In this article, we will take a detailed look at the 10 Best AI Stocks to Buy According to American Politicians.
US equities are wavering as valuation concerns creep in amid AI bubble warnings from Wall Street experts. Major technology companies in the latest earnings season so far have pledged to continue raising their CapEx, but investors are looking for ROI and a visible impact of AI on productivity.
However, many analysts believe the AI-led bull market has more room to run. Dynasty Financial’s Shirl Penney said in a recent interview with CNBC that the AI “supercycle” is still in its early stages but emphasized the impact of portfolio diversification.
“We actually believe that we’re still very early in the AI super cycle,” Penney said. “There’s going to be continued significant Capex, not just with some of the MAG 7, but also with large financial firms like Schwab, JPMorgan, and others. We’re very bullish and obviously believe in diversification across the portfolio. There are always things that you can worry about, but we’re cautiously optimistic as we move into 2026.”
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
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For this article, we chose 10 AI stocks bought by notable US Senators and members of the US Congress over the past two months based on their public disclosures. Why are we interested in the stocks that hedge funds and politicians 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. Qualys Inc (NASDAQ:QLYS)
Number of Hedge Fund Investors: 30
Qualys Inc (NASDAQ:QLYS) is one of the under-the-radar names in the AI space. The cloud security company is working on Agentic AI solutions for cybersecurity. Congresswoman Lisa C. McClain’s spouse bought a stake in the company worth between $1,001 – $15,000, according to disclosures on Oct. 22. The stock is down about 8% since the trade.
The London Company SMID Cap Strategy stated the following regarding Qualys, Inc. (NASDAQ:QLYS) in its Q2 2024 investor letter:
“Initiated: Qualys, Inc. (NASDAQ:QLYS) – QLYS provides cybersecurity and compliance solutions, which enable its clients to identify, prioritize, and remediate risks to information technology infrastructures. QLYS also offers solutions through a software-as-a-service model, primarily with renewable annual subscriptions. QLYS should continue to benefit from the long-term secular tailwinds that drive sustainable growth in cybersecurity. QLYS’s products are critical but also low-cost relative to a company’s overall security budget, helping ensure high retention rates and recession resistance. We believe QLYS is among the best managed in the industry. Many past decisions have positioned QLYS ahead of peers in terms of product quality, structurally higher margins, and competitive moat. QLYS generates high operating margins with growing cash flow generation and has a very strong balance sheet. QLYS is also owned in our Small Cap portfolio.”
9. Seagate Technology Holdings PLC (NASDAQ:STX)
Number of Hedge Fund Investors: 71
According to disclosures on Oct. 22, Congresswoman Lisa McClain’s spouse bought a stake in Seagate Technology Holdings PLC (NASDAQ:STX) worth between $15,001 – $50,000 on September 8. Since this trade, the stock is up about 42%.
Seagate Technology Holdings PLC (NASDAQ:STX) has been gaining interest from investors as an AI play on the back of rising storage demand due to the increasing usage of AI videos. James Van Geelen, the founder and portfolio manager at Citrini Research, recently explained in detail why Seagate Technology Holdings PLC (NASDAQ:STX) stands for benefit from the AI boom. Read his thesis here.
8. ASML Holding NV (AMS:ASML)
Number of Hedge Fund Investors: 78
Congresswoman Lisa C. McClain bought ASML shares worth between $1,000 and $15,000 on Sept. 25. The stock is up 14% since then. Marjorie Taylor Greene also bought the Dutch semiconductor company’s shares on Sept. 11.
Bristlemoon Global Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its third quarter 2025 investor letter:
“ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that develops, assembles and sells photolithography (“litho” or “lithography”) machines that are used to print integrated circuit designs onto silicon wafers during the semiconductor fabrication process. ASML is the sole supplier of Extreme Ultraviolet (EUV) lithography machines that are used by the likes of TSMC and Intel to fabricate the most advanced chips for AI, smartphones and computing. It also has an effective monopoly over Deep Ultraviolet (DUV) machines which are the primary litho workhorses within a fab.
There is plenty of material in the public domain explaining why ASML is a one-of-a-kind business, so we won’t belabour the point here. Instead, we want to focus on why the opportunity to buy this business at a steep discount existed in the first place considering the AI investment boom taking place, and where our views diverged from the market.
