According to Alphabet Chief Executive Sundar Pichai, the fallout in the artificial intelligence boom will spare no one, and that soaring valuations and rising investments have raised serious concerns of a potential AI bubble.
No company is going to be immune from this potential bubble burst, Pichai noted, not even Google.
“I think no company is going to be immune, including us.”
With Nvidia earnings due today, the artificial intelligence boom is set to face a key test amid these soaring valuations.
The AI chipmaker’s results will set the tone for the market. Even though the demand for its chips remains strong, its results will demonstrate whether AI has the potential to stay or if the enthusiasm surrounding the technology has indeed created a bubble.
“With every quarter that goes by, Nvidia earnings become more important in terms of clarification on where AI is moving and how much spending is being done.”
-Brian Stutland, chief investment officer of Nvidia investor Equity Armor Investments.
Nvidia will report its earnings today, November 19, after markets close.
“We all know one thing and one thing is only on traders’ mind this week and that’s one earnings — it’s Nvidia. “It’s not hyperbole, it is the most important earnings of the year. Why? Because it’s almost 8% of the S & P 500. It’s in the Dow Jones Industrial average. It’s part of the Nasdaq-100, roughly 10% … so, Nvidia’s gonna move markets.”
– Jay Woods, chief market strategist at Freedom Capital Markets
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q2 2025.
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10. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 18
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 18, DA Davidson reiterated its Buy rating and $17.00 price target on the stock following a day of investor meeting with SoundHound’s CFO Nitesh Sharan.
The firm is constructive on SoundHound, citing stronger visibility and confidence in its strategic roadmap. From gaining insights on why the company acquired Interactions to learning details about the economics of SoundHound’s developing voice commerce business, the investor meeting has led the firm to gain useful clarity on the stock.
DA Davidson now believes that SoundHound is “well positioned” for high growth.
“Yesterday we hosted a day of investor meetings with SoundHound’s CFO Nitesh Sharan. We came away with greater clarity on the trajectory of SoundHound’s different growth vectors and the margin potential of the business. We heard more from management about the strategic intent behind its Interactions acquisition as well as color around the economics of its emerging voice commerce business. We continue to view SoundHound as well positioned for high growth and reiterate our BUY rating and price target of $17.”
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
9. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 47
GitLab Inc. (NASDAQ:GTLB) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 10, Piper Sandler analyst Rob Owens reiterated an Overweight rating on the stock with a $70.00 price target.
The rating affirmation comes ahead of GTLB’s upcoming third-quarter earnings report, set for release on December 8.
The firm believes that developer activity strength and positive infrastructure trends will likely lead to a 3Q beat and modest raise for GitLab. Its top ideas for upcoming prints are GTLB and PANW.
“As we contemplate these readthroughs, setup and sentiment, our top ideas for upcoming prints are GTLB and PANW. GTLB and PANW set up as our high confidence upcoming setups. In light of what has proven to be a volatile quarter for prints thus far, we favor names with conservative setups, durable demand drivers and positive readthroughs from calendar prints. After accelerating growth and conservatively reiterating guide last quarter, we think GTLB is well positioned for a strong 3Q.”
Piper Sandler has also tracked GTLB’s Integrated Development Environment (IDE) downloads which demonstrate acceleration in the third quarter. This aspect further boosts its positive outlook for the company.
“We are buyers into the print. Solid prints out of infrastructure peers points to strong developer activity in 3Q, and our tracking of IDE downloads accelerated slightly in 3Q, both giving us confidence in the company’s ability to sustain momentum seen last quarter. We are expecting a beat and modest raise to expectations as a result.”
GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle in the US, Europe, and the Asia Pacific.
8. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 66
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 19, Berenberg initiated coverage of the stock at “Hold” with a $600 price target. The firm acknowledges Crowdstrike’s “best-in-class execution,” but is keeping a neutral stance as it believes the optimism is already priced in.
According to the firm, Crowdstrike’s cloud-native single-agent architecture positions it as “one of the most compelling long-duration growth stories in cybersecurity.” The company has managed to grow its Total Addressable Market from $25billion in FY19 to $140billion in FY26E.
