According to a Bank of America Securities (BofA) report, AI has the potential to drive $1 trillion of spending by 2030.
“We lay out path towards ~$1tn in global data center market by CY30, of which $800bn+ could be dedicated towards generative AI compute, networking, and storage infrastructure”
The firm said in a recent report that artificial intelligence could boost the AI data center market to $823 billion by 2030, up from $256 billion in 2025.
“We expect every major country/region to invest in creating its independent ‘sovereign’ AI factory, trained in local language, culture, generating high-tech employment, and serving critical healthcare, defense, industrial, financial and cyber needs.”
-Analyst Vivek Arya wrote.
The analyst further stated how an estimated $650 billion of that market is poised to go to AI chips alone, up from $201 billion in 2025. Arya noted that Nvidia is destined to be a “key beneficiary,” considering it is “still far ahead” of new entrants in the sector.
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. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 52
GitLab Inc. (NASDAQ:GTLB) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Bank of America Securities analyst Koji Ikeda maintained a “Buy” rating on the stock and set a price target of $72.00. Ikeda’s Buy rating reflects GitLab’s strategic positioning and growth potential.
The stock has been gaining attention, particularly due to the integration of AI capabilities throughout its DevSecOps workflows. This is especially true with version 18.0, which includes Duo features in Premium and Ultimate tier subscriptions. These changes could help the company monetize by reaching more users. The enhancements are anticipated to boost GitLab’s revenue growth trajectory, with GitLab poised to be a long-term leader in the $53 billion DevSecOps market.
Moreover, the company’s focus on its AI agentic offering, especially the Duo Agent Platform, is expected to enhance developer productivity by automating a substantial portion of development workflows. GitLab also focuses on security and compliance, making it a suitable choice for enterprises that seek comprehensive solutions.
Furthermore, more companies are hiring software developers once again, which supports the demand for GitLab’s seat-based pricing model. All of these factors reinforce the firm’s Buy rating and the price objective of $72.
GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle in the US, Europe, and the Asia Pacific.
9. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 75
Arista Networks Inc (NYSE:ANET) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Evercore ISI analyst Amit Daryanani reiterated an “Outperform” rating on the stock with a $110.00 price target. The firm considers Meta’s two-layer scheduled fabric architecture for back-end networks to be a significant opportunity for Arista.
It is expected that both Meta and Oracle will increase deployment of the Arista-centric two-layer approach in the second half of this year, utilizing Broadcom’s Jericho and Ramon chipsets instead of Tomahawk.
According to the firm, Arista accounts for an estimated 30% of spend in the three-layer architecture versus 100% in the two-layer approach. It is further expected that Arista will secure about 30% of back-end cloud networking spend, driving “outsized growth in CY25 and beyond.”
CY25 guidance updates, OCP announcements from Meta, and Meta revenue percentage disclosure anticipated during fourth-quarter earnings are three catalysts identified by the firm for Arista.
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.