In this article, we will take a detailed look at the Top 10 Stocks Everyone Is Talking About These Days.
Major AI stocks are wavering as investors assess the impact of decreasing hardware costs and their effects on technology spending. T. Rowe Price’s Tony Wang said in a latest program on CNBC that while Mag. 7 companies are still strong, there are opportunities to look elsewhere as the technology-related gains broaden out.
“You saw the Mag. 7 really dominate the last two years, and I think going into this year, I think that there’s a lot of concern over the capex that’s being spent. I mean, they’re kind of becoming fundamentally different businesses in some respect in terms of the capital intensity. And then on top of that, you had kind of more inline reports, and so when you’re spending a lot of capex and you’re coming in line, I think that tends to set up for a tougher stock reaction. And so, you know, I think there’s other areas in tech that naturally things will broaden out to, like things that have more bottoming fundamentals and can have a little bit easier setup. So I think that, you know, we’re looking for more broadening, and I think that these are still very good companies and still like a core part of tech portfolios, but I think there’s opportunity elsewhere as well.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks currently trending on latest news and analyst ratings. With each stock we have mentioned the number of hedge fund investors. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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10. Tempus AI, Inc (NASDAQ:TEM)
Number of Hedge Funds Investors: 7
Cathie Wood and Ark Invest recently bought 400,000 shares of Tempus AI Inc (NASDAQ:TEM). The stock is up 80% so far this year. The Ark Innovation ETF (NYSEARCA:ARKK) bought 367,388 shares, while the ARK Genomic Revolution ETF (BATS:ARKG) added 78,570 shares.
Baron Discovery Fund stated the following regarding Tempus AI, Inc (NASDAQ:TEM) in its Q3 2024 investor letter:
“Shares of Tempus AI, Inc (NASDAQ:TEM) contributed to performance. Tempus is a cancer diagnostics company that provides genomic testing results. Tempus has also amassed an over 200 petabyte proprietary multimodal dataset that combines clinical patient data with genomic testing data. In addition to using this data to empower more intelligent diagnostics for its own tests, Tempus also licenses this data to biopharmaceutical companies which use it to design smarter clinical trials and identify potential new drug targets. We think this proprietary dataset is unique with meaningful barriers to entry, and brings meaningful value to biopharmaceutical R&D. As we mentioned in the letter from last quarter, shares have been incredibly volatile. We took advantage of this volatility to buy a meaningful position when shares sold off into the low $20’s per share from an IPO price of $37. When shares spiked into the mid-$70’s (likely due to short sellers covering losses as shares rose), we took profits on a meaningful portion of the investment as we believed valuation had become stretched (shares now trade in the high $40’s to low $50’s level). We like our position sizing now, and would add to the position at lower valuations. We believe that Tempus has significant growth ahead of it and we are excited about its unique business model.”
9. Ford Motor Company (NYSE:F)
Number of Hedge Funds Investors: 36
A caller recently asked Jim Cramer about Ford Motor Company (NYSE:F). Cramer advised the investor to stay away from the stock.
“Ford, no, you don’t want to own. I feel terrible about saying that. I have a Ford, but it’s not where you want to be. You got to be in a place where you feel confident that the earnings are going to go up or the sales are going up, and I don’t feel that way with Ford. I’m sorry.”
8. Oracle Corporation (NYSE:ORCL)
Number of Hedge Funds Investors: 91
Dan Niles from Niles Investment Management analyzed Oracle Corp’s (NYSE:ORCL) capEx outlook in a latest program on CNBC to prove his thesis that AI spending is expected to slow down, impacting chipmakers like Nvidia.
“I’ve written about this multiple times. Look at Oracle. If you look at Oracle, Oracle came out and said for their next fiscal year they’re going to go ahead and double capex. So you look at that, you get incredibly excited when you don’t do any of the math. When you do the math, you go, “Okay, well, their fiscal year ends in May. This implies 13.7 billion in capex. You already had six months go by, so that leaves 7.5 billion left to spend.” In the most recent quarter, they spent 4 billion, so 4 billion doubled is 8 billion. That’s not seven and a half, right? So their sequential growth is actually going to go down in AI capex. But you look at the headlines and you go, “Oh, capex is doubling. That’s fantastic.” That’s the problem with a lot of the analysis you’re seeing. People aren’t actually going through and doing the math, what it means sequentially much.”
Parnassus Value Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q3 2024 investor letter:
“Oracle Corporation (NYSE:ORCL) announced second-quarter results that exceeded consensus expectations, driven by growth in its cloud infrastructure business, which is benefiting from demand for AI applications. Investor sentiment was further bolstered by the company’s announcement of a new partnership with Amazon.”
