Last week, AI startup Anthropic launched its most intelligent model to date, the Claude Opus 4. According to the company, Claude Opus 4, together with its other model, Claude Sonnet 4, are defining a “new standard” when it comes to AI agents and “can analyze thousands of data sources, execute long-running tasks, write human-quality content, and perform complex actions.”
However, with greater intelligence comes power, which can be dangerous if left unchecked. Anthropic’s latest model is a testament to how far intelligence has come and how dangerous it can be. Upon testing the model, the company revealed that it can sometimes resort to “extremely harmful actions” such as attempting to blackmail engineers who say they will remove it.
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The company has acknowledged that the AI model was capable of “extreme actions” if it thought its “self-preservation” was threatened. It also clarified how such responses have been “rare and difficult to elicit”, but were “nonetheless more common than in earlier models.”
When tested, Anthropic’s Claude Opus 4 displayed troubling behavior when placed in a fictional work scenario. The model was tested by pretending it was a work assistant, providing it with fake emails that said the company may shut down, and other emails hinting that the engineer responsible for the shutdown was having an affair.
Claude Opus 4 attempted to avoid the shutdown by threatening to tell others about the engineer’s affair, demonstrating the lengths it can go to when threatened or pressured. Anthropic’s Claude isn’t the only model capable of such behavior, however. According to Aengus Lynch, an AI safety researcher at Anthropic, it’s not just Claude.
“We see blackmail across all frontier models – regardless of what goals they’re given.”
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10. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
On May 29, JPMorgan lowered the firm’s price target on C3.ai, Inc. (NYSE:AI) to $23 from $27 and kept an “Underweight” rating on the shares. C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.
The price target revision follows C3.ai’s fiscal Q4 report, which demonstrated mixed results. While total revenue exceeded expectations, it also revealed a dependency on professional services for outperformance. Moreover, subscription revenue, which is a key growth metric for the company, fell short of the consensus estimate by 9%.
Elaborating on subscription revenue, the firm said that a portion of the revenue includes demo licenses, which are non-recurring and make up approximately 40% of the total subscription revenue. These licenses have led to all the sequential growth in subscription revenue. Had they been excluded, it would indicate a decline instead.
Meanwhile, Prioritized Engineering Services (PES) revenue exceeded expectations and played a main role in the professional services segment’s performance, which surpassed consensus estimates and helped compensate for the underwhelming subscription figures. Even though C3.ai reported better-than-expected profitability for the quarter, its operating margins remained deeply negative.
Overall, while Bora recognized C3.ai’s quest in Artificial Intelligence and its strategic partnerships, there have been concerns over the stock’s potential performance due to the lack of core subscription growth, the irregularity of professional services revenue, and the company’s weak profitability profile.
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
On May 29, Analyst Andrew Percoco of Morgan Stanley maintained a “Buy” rating on Bloom Energy Corporation (NYSE:BE) and retained the price target of $30.00. 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.
Percoco’s rating reaffirmation follows Bloom Energy’s recent Ohio developments. In particular, the approval by the Public Utility Commission of Ohio for projects concerning Bloom Energy, AEP, as well as data center customers such as Amazon Data Services and Cologix, was seen as a catalyst. The recent approvals allow the said projects to continue without any obstacles, removing any uncertainties along the way.
The analyst further noted how the recent Ohio legislation that restricts AEP from owning and operating fuel cell systems for customers does not have an impact on current projects filed before the restriction date. Therefore, Bloom has a clear path to move forward with AEP.
All the mentioned positive developments underscore the firm’s positive outlook toward the stock.
8. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 47
On May 29, UBS analyst David Vogt lowered the price target on HP Inc. (NYSE:HPQ) to $26.00 (from $37.00) while maintaining a “Neutral” rating. HP Inc. is a technology company that specializes in personal computing and printing solutions.
The rating adjustment follows HP Inc.’s financial results, which demonstrated a solid revenue of $53.88 billion. However, increased tariffs and commodity costs have severely impacted the company’s Printing Systems (PS) margins. Due to these reasons, the company also had a miss in earnings per share (EPS) and a major downward revision of the fiscal year 2025 EPS guidance.
