The prospect of artificial intelligence dominating every aspect of human life is no longer a farfetched dream but a harsh reality. Advances around the revolutionary technology already provide clear insights into what to expect, even as Bill Gates insists humans will no longer be needed “for most things” in the future.
The remarks come as the artificial intelligence market is projected to hit the $3.6 trillion mark by 2034, up from $638.23 billion in 2024. According to Precedence Research, the market is growing at a 19.1% compound annual growth rate driven by rapid advancements in technology, increasing data availability, and a burgeoning demand for automation across various industries.
While human expertise dominates various industries, from healthcare to education and industries, things will change significantly with the development and deployment of advanced AI solutions. In a world of free intelligence, Gates forecasts that people will get great medical advice and tutoring, among others, through AI-powered solutions.
“With AI, over the next decade, that will become free, commonplace — great medical advice, great tutoring,” Gates said.
According to Gates, the outcome will be swift advancements in AI-powered technology that are available and affect almost every part of our lives, from readily accessible AI tutors and virtual assistants to better medications and diagnoses.
The question of how exactly the majority of people will fit into an AI-powered future is still up for dispute. According to some analysts, artificial intelligence (AI) will boost economic growth and create more jobs by making human labor more efficient rather than completely replacing it.
Others, such as Mustafa Suleyman, CEO of Microsoft AI, argue that further technology developments over the coming years would alter the nature of most occupations in almost every field and have a “hugely disruptive” effect on the labor force.
“These tools will only temporarily augment human intelligence,” Suleyman wrote in his book “The Coming Wave,” which was published in 2023. “They will make us smarter and more efficient for a time, and will unlock enormous amounts of economic growth, but they are fundamentally labor replacing.”
Nevertheless, Gates insists there are certain jobs that artificial intelligence will never replace. Additionally, the billionaire investor is overly optimistic that artificial intelligence will give rise to breakthrough innovations such as game-changing treatments for deadly diseases and solutions that address long-running challenges such as climate change.
To create this list, we reviewed the latest AI-focused news reports, press releases, and stock analysis. We have also mentioned the hedge fund sentiment around each stock, 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. Grid Dynamics Holdings Inc. (NASDAQ:GDYN)
Number of Hedge Fund Holders: 15
Grid Dynamics Holdings Inc. (NASDAQ:GDYN) is a global digital engineering company that provides technology consulting, platform and product engineering, AI, and advanced analytics services. It also integrates AI into its solution to help businesses innovate and improve efficiency. On March 27, the company launched the IoT Control Tower, an advanced analytics solution.
IoT Control Tower is designed to enhance the analysis of IoT data streams for production facilities and field deployments. The solution is tailored to reduce labor costs in manufacturing analytics while improving efficiency using the latest artificial intelligence and machine learning technologies. It is expected to bridge the gap between data collection and actionable insights in manufacturing sectors. The platform’s combination of more recent generative/agentic AI and more conventional machine learning results in a complete solution that can be tailored to different industrial settings and use cases.
“Furthermore, we have integrated this platform with a range of specialized smart manufacturing components we developed, including visual process monitoring, visual quality control, anomaly detection, and root cause analysis, to deliver a comprehensive solution,” said Ilya Katsov, CTO, Americas at Grid Dynamics.
8. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 17
XPeng Inc. (NYSE:XPEV) is an AI-driven mobility company that designs, manufactures, and markets smart electric vehicles (EVs) targeting technology-savvy consumers. On March 25, the high-tech automotive company opened its first “XPENG Tech Center” in Hong Kong SAR China. It marks an important milestone in the company’s global expansion plan as it seeks to unlock new growth opportunities.
The new center paves the way for the Chinese auto giant to showcase its latest advancement in the future of AI-defined mobility. On display will be robots powered by AI, self-developed chips and other cutting-edge technologies. XPENG is committed to growing its market share in Hong Kong and other international markets by promoting intelligent mobility while accelerating the development of smart electric vehicles.
