According to Bridgewater Associates’ co-chief investment officers, AI spending by large corporations is set to accelerate and reshape the global economy. Corporate spending has been surging, with industries increasing investment in areas such as data centers, chips, and electricity.

Consensus estimates from Goldman Sachs, for instance, indicate that AI companies are likely to spend more than $500 billion on capital expenditures this year. This is despite worries about a growing AI bubble.

“Straightforward game-theoretic calculations make it ​unacceptable for these companies to accept ​falling behind rivals by even a few months of progress, ‌so ‍one company’s decision to spend more aggressively on ‍AI capex compels others to follow,” the investment ‌firm’s co-CIOs Bob Prince, Greg Jensen and Karen Karniol-Tambour wrote.

Despite growing concerns about a potential AI bubble, major US stock indexes still ended up with strong gains as they concluded the year, largely driven by investor demand.

Bridgewater has also cautioned that heavy AI spending may add to inflation considering how rising demand will push up prices for key inputs such as chips and electricity.

“Easy policy risks further accelerating speculative equity market activity and the frenzy of deal-making and AI investment that’s already underway, creating a ripe environment for a bubble, and risks enabling a cyclical overheating.”

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 Q3 2025.

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10. CoreWeave, Inc. (NASDAQ:CRWV)

Number of Hedge Fund Holders: 62

CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks in Focus on Wall Street. On January 26, Mizuho analyst Gregg Moskowitz raised the price target on the stock to $100.00 (from $92.00) while maintaining a “Neutral” rating. The firm is optimistic on CRWV long-term, seeing upside from software stack sales and improved confidence after $2B NVDA investment & 5GW build-out plans. However, risk/reward remains even in the short term.

Mizuho discussed the recent expansion of relationship between CoreWeave and Nvidia, highlighting plans to accelerate the build-out of 5GW of capacity and an incremental $2 billion equity investment from AI chip maker NVIDIA.

This announcement also detailed the potential for CRWV to sell its software stack to other cloud partners and enterprises, which the company has emphasized to likely be a “meaningful and margin accretive” long-term opportunity.

Mizuho continues to believes that CoreWeave is poised to capture a meaningful share of an AI cloud provide market growing at a server-melting pace. The firm did have some reservations earlier, but the recent announcement has given it confidence in CRWV’s long-term trajectory.

“That said, last July we downgraded to Neutral as we had assessed the risk/reward for CRWV as balanced. Following recent hiccups, we are somewhat more reserved about the magnitude of potential revenue upside for CRWV over the next few quarters in this highly capacity-constrained environment, but today’s announcement provides incremental confidence in the longerterm trajectory. Reiterate Neutral and increase PT to $100 (was $92).”

CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.

9. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 66

International Business Machines Corporation (NYSE:IBM) is one of the 10 AI Stocks in Focus on Wall Street. On January 27, RBC Capital analyst Matthew Swanson reiterated an Outperform rating on the stock with a $350.00 price target. The firm favors IBM’s secular positioning ahead of its earnings report on January 28.

RBC anticipates that IBM will report solid results with upside to overall revenue and free cash flow. With earnings due today, investors will be particularly watching out if the company can maintain its recent momentum.

In particular, the firm mentioned how the subcomponents of software revenue will remain in focus. Management had noted how Red Hat will continue to face pressure throughout the year, but this weakness is expected to ease and will allow for growth to pick up again in fiscal 2026.

Overall, RBC Capital continues to like IBM as a defensive AI play, maintaining its Outperform rating on the stock.

“We continue to like IBM as a defensive play with secular exposure to hybrid, AI and a longer-term opportunity in quantum. We maintain our OP rating and $350 PT.”

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.