According to a new report from consulting firm ICF, the United States will face a dramatic surge in electricity consumption over the next five years. Electricity demand is anticipated to rise by 25% by 2030, and a staggering 78% by 2050. Technological and consumer shifts, particularly artificial intelligence, are at the root of the surge.
Meanwhile, a new analysis by Alex de Vries-Gao, founder of the Digiconomist, has revealed that artificial intelligence systems could account for almost half of datacenter power consumption by the end of this year. International Energy Agency estimates reveal that all data centers, except for mining for cryptocurrencies, consumed 415 terawatt hours (TWh) of electricity last year. De Vries-Gao asserted that AI could already account for 20% of this total.
READ ALSO: 10 AI Stocks on Analysts’ Radar Today and 10 AI Stocks on Wall Street’s Radar.
In the latest news, President Donald Trump has issued orders to boost the US nuclear energy industry. The orders can not only help revive the uranium market, but also motivate investors toward the sector. The latest orders will help revive uranium production in the U.S., helping meet the surging power demand largely driven by massive data centers.
Even though spot uranium prices peaked in 2023, they have fallen about 30% since due to recession fears and geopolitical instability. Big tech firms would be particularly interested in the option given their reliable nature and near-zero carbon footprint. Nevertheless, rising costs and competition from natural gas plants have put nuclear projects feeling pressure.
Currently, there is a weakness in the uranium market and a lack of investor interest, making it difficult to initiate new projects. However, Evercore ISI feels optimistic about the news.
(The orders) will provide further confidence that the Federal funds already earmarked to support the domestic nuclear fuel supply chain (will) get deployed quickly which in turn should attract more private investment.”
-Nick Amicucci of Evercore ISI.
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. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 23
On May 27, DA Davidson analyst Gul Luria reiterated a Neutral rating on Informatica Inc. (NYSE:INFA) with an $18.00 price target. Informatica is a leader in enterprise AI-powered cloud data management.
The firm has added Informatica to its STAMPEDE list, which identifies special situation investment ideas. The addition to the STAMEDE list is driven by Salesforce’s recent announcement that it intends to acquire Informatica for an equity value of $8 billion.
“We are adding Informatica to D.A. Davidson’s STAMPEDE list of special situation investment ideas, under the letter T for “Takeouts” given the recently announced news that the company has entered into an agreement for Salesforce (CRM) to acquire Informatica for $8B in equity value, net of Salesforce’s current investment in Informatica. While we expect this acquisition to close, we remain hesitant to endorse the deal given our thoughts regarding Informatica’s offerings and Salesforce’s return to their acquisition playbook.”
The agreement between the two companies marks a significant step forward for both companies. In particular, the addition of Informatica to the STAMPEDE list implies that it is uniquely positioned and is worthy of interest for investors looking for special situation opportunities. The firm remains neutral despite the acquisition news, implying that stock valuation remains consistent with previous analysis.
9. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 33
On May 27, Cantor Fitzgerald analyst Andres Sheppard reiterated an “Overweight” rating on Aurora Innovation, Inc. (NASDAQ:AUR) with a $12.00 price target. Aurora Innovation is a self-driving technology company.
The firm has highlighted Aurora’s significant progress in the autonomous trucking industry, noting how the company has reportedly become the first in the United States to operate a commercial self-driving service via heavy-duty trucks on public roads.
As of May 2025, the company’s autonomous technology surpassed 3 million cumulative miles, both driverless and supervised. Moreover, since the company has entered early into the market, the firm believes that it may have a first-mover advantage in a sector with a substantial total addressable market (TAM).
Some key strengths of Aurora’s business model include its low asset intensity, high margins, favorable regulatory conditions, and its capability to scale its operations rapidly. The firm also highlighted Aurora’s partnership with Continental, designed to improve high-volume installation of Aurora’s hardware. With the start of production (SOP) poised for 2027, the firm expects it to be a catalyst for Aurora’s growth.
8. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
On May 27, MoffettNathanson raised the firm’s price target on CoreWeave, Inc. (NASDAQ:CRWV) to $56 from $43 and kept a “Neutral” rating on the shares. CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
The analyst noted that CoreWeave shares are up 157% since the IPO at $40, but that this rally doesn’t align with any significant changes in the company’s foundational aspects. The firm’s focus is “on fundamentals, not trading dynamics.” It further stated how “little has happened on the ground to prompt such a jump.”
It is true that the demand backdrop for AI infrastructure has been “extremely strong,” but that was the case previously, and the firm is “not inclined to simply chase the shares higher.”
The firm is cautious on CoreWeave and that ‘attempting to trade this move appears exceptionally dangerous.’
For investors, this is what it means:
“Our bias is now skewed to the downside, as opposed to being quite balanced in our initiation, but attempting to trade this move appears exceptionally dangerous,” Del Deo said in a Monday note to clients.
The firm has noted that the risks of moving to a sell call would “remain far higher than we feel comfortable accepting.”
7. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 41
On May 27, Investment bank UBS Group AG maintained a “Neutral” rating for Rivian Automotive, Inc. (NASDAQ:RIVN) and upgraded its price target to $13 from $12. Rivian Automotive is an automaker that creates and manufactures electric vehicles, as well as software and services.
The Swiss investment bank views a positive long-term outlook for the stock despite the challenging near-term environment for EVs. This is particularly because of the upcoming launch of the R2 model, anticipated in 2026.
“We remain Neutral rated on RIVN given a likely tougher near-term EV environment, but we do see potential for a positive longer term outlook, particularly as we get closer to R2 launch and gain more clarity on the potential ramp.”
Here is the investment note from analyst Joseph Spak:
“In this report, we focus on Rivian-specific trends from our 2025 UBS Evidence Lab Global EV survey results. While an increasing number of U.S. consumers are aware of the Rivian brand, overall awareness remains low (13% vs. 10% last year). Further, only ~5% of BEV owners/buyers indicated they would consider purchasing a Rivian (up from 4.5% last year). For reference, we estimate Rivian’s 2024 U.S. BEV share (excluding vans) was ~3%. The survey indicates that consumers still want more EV choices and alternatives, which may be positive for Rivian. In fact, of those who would consider buying a Tesla, ~30% are more likely to consider purchasing a Rivian (up from 26% last year).
However, overall U.S. interest in EVs has declined, and given potential pushout of EPA requirements and repeal of the California waiver, the EV inflection may be further out than expected. The removal of the California waiver may also limit Rivian’s ability to generate and sell ZEV credits. Slower EV growth is likely exacerbated by a lack of affordable options—only ~35% of respondents believed EVs are affordable vs. internal combustion engine vehicles. Rivian’s R1S SUV starts at $75,900 while the R1T pickup starts at $69,900. The average vehicle price in the U.S. is currently $47,900, while the average BEV (including tax credits) is $57,400.
The potential removal of consumer clean vehicle tax credits (CVC), including the ‘leasing loophole,’ could further limit EV adoption. In 2024, we estimate that ~59% of Rivian R1s were leased. While not all demand would be destroyed if CVCs are removed, we believe it would still be a headwind. These are key reasons why the R2 model launch is so critical to the equity story. R2 remains on track for 2026 with a starting price of ~$45,000.
Near-term, especially if U.S. policies move away from an EV focus, continued cost reductions on the R1 and increased manufacturing efficiencies are key. We remain Neutral rated on Rivian given a likely tougher near-term EV environment, but we do see potential for a positive longer-term outlook, particularly as we get closer to the R2 launch and gain more clarity on the potential ramp.”
6. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 52
On May 27, Cantor Fitzgerald analyst Thomas Blakey reiterated a “Neutral” rating on Elastic N.V. (NYSE:ESTC) with a $109.00 price target. Elastic N.V. is a search AI company offering cloud-based solutions.
