Artificial intelligence is reshaping the job market in ways not seen or heard before. Right from creating new roles in AI development, data analysis, and related fields, it’s also accelerating the automation of routine tasks and leading to job displacement in certain sectors, necessitating workforce adaptation and reskilling.

According to McKinsey Research, corporate use cases of AI could result in an additional $4.4 trillion in productivity gains over the long run. While AI has enormous long-term potential, its immediate benefits are uncertain. Nevertheless, 92% of businesses intend to boost their investments in AI over the next three years.

A good chunk of the investment is going towards recruiting and poaching talent with advanced AI skills that could be of great benefit to the business. As businesses in almost every sector adapt their hiring processes to adopt the technology, data from job ads indicates that roughly one in four U.S. IT jobs listed are for workers with artificial intelligence expertise.

Similarly, AI accounted for 36% of IT positions listed in January in the information sector, including many tech companies making significant investments in AI development and deployment. Businesses in the professional services and financial sectors, including banks and consulting firms, seek IT personnel with experience developing or utilizing AI models and algorithms.

Open IT positions are becoming more and more AI-focused in sectors that comprise a smaller portion of the tech-hiring landscape. For instance, just a small percentage of healthcare job posts are tech-related, but the proportion of new tech positions in January that dealt with AI was almost double that of a few years prior.

According to Thomas Vick, senior regional director at recruiting company Robert Half, employers are mostly seeking someone with expertise or experience integrating AI into existing positions. Between the end of last year and the release of ChatGPT in the fourth quarter of 2022, new AI-related jobs increased by 68%, while tech postings decreased by 27%, affirming how advanced technology is changing the employment landscape.

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 in Q4 2024.

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).

11. National Grid plc (NYSE:NGG)

Number of Hedge Fund Holders: 17

National Grid plc (NYSE:NGG) transmits and distributes electricity and gas. The company’s corporate venture capital and innovation arm, National Grid Partners, announced on March 12 a commitment to invest $100 million in artificial intelligence startups. The investments will mostly focus on startups advancing the future of energy.

Additionally, the $100 million investment fund seeks to accelerate the development of an efficient, resilient, and dynamic grid that supports economic growth and helps ensure energy security. Amperon, a leading provider of AI-powered energy forecasting and analytics solutions, is one of the companies that has secured financing. The investment should accelerate Amperon’s plans to provide best-in-class AI-powered energy forecasting and market analytics to utilities, independent power producers, and energy market participants.

“Amperon’s AI-driven approach to forecasting is a perfect fit with our vision for a smarter, more resilient grid – and this marks the inaugural investment from our new, $100 million commitment to AI solutions advancing our energy system. We believe Amperon will play a vital role in scaling innovation across utilities, and we see significant potential for their AI-powered solutions to enhance grid operations in both the US and UK,” said Raghuram Madabushi, Investment Director at National Grid Partners.

10. Tempus AI, Inc. (NASDAQ:TEM)

Number of Hedge Fund Holders: 17

Tempus AI, Inc. (NASDAQ:TEM) is a technology company that leverages artificial intelligence (AI) and data to advance precision medicine. It offers AI-powered solutions that enable physicians to make real-time, data-driven decisions, deliver personalized patient care, and facilitate drug discovery and development. The company confirmed the acquisition of Deep 6 AI on March 11.

Acquiring a leading AI-powered precision research platform for healthcare organizations and life sciences companies should broaden Tempus AI, Inc.’s (NASDAQ:TEM) reach and enhance its ability to deploy critical healthcare applications. Deep 6 AI joins Tempus with AI-powered software that matches patients to clinical trials by mining real-time structured and unstructured electronic medical record (EMR) data across a broad ecosystem.

“Deep 6’s impressive integration infrastructure is well-suited to complement our connectivity efforts, which are central to our ability to support physicians in delivering optimized care for their patients,” said Eric Lefkofsky, Founder and CEO of Tempus. “This acquisition broadens our reach, adding even more providers to our platform, and enhances our ability to deploy critical applications like Next, which helps physicians close care gaps, and TIME, which helps patients find potentially lifesaving clinical trials.”

9. Ranpak Holdings Corp. (NYSE:PACK)

Number of Hedge Fund Holders: 22

Ranpak Holdings Corp. (NYSE:PACK) provides product protection solutions and end-of-line automation solutions for e-commerce and industrial supply chains. It offers protective packaging solutions, such as void-fill protective systems that convert paper to fill empty spaces in secondary packages. On March 12, the company unveiled three new innovative products for sustainable packaging.

Rabot is one product that features an advanced vision AI camera system with easy-to-use software. The product is designed to enhance pack station efficiency while also reducing waste and improving quality assurance. RanPack Holding has also unveiled PaperWrap, a sustainable wrapping solution that offers eco-friendly paper protection. Print is the company’s new on-demand printing solution for customizing parcels with branding.

