According to a report by CNBC, the United States and the United Arab Emirates are seemingly a match made in heaven. While the United Arab Emirates is striving to establish supremacy in the AI race, the United States wishes its big tech firms to dominate the global AI arms race.
The alliance is being hailed as a perfect match, considering both parties have just enough to provide the other. While the US supplies the world’s most advanced AI chips to the UAE, the UAE boasts its vast reserves of energy to power data centers.
READ ALSO: 10 AI Stocks Gaining Wall Street’s Attention and 10 AI Stocks on Wall Street’s Radar.
No wonder Abu Dhabi embraced Trump during his recent visit, with both nations finalizing hundreds of billions of dollars in artificial intelligence investments.
“Energy‑rich Gulf nations join the roster of trusted partners just as U.S. data‑center grids hit their physical limits” At the same time, “the UAE gains access to advanced compute and talent, helping it pursue its own sovereign AI goals. The Middle East, flush with cheap energy and capital, is poised to become the next regional AI hub.”
-Myron Xie, an analyst at SemiAnalysis, told CNBC.
Some of the big Abu Dhabi deals made recently include OpenAI, Oracle, Nvidia, and Cisco Systems announcing they will help build Stargate UAE AI campus, anticipated to launch in 2026. OpenAI announced the Stargate Project in January in partnership with Abu Dhabi investment firm MGX and Japan’s SoftBank. The Stargate Project is a $500 billion private sector AI-focused investment vehicle.
Speaking of the alliance, Mohammed Soliman, senior fellow at the Middle East Institute in Washington, DC, has noted how “compute, not crude, is going to be the central pillar of the U.S.-Gulf relationship.”
“Moving forward, it’s no longer going to be only about energy policy; it is going to be about compute and how we and the Gulf are building an AI ecosystem that’s able to service third markets, emerging markets.”
As Daniel Newman, CEO of Futurum Group, told CNBC, “The race is on to diffuse U.S.-based AI into every part of the world.” That said, the US and UAE are not just partners, but co-architects of a global AI order.
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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12. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 23
On May 28, Wolfe Research downgraded Informatica Inc. (NYSE:INFA) from “Outperform” to Peer Perform without a price target. Informatica is a leader in enterprise AI-powered cloud data management. The rating downgrade follows news that the company has entered into a definitive agreement to be acquired by Salesforce for $8B in equity value, or $25 per share.
According to the firm, the acquisition news is already reflected in Informatica’s current stock price, so there is limited upside potential for the stock. Even though the acquisition by Salesforce is a positive move for Informatica’s shareholders, its stock value will be negatively impacted if the acquisition fails to materialize.
This implies that the acquisition is a major factor in Informatica’s current market performance and investor expectations. As the acquisition date moves closer, investors will be closely watching the stock for any developments that could have an impact on the deal’s completion.
11. Box, Inc. (NYSE:BOX)
Number of Hedge Fund Holders: 32
On May 28, JPMorgan has increased its price target for Box, Inc. (NYSE:BOX) from $37 to $39 while maintaining an “Overweight” rating on the company’s shares. Box, Inc. (NYSE:BOX) develops intelligent content cloud software.
Analyst Pinjalim Bora noted how Box has had a robust start to the year, but also indicated that its guidance integrates a degree of conservatism, positioning the company well in the current market environment.
Box’s reported performance demonstrated calculated billings growth of 27% year-over-year (y/y) in USD, topping the consensus estimate of 13% y/y growth. While some of this growth benefited from early renewals despite normalizing, the figures exceeded guidance. The company attributed the growth to strong demand for Box’s Enterprise Advanced SKU and AI offerings.
The firm also noted how Box has had many positive indicators. For instance, revenue for the quarter was said to be in line with expectations, while pro forma earnings per share (PF EPS) beat forecasts.
Nevertheless, the company management has cautioned about its second-half guidance owing to macroeconomic uncertainties. For this reason, it has adjusted its billings growth outlook in CC but maintained its revenue growth forecast.
The analyst further highlighted the successful adoption of Box’s bundled offerings and the potential for AI to generate significant consumption-based revenue when discussing its first quarter. The lowered billings growth guidance for the fiscal year was seen as the only concern, which may have investors questioning demand in the second half.
Overall, JPMorgan maintains a positive medium-term outlook on Box, noting its position in the industry, particularly with the introduction of Agentic AI.
10. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 47
On May 28, BofA reduced its price target for HP Inc. (NYSE:HPQ) from $35 to $33 while maintaining a “Neutral” rating on the stock. HP Inc. is a technology company that specializes in personal computing and printing solutions.
The firm’s rating was issued before the earnings report scheduled for May 28. The firm adjusted its expectations for the fiscal year 2025. While it originally expected that personal systems revenue would be more heavily weighted towards the second half, it now forecasts a more even distribution throughout the year due to tariffs-related demand shifts.
