The AI revolution, which began with the launch of ChatGPT, is now having a significant impact on multiple industries. Amjad Masad, the CEO of programming software company Replit, said in a recent program on Bloomberg that AI is now able to write code based on simple English commands and people have begun to trust the code generated by AI tools. Masad, whose company Replit recently raised $250 million on $3 billion valuation, explained the roots of vibe coding.
“Andrej Karpathy (Slovak-Canadian computer scientist) last year in his experience coding said I’m starting to trust AI more. And as I’m coding, the AI is presenting the code. I’m just typing natural language and I just accept it. So that was the sort of the coinage of the term.”
Photo by Robb Miller on Unsplash
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks making moves following bullish analyst comments. With each company we have mentioned its hedge fund sentiment. 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).
10. T-Mobile Us Inc (NASDAQ:TMUS)
Number of Hedge Fund Investors: 76
Jessica Inskip from StockBrokers said in a recent program on Schwab Network that she likes T-Mobile Us Inc (NASDAQ:TMUS) because of the company’s strong postpaid performance and monetization capabilities.
“What really caught my attention is the monetization. Their revenue growth for the second quarter came in very large from strong post-paid performance. And it’s really about pricing power. So their average revenue per account was up 5% year-over-year. That’s the best for them in eight years. So that’s definitely a signal that this could be a growth story. And in addition to this, this also came up on that growth scan that I was scanning for stocks this morning to bring of course to the show. So I see there’s competitive positioning for them even outside of Verizon and AT&T. It’s helped them capture more market share. We’re talking more about T-Mobile Us Inc (NASDAQ:TMUS) and they’ve got additional revenue growth drivers with analysts forecasting about 6 and a half% growth through 2025. It’s going to slow down a little bit, 5.3% in 2026. So, there are definitely some headwinds for this. We want to see continued pricing power. If there is more strain on the consumer, that could be of concern. But due to its underperformance and that average revenue per account increase is what really caught my eye. I think it’s something we can add to the portfolio that’s not so concentrated in technology in those big mega cap stocks.”
Carillon Eagle Growth & Income Fund stated the following regarding T-Mobile US, Inc. (NASDAQ:TMUS) in its second quarter 2025 investor letter:
“T-Mobile US, Inc. (NASDAQ:TMUS) US traded lower on uncertainty regarding succession planning. The company has denied a report alleging that its well respected CEO was looking to get out of his contract early. The company remains a leading operator in the space.”
9. Citigroup Inc (NYSE:C)
Number of Hedge Fund Investors: 102
Jessica Inskip from StockBrokers explained in a recent program on Schwab Network why she likes Citigroup Inc (NYSE:C). The analyst highlighted the company’s dividend and expansion as some of the reasons for being bullish on the stock:
“City is this turnaround story. So, this is a longerterm investment play that’s certainly playing out as we can see from the overperformance up 42% versus 12 and a half% for the S&P 500. Now as far as why I want to add it to my portfolio, it really came down to that high quality dividend scanned. They have a 2.41% dividend yield. I always look for free cash flow per share that’s greater than that annual dividend amount. They check that box. They have a payout ratio of about 33% which means there’s still room for growth opportunity and they have a history of a dividend growth rate. The most recent actually increasing that dividend was after the bank stress test which could be another potential catalyst for them as we get more deregulation within the banking sector.”
Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding Citigroup Inc. (NYSE:C) in its second quarter 2025 investor letter:
“Citigroup Inc. (NYSE:C) is one of the largest US banks by total assets. Investment in its IT, compliance and risk capabilities have pressured margins and returns over recent years, obscuring the banks strong core franchise. With these investments now largely complete we expect Citi’s expense to decline and its margins and returns to be more consistent with peers. Citigroup performed well in the quarter on improved profitability and positive operating leverage. We think that C is very undervalued on our normal expectations and would still be attractive even if they do not fully achieve their goals.”
