On Tuesday, October 28, Nvidia CEO Jensen Huang announced that the AI chip maker will build seven new supercomputers for the U.S. Department of Energy. He also revealed that the company has $500 billion in bookings for its AI chips.
Shares of the heavyweight chipmaker closed almost 5% higher on Tuesday, adding over $230 billion in market value. This brought its total value to $4.89 trillion after briefly touching the $4.94 trillion mark, placing it on the verge of becoming the first company worth $5 trillion.
Nvidia is becoming the leading force behind the global rollout of AI, striking new deals and managing escalating US-China trade tensions. Huang has recently revealed that the Chinese government has shut Nvidia out of its market. Moreover, the company had not applied for U.S. export licenses for its newest chips because of the Chinese position.
“They’ve made it very clear that they don’t want Nvidia to be there right now. I hope that will change in the future because I think China is a very important market.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q2 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 27, UBS analyst Manav Gupta reiterated a Buy rating on the stock with a $115.00 price target. The firm cited policy tailwinds expected to enable faster grid approvals and fuel data center demand.
UBS pinpointed a recent Bloomberg report about U.S. Energy Secretary Wright sending a draft proposal to the Federal Energy Regulatory Commission (FERC) that would limit the regulator’s review period for data-center connections to the power grid to 60 days. This proposal, if approved, can significantly shorten a process that can currently take years.
With American Electric Power (AEP) already partnering with Bloom Energy to supply power to data centers, BE can supply fuel cells in 6 to 9 months, which is quicker than gas turbines.
If the rule pushes through, BE is going to have a surge in demand for its fuel cells, and is already securing projects.
“Bloomberg reports US Energy Secretary Wright yesterday sent a draft proposal to the Federal Energy Regulatory Commission (FERC) that would limit the regulator’s review period for data-center connections to the power grid to 60 days, expediting a process that can currently extend for years…We have already seen American Electric Power (AEP) tie up with BE to supply power to data centers. Given the longer lead time for gas turbines, one of the faster ways for utilities to secure this the supply of electricity is using BE’s nat gas powered fuel cells. If the Trump administration succeeds in shrinking the timeline of regulatory approval, that would allow data centers to come online at a faster pace. BE has the capacity to supply fuel cells in 6-9 months to the utilities to then move ahead with the project. BE is already securing a number of behind the meter orders to power data centers. This move would result in acceleration of orders for front of the meter solution with potentially more utilities announcing deals with BE similar to the one we saw with AEP.”
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
9. Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 78
Core Scientific, Inc. (NASDAQ:CORZ) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 28, H.C. Wainwright upgraded the stock from “Neutral” to Buy and set a price target of $25.00. The rating upgrade follows recommendations from proxy advisory firms ISS and Glass Lewis, both of which have issued “against” votes for the proposed acquisition of Core Scientific by CoreWeave (CRWV) scheduled for October 30.
The firm highlighted Core Scientific’s proven competencies, including its ability to develop compute-focused infrastructure quickly and at low cost, its expertise in artificial intelligence compute builds, and its record in customer acquisition and support.
Based on this proven track record and leadership in AI compute build out, the firm’s view of Core Scientific hasn’t changed, and in turn resulted in a rating upgrade.
“Apparently, they are leaning against. Last week, both ISS and Glass Lewis, the two leading proxy advisory firms, conjointly issued “against” votes on behalf of Core Scientific voters in the upcoming Oct. 30 CoreWeave (CRWV; Buy) proposed acquisition. We are certainly not bringing anything new to the table here as a contingent of sharp sell-siders have set new, elevated expectations for Core Scientific and its shares. By way of explanation, we spent last week on the other side of the world, news-wise isolated á la Tom Hanks’ Cast Away, and unable to react quickly, as is our preference—we were the first to upgrade Core Scientific post its bankruptcy emergence Jan. 25, 2024, as detailed here we offer as evidence of understanding the company’s many competencies. Nothing has changed on that front, with the original $10.2B, 12-year HPC hosting deal struck with CoreWeave representing the foundation of the opportunity before Core Scientific’s proven speed-to-market track record. With Core Scientific’s proven proficiency in: (1) developing compute-focused, powered infrastructure at velocity and at low cost; (2) industry-leading artificial intelligence compute build technical savvy; and (3) verified customer acquisition, retention, and support, we are raising our rating to Buy from Neutral and setting a $25 price target.”
Core Scientific, Inc. (NASDAQ:CORZ) has transitioned into an AI business by leveraging advanced infrastructure and expertise in HPC (high-performance computing).
