The AI Stocks Hedge Funds Love the Most

Among 35 AI stocks analyzed by The Motley Fool, Amazon (AMZN +2.30%) ranked first in hedge fund conviction in Q4 2025, with 994 funds holding it and new positions nearly doubling quarter over quarter. Our figures come from Motley Fool analysis of data from Form 13F aggregation website WhaleWisdom.com.

The Motley Fool’s ranking of AI stocks uses a momentum-adjusted composite score across five metrics: a momentum score (combining quarter-over-quarter, or QoQ, change in new positions opened and QoQ change in top-10 holdings appearances), percentage of hedge funds holding the stock, number of top-10 holdings appearances, QoQ change in hedge fund share count, and put/call ratio. See full methodology below and the full rankings in the following table.

994 Hedge Funds Hold Amazon as New Positions Nearly Double

Amazon had the highest conviction among hedge funds, as calculated for this article, in Q4 2025 by a clear margin. It is one of the few stocks that scores high on both scale, with nearly 1,000 funds holding it, and momentum.

• Amazon is the most widely held AI stock in the data set, with 994 hedge funds holding it in Q4 2025. That’s up from 933 funds in the prior quarter. It also ranks second in top-10 appearances with 502 funds, up from 431.
• New hedge fund positions in Amazon grew 97% QoQ, from 58 to 114. That is the largest increase in new positions among the top-ranked stocks in this data set and signals fresh institutional interest, not just existing holders adding shares.
• Hedge fund share count grew 14% QoQ, to 1.32 billion shares. The put/call ratio for Amazon stood at 1.1, indicating neither strongly bullish or bearish positioning.

Amazon’s AI footprint spans AWS cloud services, fulfillment automation, and its Alexa personal assistant.

Nvidia’s Top-10 Appearances Rise 6% as Funds Pile In

Nvidia (NVDA +1.52%) ranks second for hedge fund conviction among the stocks analyzed, scoring high on both scale and momentum, driven by its appearance in the top-10 holdings of hedge funds rising to 482 funds from 455.

• 482 hedge funds held Nvidia** in their top-10 positions in Q4 2025,** up 5.9% from the prior quarter. Total funds holding the stock grew to 876, up from 836.
• New positions jumped from 54 to 89 funds, a 65% increase. Hedge fund share count grew 6% QoQ, to 2.45 billion shares, the largest absolute share count of any stock in this data set.
• The put/call ratio for Nvidia stands at 1.31 as of Q4 2025. That is higher relative to the large-cap AI names in the data set, suggesting that options traders are seeking downside protection or have taken a somewhat bearish outlook on the stock.

Nvidia is by far the leading manufacturer of graphics processing units (GPUs) that power most AI model training. The stock has beaten the market by a wide margin in recent years, and the hedge fund share count at 2.45 billion reflects the scale of institutional exposure – and conviction – to the stock.

537 Funds Hold Microsoft in Their Top 10, but Momentum Has Slowed

Microsoft (MSFT +0.59%) ranks third for hedge fund conviction among the AI stocks analyzed, held by 951 hedge funds, second only to Amazon. It leads all stocks in appearances in the top 10 holdings of hedge funds, making that cut with 537 funds, but its other momentum metrics are nearly flat.

• Microsoft** is in the top-10 holdings of more hedge funds than any other stock in this data set,** at 537 funds. That figure is down slightly from 567 the prior quarter, suggesting some high-conviction holders trimmed positions.
• New positions grew modestly, from 59 to 67 funds, a 14% increase. Hedge fund share count fell 1% QoQ, to 838 million shares, a small but notable reversal after a period of growth.
• The hedge fund put/call ratio for Microsoft improved to 1.03 in Q4 2025 from 0.81 the prior quarter. A ratio above 1.0 indicates more put options than call options outstanding, which can reflect bearish sentiment, downside protection on existing positions, or both.

Microsoft’s AI products include its Copilot assistant and a multibillion-dollar investment in OpenAI. The company is also heavily investing in AI data centers.