The firm also noted how tariff impacts are a risk to HPQ’s fiscal guidance unless it resorts to further cost-saving measures. Currently, the firm forecasts fiscal second-quarter earnings per share (EPS) at $0.78. This is slightly below the Street’s consensus of $0.81.
The firm is of the belief that EPS growth for the company will likely be from share repurchases, which has led to a neutral rating toward the stock.
9. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 52
On May 28, Elastic N.V. (NYSE:ESTC) announced a five-year strategic collaboration agreement (SCA) with Amazon Web Services (AWS) to accelerate artificial intelligence innovation. Elastic N.V. is a search AI company offering cloud-based solutions.
The collaboration will allow organizations to streamline their transitions into AI-native enterprises via joint product integrations and go-to-market (GTM) initiatives. This will allow customers to build generative AI-based applications faster while reducing intricacies.
By integrating Elastic’s Search AI Platform with AWS services, customers will be able to build intelligent, scalable, and secure applications by using generative AI features through Amazon Bedrock, migrating Elastic Search workloads to Elastic Cloud and AWS, saving costs, accelerating AI development, and ensuring strong data regulation.
“As the speed of generative AI adoption accelerates, search has become increasingly relevant. Our collaboration with AWS and integration with Amazon Bedrock brings the power of search directly to generative AI for a host of use cases, including cybersecurity and observability. Together, we’re enabling developers to build intelligent, context-aware applications that leverage their own data securely and at scale.”
-Ash Kulkarni, chief executive officer at Elastic.
8. Reddit Inc (NYSE:RDDT)
Number of Hedge Fund Holders: 72
On May 28, Redburn-Atlantic analyst James Cordwell reiterated a “Sell” rating on Reddit Inc (NYSE:RDDT) with a $75.00 price target. Reddit is a social media platform that leverages AI to strengthen search functionality and improve user engagement.
The firm’s rating reiteration follows concerns regarding the impact of Google’s latest AI advancements on the social media platform. Google’s aggressive rollout of AI Mode has led to a boost in AI-based search experiences. This is seen as a potential threat to Reddit’s user engagement and revenue growth.
The analysts further stated that improvements in the tariff situation may not be enough to counter the challenges of the evolving search landscape. This is why it is increasingly cautious about how AI-driven search experiences could present significant hurdles for Reddit. This is particularly true if the platform fails to effectively adapt to such changes.
“With Google’s aggressive rollout of AI Mode, the shift to AI-based search experiences appears to be accelerating. We believe this is a clear negative for Reddit, and while investor sentiment is increasingly aligning in relation to logged-out user growth, we fear there may also be underappreciated implications for logged-in users and revenue growth. With likely limited offsetting benefits from the seemingly improving tariff situation, we reiterate our Sell rating and $75 PT.”
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
On May 28, Redburn Atlantic initiated coverage on Marvell Technology, Inc. (NASDAQ:MRVL) with a “Neutral” rating and a price target of $67.00. Marvell engages in the development and production of semiconductors, focusing heavily on data centers.
Noting how Marvell and Broadcom are similar in terms of their ASICs exposure and networking capabilities, the analyst pointed out some concerns regarding Marvell’s potential involvement in future Amazon Web Services (AWS) Trainium chips.
Some of Marvell’s competitors, such as Alchip or AWS’s own Annapurna Labs, may play a more significant part in AWS’s accelerated ASICs in the future. If the said competitors take up a larger share of the work on AWS’s projects, it will impact Marvell’s business with AWS.
Marvell’s stock price has declined nearly 50% in 2025 due to an approximate 16% reduction in the company’s three-year forward GAAP earnings per share (EPS). Nevertheless, analysts are of the belief that Marvell will return to profitability this year with projected EPS of $2.83 for FY2026.
All in all, the firm’s Neutral rating reflects a wait-and-see approach, with investors closely watching Marvell’s developments, especially with respect to its collaboration with AWS and its positioning against competitors in the ASICs market.
6. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 75
On May 28, Redburn Atlantic Equities analyst Mike Harrison initiated Arista Networks Inc (NYSE:ANET) as “Buy” with a price target of $112.00. Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions. Initiating Broadcom with a buy as well, the firm said both stocks are “our preferred” artificial intelligence data center plays.
“We initiate coverage with Buys on Broadcom and Arista.”
The analyst told investors in a research note how Arista’s networking products are “significant beneficiaries” of both larger generative artificial intelligence cluster sizes and the transition toward Ethernet for back-end networks. The firm further said that the competitive advantage lies in the Extensible Operating System, its network operating system.
The EOS is hailed for its advanced load-balancing capabilities and real-time telemetry that in turn, leads to heightened network efficiency. It has also helped drive impressive financial results for Arista.
“However, since this implies that Arista is exposed to both internal and external workloads at hyperscalers, there is plausibly greater exposure to near-term cyclical headwinds within Arista’s GenAI revenue streams than Broadcom’s.” the analyst warns.
Besides the EOS, the firm also pointed out Arista’s Cognitive Adjacencies division, which is a division known for its capacity to meet AI-driven demand across both public and private cloud environments. All in all, the firm believes that Arista Networks is well-equipped to steer through the evolving technological landscape, especially artificial intelligence.
5. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
On May 28, Redburn-Atlantic began coverage on Broadcom Inc. (NASDAQ:AVGO) with a “Buy” rating and set a price target of $301. Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
Redburn analyst Mike Harrison highlighted Broadcom as a leading ASIC co-partner with a strong customer pipeline. The company boasts a noteworthy presence in AI data centers, with the recent acquisition of VMware seen as a strategic move that strengthens its offerings in cloud and AI-related services. It also boosts its position in the private cloud market, particularly for Generation AI technologies.
The firm forecasts Broadcom’s revenue to be 6% above consensus estimates, driven by the company’s strong market positioning and anticipated growth in the coming years. The company has demonstrated an impressive 40.3% revenue growth in the past twelve months and impressive gross profit margins of 76.3%.
Overall, the firm views significant upside potential for Broadcom’s stock.
“Broadcom is arguably the pre-eminent ASICs co-partner with a strong pipeline of future customers.”
-Harrison said in the note, directing to its involvement across multiple GenAI silicon programs, including with Meta, Apple, and OpenAI.
“We think that consensus is not giving Broadcom sufficient credit for the strength of its ASICs pipeline,” the analyst added.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
One of the most notable analyst calls on Wednesday, May 28, was for Apple Inc. (NASDAQ:AAPL). Apple is a technology company known for its consumer electronics, particularly the iPhones and MacBooks. UBS analyst David Vogt reiterated a Neutral rating on the stock with a $210.00 price target.
The firm’s checks show an “uptick” in foot traffic following the tariff announcements. While Apple’s management mentioned in their earnings calls that they didn’t observe any significant pre-buying activity in March, Vogt highlighted how Counterpoint’s sell-through data indicated otherwise. The data revealed that there was significant pre-buying activity of iPhones in anticipation of tariffs.
The sell-through data further reported that iPhone unit sales in China were nearly 4% lower year-over-year in April. On the other hand, sales in the United States saw an 18% increase, whereas Europe experienced a 5% rise, and the rest of the world, except for China, relished a roughly 25% surge in sales.
“Following the announcements of US imposed tariffs across China and Southeast Asia in early April, anecdotal iPhone checks indicated an uptick in foot traffic in Apple stores and other smartphone point of sale outlets like Best Buy and telecom operator stores.”
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
On May 28, Morgan Stanley analyst Keith Weiss reiterated an “Overweight” rating on Salesforce, Inc. (NYSE:CRM) with a $393.00 price target. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
According to the firm, the company’s recent acquisition of Informatica may not have been what the market expected, but its terms are seen as favorable. It announced the agreement to acquire Informatica for an estimated $8 billion in equity value.
The firm discussed concerns about Informatica’s legacy, particularly on-premise data assets, which may not match with investor expectations for Salesforce’s growth vision. In other words, there are fears that Informatica might not be a good strategic fit, but the firm believes that the terms of the deal are advantageous.
Moreover, Informatica’s strengths in handling, organizing, and securing data may help boost Salesforce’s Data Cloud and allow its AI tool, Agentforce, to work better. It also believes that the move will help Salesforce improve its operating margins, earnings per share (EPS), and FCF in FY28 (CY27) driven by substantial cost synergies.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
On May 29, Summit Insights upgraded NVIDIA Corporation (NASDAQ:NVDA) to “Buy” from Hold following its Q1 results and guidance. NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
The AI-darling reported revenue of $44.1 billion for the quarter, surpassing analyst estimates of $43.3 billion, as per data compiled by Bloomberg. The company reported $26 billion in the same period last year.
Meanwhile, adjusted earnings per share, excluding the charge for the H20 chips, were $0.96. EPS topped estimates of $0.93 and exceeded earnings per share of $0.61 from last year.
The company reported that it anticipates an estimated $45 billion in sales in the current quarter, as compared to LSEG’s estimates of $45.9 billion of sales in the July quarter. It also said its guidance would have been about $8 billion higher except for lost sales from the recent export restriction on its H20 chips.
Summit Insights upgraded Nvidia following the earnings report. The analyst told investors in a research note that major overhangs, such as the risk of double-ordering on its Hopper generation AI GPU and the risk of China export controls, are now priced into the stock.
The firm also believes that the data center capital spending for the training market will remain robust and benefit Nvidia AI GPU and data center networking businesses.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $160 implies an 18% upside, however, the Street-high target of $235 implies an upside of 75%.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On Wednesday, May 28, Bank of America reiterated Microsoft Corporation (NASDAQ:MSFT) as “Buy.” The firm said that Microsoft is a winner in the small-to-mid-size software business market.
“We highlight Microsoft, Intuit and HubSpot as key winners in SMB [small and mid size business] software, addressing large markets, with formidable advantages stemming from large installed bases, product depth/breadth and robust sales channels.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $505 implies a 10% upside, however, the Street-high target of $650 implies an upside of 41.87%.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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