In this article, we will list the 5 Best AI Software Stocks to Buy According to Hedge Funds. Please visit 8 Best AI Software Stocks to Buy According to Hedge Funds if you would like to see the extended list and the methodology behind it.
5. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 96
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best AI software stocks to buy according to hedge funds. Reuters reported on June 16 that, according to a statement from the French Prime Minister’s office on Tuesday, France’s domestic intelligence agency DGSI will replace tools from Palantir Technologies Inc. (NASDAQ:PLTR) in favour of a French rival, ChapsVision. However, the process is likely to take several years. Prime Minister Sebastien Lecornu also stated in a video post on V that ChapsVision had on Tuesday “been retained by the DGSI … to substitute the American giant Palantir”.
Reuters further reported that despite this, Palantir Technologies Inc. (NASDAQ:PLTR) stated that its long-term contract with the DGSI “remains fully in force,” with Lecornu’s office clarifying that the company’s tools would continue to be used until ChapsVision’s could be integrated “to avoid a capability gap”. The contract was renewed at the end of 2025 for several more years. Reuters also reported that ChapsVision did not respond to a request for comment.
Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms that serve as central operating systems for customers. The company focuses on augmenting human intelligence and developing products for human-driven real-world data analysis.
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 101
Salesforce, Inc. (NYSE:CRM) is one of the best AI software stocks to buy according to hedge funds. Salesforce, Inc. (NYSE:CRM) announced on June 16 an expanded partnership with Databricks, which is a data and AI company, to help organizations securely connect enterprise data with customer relationships, approvals, permissions, and workflows essential to drive trusted outcomes. It further stated that the expanded partnership would aid organizations in connecting enterprise data with the business context required for humans and AI agents to make decisions and execute with confidence.
In a separate development, Salesforce, Inc. (NYSE:CRM) announced on June 3 the signing of a definitive agreement to acquire Contentful, which is a leading composable content platform that delivers personalized digital experiences at scale. Management stated that the acquisition would bolster the company’s Headless 360 with a native, enterprise-grade content layer connecting customer data with engaging content experiences across Salesforce, Inc.’s (NYSE:CRM) leading applications. It added that by leveraging Data 360, Agentforce, and Contentful’s composable APIs, global enterprises can be capable of seamlessly deliver personalized, AI-assembled experiences at scale across every channel.
Salesforce, Inc. (NYSE:CRM) designs and develops cloud-based enterprise software for customer relationship management. Its solutions encompass customer service and support, sales force automation, digital commerce, marketing automation, collaboration, community management, industry-specific solutions, and Salesforce platforms. It also offers training, guidance, support, and advisory services.
3. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 108
ServiceNow, Inc. (NYSE:NOW) is one of the best AI software stocks to buy according to hedge funds. ServiceNow, Inc. (NYSE:NOW) and Inspira Enterprise announced on June 17 a strategic partnership positioning the latter as a trusted delivery partner that brings the full capabilities of the former to enterprises across the globe. Inspira Enterprise is a global cybersecurity and AI services provider.
The company further reported that, building on its commitment to responsible AI innovation, Inspira deployed the ServiceNow AICT as the enterprise-wide governance layer for its AI ecosystem, with the platform offering centralised visibility, oversight, and lifecycle management across all AI assets. These include agentic workflows, AI agents, datasets, models, prompts, and skills, ranging from intake and assessment through monitoring, deployment, and optimization.
ServiceNow, Inc. (NYSE:NOW) further reported that its AICT also provides Inspira’s customers with a proven framework for AI portfolio management, regulatory compliance, risk oversight, and value realization, which allows organizations to scale AI adoption with confidence.
ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOG) is one of the best AI software stocks to buy according to hedge funds. Reuters reported on June 17 that Britain’s competition watchdog has ordered Alphabet Inc.’s (NASDAQ:GOOG) Google to provide greater transparency on the workings of its search ranking, which is a part of the new rules that aim to secure a “fairer deal” for businesses and address the concerns associated with the company’s dominance in the sector. It further reported that according to the Competition and Markets Authority’s statement on Wednesday, Google’s organic search results must be ranked using objective criteria, along with the introduction of clearer complaint processes, increased transparency over ranking, and allowing the transfer of their search data to authorized third parties.
Reuters also stated that Google has been assigned a “strategic market status” by the CMA, enabling it to set targeted rules for increased transparency, as Alphabet Inc. (NASDAQ:GOOG) accounts for over 90% of UK search queries. CMA Executive Director Will Hayter stated that “Step by step, we’re ensuring that Google’s search services work better for businesses and consumers across the UK”.
Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the best AI software stocks to buy according to hedge funds. Reuters reported on June 16 that Oracle clarified on Tuesday that the details mentioned in a Business Insider report regarding the collapse of its discussions with Microsoft Corporation (NASDAQ:MSFT) over a potential leasing deal were inaccurate. The report had stated that Microsoft Corporation (NASDAQ:MSFT) and Oracle’s discussions about a cloud infrastructure leasing deal fell apart due to security and compliance concerns. Reuters further stated that it could not immediately verify the report, and Microsoft Corporation (NASDAQ:MSFT) declined to comment on it.
In a separate development, Reuters reported on June 2 that Microsoft Corporation (NASDAQ:MSFT) announced a “sweeping slate” of AI initiatives to go beyond apps, ranging from Nvidia-powered PCs and a new in-house reasoning model to autonomous workplace assistants and gadgets. The company aims at remaking computing around AI at Microsoft Build, its annual software developer conference in San Francisco, and also showed off a new computer called the Surface RTX Spark Dev Box loaded with an Nvidia chip. The computer was called a “dream machine” by CEO Satya Nadella, who added that he was on the wait list to buy it.
Microsoft Corporation (NASDAQ:MSFT) develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments.
While we acknowledge the potential of MSFT to grow, 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 the cheapest AI stock.
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