The United Arab Emirates is all set to emerge as the next leading global hub for artificial intelligence. In latest news, it has launched a new Arabic language artificial intelligence (AI) model as the race to develop AI technologies accelerates in the Gulf region.
US President Donald Trump visited the Gulf countries last week, striking major deals with Saudi Arabia, Qatar, and the United Arab Emirates in numerous areas. One noteworthy outcome of the deals was the UAE’s commitment to becoming a global artificial intelligence leader.
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According to Trump, an AI agreement with the UAE offers a path for it to access some of the advanced AI semiconductors from U.S. firms. This is going to a major win for the Gulf country.
A statement shared revealed that the AI model Falcon Arabic, developed by Abu Dhabi’s Advanced Technology Research Council (ATRC), strives to capture the full linguistic diversity of the Arab world through a “high-quality native (non-translated) Arabic dataset.” The model matches the performance of models up to 10 times its size.
“Today, AI leadership is not about scale for the sake of scale. It is about making powerful tools useful, usable, and universal.”
-Faisal Al Bannai, ATRC secretary general said in the statement.
ATRC has also launched Falcon H1. ATRC claims that it outperforms competitors from Meta and Alibaba by lowering the computing power and technical complexity needed to run advanced systems.
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 Q4 2024.
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10. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 27
SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions. On May 22, TD Cowen reaffirmed a “Buy” rating on the stock and increased the price target from $320.00 to $350.00. The adjustment comes following SAP’s Sapphire ’25 conference and Analyst Day held in Orlando. The firm has come away optimistic about the stock due to management’s confidence in the company’s growth and margin acceleration strategy.
It reported a gross profit margin of 74% and revenue growth of 10.5% over the past year, reflecting strong operational execution. Key drivers include the transition to cloud-based services, revenue-growth potential from the current on-premises customer base, and new artificial intelligence initiatives with Joule and BDC. The firm also particularly highlighted SAP’s strong commitment to cloud migration, expecting sustained growth. All in all, the firm is confident in SAP’s financial prospects and strategic initiatives that position it strategically for long-term growth.
9. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 40
Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services. On May 22, Barclays analyst Dan Levy reiterated an “Equal Weight” rating on the stock with a $14.00 price target. According to the firm, there is growing momentum in Rivian’s autonomous vehicles driven by its R2 platform. This platform has the potential to be licensed to other original equipment manufacturers (OEMs).
The company is also expected to showcase its capabilities in autonomous vehicles and artificial intelligence (AI) during the company’s AV/AI day in the fall. The event will highlight Rivian’s advancements in these areas. The analysis also highlighted potential benefits Rivian may receive from the U.S. electric vehicle tax credit, offering partial financial support to the company until 2026. Overall, the firm is watchfully optimistic about the company based on both the company’s progress in key technological areas and the broader financial and strategic challenges it is facing in the EV market.
8. Zoom Communications Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 51
Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology company popularly known for its video conferencing application called Zoom. On May 22, analyst Joshua Reilly at Needham adjusted his rating from Hold to “Buy” with a revised price target of $100. According to the firm, Zoom is at a significant turning point due to easing revenue headwinds from Online, peaking dilution from stock-based compensation, and decreased share count with buybacks moving forward. The analyst further noted that Zoom’s pricing power may be returning due to the new embedded AI functionality and that the company is “well positioned for new products driven by AI to begin moving the needle on growth.”
7. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 54
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. On May 22, Barclays analyst Jiong Shao lowered the firm’s price target on the stock to $84 from $90 and kept an “Equal Weight” rating on the shares. The analyst told investors in a research note how Baidu’s Q1 advertising revenue declined 6% year-over-year. Moreover, its strength in Cloud is being outshone by the growing cannibalization of advertising by artificial intelligence.
6. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 70
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers. On May 22, Melius Research revised its rating for the stock from Buy to “Hold” while maintaining the price target at $66. Moving to the sidelines, the firm mentioned in a research note how this call hasn’t worked out.
The firm expressed concerns about Marvell’s future performance, pointing out that there is a risk that shares stay range-bound or simply don’t perform well as compared to the bulk of its semis and hardware coverage for the rest of 2025-26. A slower ramp of Amazon’s Tranium means not much revenue upside in calendar 2025, while the case for upside in 2026-28 is blurred by Marvell’s roles in AWS’s Trainium 3 and 4 accelerators.
5. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection. On May 22, Stifel analysts, led by Adam Borg, maintained a “Buy” rating on the stock and adjusted the price target to $480 from the previous $435. The analyst’s assessment reveals that Crowdstrike continues to demonstrate strong market positioning and strategic growth potential as the market awaits its fiscal Q1 earnings on June 3.
The analyst told investors that the survey worked have demonstrated that the percentage of resellers growing their CrowdStrike practices improved quarter-over-quarter. However, the percentage of resellers outperforming or coming in line fell quarter-over-quarter as underperformance levels ticked higher.
4. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 85
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform. One of the most notable analyst calls on Thursday, May 22, was for Snowflake Inc. Raymond James analyst Simon Leopold maintained an “Outperform” rating and raised the price target on the stock to $212.00 (from $196.00). The rating follows Snowflake’s robust first-quarter earnings for 2026, surpassing expectations.
Citing its positive quarterly report, the management is optimistic about its future performance, particularly its new opportunities and sustained momentum. The firm particularly talked about the strong traction with Snowflake’s Cortex, its suite of AI tools for customers to run generative AI and deep analytics applications on their existing data. While the firm is cautious about the deteriorating macro environment, it is positive about the company’s momentum and new product growth.
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On May 22, Piper Sandler analyst Alexander Potter reiterated an “Overweight” rating on the stock with a $400.00 price target. The upcoming robo-taxi launch in Austin, Texas, is much anticipated by investors and industry watchers.
Even though Tesla has been facing several challenges, such as a weakened delivery outlook and a lack of clarity on new products, the stock has still managed to rally. Piper Sandler believes much of the optimism surrounding Tesla has been due to the upcoming robo-taxi service set to launch next month in Austin.
“TSLA’s recent run is due to multiple expansion; all eyes are on the robo-taxi launch.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the most notable analyst calls on Thursday, May 22, was for Nvidia Corporation. Oppenheimer reiterates the stock as “Outperform” with a $175 price target. The firm said it’s bullish on the stock ahead of earnings next week.
“NVDA remains best positioned in AI, in our view, benefiting from full-stack AI hardware/software and unique rack-level approach. Reiterate Outperform and $175 target.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On May 22, Evercore ISI Group reaffirmed its “Outperform” rating on the stock and raised its price target from $500.00 to $515.00. Analyst Kirk Materne’s rating update follows the firm’s annual Microsoft 360 event featuring virtual panels with Microsoft customers and partners, and in-person meetings with Microsoft’s President of the Americas, Deb Cupp, and the Investor Relations team.
Partner and customer conversations highlighted an “upbeat tone” which supports a bullish long-term view of Microsoft’s ability to benefit from AI adoption in the enterprise market. Azure’s infrastructure and application capabilities allow Microsoft to leverage the growing AI demand. Moreover, customers are still interested in spending on artificial intelligence despite the uncertain macroeconomic backdrop, reflecting priority in organizational strategies.
Feedback from partners further reveals that key products driving Microsoft’s AI adoption include GitHub Copilot and Copilot for Teams, and that the decision to offer Copilot Chat free is seen as a catalyst for faster adoption. The analyst further added that Microsoft remains an “all weather” stock due to its sturdy double-digit growth profile and fortress-like balance sheet.
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