8. Walmart Inc (NYSE:WMT)
Number of Hedge Fund Investors: 105
Retail expert Jan Rogers Kniffen said in a recent program on Schwab Network that Walmart Inc (NYSE:WMT) is the best retailer in America and shared the reasons why he likes the stock:
“NRF just told us that last month sales were up 6% in the industry almost 7% actually well over 6%. And the prior month they were up almost 6%. We are seeing a strong consumer at this moment and whatever tariffs are getting passed through are getting absorbed right now by the consumer but it looks like only 40 to 60% are getting passed through anyway. So, stepping back and looking at Walmart, they’re the best retailer in America. They’re handling the tariffs extraordinarily well. They’ve been very careful on their pricing. Their customer service is basically perfect. Their stores look fabulous. Nobody’s even close. And I don’t see how anybody competes with them.”
7. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 115
CNBC ‘Fast Money’ trader Dan Nathan said in a recent program that he’s turned bullish on Tesla Inc (NASDAQ:TSLA) despite overall weak sentiment and the company’s auto business showing soft trends. Here is why he thinks the stock can rally:
“The bulls and the bears agree that the EV business is bad. I think the consensus for Q3 deliveries is probably low. I think there’s probably been a pull forward. If you think about that $7,500 tax credit that’s going away at the end of the month and look at how this stock, we just want to pull the chart up here. It looks like it’s a beneficiary of this rotation. You know, look at all of the MAG7 names. The rotation in the MAG7. They basically all other than Apple today underperformed the NASDAQ. So, if you look at this thing, it’s built this base a series of higher lows here. It’s right up against that resistance level from a few months ago. It’s held its 200 day moving average. might you see this thing rally into quarter end? October 1st, 2nd, I think is when they’re going to report Q3 delivery. So, I think from a trading perspective, it looks very interesting.”
Tesla’s EV sales are falling all over the world as the company faces challenges from competitors. Tesla’s global sales in the second quarter fell 14% year over year. Even if Elon Musk increases his focus to fix the company’s problems, it would take a lot of effort to come out of the demand crisis. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years.
Baron Focused Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its second quarter 2025 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles (EVs), solar products, and energy storage solutions, while also developing advanced real-world AI technologies. Despite ongoing macroeconomic challenges and regulatory complexities, shares climbed after Tesla completed a limited commercial rollout of its highly anticipated robotaxi business in Austin—following more than a decade of development and billions of dollars in investment. This milestone signals a potentially transformative shift in the automotive industry and opens up a sizable new market beyond the company’s core operations. Investor sentiment also improved after Elon Musk stepped back from government-related engagements, boosting confidence in Tesla’s near-term execution. Tesla introduced a refreshed Model Y globally, featuring design and performance upgrades, and outlined plans to unveil new mass-market models starting next quarter. Meanwhile, the company is progressing toward scaling production of its humanoid robot, adding another dimension to its long-term growth story.”
6. Oracle Corp (NYSE:ORCL)
Number of Hedge Fund Investors: 124
Adam Crisafulli of Vital Knowledge was recently asked about Oracle Corp (NYSE:ORCL) stock gains following its earnings report and forecasts. Here is what the analyst said:
“There was an article on the Information about OpenAI spending about $450 billion over the next five years on compute. Remember that was the huge part of the RPO boost at Oracle. A lot of that was driven by OpenAI. So that’s another positive suggesting that the biggest, most prominent player in the industry continues to spend a lot of money. XAI, there were a lot of articles about them raising money at a $200 billion valuation. And then right before the close, there was a report on Bloomberg about how Oracle could be striking a deal with Meta for a $20 billion AI compute contract. So the headline and news flow around AI just remains extremely bullish and Oracle really has risen to become one of the most prominent names in the industry and that continues to drive the shares higher.”
Oracle Corp (NYSE:ORCL) shares skyrocketed after the company’s latest quarterly results. The company said it expects booked revenue to exceed $0.5 trillion. Oracle’s moat is its strong roots in enterprise databases and ERP software that are in high demand with large clients like banks and hospitals. Oracle Corp (NYSE:ORCL) differentiates itself by offering cheaper cloud services while integrating SaaS, ERP, and HCM, creating high switching costs and a durable moat.