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 82
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 27, Rosenblatt reiterated a “Buy” rating on the stock with a $225.00 price target. The rating affirmation follows the company’s announcement of a 200MW deployment with HUMAIN.
According to the firm, the HUMAIN partnership offers a strong entry into AI data center inference, supporting long-term diversification.
“We view today’s announcement as positive for the Qualcomm shares for the longer-term. For years management’s strategy has been to diversify its end markets while growing its smartphone market share. Landing a 200MW deployment with HUMAIN is a very good step in a new growth vector in AI inference data centers. As a reminder, in May this year AMD and HUMAIN announced a 500MW deployment worth $10B. While revenue details have not been provided, we expect Qualcomm’s deployment with HUMAIN may generate ~$2B. Deployment is expected to start in 2026. Inference stage AI market is expected to be $250B+ by 2030 and growing ~20% annually. There is room for Qualcomm to generate significant AI inference related revenue longer-term.”
QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.
7. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 28, Citizens raised its price target on the stock to $325.00 from $283.00 while maintaining a Market Outperform rating.
The price target raise follows comments made by Snowflake’s Chief Revenue Officer Mike Gannon in a video interview. Based on the comments, the firm continues to view Snowflake as an attractive opportunity for capital appreciation.
“We maintain our Market Outperform rating and raise our price target to $325 from $283 after James (Jack) Dumoulin from the Instagram account ‘theschoolofhardknockz’ posted a video where he interviewed CRO Mike Gannon outside the New York Stock Exchange and asked, ‘What did you guys do in revenue this last year’ to which he replied, ‘So we’re gonna exit this year probably just over about $4.5B… and we’re getting to $10B in a couple years,’ which may constitute selective disclosure under Regulation FD — all of which left the stock up 3% intraday, after having increased ~73% year to date versus an increase of 15% for the S&P 500 and 16% for the Russell 3000.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 28, UBS reiterated its “Buy” rating on the stock with a $265.00 price target. The rating affirmation comes ahead of the company’s third-quarter results.
The firm is bullish on the stock, driven by sustained GPU ramp, renewed server upgrades, and strong AI spillover effects. According to UBS, AMD’s Q3 performance is likely to approach the high end of the company’s $9 billion revenue guidance, driven by strength in both server and client CPU segments.
It forecasts data center GPU revenue to reach an estimated $1.7 billion for the quarter. For the fourth quarter, it maintains its estimate of approximately $9.3 billion in revenue, noting the likelihood of potentially guiding as high as $9.5 billion. This is supported by renewed server upgrade activity and AI-related spillover into traditional compute infrastructure.
“For FQ4, we remain comfortable with our ~$9.3B estimate (+$200MM higher than Street) but could see how AMD could guide as high as $9.5B – again driven by renewed server upgrade activity and some spillover from AI into traditional compute infrastructure as the industry embarks on new strategies to prepare for more AI processing in the data processing market. AMD’s client business should also be flat to up, better than normal seasonal. We model FQ4 data center GPU revenue of ~$2.4B – a ~$700MM step up from FQ3 owing to the ramp of MI355x (META, OCI, etc.). To the extent that AMD comments on FQ1:26 (March), it is typically down slightly due to normal seasonality and the same will likely be the case this year – especially given our checks on MI355x, which generally suggest that many customers seem to be waiting for MI455 racks next year. Having said this, we do expect AMD to voice a very bullish multi-year outlook for its data center GPU business.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 28, Baird reiterated the stock as “Outperform” and raised its price target to $280 per share from $230. The firm said it’s bullish ahead of Apple earnings on Thursday.
Bernstein has updated its model, citing tailwinds from its upgrade cycle.
“Expect solid FQ4 results/guidance. It’s still early in the iPhone 17 cycle, but early indicators appear to be directionally supportive, including solid upgrade rates posted by AT & T/T-Mobile last week. However, the bigger focus is likely to be the December-quarter outlook, and we’d note that current estimates look potentially conservative based on historical sequential seasonality”
Apple is a technology company known for its consumer electronics, software, and services.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 28, Wolfe Research reiterated its “Outperform” rating on the stock with a $230 price target.
The firm cited significant growth visibility and material EPS upside potential behind the rating affirmation. In particular, it talked about how Nvidia has revealed more than $500 billion in demand for its next-generation AI chips. This demand is much higher than what the Street anticipates.
