We recently published a list of 10 AI Stocks Investors Are Monitoring After Tariff Shock. In this article, we are going to take a look at where HubSpot Inc (NYSE:HUBS) stands against other AI stocks investors are monitoring after tariff shock.
The tariff wars and a potential slowdown in AI spending threw water on investors’ AI trade plans and outlook. However, many analysts believe the broader outlook of the industry is still strong.
Ben Bajarin, Creative Strategies CEO, in a latest program on CNBC explained why he is still bullish on the Jensen Huang-led AI giant:
“I think when you look at the technology roadmap … in terms of what they’re doing with Grace Blackwell and Blackwell systems going forward, it’s going to be very, very hard for others to compete. I think they were extremely bullish about how much of the industry—not just the traditional, you know, cloud servers but AI factories and this entirely new infrastructure—and how it is being kind of redeveloped for the AI era. Like, it’s not being built on other things. And so I think when you look at the ecosystem that’s grown around them, they’re deeply entrenched. It doesn’t have any sign of that changing.”
Bajarin said that he sensed “frustration” in Jensen Huang’s tone as the executive feels Wall Street is not modeling the growth potential his company’s AI products truely have.
“And he seems to think that nobody is modeling that in or really understands it. So there’s the—we kind of have a sense of what they’ll sell just product-wise here in 2025, which is where I agree with you. Hard to surprise to the upside to move the stock, but I think he is signaling people don’t understand the magnitude of this opportunity. And I think that’s worth unpacking because there is a lot of growth ahead.”
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For this article, we picked 10 technology stocks Wall Street is closely watching these days. With each stock, we have mentioned the number of hedge fund investors. 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).
A team of software developers gathered around a monitor discussing a new CRM platform.
HubSpot Inc (NYSE:HUBS)
Number of Hedge Fund Investors: 63
Steve Koenig from Macquarie explained in a latest program on Schwab Network the new growth catalysts for HubSpot Inc (NYSE:HUBS) amid the company’s new AI features and pricing strategy:
“What’s going to continue to differentiate them is simply their business strategy, their focus on a unified simple product to use with all the CRM pillars: sales, service, marketing, commerce, particularly strong in marketing. A unified product that’s easy for smaller and midsize companies to deploy, and I think we’ve seen good interaction with that. That’s, I think, that’s continuing.
They add more subscription revenue every year than the year before. That’s been going on for three years. We think that growth vector is going to continue. And lastly, I would just say catalysts this year include kind of stabilization. We’ve seen some downgrade activity over the last couple years, and I think there’s less pressure on downgrades now. That’s pretty clear, and they’re making a pricing model change, which effectively is going to end up raising their prices a bit across the customer base. So, I think all those things can contribute to significant revenue upside this year, which we would see as the most likely catalyst for outperformance.”
Artisan Mid Cap Fund stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q3 2024 investor letter:
“Along with Dexcom and Celsius, a notable trim in the quarter wasHubSpot, Inc. (NYSE:HUBS). HubSpot is a leading cloud-based customer relationship management software provider for small-to-medium businesses. The stock was a top performer in 2023 as it meaningfully improved its profitability after several years of heavy investment. However, as we mentioned earlier in this letter, the environment for cloud software providers has been challenging in 2024 as macroeconomic pressures have impacted customer spending. Our long-term conviction remains intact, but we reduced the position due to near-term uncertainty. Meanwhile, we are encouraged by the company’s efforts to leverage AI advances to help internally (e.g., more efficient software development) and externally (e.g., new agent-based apps to help customers extract more value out of its products).”
Overall, HUBS ranks 9th on our list of AI stocks investors are monitoring after tariff shock. While we acknowledge the potential of HUBS as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HUBS
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Disclosure: None. This article is originally published at Insider Monkey.