5 Best Artificial Intelligence (AI) Stocks To Buy According to Financial Media

In this article, we will be taking a look at the 5 best artificial intelligence (AI) stocks to buy according to financial media. To read our detailed analysis of the AI sector, you can go directly to see the 12 Best Artificial Intelligence (AI) Stocks To Buy According to Financial Media.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

NVIDIA Corporation (NASDAQ:NVDA) is a renowned semiconductor company based in Santa Clara, California. It is well known for its AI chips that serve to power generative AI and other related products and applications.

A Buy rating and $1100 price target were maintained on NVIDIA Corporation (NASDAQ:NVDA) on March 13 by Bank of America Securities analysts.

Our hedge fund data for the fourth quarter shows 173 hedge funds long NVIDIA Corporation (NASDAQ:NVDA), with a total stake value of $33.8 billion.

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 214

BMO Capital analysts maintain an Outperform rating and a $170 price target on Alphabet Inc. (NASDAQ:GOOGL) as of January 9.

Alphabet Inc. (NASDAQ:GOOGL) is a big tech company based in Mountain View, California. It entered the AI race with the Gemini AI chatbot, previously known as Bard, and Google AI, a division dedicated to AI development.

A total of 214 hedge funds were long Alphabet Inc. (NASDAQ:GOOGL) in the fourth quarter, with a total stake value of $28.8 billion.

Diamond Hill Capital said the following about Alphabet Inc. (NASDAQ:GOOGL) in its fourth-quarter 2023 investor letter:

“Other bottom contributors included Alphabet Inc. (NASDAQ:GOOG), Lancaster Colony Corp and Lear Corp. Media and technology company Alphabet has been under pressure as the company’s cloud business has slowed. Packaged food products manufacturer Lancaster Colony has faced a challenging pricing environment, which has weighed on volumes. We exited our positions in both Alphabet and Lancaster Colony in Q4 and redeployed our capital into more attractive opportunities.”

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 242

There were 242 hedge funds long Meta Platforms, Inc. (NASDAQ:META) in the fourth quarter, with a total stake value of $44.2 billion.

Meta Platforms, Inc. (NASDAQ:META) is another big tech name on our list. It offers Llama, an open platform featuring AI models, tools, and resources, among more.

On February 9, Tigress Financial analysts maintained a Strong Buy rating and a $575 price target on Meta Platforms, Inc. (NASDAQ:META).

Artisan Partners said the following about Meta Platforms, Inc. (NASDAQ:META) in its fourth-quarter 2023 investor letter:

“Netflix and Meta Platforms, Inc. (NASDAQ:META)—both categorized in the communication services sector—rounded out our top five contributors in Q4 as well as for 2023. Both stocks suffered sharp declines in 2022, each losing more than 50% of their market capitalizations. In 2022, we purchased Netflix and added to our position in Meta on weakness as both stocks were selling significantly below our estimates of fair value. Meta’s challenges were more self-inflicted as a ramp-up in spending caused free cash flow to plummet. We saw Netflix’s slowing subscriber growth as a normal feature of a maturing streaming market.

With regard to Meta, the company’s “year of efficiency,” as 2023 was declared by Mark Zuckerberg, involved a recalibration of its spending plans to focus on profitability. While the stock also benefited from enthusiasm around artificial intelligence, the re-rating in the price multiple seems entirely rational as shares were selling for less than 10X next year’s estimated earnings at its 2022 lows for a business that still had strong growth drivers, consistent free cash flow generation and a large net cash position. While Meta is included in the Magnificent Seven mega-cap stocks, Meta is trading much cheaper (~25X P/E) than all the others aside from Alphabet (~24X P/E), which is the one other of the Magnificent Seven stocks we hold. While Meta’s stock is no longer extremely cheap, we feel it is still reasonably priced for a good business with attractive growth prospects. We did trim our positions in Meta and Netflix to put capital to work in names having greater discounts.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 293

Amazon.com, Inc. (NASDAQ:AMZN) is a big tech company based in Seattle, Washington. Its flagship AI business is Amazon Web Services, built on 20 years of AI experience, which aids enterprises and startups in data management by utilizing AI.

In the fourth quarter, 293 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN), with a total stake value of $50.9 billion.

As of January 9, BMO Capital analysts maintain an Outperform rating and a $200 price target on Amazon.com, Inc. (NASDAQ:AMZN).

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

Microsoft Corporation (NASDAQ:MSFT) was found in the portfolios of 302 hedge funds in the fourth quarter, with a total stake value of $87.3 billion.

Jefferies analysts maintain a Buy rating and a $465 price target on Microsoft Corporation (NASDAQ:MSFT) as of March 6.

Microsoft Corporation (NASDAQ:MSFT) is another big tech name on our list. It offers a variety of AI solutions in the Microsoft 365 applications, alongside offering Microsoft Copilot, an AI-powered application.

Carillon Tower Advisers mentioned Microsoft Corporation (NASDAQ:MSFT) in its fourth-quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) performed well after reporting strong earnings supported by accelerated growth from Azure. The cloud business is seeing consistent trends from optimization while AI has contributed strongly to its growth.”

See also 11 Best Artificial Intelligence Stocks Under $20 According To Hedge Funds and 12 Best Artificial Intelligence (AI) Stocks To Buy According to Analysts.