AI continues to advance at an unprecedented rate and can now even determine how a person is feeling. A Spanish startup, Neurologyca, claimed that its Kopernica AI system can now supposedly read human emotions. It can detect a range of neurological conditions and discern how a person feels, even for a crowd of people.
Meanwhile, the Chinese Institute for Brain Research (CIBR) and NeuCyber NeuroTech said on March 31st that it plans to implant its brain chip into 13 people by year-end, which could mean they would surpass Elon Musk’s neuralink in terms of patient data collection.
As security concerns over the misuse of AI continue to loom, companies are increasingly focusing on the responsible use of the technology by implementing stricter guardrails amid rapid technology development. On March 31st, Anthropic announced implementing updates to its “responsible scaling” policy for AI, defining model safety levels to determine the need for additional security.
For instance, if the company is stress-testing an AI model and believes it could help a “moderately-resourced state program” develop chemical and biological weapons, it will enforce new security protections before launching that technology.
Elsewhere, Anthropic closed a funding round in March, which valued the company at $61.5 billion. However, it is a fraction of the $300 billion valuation OpenAI secured in a recently closed $40 billion round led by SoftBank.
SoftBank is reportedly seeking loans of up to $16.5 billion to fund AI investments in the US, which would mark the biggest borrowing denominated in dollars. Sources told Bloomberg that the bridge loan would have a 12-month tenor and that talks with banks are in early stages. People familiar with the matter added that the terms could change as the negotiations evolve over time.
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of the number of hedge funds that hold stakes in them, as of Q4 2024.
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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9. Knightscope Inc. (NASDAQ:KSCP)
Number of Hedge Fund Holders: N/A
Knightscope Inc. (NASDAQ:KSCP) innovates AI technologies for advanced detection systems and develops autonomous security robots that use laser systems and sensors to enhance public safety by patrolling areas like corporate campuses and shopping malls. These robots can identify suspicious activities and alert authorities to report security incidents in real time.
On March 31st, Knightscope Inc. (NASDAQ:KSCP) announced a year-over-year drop in 2024 revenue to $10.8 million from $12.8 million due to product line restructuring and facility consolidation for its emergency communication devices segment. The company narrowed its 2024 losses to $10.97 per share from $16.77 a year earlier and strengthened its cash balance to $11.1 million.
“2024 was a pivotal year. We made dozens of transformative changes across the business—technologically, operationally, and financially. These foundational moves, combined with our entry into the federal market, set the stage for strong growth in 2025 and beyond. The era of Physical AI and Robotics is accelerating, and Knightscope is positioned to lead.”
-said William Santana Li, CEO of Knightscope Inc.
8. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 5
Rezolve AI Limited (NASDAQ:RZLV) is known for offering AI-driven solutions that focus on improving the digital shopping experience. The company’s products help customers with search and discovery as well as personalized experiences.
On April 1st, H.C. Wainwright analyst Scott Buck initiated coverage of Rezolve AI Limited (NASDAQ:RZLV) with a “Buy” rating and 12-month stock price target of $4 apiece. The analyst noted that the company builds and distributes GenAI-powered sales products for e-commerce, which drives better conversion rates through enhancements in product search, product recommendations, and customer support. The brokerage said Rezolve AI Limited (NASDAQ:RZLV) is offering a “disruptive e-commerce technology,” which could deliver meaningful revenue in the first year of deployment. The analyst signaled that investors could accumulate company shares ahead of more positive news flow.
7. Brand Engagement Network Inc. (NASDAQ:BNAI)
Number of Hedge Fund Holders: 11
Brand Engagement Network Inc. (NASDAQ:BNAI) is an AI firm that designs and supplies conversational AI assistants to improve customer engagement and experiences for diverse industries, including the healthcare and automotive sectors.
On April 1st, Brand Engagement Network Inc. (NASDAQ:BNAI) said it had forged a strategic partnership with Swiss Life Global Solutions, enabling its clients and network partners to leverage GenAI-powered solutions to improve customer value through digital health, mental health, and financial well-being services.
6. Infosys Ltd. (NYSE:INFY)
Number of Hedge Fund Holders: 27
Infosys Ltd. (NYSE:INFY) is a multi-national company that offers diverse business services, including consulting, IT, outsourcing solutions, infrastructure management, application testing, and AI-powered offerings.
On March 31st, Infosys Ltd. (NYSE:INFY) announced a partnership with Linux Foundation Networking to offer its Responsible AI toolkit and AI application development framework to two networking projects, Salum and Essedum. Salum is designed to mitigate AI risks, while Essedum accelerates the integration of AI models and applications within the networking industry.