In fact, there are projections that Crowdstrike’s TAM may reach $300 billion by FY30E driven by its consistent “land and expand” strategy. This strategy has led to a 112% net revenue retention (NRR).
“CrowdStrike’s cloud-native single-agent architecture has expanded the company’s total addressable market (TAM) beyond endpoint security – from a $25bn TAM in FY19 to $140bn in FY26E, projected to reach $300bn by FY30E – reinforced by a consistent land-and-expand strategy (~112% NRR).”
More particularly, platform consolidation has been the highlight in enterprise security which Crowdstrike has managed to successfully deliver at scale. While the cybersecurity stock “sits at the top of the revenue duration curve,” this has already been priced into shares, analysts noted.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
7. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 74
Reddit, Inc. (NYSE:RDDT) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 14, Truist Securities analyst Youssef Squali reiterated a “Buy” rating on the stock with a $270.00 price target.
The firm believes that improving engagement, ad efficiency, and margin expansion will continue driving growth for the stock.
Truist had an investor group call with the company this month, followed by subsequent investor conversations. The conversations particularly focused on key issues affecting Reddit’s near to medium-term outlook.
“Following our investor group call with the company last week and conversations with investors since then, we further zero in on key issues most relevant to the stock N/M-term including 1) the debate around the potential for DAU re-acceleration and increase in user engagement with the new and improved onboarding process, and the better AI-enhanced search experience expected in FY26, 2) the ability to sustain highly elevated revenue growth through improvements in ad monetization with end-to-end automation tools, and 3) the prospect for the company to show progress towards 50% AEBITDA margin now that it achieved its prior 40% target margin ahead of plans (in 3Q25).”
The firm believes that user engagement should improve, driven by new onboarding and AI-enhanced search. Better ad monetization tools may lead to gains from end-to end automation tools, while AEBITDA margin could progress toward 50%, ahead of plan.
Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement.
6. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 78
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 13, Freedom Capital raised the firm’s price target on the stock to $170 from $125 and kept a “Sell” rating on the shares.
The firm is cautiously bearish on the stock, acknowledging Palantir’s robust performance while highlighting how valuation risks may outweigh potential upside.
According to the firm, Palantir delivered Q3 upside versus guidance due to a sharp rise in US Commercial growth, in turn driven by record bookings and AIP adoption.
Despite this rise, European operations have remained flat.
Moreover, management has guided above investor expectations for Q4 but investors are concerned about several factors such as possible defense budget pressure, headwinds from AI hiring, and a likely growth slowdown in US commercial after a record year.
“Reflecting sustained near-term momentum, our target price increases from $125 to $170, but elevated valuation implies embedded hypergrowth that is unlikely to persist indefinitely, so the SELL rating is maintained.”
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 18, Loop upgraded the stock to “Buy” from Hold and raised its price target to $320.00 from $260.00.
The firm believes that the wall of worry for Alphabet shares has been “obliterated” and that investors are less concerned about AI cannibalization of search. Analysts also noted that Google search results “remain as healthy as ever” with benefits from AI Overviews and AI Mode features.
Moreover, traffic share to Gemini has been doubling YoY and the “the position of Google Cloud and size of opportunity for its proprietary AI processors (TPUs) is becoming better appreciated.”
Overall, the firm holds a bullish view on Alphabet shares driven by a renewed confidence in AI-led growth and valuation upside across core and Cloud.
“While our longer-term view on search market dynamics still has questions (and drives the majority of valuation) we are raising our target multiple to 20X EPS for Google core. Multiple revision on Google core is about two-thirds of our target revision. We are also significantly raising our growth outlook for Google Cloud and maintaining our target multiple of 25X adj. EBITDA.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 18, BNP Paribas Exane raised its price target on the stock to $250.00 from $240.00 while maintaining an Outperform rating. The rating comes ahead of the company’s upcoming earnings report due on November 19.
BNP Paribas believes that Nvidia will deliver a “classic marginal beat/raise” quarter driven by strong growth trends.
