Business demand for artificial intelligence is on the rise, and Anthropic’s annualized revenue surge offers compelling proof of this very trend. According to several sources, the AI startup is making about $3 billion in annualized revenue, a significant jump from its $1 billion figure back in December 2024.
While the public has widely embraced OpenAI’s ChatGPT, enterprise adoption of generative AI remains cautious so far. However, Anthropic’s revenue figures demonstrate how this trend is slowly changing.
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Anthropic largely generates revenue from selling AI models as a service to other companies. Moreover, it is particularly famous for AI that excels at computer programming. As per a Reuters report, products in the so-called codegen space have been witnessing major growth and adoption in recent months, and are often found to be drawing on Anthropic’s models.
“We’ve looked at the IPOs of over 200 public software companies, and this growth rate has never happened.”
-Meritech General Partner Alex Clayton
OpenAI and Anthropic seem to be carving out different paths for themselves, with OpenAI choosing the path towards consumers while Anthropic leaning toward enterprise AI. OpenAI may be dominating in consumer adoption, but the latter is also rising in enterprise appeal.
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.
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10. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 18
On June 3rd, Northland analyst Michael Latimore reiterated a Market Perform rating on SoundHound AI, Inc. (NASDAQ:SOUN) with an $8.00 price target.
Analysts are optimistic about SoundHound AI’s long-term potential, particularly based on its goal to improve human-to-machine interactions and customer experiences. Its acquisition of conversational AI Company Amelia has been particularly helpful in reshaping its revenue profile and accelerating its expansion into the customer and employee service market.
60% of SoundHound’s revenue in the first quarter of 2025 is attributable to Amelia, leading to an impressive 101% year-over-year growth. The remaining revenue is estimated to come evenly from the restaurant and automotive sectors.
The analysts also highlighted SoundHound’s proprietary Voice AI platform, praised for its speed and accuracy in processing complex voice queries. Amelia integrates its software with enterprise IT systems, which helps to facilitate the adoption of virtual agents.
Analysts also pointed out that the management is optimistic about the second half of the year, anticipating significant growth backed by large Amelia software license deals and increased activity in the restaurant sector. As such, the company strives to return to pro forma organic growth by the third quarter and achieve positive EBITDA by the end of the year.
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
9. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 23
On June 3rd, Informatica Inc. (NYSE:INFA) announced new product innovations at Snowflake Summit, Snowflake’s annual user conference. The updates, including expansion of its support for Apache Iceberg, will allow joint customers to use both companies’ Generative AI (GenAI) technologies for building reliable and enterprise-level AI applications.
The company announced the general availability of new application integration capabilities for Snowflake Cortex AI. This includes new connectors for Cortex AI, Cortex Search, Cortex Analyst, and Cortex Agents, as well as simplified GenAI application creation and no-code development and deployment with Snowflake Cortex AI.
Informatica also announced that it is enhancing its Open Table Connector (Apache Iceberg) to support Apache Polaris. Scheduled for release in July 2025, the enhancement will allow loading data into Snowflake from over 300 sources using the Iceberg table format.
The company also announced the launch of its Master Data Management (MDM) SaaS Extension for the Snowflake AI Data Cloud. This will allow customers to consolidate master and transaction data across multiple sources, facilitating analytics and AI use cases.
“Informatica continues to be at the forefront of Generative AI and Apache Iceberg innovation with Snowflake enabling our joint customers to build for the future with a trusted, AI-ready data foundation. Today’s announcement underscores our relentless commitment to innovating and leading with Snowflake to deliver greater value for customers through deep product roadmap and partnership alignment.”
-Rik Tamm-Daniels, Group Vice President of Strategic Ecosystems and Technology at Informatica.
Informatica is a leader in enterprise AI-powered cloud data management.
8. Pegasystems Inc. (NASDAQ:PEGA)
Number of Hedge Fund Holders: 34
On June 3rd, Needham analyst Jack Andrews raised the price target on Pegasystems Inc. (NASDAQ:PEGA) to $112.00 (from $101.00) while maintaining a “Buy” rating.