The firm keeps a cautious outlook on the stock amid concerns that Elastic’s initial fiscal year 2026 revenue guidance may not meet expectations. As per the analysts, consensus expectations for the company’s cloud revenue growth in Q4 of fiscal year 2025 are at +23.1%, a slight decline from 26% in the previous quarter.
This comes after the company’s strong 12-month revenue growth of 17.95%, bringing total revenue to $1.43 billion. They further pointed out that the total new business generated is likely to be 5% lower compared to a 28% increase in the third quarter, setting a modest tone for the year-end report expected to be released on Thursday, May 29, 2025.
Analysts also said that the company’s EBIT margin guidance, estimated at 15%, points to a record year. However, investors shouldn’t bet on a similar rate of margin improvement in fiscal year 2026, considering that the company plans to invest in artificial intelligence opportunities.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
On May 27, Susquehanna lowered the firm’s price target on Marvell Technology, Inc. (NASDAQ:MRVL) to $90 from $110 and kept a “Positive” rating on the shares. Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
Susquehanna’s rating update follows Marvell’s upcoming quarterly report. While the firm is of the view that Marvell will deliver results in line with expectations, there are concerns about the increased variability in T2 volume deployment. The firm also noted a weakened sentiment surrounding XPUs/ Inphi following the postponed Investor Day.
Originally scheduled for June 10, 2025, Investor Day was postponed due to the dynamic macroeconomic environment. The company now plans to conduct a webinar, particularly on the future of custom silicon for AI infrastructure. The company also reaffirmed its April quarter revenue midpoint of $1.875 billion in the announcement. This was viewed as underwhelming due to the modest guidance for April and strong competitor AI results.
The overall demand for data centers remains robust due to hyperscalers’ continued investment in AI. This demand is likely to benefit Marvell’s Inphi PAM4 DSPs and custom ASIC/AI products. However, the firm noted how Marvell may not be able to fully benefit from this due to a lower-than-expected implied average selling price (ASP) for its Trainium2 product and a modest quarter-over-quarter growth in the data center sector. All of these factors have led Susquehanna to maintain its cautious outlook toward the stock.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
On May 27, Cantor Fitzgerald analyst Andres Sheppard reiterated an “Overweight” rating on Tesla, Inc. (NASDAQ:TSLA) with a $355.00 price target. Tesla is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
Sheppard’s optimism on Tesla stems from the company’s plan to launch fully autonomous robotaxis in June, starting with its fleet in Austin by the end of June. The initial phase will include Model Y vehicles with Full Self Driving (FSD) technology, with broader expansion anticipated by year-end.
Tesla’s Full Self-Driving (FSD) technology, or the Tesla Vision, works through advanced AI and machine learning to interpret the world through cameras alone instead of LiDAR or radar. This technology has already logged over 3.5 billion supervised miles for the first quarter of 2025.
Albeit there are near-term headwinds for Tesla due to macroeconomic conditions, tariffs, and the removal of the EV tax credit, the firm is optimistic about Tesla’s market prospects.
Tesla CEO Elon Musk has also committed to spending more time to the company for the company as he prepares to leave his leading role at DOGE, the Department of Government Efficiency.
Besides Musk’s commitment, some other catalysts highlighted by the firm for Tesla are the FSD rollout in China, which began in the first quarter of 2025, along with the anticipated deployment of FSD in Europe in the first half of 2025. This is currently pending regulatory approval.
Optimus Bot is poised for high-volume production for 2026, while the company also plans to introduce the Semi Truck, which is likely to begin production in 2026. All in all, the firm is optimistic about Tesla’s long-term prospects.
