In this article, we will take a detailed look at the 10 Stocks Everyone’s Talking About As AI Investments Continue.
Are we in an AI bubble or not? That’s the question currently taking over Wall Street as analysts weigh the latest deals led by OpenAI and Nvidia and try to make sense of the numbers. Ohsung Kwon from Wells Fargo Securities said in a latest program on CNBC that he does not think we are currently in an AI bubble, and believes that third-quarter earnings could be better than many expect. Here is what the analyst said:
“We’re forecasting about a 4% beat for the upcoming earnings season. So we came up with a pretty interesting model. We essentially looked through all the macro variables that we could find—about 350 macro variables. And we went through this machine learning process to figure out where the sales could be. And it’s still pointing to a pretty decent beat. So we’re forecasting about a 4% beat led by AI semis.”
The analyst said that the real impact of President Donald Trump’s tariffs is expected in the fourth quarter. Kwon said he’s not excited about “anything” outside of AI.
“Now that we are in an easing cycle officially, we’re essentially selling the news and rotating back into AI. I think outside of AI, I’m not really excited about anything, right. For broadening, for sustained broadening, I think the PMI, the manufacturing PMI, has to go above 50,” he said.
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For this article, we picked 10 stocks currently on Wall Street’s radar. With each stock, we have mentioned its hedge fund sentiment. 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).
10. Bitmine Immersion Technologies Inc (NYSEAMERICAN:BMNR)
Number of Hedge Fund Investors: 2
Bryn Talkington from CNBC Investment Committee recently recommended blockchain and digital asset mining company Bitmine Immersion Technologies Inc (NYSEAMERICAN: BMNR). Here is what the analyst said:
“BMNR, take advantage of the volatility. You can buy it today, then sell the November 80 calls and get six dollars and ten cents.”
9. Snap Inc (NYSE:SNAP)
Number of Hedge Fund Investors: 35
Richard Greenfield, partner at LightShed Partners, said in a recent program on CNBC that Snap Inc (NYSE:SNAP) latest stock rally was probably because of market expectations that if TikTok is forced to launch a completely new app for US users, it would positively impact Snapchat. The analyst said Snapchat CEO Evan Spiegel is not a “seller,” adding that he does not believe the executive would be interested in selling the company.
“TikTok’s going to have to roll out a new app. Everyone, you know, again, according to press reports, and I realize China hasn’t finalized this, but assuming it’s true, you’re going to need a new app. Is it going to function as well? Like, is this going to be the same Tik Tok experience that has been so successful? I mean that could be an answer too, is just maybe hope that in Tik Tok’s shift to the US or shift to this new experience it helps Snap because remember Snap’s ad revenue growth has been low single digits, dramatically below the peer group over the last several quarters.”
RiverPark Large Growth Fund stated the following regarding Snap Inc. (NYSE:SNAP) in its Q3 2024 investor letter:
“Snap Inc. (NYSE:SNAP): SNAP was a top detractor in the third quarter following a second quarter earnings report that fell short of high expectations. While the company reported strong Daily Active User (DAU) growth (432 million +10% year-over-year) and time spent watching content on the app (+25% year-over-year), revenue of $1.24 billion was below the midpoint of the company’s guidance and slightly below investor expectations. Management pointed to weakness in their Brand Advertising vertical, specifically highlighting demand for retail, technology, and entertainment advertising for slowing through the quarter. SNAP did exceed EBITDA expectations by $15 million due to better operating leverage, but guided third quarter EBITDA below expectations as the company plans to make some targeted investments around AI infrastructure.
We believe that improvements in SNAP’s ad platform and continued growth in DAU should lead to continued acceleration in revenue growth over the next several quarters and years. With 2023 revenue of $4.6 billion (as compared with Meta’s $134 billion), we believe SNAP has a long runway for both revenue growth and expanded profitability.”
8. Spotify Technology (NYSE:SPOT)
Number of Hedge Fund Investors: 111
LikeFolio’s Landon Swan said in a recent program on Schwab Network that he likes Spotify Technology (NYSE:SPOT) because of the company’s expansion. He believes the company is dominating Apple Music.
“I mean, it’s clearly the leader. It’s taking over and, you know, it’s doing something a lot of people didn’t think a company like it could do, and it’s beating the big boy at his game, right? Apple Music is just being dominated by Spotify Technology SA (NYSE:SPOT). They just have, you know, they built a better mousetrap, frankly. I mean, their product is just much better. And so, you know, with this run from 340 a year ago to 740 now, they’re demonstrating their dominance through that better software. And what we’re seeing now is a continued expansion of that lead. So right now, Spotify Technology SA (NYSE:SPOT) commands about a 72% mind share, where people are talking about it or using it. That lead is expanding. As you can see here, they’re plus 6% on a year-over-year basis. Now Apple Music is growing as well. Sirius and Pandora are continuing their decline; they’re going to be irrelevant soon. But Spotify Technology SA (NYSE:SPOT) is expanding more. Apple’s still growing, but not as quickly as Spotify. So they’re going to hold on to that 72% lead and continue to expand it.”
