The artificial intelligence startup that sparked the AI arms race is nearing its third birthday, and it doesn’t seem that its hype is going to die down any time soon. No longer just a tool for mere conversation, the AI chatbot is finding new uses.
Reports indicate that at least one in 10 retail investors are now using it to pick stocks, reshaping how investors once approached the markets. This is in turn sparking a robo-advisory market boom, even though many still consider it to be a high-risk strategy.
Data analysis firm Research and Markets has revealed how the robo-advisory market is forecast to grow to $470.91 billion in revenues in 2029 from $61.75 billion last year, an estimated 600% increase.
“AI models can be brilliant. The risk comes when people treat generic models like ChatGPT or Gemini as crystal balls.”
-Dan Moczulski, UK managing director at eToro.
Moczulski, however, advises against the use of generic chatbots.
“General AI models can misquote figures and dates, lean too hard on a pre-established narrative, and overly rely on past price action to attempt to predict the future”.
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).
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10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 Buzzing AI Stocks on Wall Street. On September 26, Wells Fargo reiterated the stock as “Overweight” stating that the stock remains well positioned. The firm holds a $170 price target on the stock.
“While the future state of AI remains uncertain, we believe CRWV is set to benefit in the near term as the leading ‘pick-and-shovel’ infrastructure play, while demand continues to outpace supply.”
Previously, analysts led by Michael Turrin noted that even though the rest of software is still waiting for AI monetization to surface, CRWV is benefiting from the elevated build cycle today & persistent industry shortages into 2026.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 57
Ciena Corporation (NYSE:CIEN) is one of the 10 Buzzing AI Stocks on Wall Street. On September 26, Rosenblatt upgrades Ciena to “Buy” from Neutral stating that the data networking company is “exceptionally good.” It holds a price target of $175, up from $127.50.
“We are upgrading CIEN to Buy on the Scale Across opportunity to network multiple AI Data Centers into clusters.”
The firm stated that CIEN has an opportunity to network multiple artificial intelligence data centers into clusters. It has won a similar deal with a hyperscaler with an estimated $200M revenue opportunity and is just getting started.
The firm also pointed to potential upside from the company’s expansion into data center infrastructure and components.
“We are upgrading CIEN to Buy on the Scale Across opportunity to network multiple AI Data Centers into clusters. So far, Ciena has won one such deal with a Hyper Scaler to connect two 100,000 GPU Data Centers 100km apart using WaveLogic 6 Nano 800G ZR pluggables. This customer is installing 20 petabytes of capacity, and is driving Ciena’s development of multi-rail amplifiers that dramatically reduce the space (-98%) and power (-30%) of amplifier huts when hundreds of fiber pairs are simultaneously lit. We estimate the revenues for this deal to be ~$200mn including 800G ZR and ZR+ pluggables and common equipment like amplifiers. We believe the scale across opportunity is just getting started, and Ciena is likely to win many more deals to interconnect Data Centers into clusters using pluggables or embedded DWDM depending on distance and performance requirements.”
Ciena Corporation (NYSE:CIEN) is a leading provider of networking systems and software.
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