10 AI Stocks Investors Are Watching

8. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 80

Reddit, Inc. (NYSE:RDDT) is one of the 10 AI Stocks Investors Are Watching. On December 22, Needham reiterated the stock as “Buy” with a $300 price target. The firm said that the stock is firing on all cylinders and is a best idea in 2026.

“We add RDDT to the Conviction List, replacing Roku, which is up 48% YTD in 2025.”

According to the firm, Reddit’s advantage of having 100% human-created content optimizes trust, authenticity, and value to LLMs. The company is already generating over $100M per year in fees from OpenAI and Google’s (GOOGL) Gemini.

“RDDT has no high-quality substitutes at similar scale, which should give RDDT pricing power. We believe RDDT’s data will become table stakes for all GenAI LLMs, over time.”

-Analyst Laura Martin.

This revenue, it noted, may even double with Anthropic and Perplexity fees provided it resolves the lawsuit against the AI startups for alleged misuse of content.

The firm also said while the stock looks stuck for now, its advertising advantages have the capability to change that. Owing to its growing audience, new ad tools, and engaged users, Reddit may grow its advertising revenue at an exorbitant pace.

“Our channel checks with ad buyers suggest that customers value RDDT’s niche communities, high-intent audiences, growing user base, and longer engagement lengths.” -Analyst Laura Martin.

Needham noted that Reddit is the fastest growing company in their coverage.

Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement.