Top 11 AI and Technology Stocks to Buy According to Hedge Funds

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In this article, we will discuss the Top 11 AI and Technology Stocks to Buy According to Hedge Funds.

Doug Clinton, founder and CEO of Intelligent Alpha, recently appeared on CNBC and highlighted that, when it comes to the technology sector, the focus remains on AI trade. Also, the investors are now turning their focus towards software. He believes that the software category had a tough 2025. iShares Expanded Tech-Software Sector ETF rose by ~8% YTD, while Invesco QQQ Trust rose by over ~20%.

Therefore, the software category is yet to see the benefits of AI, and Clinton opines that the story can shift in 2026. When asked about his views on the AI bubble, Clinton believes that there are still 2 – 4 years left in the current AI bull market. Elsewhere, Citi’s Heath Terry believes that corporate America has been finding value in AI, evidenced by the pace of adoption. Furthermore, acceleration of adoption is backed by the revenues of all the hyperscalers and backlog numbers.

Spending Patterns by Well-established Technology Firms

As per Natixis Corporate & Investment Banking, a leading global financial institution, the US economy has been exhibiting ongoing resilience, partly due to the AI-related capital expenditure. Notably, leading tech companies continue to allocate ~60% of operating cash flow to capex. Also, new fiscal measures are taking effect at the start of next year, which are anticipated to encourage further investment.

Amidst such trends, we will now have a look at the Top 11 AI and Technology Stocks to Buy According to Hedge Funds.

Top 11 AI and Technology Stocks to Buy According to Hedge Funds

Our Methodology

To list the Top 11 AI and Technology Stocks to Buy According to Hedge Funds, we sifted through several online rankings and selected the companies catering to the broader AI and technology space. Next, we chose the ones popular among hedge funds, as of Q3 2025. The stocks are arranged in ascending order of their hedge fund sentiments.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Top 11 AI and Technology Stocks to Buy According to Hedge Funds

11. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 102

Snowflake Inc. (NYSE:SNOW) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 3, the company released its financial results for Q3 2026, with revenue coming at $1.21 billion, reflecting 29% YoY growth amidst 29% YoY growth in product revenue to $1.16 billion.

Snowflake Inc. (NYSE:SNOW)’s product revenue rose $258.1 million and $726.6 million for 3 and 9 months ended October 31, 2025 on a YoY basis, respectively, primarily because of higher consumption of its platform by existing customers. This is evidenced by the net revenue retention rate of 125% as of October 31, 2025. The company saw an operating loss of $329.4 million in Q3 2025 compared to $365.4 million in Q3 2024, amidst an increase in total operating expenses of ~16.7% YoY to $1.15 billion and a higher gross profit.

As of October 31, 2025, Snowflake Inc. (NYSE:SNOW)’s RPO came at $7.9 billion, of which it anticipates ~48% to be recognized as revenue in the 12 months ending October 31, 2026 considering the historical customer consumption patterns. For Q4 2026, the company expects product revenue of between $1,195 million – $1,200 million, reflecting a growth of 27% on a YoY basis. The company expects a non-GAAP operating margin of 7%.

In a different update, on December 8, Citi reduced its price objective on the company’s stock to $300 from $310, while keeping a “Buy” rating.

Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for various organizations in the US and internationally.

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