achieving over a 10x speed improvement. This was accomplished by using Ansys’ Lumerical FDTD 3D software on Microsoft Azure’s AI infrastructure, powered by NVIDIA’s accelerated computing. The collaboration aims to drive advancements in Silicon Photonic Integrated Circuit technology, crucial for data communication, biomedical tools, AI, and automotive LiDAR systems. The scalability of Azure cloud enhances Ansys’ platform, facilitating faster and more efficient photonic simulations.
6. 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. JPMorgan recently maintained an Overweight rating on the shares with a $208 price target. The investment firm detailed in a research note that the Department of Justice’s remedies framework in the Google search commercial agreements trial were mostly in-line with expectations. However, per the advisory, the DOJ’s final proposed remedies were not due until November 20, and as a result, the initial framework was somewhat broad and unspecific in terms of exact remedies. JPMorgan added that while there were not any major surprises, the preliminary framework carried headline risk and suggested structural changes or separation proposals were possible for Alphabet. However, the advisory did not believe the high-level framework changed much for the shares in the near-term.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Citi analyst Atif Malik recently maintained a Buy rating and $150 price target on the stock, stating that while the investment firm is bullish on the company registering another strong 40% cloud data center capex growth next year, it also sees the stock remaining range-bound through Consumer Electronics Show in January. Longer term, the advisory sees AI adoption remaining in 3rd/4th innings while noting that Blackwell driven sales and gross margin inflection will be coming in the April 2025 quarter.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Latest reports, first published by news platform Bloomberg, suggest that the company plans to launch iOS 18.1 and Apple Intelligence later this month at an event that will also debut new Macs and an iPad mini, with shipments starting in early November. Per the news publication, this represents a moving away from the annual product upgrade cycle. Apple stock has been impacted by concerns around slowing demand for new iPhones as well as delays in the release of Apple Intelligence on new devices. Apple Intelligence is a suite of AI features that the company is marketing for the new devices that run on AI-optimized chipsets.
3. 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. Raymond James analyst Josh Beck recently raised the price target on the stock to $650 from $600 and kept a Strong Buy rating on the shares. Heading into digital advertising earnings season, the advisory retained its constructive stance on Meta Platforms and Reddit. Raymond James’s ad agency checks suggested 1%-1.5% Q3 growth upside on total ad spend with outperformance skewed towards Meta and Google. The tech titan recently announced new ways for advertisers to improve their campaign performance with updates to the video ecosystem, creator content, and a suite of generative AI creative tools.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The tech giant recently introduced new AI and health-care data tools to streamline administrative processes and support medical staff. These include a medical imaging model suite, a health-care agent service, and an automated documentation solution, aiming to help clinicians save time, especially on tasks like documentation, which can take up to 41% of a nurse’s time. The tools reflect Microsoft’s ongoing focus on AI for health care, following its Azure health platform solutions and the acquisition of Nuance Communications, a leader in speech-to-text AI for health care, for $16 billion in 2021.
1. 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. Scotiabank analyst Nat Schindler recently initiated coverage of the stock with an Outperform rating and $245 price target. The advisory has a high level of confidence that consumers will use Amazon’s services more in the future. It is also positive on the company’s ability to monetize its artificial intelligence investments. The investment firm expects corporate uses, streamlining customer interactions, speeding code development, storing and contextualizing unstructured data, and other business efficiencies to be the most substantial near- to medium-term opportunities.
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: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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.
