As leaders of some of the biggest companies, economists and world leaders congregated at the 2025 Davos Promenade in Switzerland, artificial intelligence is one topic that featured prominently. It did not come as a surprise, given the AI boom has propelled the market caps of some companies, with some becoming trillion-dollar empires.

This year’s WEF covered both the risks associated with rapidly evolving systems and the latest developments in artificial intelligence. The focus was on current developments with AI agents and artificial general intelligence, or AGI, which describes AI systems that are more intelligent than humans. One thing that came out clear is that a majority of company executives, 58%, expect generative AI solutions to be adopted at scale this year.

However, even as AI continues to dominate most spaces, the question remains whether companies and businesses have the infrastructure and skills to get the most out of the revolutionary technology. “From boosting operational efficiency to delivering insights and discovering new opportunities, AI has the power to redefine how businesses operate. Yet, for many organizations, this potential remains out of reach “because the road to AI adoption is strewn with challenges that often derail success,” said Paul Pallath, vice president of applied AI at technology consulting firm Search.

Businesses must overcome these obstacles and lay a strong foundation for long-term AI integration if AI is to provide genuine value, according to Pallath. Developing a data infrastructure to support AI initiatives is one of the most difficult tasks.

According to an EY survey of 500 senior business executives in the United States last year, 83% of participants stated that having a more robust data infrastructure would speed up their company’s adoption of AI. Two-thirds acknowledged that a lack of infrastructure is hampering their companies’ adoption of AI.

The new US administration under Donald Trump has found an answer to the infrastructure concern that some people believe has hampered growth in the sector. A $500 billion Stargate project involving major tech companies could help accelerate the country’s AI infrastructure development.

“Infrastructure in the United States is super important, AI is a little bit different from other kinds of software in that it requires massive amounts of infrastructure, power, computer chips, data centers, and we need to build that here and we need to be able to have the best AI infrastructure in the world to be able to lead with the technology and the capabilities, “said OpenAI’s Sam Altman.

The Stargate project intends to immediately deploy the first $100 billion, beginning with a data centre in Abilene, Texas, that is 500,000 square feet in size. There are plans to build nine more facilities, with the possibility of expanding to twenty.

The $500 billion Stargate project comes when tech giants and startups are racing to gain a head start and strengthen their product portfolio around artificial intelligence. Funding to AI-related companies reached over $100 billion in 2024, up more than 80% from $55.6 billion in 2023. Amid the massive AI investment, investment opportunities are also cropping up in the equity markets.

Our Methodology

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.

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10. Wolfspeed, Inc. (NYSE:WOLF)

Number of Hedge Fund Holders: 26

Wolfspeed, Inc. (NYSE:WOLF) operates as a band gap semiconductor company focused on silicon carbide and gallium nitride (GaN) technologies. It offers silicon carbide and GaN materials, including silicon carbide bare wafers and GaN epitaxial layers on silicon carbide wafers. On January 22nd, Christopher Rolland of Susquehanna reiterated a Hold rating on the stock.

While Wolfspeed, Inc. (NYSE:WOLF) has been under pressure, its long-term prospects remain solid as the AI boom fuels demand for semiconductors. As a leading provider of silicon carbide products used in power applications, the company can benefit from the growing demand for components that enhance energy efficiency in data centres.

Last year, Wolfspeed, Inc. (NYSE:WOLF) secured $2.5 billion in government grants and private investments to expand its silicon carbide production capabilities in the US. The US Department of Commerce committed $750 million in funding to help strengthen the company’s semiconductor capabilities to reduce reliance on foreign supplies. A $750 million funding from private investors affirmed growing optimism about the company’s potential amid increasing demand for silicon carbide technology.

9. SAP SE (NYSE:SAP)

Number of Hedge Fund Holders: 36

SAP SE (NYSE:SAP) provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management. On January 23rd, analysts at Barclays increased the stock price target to $283 from $275 while maintaining an Overweight rating. The upgrade comes after a blockbuster year that saw the stock rally to all-time highs.

