According to Evercore, IT hardware and AI infrastructure spending will continue to witness sustained momentum throughout 2026. The firm believes that companies will not only be investing in computing power, but also in storage and networking.
Earlier, the firm had predicted the S&P 500 climbing an estimated 20% to 7,750 by 2026. Analyst Julian Emanuel noted this to be powered by a “once-in-a-generation” shift from AI.
Evercore noted how storage and networking will potentially take up a larger share of IT spending, particularly as organizations work on bottlenecks around data latency and storage architectures. Notable names poised to benefit from AI workload shifts include Seagate Technology and Western Digital.
Moreover, names such as Pure Storage, NetApp, and Dell Technologies may also see gains even though there are potential challenges from NAND input costs. Meanwhile, server vendors such as Dell and Hewlett Packard Enterprise are expected to benefit from outsized investments from Tier-2 providers in AI compute.
Overall, the outlook suggests that AI-driven demand will support investment across multiple sectors throughout the year.
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 Q3 2025.
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10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 62
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 5, Cantor Fitzgerald analyst Thomas Blakey reiterated an Overweight rating on the stock with a $131.00 price target. Despite short-term revenue timings shifts, firm analysts see long-term upside from Blackwell GPU adoption and discounted valuation vs peers.
The firm told investors in a research note that it has adjusted its estimates, shifting some revenue from Q4 2025 and Q1 2026 to Q2 2026 due to potential for further pushouts. Meanwhile, it has kept overall calendar year 2026 and 2027 projections relatively unchanged and slightly above consensus revenue estimates.
Cantor continues to believe in the AI infrastructure provider, noting how it is poised to benefit from AI hyperscale demand and next-generation GPU demand. The company currently has double-digit percentage of its fleet running on Blackwell GPUs, which is anticipated to increase throughout 2026 and 2027.
“Gemini’s end of C25 uptick in terms of performance versus peers, buoyed by Google’s TPUs, created a buying opportunity in CRWV shares that now trade ~3x C27 compared to ORCL at 6x and MSFT at 9x. On an EV/R/G, CRWV shares are trading 0.05x C27, a considerable discount to infrastructure software average 0.40x (median 0.3x). CoreWeave currently has DD% of its fleet running on Blackwell GPUs, in our view, and we expect this percentage to climb in C26 and even more so in C27. We believe exiting C27 CoreWeave’s full contracted 2.9 GW could be sold and nearly activated, creating a forward-looking $30b+ revenue run rate opportunity for C28, or an over 80% C25-C28 revenue CAGR, justifying our $131 PT.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 77
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 6, Raymond James analyst Simon Leopold reiterated a Strong Buy rating on the stock with a $125.00 price target. The rating affirmation follows Marvell’s announcement of intent to acquire XConn, a provider of PCIe and CXL switching silicon and UALink technology.
The deal, worth about $540M, is expected to strengthen its AI data center connectivity solutions. Marvell noted that this acquisition enhances its switching portfolio by adding XConn’s PCIe and CXL products and strengthens Marvell’s Ultra Accelerator Link (UALink) scale-up switch team.
“This combination creates a compelling switching platform for accelerated infrastructure, advancing Marvell’s connectivity strategy for next-generation AI and cloud data centers.”
-Marvell’s Chairman and CEO Matt Murphy.
Raymond James favors this deal favorably, noting how the company’s product portfolio needed to catch up in this area. XConn’s technology can enhance Marvell’s market reach and also complement its xPU/ASIC offerings. The firm said that it is not adjusting its estimates for MRVL at this time since XConn is described as an early-stage company.
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
8. 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 Watching Closely. On January 6, Truist initiated the stock as “Buy” with a price target of $223. Analyst calls Palantir a “best in-class asset” with accelerating fundamentals.
The firm acknowledged how Palantir already commands a significant valuation premium, but still considers it a buy due to its major opportunity to continue driving GenAI adoption for government and enterprises.
Palantir has witnessed material improvement in its momentum, primarily by the release of AIP, its Artificial Intelligence Platform (AIP).
” PLTR has seen material improvement in its momentum driven by the release of AIP, with top-line growth accelerating to 63% y/y from 13% y/y as of 2Q23 – with a larger portion of this growth flowing down to op. margins, reaching 50%+ margins.”
