SoFi Technologies, an American financial technology company, has recently announced the launch of SoFi Agentic AI ETF to “provide investors access to the next wave of AI.”
Being its first launch in nearly two years, the ETF aims to target what SoFi calls “next-generation AI” companies.
These include those developing self-driving vehicles, autonomous technology and cybersecurity networks, and also semiconductor and cloud computing firms.
According to Brian Walsh, head of advice and planning at SoFi, the ETF will offer retail investors a way to capture the evolving AI landscape in their portfolios.
The ETF provides more than just first-generation AI exposure, with the index designed to adapt to changes in the AI ecosystem.
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. HeartFlow, Inc. (NASDAQ:HTFL)
Number of Hedge Fund Holders: N/A
HeartFlow, Inc. (NASDAQ:HTFL) is one of the 10 AI Stocks to Watch Out For in 2025. On September 2, JPMorgan analyst Robbie Marcus initiates coverage on the stock with an Overweight rating and a price target of $36.00.
The firm believes that Heartflow is “one of the clearest and most pioneering downstream beneficiaries of the AI revolution in the healthcare sector.”
The company is using artificial intelligence in healthcare to help diagnose heart disease. Through their technology, doctors can gain better insights of a patient’s heart while reducing costs and improving workflow.
JP Morgan believes that even though investors are rightly focused on the hardware, data, and infrastructure that’s driving modern artificial intelligence, HTFL stands out as a clear and pioneering downstream beneficiary of the AI revolution in healthcare.
“The company operates at the unique intersection of regulated healthcare and technology through its novel, AI-enabled, diagnostic software for coronary artery disease (CAD). The novel platform uses AI and advanced computational fluid dynamics to create a personalized 3D model of a patient’s heart based off of a single coronary computed tomography angiography (CCTA). Heartflow is one of the first MedTech companies to offer a clinically meaningful and reimbursed product that leverages modern day computing power and machine learning/AI to address a clinical unmet need in coronary artery disease (CAD), while simultaneously offering the potential to streamline procedural workflow and lower overall cost of care. As one of the few pure-play software MedTech businesses, Heartflow benefits from a capital-light business model, an excellent gross margin profile, clinical/regulatory moat with healthy reimbursement, and a highly differentiated diagnostic solution in a large, untapped market.”
HeartFlow, Inc. (NASDAQ:HTFL) is a medical technology company.
9. SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 45
SentinelOne, Inc. (NYSE:S) is one of the 10 AI Stocks to Watch Out For in 2025. On September 3, the company announced the launch of Managed AI Defense, an AI security offering developed with Pax8, a leading cloud commerce Marketplace for Managed Service Providers (MSPs).
The Managed AI Defense has been particularly designed to offer AI-driven protection to small and mid-sized businesses (SMBs), in a simple, yet cost-effective package.
While SMBs have to navigate through the same cyber threats as Fortune 500 companies, they often lack the budget or expertise to tackle them. Managed AI Defense strives to change this narrative by offering cutting-edge threat prevention, detection, and response to businesses.
This AI security program combines SentinelOne’s leading endpoint detection and response (EDR) with its Purple AI security analyst. Protection can further be customized through optional add-ons like MDR, Remote Forensics, and Identity Threat Detection and Response (ITDR), ensuring customers can use the security they require.
“Attackers don’t discriminate by company size and neither should world-class security. This launch means that every business, no matter how big or small, can harness the power of AI to protect what matters most. Together with Pax8, we’re helping MSPs and MSSPs deliver real security outcomes for SMBs who deserve the same peace of mind as the enterprise giants.”
-Tracy Ryan, AVP, Global MSSP/MSP at SentinelOne.
SentinelOne, Inc. (NYSE:S) is one of the leading artificial intelligence-powered cybersecurity providers.
8. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 59
Cummins Inc. (NYSE:CMI) is one of the 10 AI Stocks to Watch Out For in 2025. On September 3, Melius analyst Rob Wertheimer upgraded the stock from Hold to Buy with a price target of $500.00.
The firm cited three key factors behind the stock upgrade, with artificial intelligence demand viewed as the most obvious source of upside.
“We are upgrading CMI shares to Buy, and raising our two-year price target to $500, 25% upside from today’s price. Though AI demand is the most obvious source of upside, our thesis has three parts, and each can drive upside. First, Cummins is improving operationally, with room to go. Second, trucks are in a downcycle, and Cummins at ~18x earnings represents an attractive valuation, whether or not a prebuy kicks this upcycle off sooner. Finally, consensus estimates underestimate the revenue and margin potential flowing out of the capacity expansion in large engines for gensets, led by AI demand. We are 13% above consensus in 2027.”
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 76
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 AI Stocks to Watch Out For in 2025. On August 29, TD Cowen analyst Joshua Buchalter reiterated a Buy rating and $90.00 price target on the stock.
TD Cowen’s analysis reflects concerns regarding Marvell’s custom silicon business which is expected to decline in the October quarter before bouncing back in the January quarter.
Investors may not like the F3Q downtick, and are more interested in follow-on wins that they need to see to believe.
“Lack of Upside and Still the Same Questions Makes for a Tough Quarter; An in-line print/guide with custom silicon signaled down in OctQ due to “lumpiness” before growing in JanQ. The F3Q downtick amid supply chain noise is unlikely to be well-received given uncertainty on follow-on wins that investors likely need to see to believe. Outside custom, electro-optics strength remains a bright spot with secular pull, and ex-datacenter segments are rebounding. Buy, $90 PT.”
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
6. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks to Watch Out For in 2025. On September 3, Goldman Sachs analyst James Schneider reiterated a Neutral rating and $130.00 price target on the stock.