“We don’t expect much drama in terms of numbers into NVDA’s FQ3’26 results on Wednesday where we expect the classic marginal beat/raise. Cons stands at $55bn for FQ3 revenues (+18% q/q; +57% y/y), with buyside a touch higher vs guidance $54bn. This translates into cons EPS of c.$1.30. For FQ4, cons revenues stands at $62bn (+12% q/q) and buyside likely higher at c.$63–64bn. Outside of FQ2’26 impact from China export restrictions, NVDA has averaged c.$5bn incremental revenue growth q/q for the previous 8 quarters. The FQ4 cons at +$7bn is on the higher side but also embeds a richer Blackwell ASP in the mix.”
On the same day, Stifel reiterated the stock as “Buy” and raised its price target to $250 per share from $212.
“We are increasing our estimates and introducing F2028 estimates ahead of NVDA’s F3Q report Wednesday, 11/19.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 13, Wedbush added the stock to its “Best Ideas List”; keeping an Outperform rating and a $920 price target.
The firm sees more upside in Meta driven by robust core ad growth, AI hardware momentum, and optimism fueled by Meta AI and Superintelligence Labs.
While there has been caution surrounding Meta’s expense and capex outlook, the company’s spending stands “justified,” considering how AI capabilities have been infused across its advertising systems and content recommendation engines.
“Post-results, we think the disconnect between fundamentals and investor sentiment offers attractive upside to META, BKNG, and DASH. With this report, we are adding META to the Wedbush Best Ideas List, and upgrading our ratings of BKNG and DASH to Outperform.”
The firm believes that there are signs of healthy underlying demand in the core business and sees management committed to long-term strategic goals.
Meta Platforms has been expanding its advertising capabilities and also invests heavily in artificial intelligence and the metaverse.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 18, Rothschild Redburn downgraded the stock to “Neutral” and cut the price target to $500 from $560.
According to the firm, Azure has been the main growth engine for Microsoft till now, accounting for more than half of the company’s revenue growth. It has also been helping investors remain focused on cloud strength rather than the potential GenAI headwinds in the Office 365 Suite.
However, Microsoft is facing a two-fold challenge which makes the sustainability of its growth model under current AI economics rather concerning. First, generating revenue from AI now requires nearly six times more capital expenditure than traditional cloud services.
This makes the business more “capital intensive” and potentially may reduce long-term cash-flow.
“Firstly, value creation from Gen-AI-related revenues is far lower than under traditional cloud 1.0 economics. As detailed in this report, it now takes roughly six times more capex to generate the same level of value – making the business structurally more capital-intensive and weighing on long-term cash flow potential, with no clear end in sight.”
Second, there may be a potential “value leakage” within Microsoft’s Office 365 suite.
“Secondly, we see value leakage within Office 365, as the integration of third-party models such as OpenAI and Anthropic shifts value away from Microsoft.”
While the firm acknowledges that Microsoft is still one of the “key beneficiaries of Gen-AI,” these key structural concerns have led the firm to downgrade the stock.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 17, Citizens maintained its “Market Outperform” rating on the stock with a $300 price target.
The rating affirmation follows the launch of Amazon’s new AI-powered advertising tool.
Amazon Ads has launched Ads Agent, an artificial intelligence assistant that can streamline advertising campaign management for businesses.
“Amazon (AMZN, MO, $300 PT) Ads launched Ads Agent, an AI-powered assistant that streamlines campaign planning, execution, and optimization by automating tasks such as audience targeting, spend allocation across campaigns, and analytics via SQL generation.”
Through the new tool, Amazon can automate several key tasks to make campaign creation and optimization easier. Smaller businesses will be able to particularly benefit from these automation capabilities.
This is because previously, they lacked the personnel resources needed to optimize their campaigns. The tools will now help them boost their performance levels.
“Greater automation built into advertising workflows by AI is making campaign creation and optimization easier while enhancing campaign precision, scalability, and speed. Importantly, greater automation is helping smaller advertisers that historically would not have had the personnel resources to optimize campaigns, driving relative performance for SMBs.”
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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