The rally came as investors reacted to SAP SE’s new artificial intelligence tools fuelling growth in cloud sales. SAP SE’s (NYSE:SAP) cloud revenue was up by 25% in the third quarter as SAP SE benefited from customers transitioning from locally installed legacy systems to AI-powered cloud offerings. CEO Christian Klein hopes to hasten the cloud migration by enhancing focus on the new AI-focused approach.

According to the CEO, they are making substantial progress because of the strong demand for business artificial intelligence solutions that are becoming a significant part of cloud deals. SAP SE (NYSE:SAP) has since raised its full-year cloud and software revenue by €400 million to between €29.5 billion to €29.8 billion.

8. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 52

Twilio Inc. (NYSE:TWLO) is a software infrastructure company that makes tools that enhance connections between customers and businesses. On January 23rd, the stock spiked by 14% after the company announced it is on course to achieve positive operating income for the first time. The milestone comes as the company integrates artificial intelligence into its products, eliciting strong demand.

The company’s projected revenue growth of 11% against the 8% expected marks an important milestone affirming growth acceleration from a 1% growth rate in the third quarter. The robust growth comes as Twilio’s artificial intelligence-powered tool is important in enabling innovative systems and autonomous agents. Twilio Inc. (NYSE:TWLO) has already inked strategic partnerships with Amazon and OpenAI as it continues to pursue growth in the communications and data market, which is expected to be worth $119 billion by 2028.

7. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 64

Palo Alto Networks, Inc. (NASDAQ:PANW), a leader in cybersecurity solutions, is pursuing growth opportunities around securing systems against quantum-enabled attacks. On January 22nd, the company released Quantum Random Number Generator (QRNG) Open API framework. The solution seeks to empower organizations to protect their systems against quantum security threats.

Developed in partnership with six innovators, QRNG affirms the convergence of artificial intelligence, machine learning and deep learning in quantum computing. The technology uses principles of quantum mechanics to create secure cryptographic keys, therefore helping global organizations prepare for quantum computing technology. On January 22nd, Bank of America reiterated that Palo Alto Networks, Inc. (NASDAQ:PANW) is well positioned to benefit from the robust growth being experienced in the global firewall market owing to its leadership with a 28.1% market share.

6. Snowflake Inc (NYSE:SNOW)

Number of Hedge Fund Holders: 71

Snowflake Inc (NYSE:SNOW) is a cloud-based data platform that offers a data cloud that enables customers to consolidate data to drive meaningful business insights. While the company has underperformed some of its peers amid the artificial intelligence frenzy, Wedbush analyst Dan Ives believes better things are on the way. On January 22nd, the analyst reiterated an Outperform rating on the stock and raised the price target to $210 in response to strong demand for the company’s product portfolio.

According to Ives, Snowflake Inc’s (NYSE:SNOW) product portfolio should continue seeing strong demand following the integrations of artificial intelligence and machine learning capabilities. The integration is part of the company’s bid to meet growing enterprise needs.

“SNOW is well-positioned to stabilize margins in the near-term as the company invests to capture the massive growth opportunity taking place in the market while its prudent cost approach assists with bottom-line expansion,” Ives wrote.

5. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 71

Datadog, Inc. (NASDAQ:DDOG) has established itself as a leading provider of cloud-based monitoring and analytics solutions in the observability market. Likewise, on January 22nd, Guggenheim analyst Howard Ma reiterated a Hold rating on the stock. The rating comes as the company has become a key player in cloud monitoring and analytics by integrating and automating infrastructure monitoring with artificial intelligence.

The launch of LLM Observability, a tool for managing and monitoring AI applications, is one of Datadog’s major efforts in this field. This product meets the increasing need for solutions capable of managing the intricacies of large language models and other AI systems. Datadog, Inc. (NASDAQ:DDOG) has also introduced Bits AI, a feature designed to expedite incident response and cleanup procedures. These AI-driven innovations are creating new market opportunities. With AI-related annual recurring revenue (ARR) rising to 6.0% of total ARR in the third quarter of 2024 from 4.0% in the previous quarter, analysts have observed that Datadog’s exposure to AI is starting to positively affect growth.

4. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 78

ServiceNow, Inc. (NYSE:NOW) is a cloud-based software company that provides a platform that automates IT processes, integrates with other enterprise software platforms and churns out analytics for informed decision-making. While the stock was up by 50% in 2024, it was up by 1.1% in 2025, attributed to strong earnings and upbeat guidance.