Needham’s price target revision reflects Pegasystems’ strategic moves in the AI sector and its positive revenue outlook. Pega made several announcements during its PegaWorld conference and Investor Day. Not only did the company unveil new AI-related products, but it also adjusted its fiscal year 2025 revenue guidance by approximately 6% to $1.7 billion, a year-over-year growth of 13.6%.
A revenue beat in the first quarter and increased confidence in the company’s pipeline, despite broader economic challenges, have been attributed as drivers behind the upward revision. Based on this improved outlook, firm analysts also slightly increased their forecasts, also citing Pegasystems’ Blueprint initiative and successful partnerships with Global System Integrators (GSI) as reasons.
Owing to these factors, analysts expect more workloads over the coming years, leading to the rating update.
Pegasystems Inc. (NASDAQ:PEGA) develops, markets, licenses, hosts, and supports enterprise software.
7. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
On June 3rd, RBC Capital analyst Matthew Hedberg reiterated an Outperform rating on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) with a $500.00 price target.
Hedberg’s rating update follows Crowdstrike’s Q1 fiscal year 2026 earnings report, which demonstrated mixed results. Analysts noted how revenue was in line with the firm’s estimates and the midpoint of guidance, but slightly missed consensus expectations. However, non-GAAP net annual recurring revenue (NNARR) of $193.8 million exceeded consensus estimates.
Other key highlights from the earnings report include that total annual recurring revenue (ARR) reached $4,435.6 million, a 22% year-over-year increase. It also posted a 29.4% year-over-year revenue growth, with total revenue reaching $3.95 billion. Meanwhile, free cash flow stood at $279.4 million.
Crowdstrike’s management also highlighted several achievements from the quarter, including major deals and momentum with managed security service providers (MSSPs), a 97% gross retention rate, and significant advancements in areas such as artificial intelligence, next-generation security information and event management (SIEM), and cloud identity management.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
6. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 82
On June 3rd, Bernstein reiterated an “Outperform” rating on QUALCOMM Incorporated (NASDAQ:QCOM) with a $185 price target. Analyst Stacy Rasgon dubbed Qualcomm the “Rodney Dangerfield of semiconductor stocks,” referencing the comedian famous for saying he “gets no respect.”
Bernstein named Qualcomm a best idea, stating that the stock is “not the Qualcomm of old.”
“Indeed, the name has been the quintessential ‘Rodney Dangerfield’ of semiconductor stocks, garnering no respect regardless of the fundamentals. But this is no longer the Qualcomm of old. Smartphones have stabilized, and the company’s own revenue drivers are increasingly diversifying into other areas.”
The firm noted that while the loss of Apple as a customer has been a headwind for the stock, it has already been priced into the stock. The firm also projected a bottoming of the smartphone market, which could be a tailwind for the stock.
“AAPL headwinds are approaching but are known, the product portfolio is stronger than ever, option value exists, and the shares are very inexpensive.”
QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT devices, licenses patents, and invests in emerging industries worldwide.
5. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 83
On June 3rd, BofA Securities analyst Ross Fowler reiterated a “Buy” rating on Constellation Energy Corporation (NASDAQ:CEG) and increased the price target from $318.00 to $343.
The rating reaffirmation follows Constellation’s announcement of a 20-year Purchased Power Agreement (PPA) with Meta Platforms at its Clinton nuclear site. Constellation plans to increase the facility’s capacity by 30 megawatts, adding to its current nameplate of 1,121 megawatts.
The company also plans to extend the site’s early site permit or seek a new construction permit from the Nuclear Regulatory Commission (NRC). Further development at the site may include s Small Modular Reactor (SMR) or a large AP1000 type unit, aligning with previous management statements.
The firm has therefore updated its target as it adjusted EPS estimates to incorporate the PPA and also adjusted its nuclear multiple to 14 times, up from the previous 11 times, based on the increasing likelihood of datacenter deals. Due to increasing regulatory clarity and incremental deals, the firm is optimistic that more datacenter deals are on the horizon.
