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.
Source: Pexels
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)
4. Oracle Corp (NYSE:ORCL)
Number of Hedge Fund Investors: 124
Congressman Michael T. McCaul’s spouse bought Oracle Corp (NYSE:ORCL) shares worth between $1,000 and $1,5000 on Sept. 11, according to his disclosures made in October. The stock is down 15% since then. Congressman Cleo Fields bought Oracle shares with a total worth between $15,000 and $50,000 on Sept. 23.
Headwaters Capital Management stated the following regarding Oracle Corporation (NYSE:ORCL) in its third quarter 2025 investor letter:
“The catalyst for the September AI trade was Oracle Corporation’s (NYSE:ORCL) announcement of a 5-year contract with OpenAI for $300B (implying annual contract value of $60B) to host the company’s LLMs at Oracle data centers beginning in 2027. While the market has grown desensitized to these large headline numbers, it’s useful to step back and put these figures into context from the perspective of both the magnitude of spending and return on investment. It’s easiest to start with the amount of investment that five companies are collectively spending on AI. The table below outlines CAPEX spending by the five hyperscalers and compares it with the other 495 companies in the S&P 500. In 2026, these five hyperscaler companies are expected to spend $405B of CAPEX, nearly all of this related to AI infrastructure build.
In terms of the economics around this investment, details have emerged from the Oracle-OpenAI announcement that can help investors begin to untangle the economics of these contracts. It’s easiest to unpack this from the perspective of each of the players involved.
Committed to spending $60B annually with Oracle to host the Company’s LLMs. This annual expense represents the Company’s cost of goods sold for running LLMs. OpenAI is on track to generate $13B of revenue in 2025 (Source: Reuters and the Information). So just to cover the cost of operating their LLMs on this single contract, OpenAI needs revenue to grow 4.6x in 2 years, or a +115% CAGR over the next 2 years. This is a single contract for hosting services. OpenAI has numerous other hosting contracts, implying that the company needs revenue to significantly exceed $60B just to cover the company’s total cost of goods sold…” (Click here to read the full text)
3. Broadcom Inc (NASDAQ:AVGO)
Number of Hedge Fund Investors: 156
On Sept. 17, Congressman Cleo Fields bought Broadcom Inc (NASDAQ:AVGO) shares worth between $15,001 – $50,000. The semiconductor giant’s shares are up about 7% since then. According to disclosures made in October, US Representatives Ro Khanna and Michael T. McCaul also bought stakes in Broadcom Inc (NASDAQ:AVGO). The stock has gained 10% since these transactions.
Polen Focus Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its third quarter 2025 investor letter:
“In early August we initiated positions in both NVIDIA and Broadcom Inc. (NASDAQ:AVGO), after having not owned either company over the past 2½ years following the initial wave of enthusiasm around Gen AI. While we have long admired both companies, their highly cyclical business models have made it extremely difficult to forecast future earnings growth with any degree of conviction. Given our approach of seeking durable and persistent earnings growth that compounds over long holding periods, our concern in holding either was that we would be forced to endure a punishing downcycle within our typical holding period – there is very little room that in a concentrated portfolio of 20-30 companies. In fact, pre ChatGPT, NVIDIA had two punishing down cycles over the preceding five years.
That is specifically what has occurred for NVIDIA and Broadcom. While the sheer magnitude of demand for AI chips, servers and networking equipment was something that we clearly underappreciated, new incremental data points over the past few months lead us to conclude the current boom in AI chips and related hardware will likely continue for the foreseeable future giving us greater conviction over the trajectory of future earnings for both NVIDIA and Broadcom.
Broadcom is the other major player in the AI chip market, the number one provider of custom chips, and currently receives the majority of the remaining 10c of every dollar being spent by enterprises. As Gen AI use cases mature, and as inference workloads become a bigger piece of the compute pie, we expect that custom chips (and Broadcom’s in particular) will account for a larger share of the total market. …” (Click here to read the full text)
2. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 294
Congresswoman Marjorie Taylor Greene piled into Microsoft Corp (NASDAQ:MSFT) on Oct. 24 by acquiring a position worth between $1,001 – $15,000. US Representatives Ro Khanna and Gilbert Ray Cisneros, Jr. also bought Microsoft Corp (NASDAQ:MSFT) shares in September.
Wedgewood Partners stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its third quarter 2025 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) has also spent quite heavily on capex over the past several years, having stood up more than 2 gigawatts of data center capacity over the past 12 months alone, yet it has also produced very attractive cash low returns. It exited its fiscal 2025 with almost $370 billion in gross property plant and equipment and capitalized leases, up a remarkable $260 billion from fiscal 2020. Meanwhile, gross cash low grew from $60 billion a year in 2020 to more than $140 billion per year in 2025. When we add in the rest of the assets on Microsoft’s balance sheet, we calculate its gross cash lows to be a consistent returns on capital in the high 20s. That is an extraordinary attractive return for such massive amounts of investing.”
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 335
Congresswoman Marjorie Taylor Greene bought Amazon.com Inc (NASDAQ:AMZN) shares worth between $1,001 – $15,000 on Oct. 24. Amazon.com Inc (NASDAQ:AMZN) shares spiked after the company posted its latest quarterly results and crushed Wall Street’s concerns about its Cloud growth. AWS rose about 20% year over year in the recently reported quarter.
Mairs & Power Balanced Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2025 investor letter:
“The Fund also started a new position in Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, where the company is well positioned to continue capturing market share in retail while also growing its market leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an opportunity to build a position.”
While we acknowledge the potential of AMZN to grow, 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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