The firm noted how investors are likely to focus on Micron’s HBM ramp and whether strong prices can sustain in the coming quarters.
It also expects upside to Street estimates following the positive preannouncement from Micron with moderate growth in November.
Some key areas investors are anticipated to focus on were also discussed:
“Key stock takeaways: We expect investors to continue to focus on Micron’s HBM ramp and the sustainability of pricing strength in the coming quarters. Following the company’s positive pre-announcement, we expect some upside to Street estimates, with more moderate growth in the November quarter. We believe investor positioning is relatively balanced given Micron’s continued execution on HBM and sustained near-term strength in DRAM pricing, balanced against concerns related to the direction of travel for industry DRAM pricing in 2026. We expect investors to focus on: (1) progress on HBM ramp and market share targets exiting 2025; (2) sustainability of DRAM pricing strength; (3) stability of gross margins given the ongoing mix shift to HBM4.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
5. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 10 AI Stocks to Watch Out For in 2025. On September 2, Siemens announced a collaboration with Snowflake to use AI and Data more effectively. Through the collaboration, manufacturers will be able to connect operational technology data from shop floors with information technology data in cloud-based systems.
The integration between Siemens Industrial Edge and Snowflake’s AI Data Cloud will enable manufacturers to access plug-and-play Industrial Edge applications to turn machine data into useful insights and transfer into IT systems.
Companies will be able to combine shop floor data with supply chain management and financial information. Designed for production managers, data engineers, and IT leaders, the solution connects to various manufacturing data sources whereby Siemens Industrial Edge processes data at the factory level which is then transferred to Snowflake’s cloud platform for analysis.
“Together with Siemens, we’re enabling manufacturers to harness the full potential of their data through Snowflake’s easy, connected and trusted platform. The ability to apply AI across both IT and OT data isn’t just an advancement; it unlocks a new reality of possibilities for unparalleled quality improvement and radical performance optimization, as well as new ways of process automation powered by AI agents.”
-Christian Kleinerman, EVP of Product at Snowflake.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 AI Stocks to Watch Out For in 2025. On September 2, Morgan Stanley raised the firm’s price target on the stock to $357 from $338 and kept an Overweight rating on the shares.
The firm said that its latest ASIC checks are positive and that it has a bullish ethernet networking outlook. Moreover, it also sees continued strength in hyperscaler capex and inference demand.
The firm is raising estimates ahead of earnings due to the “strong prospects” for both ASICs and networking in AI along with a “modest recovery” in Broadcom’s core business.
“Outside of AI, we expect a cyclical recovery in semis and stable software.”
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks to Watch Out For in 2025. On September 3, BofA Securities analyst Wamsi Mohan raised the price target on the stock to $260.00 (from $250.00) while maintaining a Buy rating.
The firm discussed how the DOJ ruling for Google anti-trust case has revealed that Google is barred from exclusive contracts to push Google Search, Chrome, Google Assistant, and the Gemini App.
However, it will be allowed to pay distributors, such as Apple, to be the default search engine-paid on a one-year basis. The firm expects robust growth in Apple’s Services business.
“AAPL shares traded up after market on news reports that the judge in the DOJ-Google anti-trust case had issued a memorandum opinion on remedies required of Google. While Google will be barred from entering or maintaining exclusive contracts related to distribution of Google Search, Chrome, Google Assistant, and the Gemini App; for now, Google will be permitted to pay distributors for default placement (preloading or placement of Google Search, Chrome, or its Gen AI products) one year at a time. In our opinion, the substance of this remedy already exists today where Apple has Google as the default search engine, but also allows users to change that default to some other search engine in settings (choice screen not mandated). The court directed the parties (DOJ, Google) to confer and present by Sep 10th a joint revised final judgement. Reiterate Buy. PO moves to $260 (from $250) on 31x (prior 30x) C26 EPS of $8.37 (higher multiple on increased confidence in Services growth).”
Apple is a technology company known for its consumer electronics, software, and services.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks to Watch Out For in 2025. On September 3, KeyBanc analyst Justin Patterson raised the price target on the stock to $265.00 (from $230.00) while maintaining an Overweight rating.
The rating affirmation follows a US federal judge ruling that rejected prosecutors’ bid to make Google sell off its popular Chrome browser and Android operating system.
Even though Google must now share data with its competitors, the DOJ ruling has been better than what was anticipated, which has boosted investor confidence.
Keybanc noted that the DOJ ruling has been better than feared, implying that Alphabet shares trade at least in line with the S&P 500. Now that competitive prospects in AI have improved and Google Cloud is experiencing rapid growth, investors will likely return to look at underlying asset value.
“The DOJ ruling came in better than feared, and we believe this acts as a clearing event for Alphabet shares to trade at least in line with the S&P 500. Given improved competitive prospects in AI and Google Cloud’s rapid growth, our view is investors will return to look at underlying asset value and whether the discount on Google Services makes sense. With our math suggesting these assets are trading at a ~15x 2027E P/E (based on after-hours prices), we see further room for share price appreciation ahead. We raise our PT to $265 (21x 2027E P/E) and maintain our Overweight rating.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks to Watch Out For in 2025. One of the biggest analyst calls on Wednesday, September 3rd, was for Nvidia Corporation. JPMorgan reiterated the stock as “Overweight” and stated that the stock remains well positioned in AI.
“We recently attended Hot Chips 2025 and came away with a renewed sense that explosive growth in AI adoption across consumer and enterprise use cases will continue to drive a multi-year cycle of robust demand for advanced compute, memory and networking technologies…. Against this backdrop of strong AI trends, we continue to view AVGO, NVDA, AMD, MRVL, MTSI and ALAB as key beneficiaries.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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