Alphabet’s Top-10 Appearances Surge 25% in Q4 2025

Alphabet (GOOGL +3.54%) ranks fourth by hedge fund conviction. Its top-10 appearances rose by 25%, the largest percentage gain among the five most widely held AI stocks, signaling a meaningful uptick in high-conviction fund positioning.

• 391 hedge funds held Alphabet in their top-10 positions in Q4 2025, up from 312 the prior quarter. Total funds holding the stock grew to 881 from 837.
• New positions opened rose 23%, from 79 to 97 funds. Despite this, hedge fund share count fell 2.5% QoQ, to 736 million shares, suggesting some funds rotated within their positions rather than adding net new shares.
• The hedge fund put/call ratio is 1.15, up from 1.00 the prior quarter. That modest increase may reflect a slightly more bearish view of the stock among hedge funds holding options.

Alphabet’s AI products include Gemini and AI-enhanced versions of its products, including Google Search, Maps, YouTube, and Gmail. The sharp increase in top-10 appearances is a high-conviction signal, independent from broad ownership counts.

Meta Falls Out of Many Hedge Funds’ Top-10 Holdings, but Conviction Remains

Meta Platforms (META +2.33%) ranks fifth in hedge fund conviction among stocks analyzed. It is held by 812 funds and has one of the more bullish put/call ratios among the top-tier stocks reviewed, at 0.88. But its appearance in the top-10 holdings of hedge funds fell sharply in Q4 2025.

• Meta’s appearances in the top-10 holdings of hedge funds dropped 21%, from 303 to 239. That is the largest high-conviction decline among any of the five most-held stocks.
• Hedge fund share count grew 18% QoQ to 325 million shares. New positions rose slightly from 66 to 77 funds, a 17% increase.
• The put/call ratio of 0.88 indicates relatively bullish options sentiment. A ratio below 1.0 means more call options are outstanding than puts, suggesting sentiment toward the stock is rising.

Meta’s AI products include the Llama LLM, an open-source AI model, and generative AI tools for advertisers. Meta is another large investor in AI data center infrastructure. The divergence between rising share count and falling top-10 appearances suggests that while funds are adding shares, fewer are treating it as a primary position.

Rising Conviction: 10 Stocks on Which Hedge Funds Are Moving In

Out of the 35 AI stocks analyzed for hedge fund conviction, the 6th- through 15th-ranked stocks have momentum metric – new positions and top-10 appearance – changes that are rising fastest relative to their absolute ownership levels.

Three stocks in this tier stand out on momentum:

• BlackRock (BLK +1.35%), the asset management and financial services firm, posted the highest raw momentum score in the entire data set (0.685), driven by a 112% surge in new positions (from 25 to 53 funds) and hedge fund share count growing 29% QoQ. BlackRock is expanding its AI and data infrastructure capabilities through acquisitions and platform development.
• Micron Technology (MU +11.13%) saw top-10 holding appearances nearly double, rising 90% from 31 to 59 hedge funds. Micron makes high-bandwidth memory chips used in AI accelerators, and the sharp rise in high-conviction holders suggests funds are positioning it as an AI infrastructure play.
• Salesforce (CRM +0.01%) saw hedge fund share count rise 34% QoQ to 203 million shares, the largest share-count increase in the data set. Its put/call ratio of 0.86 indicates relatively bullish options sentiment. Salesforce has embedded AI agents across its customer relationship management platform.

Advanced Micro Devices (AMD +4.88%) also stands out: Top-10 appearances rose 41% from 22 to 31 funds, and new positions grew 32% QoQ. AMD makes GPUs that compete with Nvidia’s in AI workloads.

Arm Holdings (ARM +1.14%) shows a high momentum score (0.680) alongside a 39% increase in hedge fund share count, though absolute holding counts remain small at 128 funds. Arm licenses chip designs used in devices from smartphones to AI servers.

