In this article, we will take a look at the 10 AI Stocks Analysts Are Betting On.
The artificial intelligence trade remains intact in the US equity markets. It is a stance echoed on Wall Street despite growing concerns over a potential bubble amid premium valuations. Kiran Ganesh, multi-asset strategist at UBS, insists the broader narrative around AI remains intact despite the recent pullbacks.
“We’ve had a remarkably smooth rally given the scale of investment that’s taken place, given the uncertainty about future cash flows, and given some of those concerns about valuation,” Ganesh said. “As we’ve gone through earnings season, I think it’s reasonable to have expected some volatility, but actually, when we look at the results, they have been reassuring.
The remarks come amid souring investor sentiments on increasingly stretched valuations. Goldman Sachs CEO David Solomon has already warned of a potential 10%-20% drawdown in the equity market as the International Monetary Fund and Bank of England also remain wary.
In contrast, Anders Danielsson, CEO of Swedish construction group Skanska, which builds data centers and AI infrastructure, has downplayed concerns about an AI slowdown.
“In the U.S. we have a very strong pipeline of data centers — we don’t see any slowdown there,” he told CNBC. “We are working with large international customers and they are also interested in building data centers in central Europe, and in the Nordics and the U.K. We haven’t seen any slowdown really.”
On his part, GMO U.S. Quality ETF (QLTY) portfolio manager Tom Hancock insists it’s time investors took advantage of the volatility in artificial intelligence to scoop shares trading at a discount. According to Hancock, investors should remain bullish, despite mounting concerns over a bubble in the sector.
“We’d certainly be looking at buying more” in the tech sector, Hancock said.
With that in mind, let’s take a look at some of the AI stocks analysts are betting on.
Our Methodology
To determine the top AI stocks analysts are favoring, we conducted an in-depth review of companies advancing AI innovation and infrastructure. We focused on firms poised to benefit from the AI boom and showing strong analyst sentiment, including those with more than 30% upside potential as of November 26. We also factored in hedge fund ownership reported in the second quarter of 2025. Finally, we ranked the stocks based on their projected upside according to analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
AI Stocks Analysts Are Betting On
10. Amazon.com, Inc. (NASDAQ:AMZN)
Stock Upside Potential: 30.36%
Number of Hedge Fund Holders: 335
Amazon.com Inc. (NASDAQ:AMZN) is one of the AI stocks analysts are betting on. HCLTech announced a new partnership with Amazon Web Services on November 25, aimed at speeding up innovation in the financial services sector. By combining HCLTech’s industry expertise with AWS’s cloud and AI capabilities, the two companies plan to help banks and insurers modernize outdated systems, improve customer experience, and meet regulatory expectations. HCLTech’s financial services head, Srinivasan Seshadri, said the collaboration is designed to address long-standing industry challenges and support a shift toward more autonomous operations.
Under the agreement, HCLTech will introduce pre-built, compliant solutions that streamline contact centers, strengthen digital engagement, and upgrade core platforms across banking, wealth, and insurance. Financial institutions will also gain access to strategic consulting built on AWS technologies. Leaders from Jefferies and AWS noted that the collaboration will help organizations innovate faster and adopt secure, modern digital systems at scale.
On the same day, Rosenblatt Securities analyst Barton Crockett reiterated a Buy rating on Amazon with a $305 price target. Earlier, on November 12, Needham’s Laura Martin also maintained her Buy rating, reflecting sustained optimism about the company’s long-term performance. Both analysts cite Amazon’s strong business fundamentals and disciplined growth strategy as major contributors to future value creation.
Martin pointed to Amazon’s focus on ROIC and free cash flow as key to its effective capital allocation. She highlighted the company’s strengths in logistics, energy expansion, and custom chip development—all of which help Amazon avoid bottlenecks and expand market share. She also noted that new AWS foundation models like Nova support stronger enterprise monetization, reinforcing expectations for continued growth.
Amazon.com Inc. (NASDAQ:AMZN) is a technology company that applies artificial intelligence (AI) and machine learning (ML) across its entire business ecosystem and provides a comprehensive suite of AI services for developers and enterprises through Amazon Web Services (AWS).
