Artificial intelligence businesses have taken Wall Street by storm in the past few months. One of the most notable success stories has been OpenAI, the AI startup that has become the most valuable private firm in the world with a valuation of over $157 billion. However, the company is facing multiple lawsuits regarding the use of data from news publications without attribution. After US-based The New York Times and the Chicago Tribune took the company to court, Indian news publication ANI has also alleged that the ChatGPT creator is using published content without permission to help train the AI chatbot to provide information to users.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Even as it faces these lawsuits, the company is blazing forward with plans to expand the use of the AI chatbot. Kevin Weil, the chief product officer of the company, recently announced on social media platform X that the firm is expanding the Advanced Voice Mode feature of ChatGPT to the web. This will let users talk to the AI chatbot right from their browser. However, the latest feature will only be available to Plus, Enterprise, Teams, or Edu subscribers, the paid members of ChatGPT. This feature is already available on the standalone applications of the product on popular mobile software platforms like Android and iOS.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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A data center filled with the latest servers and networking equipment representing the company’s cutting edge security infrastructure.
14. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. On November 19, investment advisory Northland released an investor note on the firm, referencing the appointment of BDO USA as an independent auditor, and noting the news was a decent first step to restoring investor confidence. The full report from the board’s Special Committee is still forthcoming, however, and actions taken from that report will be the biggest key to fully restoring investor confidence, argues the advisory, whose rating and estimates remain suspended until clarity on corporate governance remediation.
13. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. In a recent presentation to analysts, chipmaker NVIDIA referenced the importance of its Arm-based 72-core Grace CPU in terms of power efficiency. NVIDIA chips are some of the most efficient on the market as companies look towards efficient processors for their AI needs because power prices have surged on the back of AI data center build. The presentation was conducted by Chief Executive Jensen Huang and executive Ian Buck.
12. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT) provides cybersecurity and convergence of networking and security solutions worldwide. The Fortinet SecOps platform offers the broadest range of sensors that utilize AI and other advanced analytics to continuously assess cyberthreats. On November 19, Wedbush raised the price target on the stock to $105 from $90 and kept an Outperform rating on the shares after attending the company’s Analyst Day, where management provided 3- to 5-year financial targets along with updates to its highly anticipated product refresh cycle in 2026 and beyond. Fortinet anticipates that about 1/4 of its current installed base for firewalls will face end of service by the end of 2026 as the company anticipates customer engagement in early 2025, with the majority expected in the second half of 2025 as more enterprises seek vendor consolidation with security creating significant opportunities for cross and up-sell.
11. nVent Electric plc (NYSE:NVT)
Number of Hedge Fund Holders: 55
nVent Electric plc (NYSE:NVT) designs, manufactures, markets, installs, and services electrical connection and protection solutions. The firm is emerging as an important player in the AI space as it offers cooling solutions for data centers. On November 19, the company announced that it would be collaborating with chipmaker Nvidia to deploy liquid cooling solutions at scale supporting the GB200 NVL72 and next-generation platforms. The collaboration is expected to deliver cutting-edge, built-to-spec liquid cooling technology to enhance the performance and energy efficiency of data centers.
10. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. On November 18, the company announced that it would be expanding the AI solutions portfolio with the Dell AI Factory. Tech website TechZine reports that the majority of the innovations are centered around the foundation of the AI Factory, data storage and computing resources. This infrastructure is complemented by an open ecosystem of strategic partnerships with key players in the AI field, supported by Dell’s proprietary services.
9. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. On November 19, news publication The Wall Street Journal reported that US officials were racing to deliver manufacturing grants to Intel and other chip firms to complete a significant portion of a favored program before President Biden leaves office. Per the report, the Commerce Department has provisionally awarded most of the $39 billion of grant money allocated under 2022’s Chips Act to re-energize US chip production, but nearly $30 billion of the money is tied up in complex government negotiations. Intel was given the largest preliminary award, with up to $8.5 billion in grants for factory projects and up to $3 billion for defense-industry manufacturing facilities.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. After conquering the smartphone and personal computer markets, the chipmaker is set to gain a foothold in the world of autonomous driving with the introduction of two new chips designed specially for cars. Latest reports from Motor Trend indicate that QUALCOMM is introducing the Snapdragon Cockpit Elite and the Snapdragon Ride Elite. The former offers three times the computing and graphics processing power of the previous generation, while the latter comes with support for more than 80 simultaneous sensors, including high-resolution radar, imaging, and lidar.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. El Capitan, a supercomputer powered by AMD Instinct MI300A APUs, has become the fastest supercomputer in the world. The supercomputer achieved a High-Performance Linpack (HPL) score of 1.742 exaflops to achieve the number one spot. The AI-capable processors that power the supercomputer are used by governmental agencies in the US and provide significant computational power while maintaining energy efficiency, which is crucial for large-scale simulations and modeling tasks.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. On November 18, Barclays raised the price target on the stock to $240 from $215 and kept an Overweight rating on the shares. The advisory returned from meeting the supply chain in Asia across Taiwan, Korea and Japan and says unsurprisingly, artificial intelligence remains the bright spot whilst elsewhere recoveries remain uncertain. It believes TSMC remains a core holding.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. On November 19, tech website Analytics Insight reported that the company was committing $20 million in funding and an additional $2 million in cloud credits to drive AI-powered scientific discoveries. The fund seeks to foster collaboration between public and private sectors. Winning applicants of the funding will benefit not only from financial support but also from access to Google’s cloud infrastructure, enabling them to scale and power their research projects, per the report.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 19, Truist raised the price target on the stock to $167 from $148 and kept a Buy rating on the shares ahead of its Q3 results. The advisory expects the company to deliver upside vs. consensus while also expressing confidence in 2025 owing to a very robust backlog, Truist told investors in a research note. Nvidia management commentary will focus on the next drivers of growth after LLMs – data processing, and physical AI – and the advisory is raising its estimates based on higher growth expectations in the Datacenter end market, with FY24 EPS view up 4c to $2.85 and FY25 view up 49c at $4.18, Truist added.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. The company recently held the Llama Impact Hackathon in London. The event brought together over 200 developers across 56 teams that used Meta’s open source Llama 3.2 model to address critical challenges in healthcare, clean energy, and social mobility. Per the company, the winning team, Guardian, developed a concept of an AI-powered triage assistant which could reduce waiting times and better allocate resources in accident and emergency departments.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 18, Mistral, the French AI startup backed by Microsoft, announced a new set of updates to the AI product portfolio. These include enhancements to Le Chat, the AI chatbot offered by the company. The updates will let the chatbot search the web, allow users to modify, transform, or edit content through a canvas tool, and process large PDF documents and images for analysis and summarization.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. On November 19, news publication Business Insider reported that Amazon held talks with several partners for handling specific tasks on the AI-powered Alexa, including Uber, Ticketmaster, and Instacart. Per the report, as of late August, those partner companies were confirmed to work with Amazon on this project and some of them were already being tested on the new Alexa technology, according to an internal document.
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