In this article, we discuss the 5 stocks that will profit from AI evolution. If you want to read our detailed analysis of these stocks, go directly to 11 Stocks That Will Profit From AI Evolution.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 78
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Chip stocks are poised to benefit from the AI boom as AI products require high-end chips that only big companies like QUALCOMM Incorporated (NASDAQ:QCOM) are capable of manufacturing. These chips process data faster and are smaller in size. The prices of these products have increased considerably since the pandemic.
On March 4, investment advisory Cantor Fitzgerald maintained a Neutral rating on QUALCOMM Incorporated (NASDAQ:QCOM) stock with a price target of $150.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in QUALCOMM Incorporated (NASDAQ:QCOM) with 2.9 million shares worth more than $425 million.
4. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 82
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. On January 25, investment advisory Barclays maintained an Overweight rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) stock and raised the price target to $430 from $385.
At the end of the fourth quarter of 2023, 82 hedge funds in the database of Insider Monkey held stakes worth $6 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG), compared to 78 in the preceding quarter worth $5 billion.
In its Q3 2023 investor letter, ClariVest Asset Management, an asset management firm, highlighted a few stocks and Intuitive Surgical, Inc. (NASDAQ:ISRG) was one of them. Here is what the fund said:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) provides robotic-assisted surgical solutions and invasive care through a comprehensive ecosystem of products and services. Management expects the backlog of deferred surgical procedures to take several quarters to recover, with bariatric surgery growth potentially slowing down with the increasing use of weight loss drugs.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 173
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The powerful chips manufactured by the company are world leaders in terms of their computing ability. Businesses using AI products necessarily need the speed, power, and efficiency offered by NVIDIA Corporation (NASDAQ:NVDA) products. On March 7, investment advisory Mizuho maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock and raised the price target to $1,000 from $850.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA) with 15.4 million shares worth more than $7.6 billion.
In its Q4 2023 investor letter, Fred Alger Management, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. AI products on iPhones, iPads, and Mac devices are set to revolutionize the way people interact with the outside world in the coming years. As Apple Inc. (NASDAQ:AAPL) brings more AI-based software offerings to the billions of these devices already in the hands of people around the world, it will benefit from the AI boom. On March 5, investment advisory Wedbush maintained an Outperform rating on Apple Inc. (NASDAQ:AAPL) stock with a price target of $250.
At the end of the fourth quarter of 2023, 131 hedge funds in the database of Insider Monkey held stakes worth $205 billion in Apple Inc. (NASDAQ:AAPL), compared to 134 in the previous quarter worth $179 billion.
In its Q4 2023 investor letter, Horizon Kinetics LLC highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“The full point is that if BYD has turned its attention from its domestic market to direct global competition, then other Chinese companies can do the same. The next most visible example of Chinese commercially applied technological prowess relates to the 2nd highest-weight company in the S&P 500, Apple Inc. (NASDAQ:AAPL).
In September 2023, Huawei Technologies introduced its Mate 60 Pro smartphone. It uses its own, internally developed 5G enabled chip that is apparently competitive with the Apple A17 chip. For practical purposes it has the functionality of the iPhone 15 Pro. This came as a great surprise – perhaps even shock – to the U.S. technology community, because four years ago the U.S. placed strict sanctions on China’s access to state-of-the-art semiconductor manufacturing technology…” (Click here to read the full text)
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 302
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The demand for PCs, data centers, and smart devices has increased sharply as AI products need the hardware and software offered by these devices to unleash their full potential. Microsoft Corporation (NASDAQ:MSFT) remains a leader in all these categories.
On March 6, investment advisory Jefferies maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) stock with a price target of $500.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 25 million shares worth more than $9.5 billion.
In its Q4 2023 investor letter, Fred Alger Management, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices. Gaming, and Search). During the quarter, the company reported strong fiscal first quarter results, where revenues and earnings beat analyst estimates, driven in large part to growing Al demand. Regarding Intelligent Cloud segment, management noted Azure optimizations were similar to the previous quarter, but new Al and traditional workloads are helping drive greater consumption growth, which resulted in their first reacceleration since March 2022. We believe the strong Azure performance suggests diminishing cost optimization headwinds and growing strength in Al service consumption.”
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