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10 AI Stocks Investors Are Watching Closely

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The US government is stepping up its moves to expand the use of artificial intelligence in the country. In the latest news, President Donald Trump joined executives from some of the largest technology and energy companies for a summit in Pittsburgh to discuss the moves.

Several tech executives and officials from top tech and energy firms attended the Energy and Innovation Summit at Carnegie Mellon University, including those from Meta, Microsoft, Alphabet, and Exxon Mobil. The leaders discussed how to position the US as a leader in artificial intelligence, which is currently in an intense AI arms race with rival China.

Trump, along with the summit’s host, U.S. Senator Dave McCormick, a Republican ally from Pennsylvania, underlined an estimated $90 billion in artificial intelligence and energy investments in the state.

“This is a really triumphant day for the people of the Commonwealth and for the United States of America, we’re doing things that nobody ever thought possible.”

-Donald Trump

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 Q1 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).

10. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 57

International Business Machines Corporation (NYSE:IBM) is one of the 10 AI Stocks Investors Are Watching Closely.  On July 16, Stifel analyst David Grossman reaffirmed a “Buy” rating for the stock and increased the price target from $290.00 to $310.00. Stifel’s rating reflects continued optimism for IBM’s projected financial performance and potential growth ahead of its second-quarter earnings report due on July 23.

The firm believes that IBM is a “stable/defensive compounder” with mid-single-digit revenue growth potential and annual margin expansion. This should yield mid-to-high-single-digit earnings along with free cash flow growth.

Some factors highlighted by the firm which may act as revenue tailwinds for the stock are its z17 mainframe cycle released in mid-June and IBM’s capability to leverage recent software acquisitions like Hashi and DataStax.

Nevertheless, Grossman noted that even though fundamentals for the stock are stable/positive, it may be difficult to forecast upward earnings revision in the current environment. This can be risky heading into the earnings report, which is why a post-Q2 earnings report may be a better entry point.

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.

9. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 64

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 AI Stocks Investors Are Watching Closely. On July 16, Crowdstrike announced an expanded collaboration with Amazon Web Services (AWS) to fast-track AI adoption in cybersecurity and secure AI use. Under the collaboration, Crowdstrike’s new tools, the falcon-mcp, which is an MCP server for the CrowdStrike Falcon® platform, and CrowdStrike AI Red Team Services, are available under the new AI Agents and Tools category of AWS Marketplace.

These tools will help AWS customers to operationalize agentic AI workflow integrations, as well as safely test and protect AI systems within their existing AWS environment. With AI adoptions accelerating, offering realistic ways to connect models to real-time security operations has become a critical need. Trusted frameworks such as those from Crowdstrike can help companies power their security operations and protect the AI systems those operations depend on.

“Agentic AI is fundamentally changing business of all sizes across every industry – but only secure AI can safely scale to deliver long-term results. With these offerings now available in AWS Marketplace, CrowdStrike is giving customers the power to safely build, test, and run AI-driven security workflows using the same cybersecurity platform trusted to protect the world’s most critical environments.”

-Daniel Bernard, chief business officer, CrowdStrike.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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