5. Wingstop Inc. (NASDAQ:WING)
Number of Hedge Fund Holders: 36
Wingstop Inc. (NASDAQ:WING) is a fast-casual restaurant chain specialising in cooked-to-order and tossed chicken wings. The company leverages a global franchise model and has been testing a new AI-based kitchen operating platform to improve and accelerate services while simplifying tasks for staff.
On March 31st, Jefferies analyst Andy Barish upgraded Wingstop Inc. (NASDAQ:WING) stock to a “Buy” rating from “Hold” and retained its 12-month stock price target of $270. The analyst noted that Wingstop shares are oversold with a valuation “now overly discounting” the company’s higher unit and EBITDA growth compared to peers. The brokerage believes the restaurant chain’s same-store-sales moderation is well understood and overlooks its underlying traffic and low-teens unit growth. Jefferies said that visibility into same-store sales is improving, and additional drivers in kitchen AI positions the company for potential surprises beyond 2025.
4. Duolingo Inc. (NASDAQ:DUOL)
Number of Hedge Fund Holders: 52
Duolingo Inc. (NASDAQ:DUOL) is an educational technology company that focuses on learning applications and language certification. The intuitive platform offers courses in 43 languages and has recently expanded to include math and music courses.
On April 1st, JPMorgan analyst Bryan Smilek maintained an “Overweight” rating on the stock with a $410 stock price target after conducting field checks to understand trends across acquisition, engagement, teaching efficacy, and the company’s GenAI features. The brokerage is “incrementally positive” on Duolingo Inc.’s (NASDAQ:DUOL) positioning and market share, demand for the AI-powered Max subscription, engagement teaching efficacy, and Family Plan adoption. Smilek concluded that the company’s use cases for language learning are expansive.
3. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders: 55
Jabi Inc.(NYSE:JBL) is a leading manufacturing services provider prioritizing engineering and supply chain solutions for OEMs across diverse industries.
On April 1st, Jabil Inc. (NYSE:JBL) launched the 1.6T transceivers, capable of transmitting data at rates up to 1.6 Terabits per second (Tbps). The new transceivers expand its portfolio of photonics products to match the growing demand for AI/ML workloads, high-performance computing, cloud computing, and high-speed data center interconnects. The company claims these new transceivers can double the bandwidth capacity of data center racks without modifying existing infrastructure.
“Today’s AI and data center technologies need powerful photonics capabilities that can keep up with the pace of innovation. We’re proud to have a product based on a proven silicon photonics solution that can make a real impact for businesses pushing the boundaries of what’s possible.”
-said Matt Crowley, executive vice president of Global Business Units at Jabil Inc.
2. Semtech Corp. (NASDAQ:SMTC)
Number of Hedge Fund Holders: 57
Semtech Corp. (NASDAQ:SMTC) offers high-performance semiconductor solutions, IoT systems, and cloud connectivity services designed to deliver top-quality technology to help organizations create smarter and more connected products sustainably.
On April 1, Semtech Corp. (NASDAQ:SMTC) announced it expanded its optical communications portfolio with DirectEdge 100G per channel single- and multi-mode linear pluggable optics solutions to address power efficiency challenges that emerge in AI infrastructure scaling.
“For hyperscalers running AI workloads, power has become a critical business constraint. Our DirectEdge portfolio benefits hyperscalers by bringing our industry-leading PMDs to successfully deploy LPO while also addressing the power imperative by eliminating power-hungry DSPs. Every milliwatt saved in optical interconnects can be redirected to computational resources, and we believe our LPO solutions are over 50% more power-efficient than comparable DSP-based solutions. For a hyperscale data center with hundreds of thousands of optical modules, this translates to significant energy savings that can be applied to more GPU clusters for AI training and inference.”
-said Weiliang Deng, director of signal integrity product marketing at Semtech Corp.
1. MongoDB Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 70
MongoDB Inc. (NASDAQ:MDB) provides an open-source database within its unified, intelligent data platform to enable developers to create a range of applications. The company offers diverse database features like AI-driven retrieval, real-time analytics, and improved operational data search capabilities for organizations to simplify complex architectures and innovate applications more efficiently.
On April 1st, Citi reduced its stock price target on MongoDB Inc. (NASDAQ:MDB) to $330 from $430 but maintained a “Buy” rating on the shares. The brokerage also removed the company from its Focus List to reflect MongoDB Inc.’s (NASDAQ:MDB) “more conservative” FY 2026 guidance on softer non-Atlas revenue and the collective impacts of slower-to-ramp workloads in FY 2025. However, Citi remains “a believer” in the company’s growth story as customers speed up their database modernization and GenAI use cases move into production. The brokerage said it still sees upside potential for the company over the next 12 months but highlighted a weaker investment sentiment.
While we acknowledge the potential of MongoDB Inc. (NASDAQ:MDB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MDB but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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