Semiconductor stocks rallied worldwide after Nvidia announced a $100 billion investment in OpenAI. The startup that ignited the AI arms race plans to deploy Nvidia systems that require 10 gigawatts of power, equivalent to 4 million and 5 million graphics processing units, or GPUs.
Chipmakers closely tied to Nvidia also surged on the news. TSM closed up 3.5%, while SK Hynix gained more than 2.5%. Samsung, a rival, also closed up 1.4%. Even though the company doesn’t yet supply Nvidia with its high-bandwidth memory chips, markets anticipate that the company will gain the green light very soon.
“Ultimately this is a broad market with lots of suppliers. It certainly isn’t a zero-sum game with only one winner, and indeed it appears investors are recognising that.
While this deal may be negative in the short-term for Nvidia’s competitors, it is a sign that the AI trade is alive and well.”
-Ben Barringer, global technology analyst at Quilter Cheviot, told CNBC.
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 Q2 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. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks on Market Radar. On September 23, Wells Fargo analyst Michael Turrin upgraded the stock from Equal Weight to Overweight with a price target of $170.00 (from $105.00).
In an investor note, the analysts highlighted how Coreweave is poised to benefit from the elevated build cycle and hyperscale industry shortages into 2026. These constraints and shortages create the potential for CoreWeave to win market share.
Moreover, CoreWeave is given the opportunity to a “blank check” with Nvidia’s recent backstop to buy all unused capacity through 2032. The firm believes that CRWV’s demand signals are too strong to ignore.
Overall, strong demand, major customers, supply shortages, and Nvidia’s backing make it a major growth winner.
“While the rest of software is stuck waiting for AI monetization to surface, CRWV stands to benefit from the elevated build cycle today & persistent industry shortages into 2026. Raise FY26/FY27 revs by 5%/9% & upgrade to OW from EW, raise PT to $170. Latent demand ROY likely to boost 2H25, FY26 bookings; NVDA backstop protects downside: Supply constraints continue, w/ hyperscaler shortages continuing through (at least) early-2026. See potential for CRWV to pick up market share in the interim (both MSFT, GOOGL recently expanding w/ CRWV, incl ~$0.5B A/R disclosure from 3rd unnamed customer; we believe GOOGL). Further, NVDA’s recent backstop to buy all unused capacity through 2032 gives CRWV a blank check to build out new capacity for 6+ yrs.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the 10 AI Stocks on Market Radar. On September 23, BofA Securities analyst Dimple Gosai raised the price target on the stock to $24.00 (from $21.00) while maintaining a Underperform rating.
According to the firm, Bloom Energy has secured remarkable wins such as those with American Electric (AEP) and Oracle (ORCL). These wins, along with other fast project deployments, has made it a standout beneficiary of the AI data center trade. The stock had a greater than 650% stock rally over the past year.
However, the firm believes that Bloom’s surge isn’t backed by fundamentals. Major wins secured by the company didn’t change the company’s guidance, and the Fremont’s 1GW facility is running at less than 50% utilization.
Moreover, supply chain checks point to revenue growth closer to the firm’s 2026 outlook which remain “well below” Street estimates for 2026-28.
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