The company reported a revenue increase of 50% year over year for the past two quarters from U.S. government contracts, while commercial growth surged 73%.
“After reaching a Rule of 114 profile last quarter and guiding for Rule of 113 in 4Q25, we see potential for a sustainable Rule of 80+ profile, balanced between 50%+ operating margins and continued strong top-line growth,” Ramnani noted. “We compared Palantir against 110 other software companies and found it’s expected to generate the highest Rule of 40 over the next 3 years – an unparalleled financial profile, in our view.”
Overall, the firm believes that Palantir is a best in-class asset. While much of its revenue is currently coming from its US business, it is also poised to benefit from international pathways.
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
7. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 88
Adobe Inc. (NASDAQ:ADBE) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 5, Jefferies downgraded the stock to “Hold” from Buy with a price target of $400, down from $500. While Adobe’s AI tools show adoption and increasing usage, it has had limited monetization amid competition.
The rating downgrade comes as part of the firm’s adjusted ratings in the software sector. The firm believes that investors should stay underweight in software as growth slows and lags other sectors such as semiconductors.
Particularly for Adobe, Jefferies highlighted competitive pressure in the lower-end segment of its market. Analysts noted how casual users have access to numerous AI-enhanced alternatives to Adobe’s Creative Cloud suite.
On the other hand, its business remains “well-protected” among creative professionals and power users who demand “fine-grained control” and the advanced features that Creative Cloud offers.
“Adobe has made significant progress with Al features since Firefly was announced in early 2023. In FQ3, gen Al credit consumption increased 3x q/q, and Al-influenced ARR exceeded one-third of overall business. While heavy Al users must sign up for paid subs plans, ADBE has often run promotions for unlimited usage over the past year or more, implying a continued focus on adoption over monetization in the midst of increasing competition. We do not see acceleration in total revs during our forecast period to FY30.”
– Jefferies analysts, led by Brent Thill, in an investor note.
Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.
6. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 7, UBS analyst Timothy Arcuri raised the price target on the stock to $400.00 (from $300.00) while maintaining a “Buy” rating. The firm sees Micron as structurally revalued driven by AI demand and improved EPS durability.
UBS’s price target hike follows a series of investors meetings and dinners with Micron’s management, involving key personnel such as the CEO, CFO, and Investor Relations. These bullish meetings have shed a positive outlook on the durability of the current memory cycle.
The firm believes that investors are still underestimating the degree to which artificial intelligence has made memory, particularly DRAM, a strategic asset. They have also been failing to fully appreciate EPS durability, partly because each generation of High Bandwidth Memory (HBM) becomes obsolete faster than traditional DRAM historically did.
Analysts noted how this is now a “dis-incentive” for customers to build inventory and reduces the severe cyclicality that has characterized the memory market.
“We believe this may argue for a re-rating of the stock and new ranges for key metrics like P/TBV. Net, we raise C2026E EPS from ~$41 to ~$45 and C2027E from $42 to ~$60. We raise PT to $400 (from $300) and maintain our Buy rating.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
5. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 110
AppLovin Corporation (NASDAQ:APP) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 6, Benchmark analyst Mike Hickey reiterated a Buy rating on the stock with a $775.00 price target. The firm has named APP as its 2026 EDM Top Idea as it sees a clear path to scalable, high margin growth this year.
The firm highlighted how AppLovin enjoys core gaming growth and is also building a second growth engine in web and e-commerce advertising. The company is attracting more advertisers, and more of them have begun adopting its self-serve AXON Ads Manager.
Moreover, new product-driven catalysts is helping expand both advertiser count and wallet share. According to AppLovin’s management, self-serve advertising are delivering early but good results, there is improving ROAS from prospecting campaigns, and also incremental conversion upside from AI-driven creative tools.
All of this is against a fixed user base of over 1 billion daily actives, noted the analysts.
“With AEBITDA margins already in the low 80% range and minimal incremental cost to scale, we see a clear path to sustained revenue growth and strong earnings leverage into 2026.”
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.
4. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 112
Vistra Corp. (NYSE:VST) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 6, BMO Capital analyst James Thalacker lowered the price target on the stock to $230.00 (from $245.00) while maintaining its “Outperform” rating. The lowered target follows Vistra’s Cogentrix deal, with the firm positive on the stock as it sees Vistra’s long-term cash growth intact.
