The AI Stocks Hedge Funds Love the Most

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 +1.67%) 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 +0.60%) 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 +1.71%) 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.