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10 Must-Watch AI Stocks for Investors

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This July, OpenAI hit it its first $1 billion revenue. However, even hitting revenue milestones isn’t helping the artificial intelligence startup tackle pressures from AI compute demands.

OpenAI finance chief Sarah Friar talks about these challenges.

“It is voracious right now for GPUs and for compute. The biggest thing we face is being constantly under compute. That’s why we launched Stargate. That’s why we’re doing the bigger builds.”

-Friar told CNBC’s Squawk Box

According to Friar, growing compute demands risk diversification and supply increase, which explains expanded builds with Oracle and Coreweave. She also mentioned that Microsoft is still, very much involved.

“Microsoft will be an important partner for years to come, and I think we are very intertwined because of our IP,” Firiar said. “Remember, Microsoft AI products are built on OpenAI technology.”

That said, OpenAI’s growth is accelerating at lightning pace, with CEO Sam Altman anticipating spending trillions on datacenters to meet demand.

“Our bet is, our demand is going to keep growing, our training needs are going to keep going, and we will spend maybe more aggressively than any company who’s ever spent on anything ahead of progress.”

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 Q1 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).

A team of professional financial investors in a modern office analyzing Investment opportunities.

10. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 45

Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the 10 Must-Watch AI Stocks for Investors. One of the biggest analyst calls on Wednesday, August 20, was for HPE. Evercore ISI added the stock to the “Tactical Outperform” list stating that it’s bullish ahead of earnings in early September.

The potential for upside is due to the recent uptick in networking spending.

“We believe HPE is well positioned to report upside to Jul-qtr expectations and guide the Oct-qtr above what current pro forma estimates reflect post Juniper close.”

The firm maintains an Outperform rating and $28 price target on the shares.

Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.

9. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 77

Palantir Technologies Inc. (NASDAQ:PLTR) is one the 10 Must-Watch AI Stocks for Investors. On August 19, Fujitsu announced signing of a new licensing agreement with Palantir Technologies Japan for the Palantir Artificial Intelligence Platform (Palantir AIP).

The agreement will allow Fujitsu to offer Palantir AIP, Palantir’s software program designed to integrate generative AI into business operations, to its customers in Japan with global expansion expected in fiscal 2025.

Fujitsu will also be combining Palantir AIP with Fujitsu Uvance, its business model that strives to solve societal issues, to simplify and facilitate business transformation for its customers.

This integration ensures unified support for generative and agentic AI tasks such as scenario simulation, root cause analysis, and proposal generation and business processes optimization. It also supports integration with Fujitsu’s AI services, enhancing Japanese language capabilities and industry-specific functionalities.

The two companies collaborated first back in 2020, with a major focus on data integration and digital transformation support in the Japanese market. The two then went on to sign an agreement in 2023 whereby Fujitsu received the right the market and distribute Palantir Foundry, a software platform for integrated management of large-scale data.

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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