Kepler Cheuvreux, a leading independent European financial services company, believes that investor sentiment on artificial intelligence is increasingly becoming “divided.”
Questioning whether AI is truly a boon for the industry or also a curse, it noted that the rise of AI has led to “record-breaking infrastructure investments, funding rounds, and re-prioritisation of R&D investments across the IT value chain.”
However, it pointed out that the financial payoff is still uncertain as “the market continues to search for compelling evidence that AI can be effectively monetised.”
Several software stocks have been underperforming in contrast to perceived AI winners, highlighting how AI represents a bigger disruption than the cloud shift.
Quoting Microsoft CEO Satya Nadella’s “SaaS is dead” remark, Kepler Cheuvreux explained that the remark is “a wake-up call to all players that it will be essential for every business model to adopt to the AI world fast and deliver a clear value-add to clients.”
Overall, the company noted that AI “reinforces the need for ongoing digitalisation,” resulting in both challenges and transformations depending on how quickly companies adapt.
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.
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10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks You Should Not Ignore. On September 15, Deutsche Bank Analyst Brad Zelnick placed a “Catalyst Call: Buy” on CoreWeave shares as a short-term investment idea.
It stated that it’s sticking with its long term hold rating on the stock but also sees a near-term buying opportunity driven by “insatiable” AI demand.
“We believe CoreWeave has meaningful powered shell capacity expected to come online over the next 12-18 months which it has yet to sign customer contracts against.”
The firm stated that “positive factors” are coming together to support upward revenue estimates for CoreWeave over the next quarter or two. AI infrastructure demand “appear almost insatiable” and this demand will meaningfully surpass supply in the near- to medium-term.
Deutsche believes CoreWeave holds sizable “powered shell capacity” set to come online over the next 12-18 months. However, it is yet to sign it against customer contracts. A few catalysts working in favor of the stock include the company’s Q3 report, potential new customer contracts, and incremental datacenter capacity.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 74
Eaton Corporation plc (NYSE:ETN) is one of the 10 AI Stocks You Should Not Ignore. On September 15, Melius upgraded the stock to “Buy” from Neutral with a price target of $495. The firm believes Eaton is a “secular winner.”
“We are upgrading Eaton to Buy from Hold and raising our price target to $495 from $412, implying 35% upside from the current price.”
According to the firm, previous concerns around valuation and slowing earnings momentum have now eased driven by renewed AI capital spending and a more reasonable valuation.
In an investor note, analysts at Melius stated that they believe demand will continue to outpace supply even after new capacity is added. Moreover, Eaton’s cyclical segments appear to be bottoming out, which implies another phase of growth for 2026 and beyond.
Eaton Corporation plc (NYSE:ETN) is a global power management company offering electrical, aerospace, vehicle, and eMobility solutions.