It believes that Tesla will secure a significant share of the self-driving market in the U.S., as well as reap substantial revenue from FSD, Robotaxi, Energy Storage & Deployment, and Optimus Bot initiatives.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
One of the most notable analyst calls on Tuesday, May 27, was for Salesforce, Inc. (NYSE:CRM). Wedbush analyst Daniel Ives reiterated an “Outperform” rating on the stock with a $425.00 price target. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
Wedbush has commented about the recent deal between Salesforce and Informatica, citing that the proposed acquisition of enterprise cloud software company Informatica is the “right deal at the right time” for Salesforce.
“Despite CRM not pursuing a big deal of this size since Slack in 2021 for $28 billion, we view this deal as a smart and strategic deal for customer acquisition as INFA’s strong customer base of over 5,000 customers, including ~2,500 cloud subscription ARR customers and over 80% of the Fortune 100, leverages this technology for analytics and AI-powered processes which could strengthen CRM’s AI strategy.”
-Wedbush analysts wrote in a note to clients.
“INFA has been a long-time acquisition candidate, and we believe this has been in the works for quite a while as this would be smart a strategic move by CRM in our view as INFA would bolster its AI capabilities by improving its strategy leveraging proprietary data as there are cost synergies of 15% to 20% for CRM through this acquisition based on our analysis.”
The analysts further noted that the deal would pave the way for more artificial intelligence opportunities for Salesforce, and even more cross-selling opportunities.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
One of the biggest analysts calls on Tuesday, May 27, was for Nvidia Corporation. Piper Sandler reiterated the stock as “Overweight” with a $150 price target. The firm said it’s sticking with the stock ahead of earnings on Wednesday. NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
Analyst Harsh Kumar expects NVIDIA to witness a flat to downward trend leading up to its earnings report, which is scheduled for tomorrow. Some reasons for the potential revenue shortfalls in the April quarter are macroeconomic uncertainties and the H20 chip ban. There is also the news of a new China-specific chip, anticipated towards the end of the July quarter.
The said chip may influence the company’s guidance for July. Despite these near-term challenges, Kumar is optimistic about the latter half of the year on the back of strong high-performance computing (HPC) capital expenditure and improving macroeconomic conditions. The firm advises investors to stay optimistic about NVIDIA’s long-term performance despite short-term headwinds.
“We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year. Reiterate OW rating.”
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
One of the most notable analyst calls on Tuesday, May 27, was for Alphabet Inc. (NASDAQ:GOOGL). Cantor Fitzgerald analyst Deepak Mathivanan reiterated a “Neutral” rating on the stock with a $171.00 price target. Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
Discussing the company’s recent announcements at Alphabet’s I/O conference, the firm described the sentiment towards Alphabet shares as incrementally positive. Some developments discussed include the launch of AI Mode for U.S. search users, the integration of agentic capabilities into apps and services, including the Gemini app and Chrome, as well as the new Gemini Ultra subscription tier with Project Mariner, and the XR glasses designed for immersive AI experiences.
“In the past week, GOOGL hosted its annual I/O and Marketing Live conferences, where the company rolled out a long list of new products in its family of apps. Notable announcements from I/O, in our view, include: 1) launch of AI Mode for US search users, 2) integration of agentic capabilities into various apps & services including Gemini app, AI Mode, and Chrome soon, 3) new Gemini Ultra subscription tier with Project Mariner, and 4) XR glasses for immersive AI experiences. At Marketing Live, the key announcements include 1) expansion of ads in AI Overviews and launch of ads in AI Mode, 2) creative iteration with Veo 3 and Imagen 4, and 3) new agentic capabilities for campaign management. GOOGL’s strong tech and infra capabilities were never in doubt and I/O made it abundantly clear that the company is willing to accelerate deployments of GenAI experiences into core products to improve user experience and defend share against competing GenAI products. We came away sensing an increased level of urgency at GOOGL post this I/O event. While some of the product launches are likely to take time before seeing meaningful adoption, we are incrementally positive on GOOGL shares post I/O. Shares outperformed the Nasdaq by 4-pts during the past week.”
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks on Analyst’s Radar Today and 10 AI Stocks on Wall Street’s Radar.
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