8. BlackBerry Limited (NYSE:BB)

Number of Hedge Fund Holders: 23

BlackBerry Limited (NYSE:BB) is a software and security company that provides security solutions, secure communications, and software for embedded systems. Its QNX division specializes in operating systems for automotive and other embedded systems. On March 12, QNX unveiled a cutting-edge Functional Safety platform for advanced robotic systems.

The new platform’s built-in Intel Core i7 processors seek to meet the growing demand for integrated and safety solutions in AI-powered environments. It does so by enhancing computing power and virtualization for AI-driven vision systems and other essential robotic applications. It also combines robotic and safety controls onto single NexCOBOT boards to provide a way for manufacturers to achieve cost synergies and lower power consumption.

“Alongside QNX and NexCOBOT, we are focused on advancing this collaboration to deliver a solution designed to reduce development time, ease certification, and lower costs for manufacturers, making this an ideal choice for developing AI-driven robotic systems, including humanoids and autonomous mobile robots (AMRs) operating in unstructured environments,” said Ricky Watts, Senior Director of Federal and Industrial Solutions at Intel.

7. Kanzhun Limited (NASDAQ:BZ)

Number of Hedge Fund Holders: 29

Kanzhun Limited (NASDAQ:BZ) is an Internet Content & Information company operating the BOSS Zhipin platform. It offers online recruitment services in China and connects job seekers and enterprise users via a mobile app. It has also invested in AI, including purchasing GPUs and focusing on AI application agents. The company delivered robust Q4 and FY2024 results, on March 11, as profitability outpaced revenue growth.

For the full year, revenue was up 24% year-over-year to RMB7.336 billion as income from operations increased 41% to RMB2.32 billion. The strategic success of integrating AI elements into Kanzhun’s app has improved recruiter efficiency and job-seeker interaction. The platform’s value proposition was further improved with the addition of AI-driven interview coaching, which established Kanzhun Limited (NASDAQ:BZ) as a pioneer in using technology for hiring. Its Nanbeige recruitment-specific large language model positions it to strengthen its competitive edge in the online recruitment market.

“By integrating our proprietary model “Nanbeige”, the first recruitment-specific large language model, and the deployment of DeepSeek, we have successfully launched a series of AI powered products and solutions, including AI agent, for both job seekers and recruiters. These advancements position us at the vanguard of exploring frontier AI applications that are reshaping the future of online recruitment,” said Mr. Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer.

6. Ciena Corporation (NYSE:CIEN)

Number of Hedge Fund Holders: 52

Ciena Corporation (NYSE:CIEN) is a leading provider of optical and routing systems, services, and automation software, primarily focused on the telecommunication industry and large cloud service providers. It also leverages AI, particularly through Blue Planet and Navigator Network Control Suite, to transform customer support, network management, and service operations. The company delivered solid fiscal first quarter 2025 results on March 11 that underscored balanced growth and strong momentum as the company benefits from global investments in AI.

Ciena Corporation (NYSE:CIEN) logged a 2.9% year-over-year increase in revenue to $1.07 billion as it benefited from the recalibration of AI-driven network architecture deployments. Gross margin improved to 42.8% from 42% a year ago, which is attributed to better cost management. The company’s research and development efforts are already paying off, helping position it as a global leader in high-speed connectivity to address critical bottlenecks in AI infrastructure deployment.

5. Teradyne Inc. (NASDAQ:TER)

Number of Hedge Fund Holders: 61

Teradyne Inc. (NASDAQ:TER) is a technology company that designs, develops, and manufactures automated test equipment and advanced robotics systems, with a focus on semiconductor testing and industrial automation technologies. Its ATE solutions are crucial for ensuring the quality and performance of AI chips, which have complex architectures and require stringent testing. The company confirmed on March 11 that it had entered into an agreement to acquire privately held Quantifi Photonics.

The acquisition of Quantifi Photonics, a leader in photonic IC testing, should allow Teradyne to deliver scalable photonic integrated circuit POC test solutions. The integration focuses on using optical connectivity solutions to meet Cloud AI applications’ increasing bandwidth and power demands.

“The extraordinary growth and complexity driven by Cloud AI will require optical interconnect solutions to support the bandwidth and reduce the power required for next-generation networks,” said Teradyne CEO, Greg Smith. “We are thrilled to welcome the Quantifi Photonics team to Teradyne to accelerate the development of cost-effective, high-throughput test solutions for wafer-level, die/multi-die and co-packaged optical module testing.”

4. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 66

Hewlett Packard Enterprise Company (NYSE:HPE) is a communication company that provides technology solutions and services focused on helping organizations manage and leverage data, from the edge to the cloud, it also uses advanced algorithms and approaches to create AI solutions for unique business needs. On March 12, the company announced that Klein Computer System AG is deploying its HPE Private Cloud AI solution.