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Stock Upside Potential: 32.37%
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the AI stocks analysts are betting on. Advanced Micro Devices, Inc. (NASDAQ:AMD), Cisco, and HUMAIN—a PIF-backed AI firm, unveiled plans on November 19 to create a joint venture aimed at turning Saudi Arabia into a major global player in artificial intelligence. Set to launch in 2026, the effort brings together HUMAIN’s next-generation data centers with AMD’s high-performance chips and Cisco’s infrastructure expertise.
The partnership’s first phase includes a 100 MW AI buildout powered by AMD’s Instinct MI450 GPUs and Cisco’s critical networking and data-center systems. The long-term target is far more ambitious: delivering up to 1 GW of AI infrastructure across the kingdom by 2030.
This joint venture builds on earlier collaborations among the three companies and is designed to offer scalable, cost-efficient AI capacity to support both government and private-sector needs. Beyond the technology, the initiative aims to strengthen Saudi Arabia’s digital economy by developing local talent, localizing key technologies, and accelerating homegrown innovation.
Earlier on November 10, Bernstein analyst Stacy Rasgon reiterated a Hold rating on the stock and set a $200 price target. The sentiment comes as Advanced Micro Devices Inc. has reiterated it is on track to achieve $100 billion in revenue over the next five years, attributed to strong demand for data center chips.
The company has already signed a multiyear deal with OpenAI, expected to bring in billions of dollars in annual revenue amid the AI boom. The agreement is a vote of confidence in AMD’s AI chips that continues to bolster the company’s sentiments and prospects in the highly competitive industry. Chief Executive Officer Lisa Su has already reiterated that the company’s market for data centers could grow to $1 trillion.
Su expects the artificial intelligence wave to drive much of the growth as the company works on plain processor and networking chips. It’s also investing in specialized AI chips to capitalize on the massive market opportunity. Consequently, AMD expects 35% annual growth across its entire business and 60% growth across its data center businesses. It also expects earnings per share to reach $20 per share over the next three to five years.
“It’s a exciting market,” Su said. “There’s no question, data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures high-performance computing and graphics solutions, including processors and GPUs, for a wide range of markets, such as data centers, personal computers, and gaming. The company’s products include microprocessors, graphics cards, and chipsets for PCs, servers, and embedded systems.
8. Meta Platforms, Inc. (NASDAQ:META)
Stock Upside Potential: 32.52%
Number of Hedge Fund Holders: 260
Meta Platforms Inc. (NASDAQ:META) is one of the AI stocks analysts are betting on. On November 24, BNP Paribas Exane initiated coverage of Meta Platforms Inc. (NASDAQ:META) with an Outperform rating and a $800 price target.
Cantor Fitzgerald trimmed its price target on Meta Platforms Inc. to $720 from $830 on November 19, though it kept an Overweight rating. The firm pointed to Meta’s plans for higher operating expenses in FY26, driven by heavier depreciation, expanding infrastructure, and continued investment in AI talent and cloud capabilities. Cantor also noted that Meta’s recent cloud commitments, totaling more than $40 billion, could add roughly $4 billion in extra costs, creating uncertainty around potential headwinds in 2026 as new capacity comes online.
Just days earlier, on November 10, Freedom Capital Markets upgraded Meta Platforms Inc. to a Buy from Hold with an $800 price target. The upgrade follows the company’s strong third-quarter results, driven by robust advertising demand, increased active users, and heightened engagement rates on the company’s social networking platforms.
The company has achieved an impressive 21.27% revenue growth over the past 12 months, driven by strong advertising on its platforms. Likewise, Freedom Capital Markets has touted the company’s artificial intelligence-driven tools and early monetization on WhatsApp. While the company’s margins are facing pressure from higher capital expenditures related to data center and AI infrastructure expansion, it continues to deliver enhanced performance on various metrics.
According to the research firm, the current market valuation does not capture the potential of Meta Platform’s artificial intelligence strategy. The remarks come as the technology giant has signed a deal worth $3 billion with Nebius. Under the terms of the agreement, Meta is to access AI infrastructure to address the surging demand for high-performance computing power as it increasingly builds and runs artificial intelligence models.
