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.
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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.
8. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 18, Evercore ISI analyst Peter Levine lowered the price target on the stock to $425.00 (from $440.00) while maintaining a “In Line” rating. The firm also added the stock to their “Tactical Underperform” list.
The price target cut comes ahead of Crowdstrike’s fiscal Q2 results due on August 27. As per the analysts, subdued channel checks imply “an unfavorable setup” for the company and that Q2 is a “critical show me” quarter.
“Ahead of F2Q results on 8/27, we are adding CRWD to our tactical U/P list following subdued channel checks this quarter. We view F2Q as a critical “show me” quarter for CRWD. Our checks, combined with a premium valuation priced for perfection and elevated expectations, creates an unfavorable setup. Survey data this quarter reflected a more muted tone (full results inside) which was broad-based across all metrics we gather quarterly. This likely reflects an environment where partners are performing in line with targets but not seeing the same level of upside or momentum that characterized prior periods.”
The firm highlighted how Falcon Flex adoption remains in early stages with no evidence of outsized consumption founded on initial cohort trends. Module adoption is broadly in-line with expectations, while the upcoming Falcon Complete Platform (CCP) renewal cycle demonstrates a split view on conversions.
“The bull case (playing for mid-20% growth in FY27) is leaning on stronger Falcon Flex adoption, broader module expansion, and a smooth CCP conversion cycle. However, our data suggests Falcon Flex adoption remains early, with no evidence of outsized consumption based on initial cohort trends. Module adoption is broadly in line with expectations, though we have not seen signs of meaningful adoption trends exceeding expectations. As for the CCP renewal cycle, which likely begins ramping in F4Q (based on our data), partner feedback shows a split view on conversions. There is no clear consensus that customers will pay full list price for previously credited products, introducing uncertainty into potential upside. Overall, the assumptions supporting the bull case may be more optimistic than current trends suggest.”
Overall, the firm asserted that this is a tactical call before the earnings and doesn’t intend on challenging the company’s fundamentals, leadership, or asset quality. However, the upside for the stock is limited, even with a clean print. This is unless 2H estimates are raised meaningfully, which the firm’s work doesn’t indicate.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
7. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 64
monday.com Ltd. (NASDAQ:MNDY) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 18, Needham analyst Scott Berg reiterated a Buy rating and $250.00 price target on the stock.
The firm revealed how its post 3Q investor call with the company’s VP of IR Byron Stephen and IR Manager Paige Newman helped gain clarity on Monday’s performance marketing shortfall. It also helped explain how their reliance on Google should further reduce moving forward.
The firm believes that Google pricing change will result in a small but minor near-term impact. This may force the company to reduce its mid-term growth target from 30% to 25% at its September investor day.
However, the company’s overall dependence on Google has decreased and now represents less than 30% of net customer additions. Moreover, self-service sales have also decreased to 40% of total sales. This reveals how the company is shifting toward larger, higher-quality deals in upmarket segments.
“We came away believing this Google pricing change will have a small, but minor near-term impact which we expect will force MNDY to reduce its 30% mid-term growth target down to 25% at its Sept. investor day. Google now represents <30% of net customer adds and self-service sales have decreased to 40% of sales highlighting the up market GTM shift to larger, higher quality deals. Other key topics include AI monetization, a $300mm CRM ARR target, NRR stabilization, and confidence in accelerating 4Q growth. Reiterate Buy after a large share decline seems overdone for a 5pt change in growth assumptions.”
monday.com Ltd. (NASDAQ:MNDY) develops software applications globally, offering a cloud-based Work OS for creating work management tools.
6. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one the 10 AI Stocks Analysts Are Watching Closely. On August 18, Palantir stock received a cautious mention from Citron regarding the company’s stock valuation, marking the second time the firm has raised concerns.
The stock slipped amid the mention and recent remarks from OpenAI CEO Sam Altman who has warned that the AI market is in a bubble. Altman’s remarks have put a question mark over the sustainability of AI-related stock valuations.
Previously, the firm led by Andrew Left implied that Palantir may begin to look cheap at $40 per share. However, that view has since been updated, with the analyst now arguing that the stock would remain expensive even at that level.
The analysis by the short seller puts OpenAI and Palantir into comparison, highlighting that if Palantir were to trade at the same 17x price-to-revenue multiple as OpenAI (based on Bloomberg consensus estimates of $5.6 billion in 2026 revenue), its implied stock price would be about $40 per share.
Citron contends that even this price would mark Palantir as one of the most expensive SaaS stocks.
“OpenAI at $500B Puts Palantir at $40 — And That’s Generous “
Another concern that was highlighted is insider selling. The firm noted how CEO Alex Karp has sold nearly $2 billion in Palantir shares over the past two years, which makes him “one of tech’s most aggressive insider sellers.”
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 18, Wolfe Research analyst Chris Caso reiterated an Outperform rating on the stock with a $160.00 price target. The firm believes that three factors will have an influence on Microns’ stock in the future.
These include sustained pricing strength, market share dynamics assuming Samsung qualifies on HBM4 for next year, and 2026 HBM margins, which may decline but still beat Micron’s overall average.
Looking ahead, the firm believes that demand for Rubin Ultra chips in 2027, which will require far more memory, remains a significant catalyst. Keeping in view that Samsung hasn’t qualified yet, it looks like industry capacity is insufficient which further keeps analysts’ positive on Micron stock.
“The more significant intermediate-term catalyst for DRAM is the HBM content increase for Rubin Ultra in CY27 (4x content/ chip and 2x content/GPU). Because Samsung has yet to qualify, we don’t think the industry capacity is in place to fulfill that demand yet. That’s the factor that keeps us structurally positive, with the aforementioned factors providing trading opportunities in the meantime.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one the 10 AI Stocks Analysts Are Watching Closely. On August 18, Barclays reiterated the stock as “Equal Weight” stating that it sees a “lengthy” permitting process for Tesla’s robotaxi.
“The process for ‘real’ autonomous Robotaxi in CA will likely be lengthy, as Tesla must apply for and receive a number of permits prior to offering paid, driverless services; moreover, media reports indicate that Tesla’s engagement with California regulators has been more limited than people realize, with Tesla Robotaxi pitched for now in a more limited way than people understand.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $329 implies a 1.8% upside; however, the Street-high target of $500 implies an upside of 49.2%.
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 18, Barclays analyst Raimo Lenschow lowered the price target on the stock to $316.00 (from $347.00) while maintaining an Overweight rating.
According to the firm, Salesforce’s Q2 off-cycle software earnings will be another test to see if the sector can find valuation support. Even though channel checks reveal solid end demand and that stock valuation levels are much lower, artificial intelligence uncertainties still remain.
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Analysts Are Watching Closely. One of the most notable analyst calls on August 18 was for Apple Inc. Bank of America reiterated the stock as “Buy” stating that it remains bullish on Apple Services.
“Services has been, and we expect will continue to be, the leading driver of y/y gross profit dollar growth. Reiterate Buy on stable cash flows, earnings resiliency and strong capital return program.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $245 implies a 6.11% upside; however, the Street-high target of $275 implies an upside of 19.1%.
Apple is a technology company known for its consumer electronics, software, and services.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 18, Morgan Stanley reiterated the stock as “Overweight” and raised its price target on Nvidia to $206 per share from $200. The rating comes ahead of the chipmaker’s earnings print on August 27.
“Expectations have risen ahead of Nvidia’s earnings, and we think rightfully so. We expect a strong quarter and outlook, but we’re a little measured on the current quarter — our optimism centers on what lies ahead.”
-Analyst Joseph Moore .
Moore highlighted strong demand from Nvidia’s customers beyond its “largest handful of spenders.”
“Three months ago, our positive view on demand was more bullish than consensus, and our view that supply issues would get resolved were more bullish than consensus, but consensus has risen on both. But we remain more optimistic on prospects for growing share in 2025 and holding share at close to the current 85% in CY26, against both merchant and ASIC competition.”
Keeping this in mind, the firm has modeled $46.6 billion in revenue for July, up from $45.2 billion.
“So how would we put this together around the quarter? We model $46.6bn in revenue for July, up from our prior $45.2bn, and $52.5bn in revenue for October vs our prior $51.3bn. We think investor expectations are moderately higher based on some of those supply inputs noted above, and we see the rationale for upside. But our assumption is that more of that comes in January; either way these figures represent numbers that are still undershipping end demand, and momentum should continue into next year, which is an important factor when thinking about a continued bid to the stock. Should China fully come back into the picture, that would be additive to our assumptions. As such, we are raising our 2026 estimates, from revenue/non-gaap EPS of $264.6bn/$6.28 to $273.2bn/$6.51. As far as our PT, we had assumed ~33x our MW CY25 EPS estimate of $6.02; we are maintaining that ~33x target multiple but on our now $6.25 in MW EPS that brings the PT to $206.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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