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Funds Investors: 99
Ross Gerber, Co-Founder, President and CEO of Gerber Kawasaki Wealth and Investment Management, said the following about Tesla in a latest media appearance:
We still have a ton of Tesla Inc (NASDAQ:TSLA), so I don’t wish anything negative on the company. In fact, I’d argue the “opposite—I love Tesla. The problem is Elon Musk. We all know what the issue is. People can debate other factors, but on the surface, you’d think Tesla would be doing well. However, nobody wants to buy their cars, people are protesting, and Elon has become one of the most hated people in the world. That’s not good for selling vehicles.”
Analysts are still trying to look beyond Elon Musk’s claims and find out the specifics on the company’s EV and robo-taxi plans.
Tesla Inc’s (NASDAQ:TSLA) product lineup is showing signs of stagnation, with over 95% of sales still coming from the Model 3 and Model Y. Meanwhile, competitors are rolling out more advanced models. According to Reuters, Tesla’s market share in Europe is slipping as legacy automakers like BMW post stronger sales. Chinese competitor BYD is also gaining ground in Europe, despite talk of tariffs.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles, related software and components, and solar and energy storage products. Shares rose on growth in the energy segment, the promise of new model launches in 2025, and increasing investor confidence in Tesla’s AI initiatives. Despite macroeconomic challenges, delivery data in major markets like China have shown considerable improvement. The energy and automotive segments demonstrated stronger-than-expected profitability. Tesla also expanded its advanced computing center in Texas, released improved version of its software-enhanced driving solution, and is set to launch new mass market vehicles years after the initial rollouts of Models 3 and Y. Expectations of deregulation under the incoming administration point to the potential acceleration of new technology rollouts, which could enhance Tesla’s leadership position in real world AI and bolster investor confidence that Tesla will benefit from these large and attractive growth opportunities.”
6. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Funds Investors: 115
Benchmark recently added Alibaba to its Best Ideas list. The firm expects Alibaba Group Holding Limited (NYSE:BABA) shares to see a structural rerating in 2025 as its core businesses strengthen. They see e-commerce growth picking up, helped by better take rates, and anticipate AIDC reaching profitability in FY26.
Benchmark believes Alibaba Group Holding (NYSE:BABA) will benefit from the broader AI adoption in China, driven by DeepSeek’s rise.
“We see BABA as a leading China AI play and recommend it as a top pick for 2025,” Benchmark said. “We firmly believe that full-stack service providers with robust infrastructure capabilities will be the primary beneficiaries of China’s growing AI adoption. BABA stands out due to its competitive advantages in cloud infrastructure, proprietary models, application versatility across various use cases, and flexible edge device capabilities.”
“As China’s largest cloud service provider, AliCloud offers extensive support in computing resources and technical collaboration, along with its unmatched consumer behavior data (such as transaction and payment information), making it highly attractive to large-scale edge device OEMs. Apple’s partnership with BABA could provide a significant boost, enabling BABA to leap ahead in the AI cloud competition,” they added.
The firm set a $160 price target on Alibaba Group Holding (NYSE:BABA).
Baron Emerging Markets Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall as well as businesses in logistics, local services, digital media, and cloud. Shares fell on continued weakness in core domestic commerce growth. Quarterly results were roughly in line with expectations, with relative strength in profitability, but the timing for acceleration in core gross merchandise value is still unclear. We retain conviction that Alibaba is well positioned to benefit from China’s ongoing growth in online commerce and cloud in China, though competitive market concerns remain.”
5. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Funds Investors: 136
Jim Cramer in a latest program on CNBC recommended investors to gradually buy Uber Technologies Inc (NYSE:UBER) and called those selling the stock after the company’s latest earnings as “morons.”
“I like Uber very much now. I was there when they reported, and it was incredible. The stock went down, and I called out the people who were selling it as morons. Now, like, I think it can look— I mean, it’s a 74, could go back to 68, absolutely. So, Bill, here’s what we’re going to do: we’re going to buy a little bit tomorrow, and then if it goes to 68, we’ll buy a little bit more. Okay, that’s the game plan.”
Ariel Appreciation Fund stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon (NASDAQ: AMZN), Diageo (NYSE:DEO), and Uber Technologies, Inc. (NYSE:UBER). We will discuss each in detail below
At the halfway point of the year, Uber was one of the top-performing stocks in the S&P, and we couldn’t help but kick ourselves for having spent considerable time researching the company—demonstrating gen[1]uine interest—only to never invest a dime. By year-end, however, Uber’s stock had not only surrendered all its gains but had fallen even further. So, what changed? Hype, plain and simple. Specifically, hype surrounding fully autonomous vehicles (AVs).
While we are excited by the advancements toward full autonomy and have friends who rave about their experiences with Waymo, the narrative (there’s that word again!) surrounding the inevitability of AVs has become so pervasive that it’s taken on a life of its own in markets…” (Click here to read the full text)