Since attaining an all-time high of €1,002 in mid-2024, ASML subsequently experienced a -45% drawdown at the Liberation Day trough and has otherwise trodden water in the ~€700 range. A disastrous Q2 2025 earnings call where CEO Christophe Fouquet volunteered that ASML “cannot confirm” growth in 2026 despite no one asking him about 2026 further amped up the bearish narrative to eleven…” (Click here to read the full text)
7. Adobe Inc (NASDAQ:ADBE)
Number of Hedge Fund Investors: 104
Adobe Inc (NASDAQ:ADBE) is down 23% so far this year despite launching several AI features in its tools. Why? The market is concerned that a plethora of AI-powered design tools readily available online would negatively impact Adobe Inc (NASDAQ:ADBE) business. However, the stock came on the radar of an important US politician.
Congresswoman Marjorie Taylor Greene bought Adobe Inc (NASDAQ:ADBE) shares worth between $1,001 – $15,000 on Oct. 15. The stock is up about 4% since then. US Senator John Boozman also bought a stake in the company in September.
Diamond Hill Select Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its third quarter 2025 investor letter:
“Though markets have continued rising throughout the year, we have continued finding individual companies whose prices we believe are not reflective of their long-term growth outlooks. Accordingly, we initiated four new positions in Q3, including Colgate-Palmolive, Berkshire Hathaway, Zoetis and Adobe Inc. (NASDAQ:ADBE).
Adobe is the market’s largest provider of creative content software and enjoys a sizeable moat. Design professionals in all verticals — graphic designers, video editors, web and mobile app creators, etc. — rely heavily on Adobe’s robust suite of tools. It also owns direct customer engagement software and the ubiquitous Adobe Acrobat platform, two assets we think are underappreciated by the market. Despite valid concerns about greater competition and AI disruption going forward, we think Adobe’s solution breadth and diversification, incumbency and strong positioning upmarket, as well as its ongoing willingness to innovate, should position it well to weather shifts in the competitive environment. We believe Adobe has the potential to generate solid fundamentals over the next several years relative to the share price at which we initiated a position.”
6. ServiceNow Inc (NYSE:NOW)
Number of Hedge Fund Investors: 106
Congressman Michael McCaul’s spouse bought ServiceNow Inc (NYSE:NOW) shares worth between $15,000 to $50,000 on Sept. 25. US Senator Markwayne Mullin and Congressman Ro Khanna also bought the stock in September.
ServiceNow’s latest quarterly results showed its subscription revenue rose about 22% year over year. The company raised its subscription revenue guidance for the full year. The company operates at the application layer of the AI ecosystem and can benefit from increasing implementation of AI workflows in the enterprise.
ClearBridge Select Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its second quarter 2025 investor letter:
“We did see good results from AI-ecosystem holdings in IT and industrials. Within IT, ServiceNow, Inc. (NYSE:NOW) remains a leader among its software peers in the monetization of generative AI, with a target of $1 billion in annual contract value from AI-related products by 2026.”
5. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 115
According to disclosures made on Oct. 22, Congresswoman Lisa C. McClain’s spouse bought Tesla Inc (NASDAQ:TSLA) shares worth between $1,001 – $15,000 on Sept. 11. The stock has gained about 20% since then. Congresswoman Marjorie Taylor Greene also bought Tesla Inc (NASDAQ:TSLA) shares worth between $1,001 – $15,000 on Oct. 15.
While Elon Musk received shareholder approval for his hefty pay package, analysts believe he would have a hard time turning around things at the company amid rising competition from other EV makers. Tesla’s latest announcement of cheap models shows the company is losing pricing power amid intense competition. Cheaper models are also expected to negatively impact its auto margins.
Rowan Street Capital stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its third quarter 2025 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) is our newest idea, which we’ll discuss in detail later in the letter. Since initiating the position earlier this year, it has appreciated roughly 76%. While we’ve only owned it for seven months and it’s too early to determine what kind of IRR it w ultimately deliver, Tesla embodies exactly the type of founder-led, competitively advantaged business we aim to own for many years.
In 2025, we made just one new investment — Tesla — during a period of widespread pessimism. Back in March and April, sentiment around the company and its CEO was near rock bottom. Headlines were dominated by controversy, and investors were fleeing what they perceived as chaos. We saw an opportunity…” (Click here to read the full text)