“NVDA held its semi-annual GTC conference today where the company indicated that it has visibility to more than $500bn in cumulative Blackwell and Rubin revenue through CY26 (so far). While the details of that disclosure are a bit unclear, even a conservative interpretation of those comments suggests significant upside vs. consensus expectations. Our analysis assumes NVDA means they will ship a total of $500bn of Rubin + Blackwell in CY25+CY26. Our total CY25+CY26 DC GPU revenue is for $360bn. This disclosure therefore suggests on the order of $140bn upside to datacenter GPU revenue over that period. If our interpretation is correct, this would suggest ~$3 EPS upside to our current $6.20 CY26 estimate.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 27, DA Davidson reiterated its Buy rating on the stock and maintained its price target of $825.00. The firm is confident in Meta’s momentum despite macro and competitive factors.
According to the firm, Meta will likely continue to outgrow Google’s advertising revenue. However, its growth may decelerate due to tougher comparisons, including election-related spending.
While the firm doesn’t anticipate significant growth deceleration at Google, it is monitoring OpenAI closely.
“We expect META (BUY-rated $825 target) to continue outgrowing Google’s ad revenue, though growth may decelerate on tougher comps (including elections). We do not expect growth at Google to decelerate significantly, though we are monitoring OpenAI closely, as we believe the likely introduction of advertising around ChatGPT may create a headwind for Google Search advertising growth.”
Meta Platforms has been expanding its advertising capabilities and continues to invest heavily in artificial intelligence and the metaverse.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 28, Mizuho reiterated its “Outperform” rating on the stock with a $640 price target. The firm calls the recent OpenAI agreement a win-win for both Microsoft and the ChatGPT maker.
The new agreement between the two companies will allow OpenAI to go ahead with its plans to transform into a for-profit public benefit corporation. Microsoft will hold 27% of the OpenAI Group PBC, valued at an estimated $135 billion. Meanwhile, OpenAI’s nonprofit arm will hold a $130 billion stake in the for-profit entity.
Mizuho believes that this renewed OpenAI deal helps secure Azure exclusivity, IP rights, and revenue share, underpinning its AI leadership and growth confidence.
“This morning, MSFT and OpenAI announced an important agreement reflecting updates to the partnership. We previously contended that, despite growing investor concern, this relationship continues to be both healthy overall and a significant positive for MSFT. In our view, today’s announcement clearly supports that. In the end, while neither party got all that it wanted, we believe this agreement is a win-win. For MSFT, it critically retains its revenue share for the foreseeable future, along with exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI) is attained, while obtaining a ~27% equity stake and ceding its right of first refusal. More broadly, we remain confident MSFT’s revenue growth opportunities over the medium-term and beyond are greater than many realize, and we remain very bullish on its tangible AI adoption and monetization levers. We reiterate our Outperform rating and maintain our PT of $640.”
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 22, Benchmark reiterated its Buy rating on the stock with a price target of $260.00. The firm remains bullish on the stock despite the numerous challenges Amazon has faced during the second half of the year.
It is particularly positive on the turnaround momentum building into the holiday quarter with long-term profitability tailwinds. The firm noted how profit expectations for Amazon have dropped for both 2025 and 2026. This is despite the continued positive momentum in network and fulfillment costs.
Amazon has also announced plans to replace 600,000 workers with robots by 2033, which pinpoints this ongoing operational shift.
“It has been a difficult back half of the year for perennial powerhouse Amazon (AMZN: Buy, PT $260), with yesterday’s 2.5% positive move finally pushing shares back into the green for the year. In fact, up until yesterday, Amazon was at risk of testing the near-term lows established after a disappointing AWS margin print in 2Q. As we predicted then, the profit bar dropped meaningfully both for 2025 and 2026 despite continued positive momentum in network and fulfillment costs, punctuated by yesterday’s announcement of plans to replace 600,000 workers with robots by 2033. In addition, we have been one of the earliest and most vocal proponents of the eventual contribution from Amazon’s advertising and Prime Video ecosystem, which we continue to note should produce very strong margins at scale. Having covered the stock for almost two decades now, we get that the name tends to be a difficult own during investment periods like we are seeing now with DC buildouts and satellite launches pushing FCF into the red. However, even with consensus getting a bit peppier ahead of the all-important holiday quarter, we suspect the tide will turn sooner rather than later, with AWS growth reaccelerating and operating income margins resuming their upward trajectory. A major AI contract, which we are not anticipating but which we think is always on the table, would be icing on the cake.”
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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.