Meta Platforms, Inc. (NASDAQ:META) is a leader in artificial intelligence (AI) research and development, focusing on building foundational AI models, integrating AI into its core platforms (Facebook, Instagram, WhatsApp, Messenger, and its hardware products), and developing AI for the future of augmented and virtual reality (the metaverse).
7. Microsoft Corporation (NASDAQ:MSFT)
Stock Upside Potential: 32.91%
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the AI stocks analysts are betting on. Microsoft Corporation (NASDAQ:MSFT) announced on November 24 that it is stepping further into healthcare by partnering with radiologists to create a more unified, AI-powered reporting workflow. As radiology faces increasing pressure to speed up and improve accuracy, the company is using generative, multimodal, and agent-based AI to boost productivity. At RSNA 2025, Microsoft previewed Dragon Copilot, a new clinical assistant built specifically for radiologists and designed to fit naturally into their existing tools and routines.
Dragon Copilot integrates directly with PowerScribe One, Microsoft’s widely used reporting platform, helping radiologists surface key details, automate repetitive tasks, and maintain a smoother reporting process. By embedding advanced AI inside systems clinicians already rely on, Microsoft is positioning itself as a stronger partner in healthcare, enabling radiology teams to devote more time to interpretation while improving overall workflow efficiency.
A few days earlier, on November 19, Truist analyst Terry Tillman reiterated a Buy rating on Microsoft with a price target of $675. He pointed to Microsoft’s accelerating AI strategy, highlighted at the Ignite conference, as a major driver of confidence. With its copilots and autonomous agents taking deeper root in enterprise environments, supported by strong governance, cloud capabilities, and partnerships with NVIDIA and Anthropic, Microsoft is seen as well-placed to lead the next wave of AI adoption.
Microsoft Corporation (NASDAQ:MSFT) develops and integrates AI across its entire ecosystem of products and services to boost user productivity and enable developers to build custom AI solutions. Its AI efforts span consumer products, enterprise platforms, and cutting-edge research, all guided by a strong commitment to responsible AI.
6. Arm Holdings plc (NASDAQ:ARM)
Stock Upside Potential: 38.48%
Number of Hedge Fund Holders: 41
Arm Holdings plc (NASDAQ:ARM) is one of the AI stocks analysts are betting on. Raymond James initiated coverage of Arm Holdings plc (NASDAQ:ARM) on November 20 with a Market Perform rating, impressed by the gains the company is making in the data center sector.
The research firm has touted the company’s business model that entails licensing semiconductor intellectual property to fabless semiconductor customers. In return, it can collect royalties as part of its high-margin business model. Consequently, the company has delivered impressive returns amid the AI boom, with a remarkable 97.39% gross profit margin and annual revenue exceeding $4 billion.
Currently, data centers account for about 20% of the company’s total sales, owing to significant exposure to tech heavyweights Amazon, Google, and Microsoft. Raymond James expects Arm Holdings to capture more value along the value chain as it seeks to become a fabless semiconductor provider.
On the other hand, Loop Capital raised Arm Holdings’ Price target to $180 from $155 on November 12, while reiterating a Buy rating, impressed by its solid third-quarter results. The company posted a 21% year-over-year increase in royalty revenue, driven by growth in data centers, smartphones, and the Internet of Things.
Arm Holdings plc (NASDAQ:ARM) enables AI by designing high-performance, power-efficient CPU architecture licenses that are used in everything from smartphones to massive data centers. It does not manufacture chips; instead, it licenses its intellectual property to companies like Apple and Nvidia, which then build chips based on ARM’s designs, profiting from licensing fees and royalties.
5. Synopsys, Inc. (NASDAQ:SNPS)
Stock Upside Potential: 38.54%
Number of Hedge Fund Holders: 66
Synopsys, Inc. (NASDAQ:SNPS) is one of the AI stocks analysts are betting on. Wells Fargo revised its outlook on Synopsys on November 25, trimming the price target to $445 from $550 while maintaining an Equal Weight rating. The firm expects management to offer cautious fiscal 2026 guidance, around $9.7 billion in revenue and $14 in EPS, partly to reestablish credibility following the ANSS acquisition. While Synopsys continues to show solid fundamentals, including gross margins above 80% and the potential for low double-digit growth next year, Wells Fargo believes the stock is still trading at valuations that look stretched relative to its fair value.
