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10 Trending AI Stocks in Focus This Week

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Wall Street’s major hedge funds, Bridgewater Associates, Tiger Global Management and Discovery Capital, have all poured in billions in Big Tech in the second quarter to capitalize on the surge in artificial intelligence.

Bloomberg data reveals how hedge fund holdings of Microsoft grew by US$12bn to US$47bn by the end of June. The increased holdings now make it the most valuable overall position at US$46.83bn.

Another report from Reuters reveals Bridgewater Associates more than doubled its Nvidia stake, finishing the quarter with 7.23m shares worth US$1.14bn.

Hedge funds have been cutting back their exposure to industry laggards in the June quarter in a move to transition back to momentum investing. Undoubtedly, the S&P 500 is up 10% so far this year, lifted mostly by the largest tech companies.

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).

An employee at their desk surrounded by financial documents and a laptop analyzing the stock market.

10. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 42

Arm Holdings plc (NASDAQ:ARM) is one of the 10 Trending AI Stocks in Focus This Week. On August 18, Reuters reported that Arm Holdings has hired Amazon’s artificial intelligence chip director Rami Sinno to help develop its own complete chips.

Sinno has previously developed Amazon’s homegrown AI chips called Trainium and Inferentia that build and run large AI applications. While Arm hasn’t delved into the chip-making business previously, it has been involved in designing the core architecture and instruction set for processors that it sells to customers.

The company is now looking into expansion beyond the supply of crucial chip intellectual property to developing its own complete designs. Back in July, Arm had disclosed plans to devote a percentage of its profit into building its own chips and other components. CEO Rene Haas had also hinted at the possibility of moving beyond designs and building chiplets.

Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products.

9. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 57

International Business Machines Corporation (NYSE:IBM) is one of the 10 Trending AI Stocks in Focus This Week. On August 18, IBM and the United States Tennis Association (USTA) announced a new lineup of AI-powered digital experiences at USOpen.org and the US Open app for this year’s tournament.

The AI-powered digital experiences will allow fans to enjoy two weeks of customized, nonstop coverage. The first co-creation is Match Chat, an interactive AI assistant which will be available during and after all 254 singles matches. Match Chat, built with IBM watsonx Orchestrate technologies, responds to pre-written prompts or questions on topics such as player stats, head-to-head records, match insights and more.

Next, the IBM SlamTracker enables fans to see live Likelihood to Win probabilities for every singles match. The tool is based on AI-powered analysis of player statistics, expert opinion and match momentum, changing as the match goes on.

Fans can also enjoy AI-generated audio and subtitles in English for highlight videos with AI Commentary. Finally, Key Points built with watsonx offers three-bullet summaries of articles, tournament data and match analysis on the US Open app and website.

“As fan engagement and content consumption habits evolve, IBM and the USTA are at the cutting edge – leveraging data and AI to create unique digital experiences that bring the excitement of the US Open to life for audiences around the world. We’re applying the same powerful technologies that we use with client partners across all industries to meet the demands of tennis fans, deepening the connection to the players and game we all love.”

-Jonathan Adashek, Senior Vice President, Marketing and Communications, IBM.

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.

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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.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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Regular price $9.99/mo. Cancel anytime.