It is a major win for Hewlett Packard Enterprise Company (NYSE:HPE), given that HPE Private Cloud AI is designed to enhance customer service sales through the deployment of AI assistants and agents across various customer-facing activities. Developed in partnership with Nvidia, HPE Private Cloud AI was created to facilitate the quick and simple deployment of private AI applications, emphasizing inferencing, retrieval-augmented generation (RAG), and fine-tuning.

“Many companies treat AI as a means to increase productivity – but in reality it’s much more, it’s a transformational force which can bring their business to the next level,” said René Zierler, Managing Director Switzerland, Hewlett Packard Enterprise. “Wolfgang Klein is a true entrepreneur and visionary who recognized that HPE Private Cloud AI is a key to unlocking this potential quicker than others to achieve competitive edge. We are very happy to support Klein Computer System AG on this journey.”

3. Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders: 78

Arista Networks Inc (NYSE:ANET) is a computer hardware company that designs and sells high-performance network switches and software solutions, focusing on data-driven networking for data centers, cloud computing, and campus environments. It also focuses on AI networking by developing Etherlink AI Platforms for ultra-high-performance. On March 12, the company moved to maximize AI cluster performance and efficiency by introducing Cluster Load Balancing (CLB) in Arista EOS.

Cluster Load Balancing (CLB) in Arista EOS is designed to optimize artificial intelligence workload performance with low latency network flows. On the other hand, Arista CloudVision® Universal Network Observability™ (CV UNO™) offers AI job-centric observability for enhanced troubleshooting and rapid issue inference. The two innovations are poised to strengthen the company’s AI networking infrastructure market position. Additionally, the enhancements should differentiate Arista’s Etherlink AI platforms in the networking space.

“As Oracle continues to grow its AI infrastructure leveraging Arista switches, we see a need for advanced load balancing techniques to help avoid flow contentions and increase throughput in ML networks,” said Jag Brar, vice president and Distinguished Engineer, Oracle Cloud Infrastructure. “Arista’s Cluster Load Balancing feature helps do that.”

2. Accenture Plc (NYSE:ACN)

Number of Hedge Fund Holders: 79

Accenture Plc (NYSE:ACN) is an information technology service company specializing in consulting, technology, and outsourcing. It helps clients across various industries improve efficiency, adopt innovative technologies, and achieve digital transformation. It also assists businesses in leveraging AI and data for reinvention, offering AI services, solutions, and consulting. On March 11, the company confirmed it had reached an agreement to acquire Soben, a global provider of construction and consultancy services.

The acquisition strengthens Accenture Plc’s (NYSE:ACN) prospects of targeting opportunities in the data center construction consultancy market amid the artificial intelligence boom. Soben is a perfect fit as it works for leading global hyperscalers and co-location providers on major data centre construction. Consequently, it should benefit from the AI infrastructure build-out, which is expected to continue for years.

“The market for capital projects and especially data centers is growing rapidly, driven by ever-higher demand for cloud computing and AI and exponential data growth,” said Steve Roberts, senior managing director, Accenture Industry X. “Hyperscalers and co-location companies are under tremendous pressure to deliver on this demand. They need a provider that brings data center expertise plus proven capital projects experience, which is what the combination of Soben and Accenture, will stand for.”

1. Vertiv Holdings Co. (NYSE:VRT)

Number of Hedge Fund Holders: 92

Vertiv Holdings Co. (NYSE:VRT) is an electrical equipment and parts company that designs, manufactures, and services critical infrastructure technologies and solutions for data centers, including power, cooling, and IT infrastructure. The company strengthened its thermal management portfolio with the unveiling of Vertiv™ CoolLoop Trim Cooler on March 11.

The unveiling of the CoolLoop Trim Cooler represents a strategic expansion as Vertiv Holdings Co. (NYSE:VRT) targets high-growth AI infrastructure markets. The cooling system is designed to address cooling challenges in AI deployments. The 3MW cooling capacity specification is important because it will be able to support the next generation of AI clusters, which would need a much higher power density than what is currently available. Vertiv offers a mature solution to the market at a time when demand is increasing, and alternatives are becoming more and more available, as big cloud providers and AI startups compete to build out specialized infrastructure.

“AI is dramatically changing the cooling profiles of today’s data centres, requiring innovative approaches to managing the thermal challenges inherent in 100kW+ racks,” said Sam Bainborough, vice president of thermal business EMEA at Vertiv. “Today’s announcement, and the ongoing expansion of Vertiv’s industry-leading high-density thermal management portfolio, allows us to deliver pioneering, future-ready liquid cooling and chilled water solutions to meet our customers’ AI-driven demands.”

While we acknowledge the potential of Vertiv Holdings Co. (NYSE:VRT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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