A day earlier, Citi initiated coverage of Synopsys, Inc. with a Buy rating and a $580 price target. The research firm expects the company to benefit as the electronic design automation sector enters a phase of robust growth, driven by artificial intelligence. Citi analyst Kelsey Chia sees Synopsys, Inc. as a beneficiary, as it sits at the foundational software layer of the semiconductor value chain. Consequently, it expects it to capitalize on rising chip complexity amid expanding custom silicon programs at hyperscalers. Synopsys has delivered double-digit revenue growth, driven by time-based contracts that generate high recurring revenue.
While Synopsys trades at a wider-than-usual discount following missteps and reduced guidance owing to its exposure to China, Citi views it as a more compelling tactical opportunity. The integration of Ansys and a shift towards higher-margin EDA and simulation are expected to ease some of the underlying pressures.
Synopsys, Inc. (NASDAQ:SNPS) is a technology company that provides software and services for silicon-to-systems design, including electronic design automation (EDA) tools, silicon IP, and system verification and validation. It uses AI to enhance and accelerate the design of semiconductors and electronic systems. The company applies AI in its Synopsys.ai suite for electronic design automation (EDA).
4. Arista Networks Inc. (NYSE:ANET)
Stock Upside Potential: 40.79%
Number of Hedge Fund Holders: 81
Arista Networks Inc. (NYSE:ANET) is one of the AI stocks analysts are betting on. On November 18, at Wells Fargo’s 9th Annual TMT Summit, the company reiterated its strong market position and growth prospects, driven by artificial intelligence and campus networking initiatives.
The company is targeting 20% growth over the next fiscal year. Most of the growth will be driven by the company’s artificial intelligence innovations and solutions, which are expected to generate significant AI revenue. In the third quarter, the company’s deferred revenue rose 87%, primarily driven by AI data center projects it is working on.
Consequently, Arista Networks is targeting $2.75 billion in AI-related revenue next year as it continues to expand its customer base in the AI market. The company is targeting 25 to 40 new clients as part of its AI push, comprising enterprises and sovereign states.
Earlier on November 10, Citi reiterated a Buy rating on Arista Networks with a $176 price target, recommending investors take advantage of the recent selloff. The firm projects fiscal 2026 sales growth of 28%, underscoring confidence in Arista’s long-term growth trajectory despite near-term market volatility.
Arista Networks Inc. (NYSE:ANET) provides AI networking hardware (high-speed switches and data center platforms) and AI-driven software. Its offerings include hardware designed for the high-bandwidth demands of AI workloads and software tools like Arista AVA™ that use AI to improve network visibility, threat detection, and operation.
3. NVIDIA Corporation (NASDAQ:NVDA)
Stock Upside Potential: 40.93%
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the AI stocks analysts are betting on. On November 26, Bernstein reaffirmed its Outperform rating on Nvidia and kept its price target at $275, responding to the company’s weekend memo aimed at addressing several bearish concerns. Nvidia’s note tackled questions about receivables, working capital, depreciation, and the nature of its revenue flows—topics that had been weighing on sentiment in recent weeks.
Bernstein said the company’s explanations were generally reasonable and helped clear up some of the uncertainty that investors had been debating. The memo, which Nvidia circulated to sell-side analysts, has already drawn significant attention, with Bernstein reporting a surge in client interest and multiple requests to review the details.
Earlier on November 10, analysts at Citi reiterated a Buy rating on NVIDIA Corp and raised the price target to $220 from $210. The price target hike comes amid expectations that the stock will receive a boost from its third-quarter earnings report. The strong earnings report will come at the back of robust investments in artificial intelligence. Citi has also echoed disclosures that the company has shipped 6 million Blackwell units, signaling strong demand and indicating near-term upside.
Consequently, the research firm expects the semiconductor company to deliver $57 billion in sales for its October quarter above consensus estimates of $55 billion. It also expects the sales growth momentum to continue into the January quarter, with sales of $62 billion above Wall Street estimates of $61 billion.