The firm discussed Vistra’s recent agreement to acquire Cogentrix Energy, comprising 10 natural gas-fired power plants, from Quantum Capital Group for about $4.7 billion, to meet growing power demand.
The deal, worth an estimated $4 billion, includes a $2.3bn cash consideration/~$0.9bn of Vistra stock (priced at $185/share), and the assumption of an estimated $1.5 billion of debt at Cogentrix, net of expected tax benefits with an estimated NPV of approximately $0.7 billion.
Vistra anticipates the deal to close mid-to-late 2026, according to the announcement.
“We raise our 2027-2030 adj. EBITDA estimates to/from $8,204/$7,652bn, $8,334/$7,725bn, $8,510/$7,869bn, and FCFbG to/from $4,814/$4,523bn, $5,027/$4,580bn, and $5,245/$4,694bn. Our target price moves to $230. Reiterate Outperform.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 120
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 6, Evercore ISI reiterated the stock as “In Line”. The firm believes that Tesla will likely “see-saw” for the foreseeable future.
“For TSLA, who doesn’t guide, the stock is likely a short-term seesaw between lackluster legacy (~$100 of value; ~40c EPS Q4/Q1) vs headline/thematic focus on Austin “driver out.'”
In other news, Nvidia just launched unveiled a new tech platform for self-driving cars as part of its AI push. The driving AI product, Alpamayo, is built for Level 4 Autonomy and will come to the U.S. in Q1 2026 in certain certain Mercedes-Benz vehicles. This family of AI models is designed to bring “humanlike thinking” to autonomous vehicle decision-making.
In a post on X, Musk said he was “not losing any sleep” over the announcement and also wished that Nvidia’s effort succeeds. However, investors didn’t react positively to the news and the stock fell after.
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 6, BofA Securities analyst Wamsi Mohan reiterated a Buy rating on the stock with a $325.00 price target. Analysts are optimistic about the stock driven by steady App Store momentum, strong capital returns, and long-term AI leadership potential.
The firm highlighted how App store revenues in the first quarter of 2026 increased to $8.6 billion, a 6.8% year-over-year increase based on developer revenue data from SensorTower.
Meanwhile, total downloads across iPhone and iPad platforms grew 1.5% year-over-year to 8.9 billion during the same period. The firm noted how this marks the slowest quarterly revenue growth in an estimated 11 quarters, dating back to fiscal year 2023.
Apple’s app store also saw increased dollars per download to $0.97, a 5.3% increase. Global App store revenue increased 5.7% in December, faster than the app store download growth of 3.1% year-over-year.
China’s app growth, however, was weaker. Nevertheless, the firm keeps a Buy rating on the stock due to strong shareholder returns, AI potential, and future product opportunities.
“While global growth was solid in December, we note China experienced weaker y/y performance (Fig 11) which was likely affected by tougher comps, slower usage (weaker overall economy), and possible lower commission. Maintain Buy on strong capital returns, eventually leader at AI at the edge & optionality from new products/markets. PO stays at $325 on 32x C27E EPS of $10.11.”
Apple is a technology company known for its consumer electronics, software, and services.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 6, Bank of America reiterated the stock as “Buy,” noting that the AI chipmaker is still a top AI pick following the company’s presentation at the Consumer Electronics Show on Monday.
Analysts highlighted how CEO Jensen Huang highlighted robust demand for AI computing at Nvidia’s CES 2026 keynote and financial analyst Q&A. The new Vera Rubin platform was introduced, along with six new AI slated for the second half of 2026. A new pooled context memory storage platform was also announced at the event.
The firm noted how Nvidia continues to run every single major Large Language Model today, maintain its leadership in the compute space.
Other highlights include physical AI, particularly through Alpamayo, Nvidia’s open portfolio of AI models, simulation frameworks, and physical AI datasets for Level 4 autonomous driving. BofA also discussed how china H200 chips demand is still there, but is awaiting licenses.
The firm highlighted NVDA’s continued dominance in AI compute, networking, system, and ecosystem.
“We continue to highlight NVDA’s continued dominance in AI compute, networking, system, and ecosystem, trading at just ~19x CY27E PE or in-line with broader SPX despite its superior >35% EPS CAGR and >40% FCF. Maintain Buy.”
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.
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