The S&P 500 closed at a record high on Tuesday following a wave of economic data signaling firmer growth. US stocks are on track for a third consecutive year of double-digit gains driven by AI optimism, interest rate cuts and growing economy despite fears of a recession.

The benchmark S&P 500 is now up over 18% in 2025 with a few trading days left. According to Sam Stovall, chief investment strategist at CFRA, markets need “everything firing on all cylinders” for another year of robust double-digit percentage returns.

“A lot of headwinds indicate to me that while we could end up with a surprisingly good year, I don’t think it will be another great year,” said Stovall, as reported on Reuters, who has a year-end 2026 price target of 7,400 which would be up about 7% from current levels.

Most of the lift to the broader market was provided by technology stocks, particularly Nvidia who recently told its Chinese clients that it aims to begin shipping its H200 AI chips to China before the Lunar New Year holiday.

Overall, while the AI momentum looks intact for now, expectations are becoming more measured.

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 Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

10. Jet.AI Inc. (NASDAQ:JTAI)

Number of Hedge Fund Holders: –

Jet.AI Inc. (NASDAQ:JTAI) is one of the 10 AI Stocks on Market Radar. On December 23, the company announced a planned joint venture with Choo Choo Express LLC, a Nevada-based infrastructure development and construction firm, for the development of a planned 50-megawatt data center campus in Moapa, Clark County, Nevada.

Owing to an existing power, gas, fiber, and transmission infrastructure, Moapa campus stands as one of the few remaining sites in the Southwest that can support hyperscale inference workloads deployed closer to the network edge.

Based on the terms of the proposed venture, Jet.AI will be committing an estimated $10 million of capital over an anticipated two-year period. This is subject to the achievement of defined development and infrastructure milestones.

Meanwhile, CCE is expected to contribute the land to the joint venture. The contribution is subject to due diligence, definitive agreements, and customary conditions.

“Certain CCE personnel bring direct, hands-on experience in the design, construction, and operation of large-scale data centers for Core Scientific,” said Jet.AI Executive Chair Mike Winston. “CCE brings a related workforce of thousands of contractors, alongside deep local knowledge of the Moapa area and forty years of in state development experience. Today’s announcement builds upon Jet.AI’s earlier disclosure this year regarding its pursuit of a data-center campus in Clark County.”

Jet.AI, is a private jet charter artificial intelligence company.

9. Rezolve AI PLC (NASDAQ:RZLV)

Number of Hedge Fund Holders: 14

Rezolve AI PLC (NASDAQ:RZLV) is one of the 10 AI Stocks on Market Radar. On December 19, H.C. Wainwright reiterated its “Buy” rating on the stock with a $10.00 price target. Firm analysts are positive on the stock, believing there are major catalysts ahead for RZLV not reflected in current valuation.

“Shares of Rezolve AI Limited have declined 42.4% year to date versus a 12.5% increase in the Russell 2000 Index. In our view, this performance does not properly reflect the operating progress in the business over the past 12 months.”

Highlighting the company’s business update, the firm noted that how December revenue is anticipated to exceed $17 million. It forecast ARR to exit 2025 at more than $200 million, significantly exceeding the previous target level of $150 million announced in October.  It is further anticipated that the company will exit 2026 with $500 million ARR, significantly exceeding 2025 levels.

The firm believes that this growth is driven by additional mergers and acquisitions and growth opportunities with hyperscalers including Microsoft and Google. RBRK has also indicated that it expects to generate positive adjusted EBITDA in December. According to H.C. Wainwright, this reflects potential operating leverage in the business model.

“Positive news flow from the company is not being reflected in RZLV shares, which we suspect may be for a couple of reasons. First, while the company has communicated favorable revenue performance, results have yet to be reflected in semi-annual audited financials. In addition, we believe investors are discounting acquired revenue versus organic growth. However, we believe these issues can be resolved as early as March 2026, when the company completes its annual 20-F filing. This, in our view, should serve as a material catalyst in moving RZLV shares higher in 2026. We remain Buy-rated and maintain our $10 price target on RZLV shares.”

Rezolve AI PLC provides AI-powered solutions for commerce and retail.