The analyst further stated that the revised EPS forecast and the consequent impact on HP’s share price are likely to be considerable. The firm’s report has also revealed a tempered outlook for the PC market, now anticipated to experience low-single-digit growth in calendar year 2025 as compared to the previously forecast 4-5% growth.
Erratic tariff proposals have led to disruptions in demand across Enterprise and Consumer markets, which have led to a change in the projection. The firm has therefore maintained a neutral rating on the stock based on the uncertainty in tariffs in China, Southeast Asia, and Latin America.
7. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
On May 29, Bank of America reiterated Dell Technologies Inc. (NYSE:DELL) as “Buy” and raised its price target from $150 to $155. The firm said Dell remains well-positioned following earnings on Thursday. Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
The firm is optimistic about the stock based on factors such as early stages of AI adoption, beneficial product mix margins, and the expected demand from an upcoming PC refresh cycle. Moreover, the long-term adoption of AI in PCs is also seen as a positive factor.
The firm’s analysis and Dell’s recent financial report also suggest a strong trajectory for the company, particularly in the AI server market. The increased price target reflects the firm’s optimism that Dell can capitalize on emerging technology trends to deliver growth in revenue and earnings on a continued basis.
“Reiterate Buy as we are still in the early stages of AI adoption, margins from mix, and tailwind from upcoming PC refresh and longer-term AI PC adoption.”
6. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 96
On May 30, Clark Lampen from BTIG maintained a Buy rating on AppLovin Corporation (NASDAQ:APP) with a price target of $480.00.AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.
The firm’s buy rating stems from AppLovin’s improved financial outlook and the strategic moves that it has been making. One of them is the upcoming sale of AppLovin’s first-party mobile games business to Tripledot Studios, anticipated to be finalized within the current quarter.
Through this move, AppLovin will be able to recognize revenue from previously internal campaigns, potentially adding around $100 million to its core advertising business revenue from the deconsolidation.
Lampen has also revised its cost estimates, taking into consideration major expenses such as app store commissions and user acquisition costs, across other operating areas. Even though projected revenue for 2025 decreased, the EBITDA estimate has been revised upward due to a correction in the previous model.
Overall, the firm’s valuation reflects strong confidence in AppLovin’s strategy and financial execution.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
On May 30, Cantor Fitzgerald analyst C.J. Muse reiterated a Neutral rating and $60.00 price target on Marvell (NASDAQ:MRVL). Marvell engages in the development and production of semiconductors, focusing heavily on data centers.
Cantor Fitzgerald’s rating implies that there aren’t any major catalysts that would potentially alter Marvell’s stock performance in the near term. The company reported earnings slightly beating consensus estimates, with revenues of $1.89 billion and earnings per share (EPS) of $0.62, compared to the consensus of $1.88 billion and $0.61 EPS. The company’s guidance was also above expectations, projecting $2.0 billion in revenue and $0.67 EPS versus the expected $1.98 billion and $0.66 EPS.
Moreover, Marvell’s earnings call has largely focused on its AI Custom Silicon business. The management was particularly confident about the company’s current status with Amazon’s Trainium 2 and Maia 200, as well as future products. They noted how Marvell has secured wafer/application processor capacity for Amazon’s next-generation 3-nanometer technology, which is anticipated to ramp up in 2026. The management has also forecast revenue growth from Amazon in calendar years 2026 and 2027.
