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.
8. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 59
Elastic N.V. (NYSE:ESTC) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, BofA Securities analyst Koji Ikeda lowered the price target on the stock to $96.00 (from $104.00) while maintaining a Neutral rating. The price target adjustment largely stems from heightened competitive risks, particularly in AI workloads.
The firm discussed three points related to Elastic’s results:
“Three points into results: (1) Elevated scrutiny on the predictability of paid open-source models. (2) Elastic’s participation in the AI theme. (3) FY26 revenue growth guidance. ESTC shares are trading at a 22% discount multiple to infrastructure software peers (i.e., 4.5x CY26E revenue vs. 5.8x peers). However, we believe the risk/reward is balanced, as recent checks suggest competition for AI workloads is increasing. This could weigh on Elastic’s revenue growth. We believe the key metric is subscription revenue excluding monthly customers, where if growth accelerates to 20%+ y/y, from +19.3% last quarter, it could be a catalyst. Reiterate Neutral, lower PO to $96 (from $104) on higher competitive risks. PO now based on 5.3x EV/CY26E revenue (was 5.9x) vs peers at 5.8x.”
Elastic N.V. is a search AI company offering cloud-based solutions.
7. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 82
Intel Corporation (NASDAQ:INTC) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, KeyBanc analyst John Vinh reiterated a Sector Weight rating on the stock citing positive implications from the US and Softbank Equity Stake in Intel.
Intel is issuing 433M new shares of common stock to the US government for 10% equity stake. The firm discussed the funding breakdown, past support, and the “passive” role of the US government in Intel.
“On August 22, 2025, Intel announced that it will issue 433M new shares of common stock to the U.S. government, giving Washington a 10% equity stake in the Company. The $8.9B investment will be funded by $5.7B of CHIPS Act grants previously awarded but not yet disbursed and $3.2B from the Secure Enclave program, with Intel continuing to meet its defense-related obligations. Including the $2.2B in grants already received, the total government support rises to $11.1B. Additionally, the government’s investment in INTC will be a passive ownership, with no Board representation or other governance or information rights. The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions. Finally, the existing claw-back and profit-sharing provisions associated with the government’s previously dispersed $2.2 billion grant to Intel under the CHIPS Act will be eliminated to create permanency of capital as the Company advances its U.S. investment plans. We see positive implications associated with this transaction as we were previously concerned that the U.S. government’s equity stake would likely have other INTC obligations with a potentially activist ownership role. Additionally, with the removal of the clawback on the previous CHIPS Act grant and announced equity transaction, uncertainty associated with whether INTC’s Chips Act funding would be reneged is off the table.”
KeyBanc also highlighted Intel’s investment from SoftBank, stating that the combined transactions of US government and SoftBank will have a modest dilutive impact of $0.07 on their FY26 EPS estimate of $0.67. Despite the positive developments, the firm maintains a Sector Weight rating on the stock.
Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.
6. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating on the stock with a $155.00 price target.
Even though Samsung has successfully qualified for HBM products, the firm remains optimistic on Micron as it believes Samsung’s gains will likely come at the expense of Hynix rather than Micron.
It also believes that Samsung will face obstructions in overcoming major technological challenges. Meanwhile, HBM roadmap is bound to get more difficult as stacks get higher and customized logic base dies come into play in the HBM4E timeframe. Micron’s own performance/watt advantage and stable supply will further allow it to sustain its competitive position.
“while a successful Samsung qualification will likely impact Micron’s market share position, we continue to believe that Samsung’s gains will largely come at the expense of Hynix. With regards to tailwinds, we see large hurdles in Samsung’s ability to overcome technological challenges including acceptable and thermal/power issues as well as poor yields derived from issues with dicing, sawing and laser ablation as well as delamination and cracking. Additionally, the HBM roadmap will only get more difficult as stacks get higher and customized logic base dies come into play in the HBM4E timeframe. This, coupled with Micron’s performance/watt advantage and stable supply should augur well for sustained demand for Micron’s HBM products.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
5. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, DA Davidson analyst Gil Luria reiterated a Buy rating on the stock with a $250.00 price target ahead of the company’s second-quarter earnings on August 27th.