ServiceNow, Inc. (NYSE:NOW) has benefited from investor enthusiasm for artificial intelligence. JMP Securities raised its stock price target to $1300 on January 21st. They reiterated a Buy rating amid expectation that the company will benefit from increased spending on its Software Asset Management Pro and Hardware Asset Management Pro products.

CEO Bill McDermott has already stated ServiceNow, Inc. (NYSE:NOW) is well positioned to serve as the “control tower” for AI business transformation. Part of the Company’s strategy entails monetizing driven products. AI tools are now part of Service Now’s more expensive premium product bundles.

3. GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Holders: 89

GE Vernova Inc. (NYSE:GEV) operates nearly 55,000 wind turbines and 7,000 gas turbines, generating almost 25% of the world’s electricity. The company is leveraging AI to enhance operations and sustainability, launching Proficy for Sustainability Insights to help industrial facilities meet sustainability goals. They also introduced ThinkLabs AI, Inc., a startup focused on using AI for grid planning. These initiatives highlight GE Vernova’s commitment to integrating AI into their energy solutions.

On January 23rd, Truist Securities raised their price target for GE Vernova Inc. (NYSE:GEV) from $420.00 to $470.00 and reiterated a Buy rating, citing strong booking momentum and the company’s solid position in the energy transition sector. With a market cap of $117.73 billion and annual revenue of $34.94 billion, GE Vernova is a key player in this field. The growing focus on AI infrastructure, like the Stargate Project, is seen as a positive influence on the industry’s future.

2. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 91

Oracle Corporation (NYSE:ORCL) provides products and services addressing all corporate information technology environment aspects. On January 21st, Patrick Walravens from JMP Securities reiterated a Buy rating on the stock with a $205 price target. The bullish rating comes amid growing expectations that Oracle is one of the companies benefiting from the AI revolution.

On January 23rd, Oracle Corporation (NYSE:ORCL) announced plans to significantly increase its investment in Abu Dhabi due to rising demand for AI and cloud services in the UAE. The investment will grow fivefold, according to Nick Redshaw, Oracle’s senior VP for technology cloud and UAE country leader. Oracle operates two cloud regions in the UAE and plans to add 14 more globally, including a facility in Neom, Saudi Arabia. Additionally, Oracle will establish a sovereign cloud region in Bahrain and train 350,000 individuals across the Middle East in AI and cloud infrastructure.

Oracle Corporation (NYSE:ORCL) has launched AI Agents, and generative AI features in Oracle Fusion Cloud Sales to enhance engagement and streamline capabilities. Integrated with Oracle Fusion Cloud Customer Experience (CX), these tools help sales teams improve relationships, maintain records, and streamline communication. They also generate optimized emails and automate summaries and data entry. This move aims to strengthen Oracle’s workforce prospects by eliminating time-consuming tasks and attracting deals from sales teams seeking to boost productivity.

1. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 116

Salesforce, Inc. (NYSE:CRM) is a software application company that provides solutions for connecting businesses with customers. Its services include sales to store data, monitor leads and progress, forecast opportunities, and artificial intelligence. On January 23rd, the company’s CEO, Marc Benioff, affirmed they are on course to secure thousands of deals for the new artificial intelligence tool Agentforce.

The remarks at the World Economic Forum in Davos underline the growing momentum for artificial intelligence across sectors, on which Salesforce, Inc. (NYSE:CRM) is increasingly capitalizing. According to Benioff, the accelerated adoption of Agentforce affirms unparalleled growth for Salesforce. While the company’s sales were up by 8% in the third quarter to $9.4 billion, management is projecting revenues of $9.9 billion for the fourth quarter and earnings of $10.10 billion attributed to gains due to AI.

Agentforce is a perfect example of AI agent technology that is becoming increasingly popular. They are believed to be the next step or generation to Microsoft’s backed ChatGPT. On January 23rd, analysts at Bank of America reiterated that Agentforce has the potential to trigger the next phase of growth owing to a more favorable spending environment.

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Disclosure: None. This article was originally published at Insider Monkey.