In a recent investor note, Barclays revealed that they anticipate U.S. software stocks to experience short-term gains in the current earnings cycle. This is despite looming questions over artificial intelligence.
“Our checks show solid end demand and valuation levels are much lower, but is this enough to overcome the AI uncertainties? Maybe, not for the long run, but we expect a positive bounce in the short-term nonetheless.”
-Analyst Raimo Lenschow said in a Monday note.
According to Lenschow, investors continue to remain concerned about the impact of generative AI. However, the near-term setup looks better than expected.
“Our checks are solid to slightly better than the on-cycle ones,” he wrote, adding that given the weak performance of most software stocks outside a few AI winners, “we would expect a positive bounce as numbers are holding up and valuation levels are low.”
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.
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. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 17
BigBear.ai Holdings, Inc. (NYSE:BBAI) ) is one of the 10 AI Stocks On Wall Street’s Radar. On August 15, the company announced the launch of a next-generation cargo security management solution in partnership with Narval Holding Corp., through Narval’s subsidiary International Shipping Compliance, S.A. (ISC), in Panama.
The AI-powered cargo security management solution will begin in Panama with planned expansion across the region and worldwide. BigBear.ai-developed en route cargo chain-of-custody application will use biometric verification to link drivers and transport vehicles to a cargo container and its corresponding security seal. This will ensure full accountability of the cargo contents from origin to destination.
The solution secures the global supply chain by enabling real-time driver and tracking monitoring with a centralized management platform. Cargo flows can be supervised with better precision, ensuring better detection of anomalies, and generation of actionable insights.
“Securing the global supply chain requires innovation, trust, and the ability to verify each handoff along the way. By partnering with Narval Holding Corp. in Panama – a critical gateway for global trade – we will deliver an AI-driven solution to strengthen cargo security today, while laying the foundation for broader regional adoption and collaborations with the international shipping lines.”
-Kevin McAleenan, CEO of BigBear.ai.
BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides decision intelligence solutions for national security, digital identity, supply chain and logistics, enterprise operations, and manned-unmanned teaming in autonomous systems.
9. Rubrik, Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 45
Rubrik, Inc. (NYSE:RBRK) is one of the 10 AI Stocks On Wall Street’s Radar. On August 12, the company announced the launch of Agent Rewind, an industry-first agent rewind solution that enables organizations to undo mistakes made by agentic AI. Powered by Predibase AI infrastructure, Agent Rewind provides visibility into agents’ actions and enables enterprises to rewind those changes to applications and data.
While AI agents boast significant potential, they are still prone to mistakes ranging from technical malfunctions and legal issues and even erasing of entire production databases. This is where the Agent Rewind comes into use by making opaque AI actions visible, auditable, and reversible.
The solution creates an audit trail and immutable snapshots that allow safe rollback. Rubirk highlighted that current observability tools only show what happened, but not why or how to reverse high-risk actions.
Agent Rewind is compatible with a wide range of platforms, APIs, and agent builders, including Agentforce, Microsoft Copilot Studio, and Amazon Bedrock Agents, and will be compatible with any custom AI agent.
“As AI agents gain autonomy and optimize for outcomes, unintended errors can lead to business downtime. Agent Rewind integrates Predibase’s advanced AI infrastructure with Rubrik’s recovery capabilities to enable enterprises to embrace agentic AI confidently. Today’s organizations will now have a clear process to trace, audit, and safely rewind undesired AI actions.”
-Anneka Gupta, Chief Product Officer at Rubrik.
Rubrik, Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide.