The firm regards Snowflake as one of its top picks in infrastructure software, particularly highlighting its core data warehouse Snowpark and AI/ML products.
“Ahead of Snowflake’s 2Q26 earnings this upcoming Wednesday, August 27, we are providing updated thoughts on what we continue to put as one of our top picks in infrastructure software. We’re seeing durable momentum across the core data warehouse, Snowpark, data engineering and AI/ML products, backed by what we’re hearing from our conversation with The DEN and our proprietary DaVinci Developer Dataset, which is seeing record developer activity across Snowflake. Given what we view as still one of the best stories in all of Software, we reiterate our BUY rating and $250 price target.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, UBS analyst Timothy Arcuri raised the price target on the stock to $345.00 (from $290.00) while maintaining a Buy rating. The rating affirmation reflects the firm’s optimism regarding Broadcom’s artificial intelligence momentum as it heads into fiscal third-quarter earnings.
Set to report on September 4th, Wall Street analysts anticipate the semiconductor and software giant to report earnings of $1.66 in Q3, compared to $1.24 in the same quarter last year. Its revenue for Q3 is also expected to rise 21% year-over-year to $15.82 billion.
Arcuri has particularly noted in-line results for AVGO but expects the company to raise guidance for the fiscal fourth quarter. Google’s newest AI chip, the TPUv6p, which rely on Broadcom’s custom silicon, are ramping up and notably the cause for the expected raised guidance.
It is also anticipated that TPUv6p will witness a sharp acceleration in the second half of 2025, extending into 2026. Wafer requirements for these chips are also likely to increase by 51% year-over-year, with overall momentum translating to a 60% year-over-year increase in the company’s AI revenue for 2025.
Meanwhile, AI-related networking will potentially ramp-up in fiscal 2026 as Ethernet architecture deployment increases. Arcuri also believes that Broadcom will reaffirm a $60 to $90 billion serviceable addressable market for custom chips.
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 22, Evercore ISI reiterated the stock as “Outperform” stating that it likes Apple’s price hikes on Apple TV+.
“We think the Apple TV+ price increases could help modestly on services growth, but the real intent is to minimize churn. Services remain on track for double digit growth (provided Licensing relationship stays intact). Maintain OP and $250 price target.”
Apple is a technology company known for its consumer electronics, software, and services.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating on the stock with a $225.00 price target. The firm talked about a recent update to Google’s most powerful AI search experience, the AI mode.
“With this update, AI Mode is now offering personalized responses based on conversation history and past searches to offer more relevant results. Combining Google’s existing data may enable Google to offer more relevant responses while personalized history may create switching costs for chat bots over time as we continue to look for moats in AI beyond brand preference and distribution.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating on the stock with a $240.00 price target driven by strength in artificial intelligence infrastructure spend.
Indeed, artificial intelligence infrastructure spend continues to accelerate on the back of hyperscalers, sovereigns, neoclouds, and enterprises. Hyperscalers alone have had their capital expenditure forecasts risen to 57% and 20% for calendar years 2025 and 2026, across big tech names such as Microsoft, Meta, Google, and Amazon.
The firm has also highlighted several challenges, but noted that these are only temporary. Overall, Nvidia remains Cantor’s top idea especially with the company being in the early stages of its Blackwell product cycle, positioning it for major beats and raises.
“Yes, we have seen some degrossing with momentum names losing luster within the current backdrop (temporary digestion in our view) and recent reports of challenges regarding integration of AI capabilities into business models (we believe a dynamic which is overdone – no concern from us with hyperscaler ROIC still strong). We also have some reports out of China regarding willingness to adopt US accelerator solutions causing some agita in the AI trade (specifically today centered around the H20). But we view these trepidations as noise today and there is zero change to our bullish thesis here as we remain in the infancy of AI development and deployment. And we look for spending commentary across verticals and strong product cycle dynamics to continue driving the AI trade (yes, it’s that simple; buy the arms dealers). Our top idea here remains NVDA (see our full EPS preview here), as we remain in the early innings of the Blackwell ramp which we believe sets up for meaningful beats/raises and EPS tracking to stretch goal of $8 in CY26 (supporting our PT of $240 at a 30x multiple).”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA 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 NVDA 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 Must-Watch AI Stocks for Investors.
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