According to Bloomberg sources, Nvidia AI chip challenger and startup Groq is all set to raise fresh funds, potentially pushing its valuation higher.
The startup is said to be in talks to raise a fresh $600 million at a near $6 billion valuation. However, the deal hasn’t been finalized yet and the terms may change.
Back in August 2024, Groq had raised $640 million at a $2.8 billion valuation in about a year. It had previously raised $1 billion. As per Bloomberg, the new round is being led by an Austin-based firm known as Disruptive.
This funding round follows Groq’s May announcement of an exclusive partnership with Bell Canada for powering its large AI infrastructure project.
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.
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10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Investors Should Keep an Eye On. On July 30, Goldman Sachs reiterated the stock as “Neutral” and said that it is standing by its neutral rating ahead of earnings on Aug. 12.
“Since we launched coverage last April, CoreWeave’s financial profile has largely played out (see our initiation report for more details), quieting some of the most draconian bear cases.”
Goldman Sachs analyst Kash Rangan is both optimistic and cautious on CoreWeave. This is because while it has demonstrated impressive revenue growth, expanding its customer base and capacity, it is also not free from risks.
Some of these risks are significant customer concentration, especially after a substantial deal with OpenAI, depreciation, and high debt levels.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 56
Baidu, Inc. (NASDAQ:BIDU) is one of the 10 AI Stocks Investors Should Keep an Eye On. On July 30, Tiger Securities maintained Buy on the stock and cut the price target to $100.00 (from $110.00). The price target cut follows the firm’s downward revision of Baidu’s revenue and profit estimates driven by AI-driven drags from search monetization.
According to the firm, there have been challenges with monetizing AI-generated search results. These now account for an estimated 50% of total queries.
“We are maintaining our BUY rating but lowering PT to $100 (from $110) as we revise down our revenue and profit estimates to reflect the ongoing drag from AI-driven changes in search monetization. AI-generated search results now account for approximately 50% of total queries, up from 35% in April, while the monetization model remains in the testing phase. Additionally, the consolidation of YY is expected to weigh on BIDU’s advertising revenue, as YY was previously one of BIDU’s top advertising clients. As a result, we are lowering our 2025 ad revenue forecasts. Given that advertising is BIDU’s primary profit driver, we are also revising down our profit estimates. Specifically, we now expect core advertising revenue to decline 18% y/y in 2Q and 3Q, with core non-GAAP operating income down 45% and 44% y/y, respectively. On a more positive note, we are maintain our forecast of +25% year-over-year growth in 2Q cloud revenue, and we are raising our estimate for other revenue to reflect the consolidation of YY”.
Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.
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