Lakehouse Global Growth Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its second quarter 2025 investor letter:
“Finally, in third place was Spotify Technology S.A. (NYSE:SPOT), the world’s leading audio streaming platform. It’s a company we’ve long admired for its product leadership, and more recently, for demonstrating an ability to convert that product leadership into solid economics for shareholders. In 2024, Spotify grew revenue by 18% to €15.7 billion, turned a €311 million operating loss to a €1.4 billion operating profit, and more than tripled free cash flow from €678 million to €2.3 billion. The operational performance was impressive, but the share price moved even faster, rising more than fivefold from its November 2022 lows.
As Spotify’s valuation increased, we gradually reduced our exposure over the course of the year as the risk/reward became less attractive. The strong fourth-quarter result, particularly in user and subscriber growth, stretched the valuation even further and ultimately prompted our decision to fully exit. Whilst we generally dislike selling on valuation grounds alone, when things do get stretched well past their norms and to levels where the return profile no longer offers the asymmetric upside that led us to invest in the first place, we won’t hesitate to move on. Hence, we completed our exit earlier this year and redeployed the capital to other ideas with more attractive setups.”
7. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 115
Jeff deGraaf, Renaissance Macro head of technical research, said in a recent program on CNBC that Tesla Inc (NASDAQ:TSLA) shares have gained momentum and the stock can “breakout.”
“It looks like a great breakout to me. It’s got a lot of momentum. It really has been consolidating for about four months. You had the big momentum surge off the lows in April with a lot of names, obviously, and it’s been kind of dead money here for several months. Now it’s really starting to add to that. So I think pretty easily this thing can trade back to the old highs. That’s a pretty good move from here, and I own it personally, so for full disclosure, but I think there’s a lot more to go here. So it’s a bullish setup.”
Baron Focused Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its second quarter 2025 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles (EVs), solar products, and energy storage solutions, while also developing advanced real-world AI technologies. Despite ongoing macroeconomic challenges and regulatory complexities, shares climbed after Tesla completed a limited commercial rollout of its highly anticipated robotaxi business in Austin—following more than a decade of development and billions of dollars in investment. This milestone signals a potentially transformative shift in the automotive industry and opens up a sizable new market beyond the company’s core operations. Investor sentiment also improved after Elon Musk stepped back from government-related engagements, boosting confidence in Tesla’s near-term execution. Tesla introduced a refreshed Model Y globally, featuring design and performance upgrades, and outlined plans to unveil new mass-market models starting next quarter. Meanwhile, the company is progressing toward scaling production of its humanoid robot, adding another dimension to its long-term growth story.”
6. Oracle Corp (NYSE:ORCL)
Number of Hedge Fund Investors: 124
Brent Thill from Jefferies recently said in a CNBC program that the timing of Oracle Corp (NYSE:ORCL) appointment of co-CEOs is right and the company is at the beginning of the AI wave. However, the analyst said having two CEOs usually doesn’t “work.”
“I think the real question becomes co-CEO roles don’t really work. Look at Salesforce, didn’t really work. Look at SAP, didn’t work. And so I think the real question investors are going to have, and you can hear them on the earnings call, they’re tripping over each other. You know, someone tries to talk and someone jumps in. I mean, you already see that just even in the conference.”
Thill, however, added that the two executives have different lines of expertise and overall, the appointments will be good for Oracle Corp (NYSE:ORCL).
“The team’s been together and they’ve been working together for well over a decade, all of them. So, this isn’t bringing someone new in and clearly I think the division lines of the CEOs are very different in terms of their focus areas. So, that’ll be good. While one’s clearly in one area of the kitchen, the other one’s in the other area. So, there shouldn’t be too much running into each other.”
Oracle shares recently fell after a report showed its Nvidia-related margins are not impressive. Why are some analysts reluctant about the Oracle-OpenAI deal? OpenAI is expected to burn about $115 billion over the next four years and is not projected to be profitable until 2030. Even after Nvidia’s latest $100 billion investment by Nvidia, OpenAI will likely need to raise over $200 billion in total funding to cover its commitments. Some analysts believe Oracle may need to borrow tens of billions to build enough data centers for the deal.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:
Software database company Oracle Corporation’s (NYSE:ORCL) quarterly results surprised to the upside, and the company ended the quarter by announcing a massive cloud deal that could generate up to $30 billion in annual revenue over the next few years. All in, shares re rated over 50% during the quarter. The company remains early in its accelerating growth inflection and is benefitting from a number of tailwinds across cloud, database and applications.
5. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 156
Erik Woodring, Morgan Stanley head of US technology hardware research, said in a recent program on CNBC that initial data on iPhone 17 pointed to a cycle that is better than expected, but not “robust.”
“I mean, I don’t want to get too far ahead of ourselves because we’re, you know, 10 days post pre-order period. But the early data points, when you piece them together, whether it’s from carriers, whether it’s from lead times, whether it’s from some of the supply chain, is all pointing to what I would call a cycle that is better than we expected. I wouldn’t call it robust. I think it’s too early to call it robust, but early indications are positive for the iPhone 17 across the entire family of devices.”
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:
“Finally, shares of technology bellwether Apple Inc. (NASDAQ:AAPL) underperformed the market and lost value as the company faced a classic innovator’s dilemma, which appeared all the more egregious as competitors embraced the AI opportunity. Apple has had a dominant market position in smartphones and services, but now more than ever, investors are questioning the future outlook for the company. Despite posting a negative absolute strategy return during the quarter, which weighed on absolute strategy returns, relative to Apple’s the company’s large position in the benchmark our underweight position proved to be a tailwind to relative results during the quarter.”