The five remaining AI stocks that have rising conviction among hedge funds are Broadcom (AVGO +1.66%), Check Point Software (CHKP +1.27%), Taiwan Semiconductor Manufacturing (TSM +3.07%), Fortinet (FTNT -0.21%), and The Trade Desk (TTD -2.16%).

Fading Interest: 7 Stocks From Which Hedge Funds Are Pulling Back

Seven of the 35 stocks ranked in this analysis show consistent patterns of declining momentum, falling share counts, or deteriorating conviction metrics.

• Nebius Group (NBIS +0.95%) ranks last in the data set. Hedge fund share count fell 33% QoQ, the steepest decline of any stock analyzed. New positions dropped 46% from the prior quarter. The company operates AI cloud infrastructure and is a recent spinout from Yandex. The sharp selling suggests early institutional interest has not translated into sustained conviction.
• IonQ (IONQ +0.52%) ranks 34th. Hedge fund share count fell 21% QoQ and new positions dropped 51%, from 45 to 22 funds. IonQ is a quantum computing company exploring AI applications. The put/call ratio stood at 1.30 in Q4 2025, indicating bearish options positioning.
• Astera Labs (ALAB -0.94%) ranks 33rd, with hedge fund share count down 11% and new positions declining 32%. Astera makes connectivity chips for AI data centers. The momentum reversal is notable given that it is an AI chip play.
• Alibaba (BABA -0.97%) ranks 32nd. New positions fell 48%, from 85 to 44 funds, the largest drop in new-position formation among fading stocks. Closed positions rose 56%. Alibaba has invested heavily in AI through its cloud division, but hedge fund sentiment has fallen.
• Mobileye Global (MBLY +8.37%) ranks 30th. Funds holding it fell from 99 to 88, and new positions dropped 35%. The autonomous driving company faces competition from Chinese firms and has seen consistent institutional selling for multiple quarters.

Two other AI stocks analyzed for this article that have fading conviction among hedge funds are Palantir (PLTR +1.14%) and Oracle (ORCL -0.36%).

What Hedge Fund Data Shows About AI Stocks

Across 35 AI stocks and Q4 2025 13F filings, the data points to a splitting market. The five most widely held stocks – Amazon, Microsoft, Alphabet, Nvidia, and Meta – remain dominant by ownership count, but momentum is shifting. Amazon is adding fresh institutional buyers at a rate that none of its peers matched that quarter.

Within the rising-conviction tier, the most notable signals are Micron’s near-doubling in high-conviction appearances and Salesforce’s 34% surge in share count, both suggesting funds are moving into AI infrastructure and AI software application plays beyond the hyperscalers.

Among fading stocks, Nebius and IonQ show the sharpest reversals, with hedge funds reducing exposure to AI names that have not yet demonstrated durable growth.

FAQs

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Methodology

About the Author

Jack Caporal is the Research Director for The Motley Fool and Motley Fool Money. Jack leads efforts to identify and analyze trends shaping investing and personal financial decisions across the United States. His research has appeared in thousands of media outlets including Harvard Business Review, The New York Times, Bloomberg, and CNBC, and has been cited in congressional testimony. He previously covered business and economic trends as a reporter and policy analyst in Washington, D.C. He serves as Chair of the Trade Policy Committee at the World Trade Center in Denver, Colorado. He holds a B.A. degree in International Relations with a concentration in International Economics from Michigan State University.

TMFJackCap

Jack Caporal has positions in Advanced Micro Devices, Micron Technology, and Microsoft. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Check Point Software Technologies, Fortinet, IonQ, Meta Platforms, Micron Technology, Microsoft, Nvidia, Oracle, Palantir Technologies, Salesforce, Taiwan Semiconductor Manufacturing, and The Trade Desk. The Motley Fool recommends Alibaba Group, Astera Labs, BlackRock, Broadcom, and Mobileye Global and recommends the following options: short May 2026 $8 puts on Mobileye Global. The Motley Fool has a disclosure policy.

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