However, many analysts have started to question the stock’s valuation following its latest surge on the back of reports that the company signed a deal with OpenAI for the AI company to purchase $300 billion worth of compute power. Analyst concerns stem from the company’s reliance on OpenAI.
Loomis Sayles Growth Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:
“Oracle Corporation (NYSE:ORCL) is a leader in the enterprise software market with a strong market position in database, infrastructure and application software, and cloud-based software and services. We believe the company’s competitive advantages include its large and experienced direct sales force, a founder-driven management team that reinvests relentlessly to maintain a leading intellectual property (IP) portfolio and differentiated product suite, and a large installed base of clients with high switching costs where it consistently achieves renewal and retention rates in the mid-90% range. We believe Oracle is well positioned to benefit from the continuing growth in data storage and enterprise application software, as well as the shift to cloud-based solutions.
A long-term fund holding, Oracle reported strong quarterly financial results that were above management guidance and consensus expectations on most measures, including remaining performance obligation (RPO) bookings, a forward-looking measure of revenue. As a result, the company expects revenue growth to accelerate and raised its guidance to at least 16% revenue growth in its 2026 fiscal year, driven by cloud growth in excess of 40%. Oracle is the world leader in its largest business segment, enterprise database software used in customer on-premise IT environments. However, the company continues to focus on transitioning its business from a traditional on-premise, up-front software licensing and maintenance revenue model to a cloud computing subscription-based model where software revenue is recognized over the life of the client’s contract. While there has been pressure on year-over-year overall revenue comparisons during this transition, which started over a decade ago as Oracle released cloud versions of its applications and infrastructure software, as up-front license revenue shifts to subscription revenue, we have long expected this to lead to faster growth over time due to a higher customer lifetime value as the transition progresses. We believe the cloud model also allows Oracle to monetize its services and technology more efficiently and yield savings to the customer… (Click here to read the full text)
5. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 156
Alex Kantrowitz, Big Technology Founder, said in a latest program on CNBC that Apple Inc (NASDAQ:AAPL) has finally shifted the market focus from AI to its core business of iPhones with the latest model launch of its flagship device. The analyst thinks Apple’s lack of progress on AI is “still a problem,” but the company has “shifted the story” for now.
“Well, the first thing I would say is it’s great news for Apple Inc (NASDAQ:AAPL) that there’s a story about the company that is not involving Apple Inc (NASDAQ:AAPL) intelligence or AI. We are going back now to the roots of Apple Inc (NASDAQ:AAPL) which is that they are an excellent phone maker and the improvements that they showed for this model are coming out. People want these models because they’re more durable because they have better battery life and they are going back to their bread and butter and we’re hearing about the product itself and people are responding. So, I think the narrative that’s been around Apple Inc (NASDAQ:AAPL) not being able to do artificial intelligence over the last few years, that’s still a problem, but they’ve shifted their story. People are responding. They’re going out lining up to buy the phones both in New York, but also in China, which is really important.”
Apple can only do so much in innovation to revolutionize its iPhone each year. A UBS survey shows that the iPhone upgrade cycle has reached 35 months in the US. A separate report from Consumer Intelligence Research Partners says about 63% of iPhone users keep their smartphones for more than two years. Apple is losing its pricing edge as it has to put a cap on its price tags to compete in key markets like China. Samsung, Xiaomi and other companies can launch advanced hardware and software features to compete with Apple and keep the company under pressure in Asia.
Macquarie Core Equity Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:
“Apple Inc. (NASDAQ:AAPL) declined in the quarter and meaningfully underperformed the S&P 500. The security contributed to relative performance due to our underweighting, approximately 50% lower than the benchmark weight. While Apple continues to have laudable attributes and strong repurchase intent, the company is failing to grow at historical rates given the maturation of many key products.”