Analysts at Bank of America have also touted Nvidia as a compelling investment well poised to capitalize on the AI boom. With the company disclosing $500 billion in 2025/2026 data center orders, the investment bank expects its earnings per share to come in at $8 per share, representing a 50% increase in sales growth and a 70% increase in EPS.
NVIDIA Corporation (NASDAQ:NVDA) is a major player in AI as it designs and supplies powerful GPUs and software platforms needed for AI development and deployment. The company provides a full-stack solution that includes hardware, software like the CUDA parallel computing platform and NVIDIA AI Enterprise, and services for building, training, and running AI models.
2. ServiceNow, Inc. (NYSE:NOW)
Stock Upside Potential: 42.90%
Number of Hedge Fund Holders: 106
ServiceNow Inc. (NYSE:NOW) is one of the AI stocks analysts are betting on. Macquarie began coverage of ServiceNow Inc. (NYSE:NOW) on November 25 with a Neutral rating and $860 price target, noting that the company is performing well but already priced for much of its potential upside. The firm noted that ServiceNow trades at a premium to other software names even as sentiment across the SaaS space remains soft. It pointed to the company’s progress in AI driven workflow automation and early momentum for its Now Assist tools but also warned about integration and execution risks as ServiceNow expands beyond IT service management into areas like customer service, HR, compliance, and industry workflows.
Despite the cautious stance, Macquarie highlighted the company’s strong fundamentals. ServiceNow posted a mid-50s Rule of 40 score, fiscal 2024 subscription revenue of $10.646 billion, up 23 percent from last year, and a free cash flow margin of 31 percent. Macquarie’s revenue and earnings estimates for the next several years are above market expectations, and the firm said upcoming results, fiscal 2026 guidance, and updates on AI monetization could serve as catalysts.
Earlier, on November 18, ServiceNow announced new Microsoft integrations, including Agent 365, designed to enhance enterprise AI orchestration and governance. The AI Control Tower will oversee agents across Microsoft Foundry and Copilot Studio, while Build Agent integrates with GitHub for secure automation. ServiceNow also plans to connect Now Assist with Microsoft 365 apps like Word, Outlook, and Teams, with general availability expected by year-end.
ServiceNow Inc. (NYSE:NOW) is a technology company that utilizes AI to automate and enhance digital workflows for businesses across IT, customer service, and HR. The company’s AI Platform integrates artificial intelligence, data, and workflows.
1. Oracle Corporation (NYSE:ORCL)
Stock Upside Potential: 76.01%
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the AI stocks analysts are betting on. On November 26, HSBC maintained its Buy rating on Oracle Corporation (NYSE:ORCL) with a $382 price target, highlighting the company’s efforts to explore funding options for cloud infrastructure expansion.
While Oracle has not yet detailed a specific plan, HSBC noted that capital-intensive projects could use structures such as special purpose vehicles or joint ventures to limit balance sheet risk. The firm also pointed to Oracle’s $500 billion in remaining performance obligations, strong revenue visibility, and focus on maintaining its investment-grade rating as it competes with AWS and Azure for market share.
On the same day, Deutsche Bank reiterated its Buy rating with a $375 price target, emphasizing Oracle’s partnership with OpenAI amid recent share price weakness and questions around AI capacity commitments. Deutsche Bank noted that excluding OpenAI-related revenues and expenses could reduce EPS by $4 to $17 and free cash flow by $10 billion to $31 billion by FY2030.
Even so, the bank argued that the market is undervaluing Oracle’s OpenAI business and that under conservative assumptions, the company could still generate $15 EPS and $26 billion in free cash flow. Analysts expect Oracle’s December 15 earnings report to provide more clarity on its financial outlook and AI strategy.
Oracle Corporation (NYSE:ORCL) integrates Artificial Intelligence (AI) and Machine Learning (ML) into its cloud infrastructure, a dedicated AI data platform, and its enterprise software applications to automate processes, provide predictive insights, and enhance decision-making across various business functions.
While we acknowledge the potential of ORCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.
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