At the same time, the firm also expressed concerns that Marvell’s expected ASIC volume may be lowered if strong demand from cloud providers leads customers to seek multiple suppliers. This, along with increased competition, may seriously impact Marvell’s gross margins.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
One of the most notable analyst calls on May 29 was for Broadcom Inc. Deutsche Bank reiterated the stock as “Buy,” stating that it’s bullish ahead of earnings next week. The stock remains a favorite idea for the bank. Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
“Overall, we continue to view AVGO as offering a unique combination of upside drivers with its AI business ramping in XPUs + Connectivity, its cyclical businesses slowly rebounding, and its Software business benefitting from VMW integration. As such, AVGO remains one of our favorite names in semis.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $250 implies a 6% upside, however, the Street-high target of $301 implies an upside of 28%.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
On May 29, Wells Fargo analyst Michael Turrin raised the price target on Salesforce, Inc. (NYSE:CRM) to $275.00 (from $255.00) while maintaining an “Equal Weight” rating. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
According to Turin, first-quarter results were satisfactory considering mixed enterprise trends and the timing of the Informatica deal. The company’s unchanged guidance for fiscal year 2026 was also a positive sign, even though it is likely that the stock moves sideways, driven by the uncertain economic environment and pending developments until fiscal year 2027.
Moreover, the analyst talked about the mixed momentum with Salesforce’s Data Cloud and Agentforce. Turrin also expressed skepticism regarding the Informatica deal, stating that there are more modern alternatives available in the market. The analyst also expects the narrative around Salesforce’s AI capabilities to remain unchanged until the Informatica deal finalizes.
“Against a lowered bar given mixed results across enterprise & INFA deal timing, 1Q results were fine & FY26 cc guide across-the-board was unchanged. Still expect shares to trade sideways in uneven macro & INFA pending until FY27. Stay EW, PT to $275. Data Cloud/Agentforce momentum mixed; enter M&A: Data Cloud & AI ARR surpassed $1Bn, still growing >120% y/y but implying ~$100Mn in NNARR. Also, Agentforce was quantified at ~$100Mn ARR with 8K cumulative deals, 4K paid, and 800 live. This suggests $25K/deal and a down-tick in paid-to-free ratio & net new paid deals (~1K vs ~3K in 4Q). Unless defensive, we continue to struggle w/ rationale behind INFA (vs more modern alternatives) & expect AI story to trend sideways until deal closes in Feb.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
One of the most notable analyst calls on Thursday, May 29, was for NVIDIA Corporation (NASDAQ:NVDA). DA Davidson analyst Gil Luria raised the price target on the stock to $135.00 (from $120.00) while maintaining a “Neutral” rating. NVIDIA specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
The rating revision follows Nvidia’s quarterly report, which demonstrated mixed outcomes. Its revenues of $44.06 billion topped the consensus estimates of $43.31 billion. However, the company missed out significantly based on the absence of H20 sales in China during the first and second quarters.
Luria said that the market may be underestimating the significance of Chinese sales to NVIDIA’s overall revenue, and that the uncertainty revolving around NVIDIA’s business in China is a major concern for the stock. Clear guidance from the Trump administration would provide a clear stance on the matter.
Nvidia’s latest earnings demonstrate how the company is resilient despite sales disruption from China, indicating robust demand for its products outside of the impacted region. At the same time, the H20 restrictions were enough to warrant caution from analysts.
“We maintain our NEUTRAL rating and raise our price target from $120 to $135 on NVIDIA following mixed earnings results that saw better than expected top-line numbers, but notable impact from the lack of H20 sales into China in Q1 and Q2. It is our belief that the Street is under-accounting Chinese contribution to NVIDIA revenue and that this topic represents the largest overhang on the stock, which will continue until we have an official position from the Trump administration that will give us resolution on the matter in one direction or the other.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
On May 29, Reuters reported that The New York Times has allowed Amazon.com, Inc. (NASDAQ:AMZN) to use its editorial content for artificial intelligence products such as Alexa. The move marks the publisher’s first licensing deal tied to generative AI.
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
The multi-year agreement will allow Amazon to use news articles from The Times, along with content from NYT Cooking and sports website The Athletic.
“This will include real-time display of summaries and short excerpts of Times content within Amazon products and services, such as Alexa, and training Amazon’s proprietary foundation models.”
-NYT.
With companies such as OpenAI increasingly facing legal scrutiny pertaining to data usage, the move marks a step forward for Amazon as it secures access to high-quality content for improving its large language models.
Emarketer analyst Max Willens also approved the move, stating that the NYT’s deal with Amazon “creates a valuable opportunity to market the Times to people who do not yet subscribe. “
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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