“Through this new space, we hope to bring them closer to XPENG’s innovations, from autonomous driving to intelligent cockpit technology and our future mobility solutions such as AI chips and humanoid robots. With the launch of the X9 in Hong Kong, we look forward to providing a more intelligent and seamless driving experience while leveraging the city’s global connectivity to support XPENG’s broader international development,” said Brian Gu, Vice Chairman and President of XPeng Inc. (NYSE:XPEV).
7. Viavi Solutions Inc. (NASDAQ:VIAV)
Number of Hedge Fund Holders: 28
Viavi Solutions Inc. (NASDAQ:VIAV) is a global network test, monitoring, and assurance solution provider that serves communication service providers, AI hyperscalers, and network equipment manufacturers. On March 27, the company unveiled M-AJ-QUATRO, an anti-jamming antenna system. With the new system, Viavi Solutions targets opportunities from a wide range of sectors, including transportation, artificial intelligence, hyperscale data centers, and telecommunications.
M-AJ-QUATRO’s adaptive digital nulling ensures dependable performance in contested conditions by automatically suppressing jamming signals with over 34dB+ and over 45dB+ interference suppression. The new anti-jamming system comes when industry leaders and government agencies are increasingly looking for ways to combat jamming and spoofing threats.
“As the FAA and NAWCAD push for CRPA integration into commercial aircraft, M-AJ-QUATRO is positioned as a market-ready solution for both military and civilian applications,” said Jamie Marraccini, Vice President of Inertial Labs Products, and VIAVI. “With regulatory shifts streamlining CRPA adoption, this launch marks a significant step in ensuring secure, interference-free navigation for mission-critical operations.”
6. Concentrix Corp. (NASDAQ:CNXC)
Number of Hedge Fund Holders: 29
Concentrix Corp. (NASDAQ:CNXC) is an information technology services company that designs, builds, and runs integrated customer experience (CX) solutions. It provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services. The company delivered better-than-expected first-quarter fiscal 2025 results on March 25, which affirmed revenue growth and artificial intelligence leadership.
Revenue in the quarter was up 1.3% year-over-year to $2.37 billion as diluted earnings per share increased by about 9% to $2.79. The solid financial results came as Concentrix Corp. (NASDAQ:CNXC) successfully deployed GenAI solutions at scale, positioning itself as a leader in the burgeoning landscape. Concentrix remains on track to deliver revenue growth while expanding margins and growing free cash flow.
“Our first quarter results demonstrate our progress as we win quality business and take advantage of GenAI opportunities, leveraging our unique technology and service capabilities to drive our clients’ success,” said Chris Caldwell, President and CEO of Concentrix.“
5. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Number of Hedge Fund Holders: 31
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a professional services company that offers consulting, technology, and outsourcing services. On March 27, 2025, Cognizant and ServiceNow (NYSE:NOW) launched an AI-powered dispute management solution for North American mid-market banks.
This BPaaS offering addresses fragmented systems, inefficiencies, and customer dissatisfaction by leveraging generative AI, automated workflows, and multi-channel dispute intake. Key features include sentiment analysis, automation, BI reporting, and predictive analytics, enhancing dispute resolution and customer trust while reducing chargeback losses.
Nageswar Cherukupalli, Senior Vice President and Business Unit Head of Banking, Capital Markets, Insurance, and Strategic Initiatives at Cognizant, stated, “We are pleased to strengthen our partnership with ServiceNow and empower mid-market banks with AI-powered technology and operations. With our expertise in end-to-end dispute management, we look forward to helping banks operate more efficiently and increase customer satisfaction. We are proud to be at the forefront of innovative, technology-driven solutions that have the potential to transform dispute management in the banking industry.”
