According to OpenAI CEO Sam Altman, artificial intelligence is entering speculative bubble conditions. The idea is making him nervous even, considering how startups with merely an idea are raising millions and valuations have become “insane.”
While artificial intelligence is poised to bring huge benefits in the long run, Altman is ready to keep on spending.
“Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes.” “Is AI the most important thing to happen in a very long time? My opinion is also yes.”
Repeating the word “bubble” three times in 15 seconds, he noted how, “I’m sure someone’s gonna write some sensational headline about that. I wish you wouldn’t, but that’s fine.”
Nevertheless, the ChatGPT founder is ready to spend trillions on infrastructure.
“You should expect OpenAI to spend trillions of dollars on datacenter construction in the not very distant future,” Altman said. “And you should expect a bunch of economists wringing their hands, saying, ‘This is so crazy, it’s so reckless,’ and we’ll just be like, ‘You know what? Let us do our thing.”
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 Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.
10. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 18, Jefferies analyst Lloyd Byrne reiterated a Hold rating on the stock with a $24.00 price target.
The rating affirmation comes amid several potential catalysts working in favor of the stock, including a letter from PJM Interconnection, the CEO’s Bloomberg interview, and potential read-throughs from Crowdstrike earnings.
The firm estimated that investors may be expecting around 1GW of sales in 2027. The firm considers this target a possibility due to Bloom Energy’s capacity expansion to 2GW by year-end 2026.
“We estimate the buyside could be baking in ~1GW of sales in ’27. With BE expanding capacity to 2GW (1.3GW for product, rest for service) by YE26, hitting that target is possible. However, cadence and timing of deals matter, and we question whether investors are getting ahead of themselves. With BE +20% last week: expectations are ramping with DC deal & efforts by PJM to require new supply with new load. At current levels, we try to determine implied volumes. The stock is currently trading at ~22x ’27E EBITDA of $526mn. The median multiple for data center / hyperscalers adjacent cos is ~18x (Ex – 2). To justify a more ‘normalized’ multiple, investors might be baking much higher EBITDA growth vs sell-side cons.”
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
9. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 18, Melius analyst Ben Reitzes raised the price target on the stock to $170.00 (from $148.00) while maintaining a Buy rating. The buy rating comes ahead of Dell’s upcoming earnings report due on August 28.
The firm believes that Dell is one of the best examples of a company executing well, and that it is sticking with the stock ahead of earnings.
“Dell is one of the best examples of a company that is executing well, dealing with tariffs adeptly, and readying itself for further growth in the nascent enterprise hardware cycle.”
Melius anticipates upside for all Dell’s business segments, which is why it has raised its estimates “materially” through fiscal year 2028.
In particular, Dell’s AI-server business holds significant long-term business potential.
“We are raising estimates materially for Dell through FY28 as we see upside in all segments and have a more constructive view on the hits from tariffs. By FY28, we also believe the attach rate of services and even storage could become more material for AI servers, which many on the street view as “empty calories”. Our target moves to $170 from $148 and we reiterate our Buy rating. Note that Dell reports F2Q26 EPS next week on August 28th.”
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