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.
4. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 94
On June 3rd, Snowflake Inc. (NYSE:SNOW) unveiled its next wave of compute innovations at its annual user conference, Snowflake Summit 2025. These innovations are designed to deliver faster performance, improved usability, and stronger price-performance value in the AI era.
The announcements include the general availability of its Standard Warehouse – Generation 2 (Gen2), an enhanced version of Snowflake’s virtual Standard Warehouse that promises to deliver 2.1x faster analytics performance and 1.9×2 faster analytics performance than Managed Spark.
It has also introduced Snowflake Adaptive Compute, which is now in private preview. The Adaptive Compute is a new compute service from Snowflake that improves resource management through automatic resource sizing and sharing.
“We’re reimagining what customers can expect from a modern data platform, delivering faster performance, easier scalability, and greater value for every dollar spent. Snowflake’s Gen2 more than doubles the speed of core analytics workloads, helping teams make quicker, data-driven decisions. Coupled with Adaptive Warehouses, we’re enabling customers with an easier, more efficient approach to platform management where resource decisions are automated and right-sized. This isn’t just about infrastructure improvements, it’s about preparing your business to innovate quickly in the fast-moving AI era.”
-Artin Avanes, Head of Core Data Platform, Snowflake.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 140
Cantor Fitzgerald initiates Salesforce, Inc. (NYSE:CRM) as “Overweight” with a $325 price target. Cantor Fitzgerald said Salesforce has a “large, attractive market.”
The firm is optimistic about the company’s growth prospects and financial performance, asserting that Salesforce is one of the highest-quality businesses within their coverage, albeit facing a slowdown in growth.
The company’s innovation, particularly its AI-powered Agentforce platform, is viewed as a key factor in maintaining its position as a leading CRM platform. Although Agentforce’s direct monetization may take time, its presence will help take care of potential disruptors.
Overall, the firm is quite confident in Salesforce’s ability to deliver favorable returns, which is why investors are advised to consider their rating.
“Ultimately, we think the CRM industry will be a beneficiary of AI. As a system of record for customer data, we think CRM data are critical to powering effective AI use-cases for businesses, placing CRM providers in a position of strength.”
Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
On June 3rd, Citi reiterated Broadcom Inc. (NASDAQ:AVGO) as “Overweight” and raised its price target on the stock to $276 from the previous $210 ahead of earnings on Thursday.
The reaffirmation from Citi reflects its continued confidence in Broadcom’s market position and growth prospects.
Broadcom is scheduled to announce its results for the second quarter of Fiscal 2025 on Thursday, June 5, after the market closes. The firm has highlighted artificial intelligence tailwinds for the stock.
“With its non-AI semi business down roughly 40% from the peak, we believe the business should recover from the current levels and offset most of the gross margin dilution from its AI business. We raise our estimates, reiterate our Buy rating on AVGO and raise our price target from $210 to $276.”
In other news, Seaport also reiterated Broadcom as “Buy,” stating that it’s sticking with the stock heading into earnings on Thursday.
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
On June 3rd, Jefferies added six new names to its list of “highest-conviction, Buy-rated” stocks, including chip giant NVIDIA Corporation (NASDAQ:NVDA).
The firm sees upside to the chipmaker’s full year 2025 guidance from its Blackwell Ultra chips and strength in networking.
“Ramp of Blackwell should push (gross margin %) to mid-70% throughout the year.”
The firm views Nvidia as a dominant supplier of AI accelerators within the data center, coming away impressed with the company’s quarterly results. The highlight was particularly its revenue projection that largely mirrored what analysts expected despite the impact from U.S. export curbs. This revenue optimism largely comes from the “massive step up” in AI commitments from Saudi Arabia and the United Arab Emirates.
“We view NVDA as the dominant supplier of AI accelerators within the data center, an industry that is expanding rapidly due to the development and adoption of AI.”
NVIDIA specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA as an investment, 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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