4. Akamai Technologies Inc. (NASDAQ:AKAM)
Number of Hedge Fund Holders: 37
Akamai Technologies Inc. (NASDAQ:AKAM) is a technology company providing cloud computing, security, and content delivery services, helping businesses build, deliver, and secure digital experiences. On March 27, the company unveiled Akamai Cloud Inference, affirming a push for opportunities in the artificial intelligence deployment landscape.
The new cloud offering is designed to make it easier for organizations to turn predictive and large language models into real-world actions. Akamai Cloud Inference offers 3X better throughput, 60% less latency and 86% cost savings, therefore delivering improvements in AI inference performance. The solution leverages 4,200 points of presence across 1200 networks to present AI inference closer to end users and data sources. Akamai Technologies Inc. (NASDAQ:AKAM) is aiming for the bigger, more sustainable part of the AI value chain, where ongoing use creates steady revenue streams, by concentrating on the operational phase of AI rather than training.
3. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 44
Dover Corporation (NYSE:DOV) is a diversified manufacturer and solutions provider across various industries, including engineered products, clean energy, and imaging and climate technologies. The company’s portfolio of products received a significant boost on March 26 after its unit Innovative Control Systems unveiled an AI-powered license plate recognition solution.
The new AI-LPR is an improvement on the current ICS Auto Passport LPR product, which streamlines license plate identification through a smooth, contactless enrollment procedure. The improved AI-LPR technology provides up to 99.9% accurate license plate identification with machine-learning capabilities without requiring expensive camera gear or system modifications.
“The built-in capabilities of the new AI-LPR technology are truly milestones in the industry, and we are confident that customers using this next generation technology will be able to quickly, easily and safely optimize the overall wash experience for wash-club members,” said Kevin Ahnert, General Manager at ICS.
2. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 52
Ciena Corporation (NYSE:CIEN) is a networking systems, services, and software company that helps communications companies build and manage advanced and agile networks. It offers solutions for network transformation, managed services, and flawless networks.
On March 27, Lumen Technologies (NYSE:LUMN) and Ciena Corporation (NYSE:CIEN) conducted a 1.2 terabit wavelength service trial across 3,050 km on Lumen’s Ultra-Low-Loss fiber network, the world’s longest non-regenerated signal. The trial, using Ciena’s WaveLogic 6 Extreme technology, supported wavelength, Ethernet, and IP services between Denver and Dallas.
Brodie Gage, Ciena’s senior vice president of global products and supply chain, said, “As the pioneer in high-speed optical innovation, we are dedicated to helping our customers set new benchmarks in network performance and efficiency. This industry-first trial with Lumen marks a pivotal step in our efforts to prepare networks for the AI era. Lumen’s network does not stand still. Continuous investment in the latest network technology is essential for keeping up with bandwidth demands today and into the future.”
1. Lumentum Holdings Inc. (NASDAQ:LITE)
Number of Hedge Fund Holders: 57
Lumentum Holdings Inc. (NASDAQ:LITE) is a communications equipment company that designs and manufactures optical and photonic products. It focuses on optical networking and commercial laser applications, with segments including Cloud & Networking and Industrial Tech. On March 26, the company affirmed its push for opportunities amid the artificial data center scalability.
Lumentum Holdings Inc. (NASDAQ:LITE) announced that its R300 optical circuit switch (OCS) 300×300 port product will be available in the second half of the year. Additionally, it confirmed that multiple hyper-scale customers are sampling the optical circuit switch due to its ability to enhance the performance and efficiency of artificial intelligence clusters and intra-data center networks.
“Lumentum has a long-standing track record of optical innovation and deep expertise in MEMS optical switching technology that provides a distinct advantage in delivering a high-quality OCS product for AI infrastructure,” said Wupen Yuen, Lumentum president of Cloud and Networking. “Feedback from customers has been very positive due to its ability to improve network reliability and performance, including substantial reductions in data center network power consumption.
While we acknowledge the potential of Lumentum Holdings Inc. (NASDAQ:LITE) 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. If you are looking for an AI stock that is more promising than LITE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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