In May 2025, US President Donald Trump announced massive investment commitments from the Gulf, including those from Saudi Arabia, Qatar and the United Arab Emirates. The investments, worth more than $2 trillion, have begun materializing on ground.
In latest news, Bloomberg News has reported that Humain, Saudi Arabia’s new artificial intelligence company, has begun construction of its first data centers in the kingdom. The AI startup plans to bring the data centers online in early 2026 using semiconductors imported from the U.S.
According to CEO Tareq Amin, the data centers in Riyadh and Dammam are likely to launch in the second quarter. Both of them will have an initial capacity of up to 100 megawatts.
Amin also told Bloomberg News that Humain is presently sourcing semiconductors for its data centers from U.S. chipmakers, including Nvidia.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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10. Fabrinet (NYSE:FN)
Number of Hedge Fund Holders: 32
Fabrinet (NYSE:FN) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, JPMorgan analyst Samik Chatterjee upgraded the stock from Neutral to Overweight with a price target of $345.00 (from $318.00).
The firm has upgraded the stock citing robust “longer-term drivers for optical companies with leverage to multi-faceted investment.” Analysts are also optimistic that the recent shares pull-back offers a lucrative opportunity for investors to “participate in the upside.”
The stock experienced a pull-back because of investors hoping for faster growth with customers, but short term supply shortages slowed things down. However, the firm highlighted several catalysts that are working in favor of the stock, such as program ramps with customers such as Nvidia’s 1.6T opportunity, Ciena’s modem opportunity, and Amazon’s HPC opportunity.
“Following the recent pull-back, Fabrinet shares are now trading closer to ~24x NTM consensus earnings, which is significantly lower than the nearly 30x it was trading at prior to the latest earnings report, and the market is now underappreciating the proximity of large concurrent program ramps with prominent customers, including: 1) Nvidia: The 1.6T opportunity is forecasted to represent a $1.5 bn market opportunity in CY26 and could double thereafter; 2) Ciena: The modem opportunity is expected to start generating material revenue in CY26 and we estimate should exceed the historical revenue of Infinera at full run- rate, given its at least 2x greater scale (Infinera revenue recently reached ~$330 mn in FY23); and 3) Amazon: The HPC opportunity represents a sizable total market opportunity of $1.5 bn in our estimate and could be complemented to some degree by the $2 bn+ total transceiver opportunity at the customer starting in the second half of the fiscal year, if not the calendar year. The above customer-specific ramps are set against a backdrop of solid momentum in Telecom, with high-growth DCI revenues already accounting for more than 10% of total revenue and is poised to increase in subsequent years. Unsurprisingly, the multitude of growth drivers are leading a typically prudent management team to consider accelerating construction at Building 10 (adds $2.4 bn of revenue at full capacity vs. current capacity of $4.2 bn), which is another sign that FY27 demand is poised to exceed earlier expectations. Thus, we see Fabrinet well-positioned to deliver material upside to estimates, particularly as large customer programs hit their stride, which will likely encourage investors to revisit the premium valuation multiple they would be willing to ascribe and drive upside to Fabrinet shares trading at ~19x CY27 consensus estimates.”
9. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 38
Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, Needham analyst Chris Pierce reiterated a Buy rating on the stock with a $14.00 price target. The rating affirmation comes ahead of the company’s R2 launch supported by end-market diligence and a consumer survey.
According to the firm, the R2 is Rivian’s mid-size SUV with an approximate $50,000 average selling price. This vehicle has the potential to expand the company’s total addressable market beyond the company’s expensive R1 vehicle.
“We reiterate our Buy rating and $14 target ahead of RIVN’s R2 launch, supported by end-market diligence and a consumer survey conducted in low EV penetration metros. The R2 is RIVN’s ~$50k ASP mid-size SUV, substantially expanding RIVN’s TAM beyond the more expensive R1 vehicle. The size of the potential market opportunity for the R2 is encouraging when looking across current EV and ICE offerings at similar price points, and even more so vs modest consensus FY26 R2 delivery estimates. Our survey work found strong RIVN brand awareness, limited negative perception and encouraging purchase intent, positioning RIVN favorably to capture share as the R2 enters the mid-size SUV segment. Our $14 price target represents 15x EV/our FY28E adj EBITDA discounted back.”
Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services.
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