Wall Street has recently been reacting to concerns about inflation and mixed views from bankers about the health of the US economy. The pricey valuations of artificial intelligence stocks have also been adding to investors’ woes, particularly since these names have largely been contributing to the market’s rally.
In this regard, Nvidia’s earnings on Wednesday, November 19, are going to be the center of Wall Street’s attention. The AI chipmaker’s quarterly results may just give the boost investors need that a race to dominate AI isn’t losing momentum.
“If you don’t see the growth that I think the market is expecting around Nvidia or the positive commentary that we are likely to get from Nvidia going forward, I think you’re going to see more of a dent to those sorts of trades.”
-Matt Orton, chief market strategist at Raymond James Investment Management.
Tech stocks have particularly been volatile in recent trading because of concerns that there is a ‘Mag 7’ concentration in the S&P 500 and related fears of an AI bubble.
CEO of Deutsche Bank’s 1.1 trillion euro ($1.3 trillion) money manager DWS stated that the explosion in the value of AI stocks poses risks to global markets for which there is “no playbook.”
“There’s no playbook, there’s no real history for something like that,” Hoops said at DWS’s London office.
“What’s happening is this most amazing wealth creation (for retail investors)… Nvidia stock is now worth $5 trillion. My question is simply, could it go to $100 trillion? Or would at some point you be the first one to say, ‘You know what, this is getting shaky?'”
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. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Investors Are Watching. On November 13, Compass Point started coverage on the stock with a Buy rating and a $150 price target.
The firm is bullish on the stock as it sees a durable growth profile for CoreWeave driven by a boost in AI-driven data center spending and secured contracts from blue-chip clients.
According to analyst Michael Donovan, the rising tide of investment in AI infrastructure not only offers a massive tailwind for the company but also positions it to ride the wave “as a leader in GPU cloud computing.”
Albeit a relatively new company, the firm highlighted how CoreWeave already serves Microsoft and has secured major commitments both from OpenAI and Meta.
“We are initiating coverage of CoreWeave (CRWV) with a Buy. Though a relatively new public company—listed March 28, 2025—CoreWeave already serves Microsoft and has captured long-term demand: revenue backlog reached $55.6B at the end of 3Q25, up 85% sequentially from $30.1B in 2Q25; backlog consists of $50.0B remaining performance obligations plus $5.6B of additional amounts expected under committed contracts, supported by clients like OpenAI with $22.4B committed and Meta with a $14.2B deal through 2031.”
The firm also highlighted Nvidia, a 7% shareholder, which has provided a $6.3B GPU capacity backstop to ensure revenue on unused inventory through 2032.
“Nvidia, a 7% shareholder, agreed to a $6.3B capacity backstop to ensure any unused GPUs continue to generate revenue through 2032. This demand profile—essentially locked-in, multi-year revenues—strengthens our conviction that CoreWeave’s growth is durable.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 59
Elastic N.V. (NYSE:ESTC) is one of the 10 AI Stocks Investors Are Watching. On November 13, Guggenheim reiterated its Buy rating on the stock with a $122.00 price target. The firm is optimistic about the stock based on its expected revenue outperformance, GenAI tailwinds, and margin expansion.
According to firm projections, Elastic will exceed consensus expectations for second-quarter total and Cloud revenue, issue third-quarter guidance ahead of market expectations, and also lift its fiscal 2026 guidance by at least “the F2QE upside.”
Albeit limited in scope, the firm’s checks reflect how Elastic’s new capabilities resonating with customers and go-to-market changes are allowing the company to gain traction in all three areas of the business.
“Paired with the model setup, in our plausible case we expect F2Q Cloud growth stable q/q at 24% CC (vs. consensus +20%), sales-led subscription stable at 22% CC, and total revenue +18% CC, also in line with last quarter. We believe this should result in FY26 guidance being raised by over 1 point to +15% in CC and F3Q guide above the Street’s +12%. We see Elastic ultimately delivering FY26E total revenue +18% CC (19% reported), including Cloud +24% CC. Note that factored into guidance is the price increase on both Cloud and Self-Managed which took place this past May.”
The firm further noted how Elastic’s recent analyst day and virtual investor meeting has led them to remain confident in Elastic’s position as an AI beneficiary.
“Following Elastic’s recent analyst day and our virtual investor meeting, we remain confident that Elastic is an AI beneficiary rooted in architectural differentiation. We believe that another quarter of strong execution will instill more confidence in the company’s ability to attain its mid-term target for 15% baseline sales-led subscription growth with 5 percentage points of GenAI tailwinds over the next few years, and coupled with 20%+ Non-GAAP EBIT/FCF margin. With the company trading at 5.4× EV/FY27E Rev and 28× EV/FY27E FCF, we continue to view Elastic as an underappreciated asset. We maintain our Buy and $122 PT.”
Elastic N.V. (NYSE:ESTC) is a search AI company offering cloud-based solutions.
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