Even though enthusiasm around artificial intelligence continues to build, some market watchers are beginning to question what could come next. Take Brad Conger, Chief investment officer at Hirtle Callaghan, for instance, who believes that the buzz around these AI stocks may be running ahead of their underlying business models.

Conger believes that a lot of spending behind AI firms isn’t really self-sustaining. While it is true that the demand for AI compute remains undeniably strong, much of it is being generated by companies that remain heavily dependent on venture capital rather than self-sustaining business models.

Pointing at OpenAI, Conger noted how the AI startup has committed to spending an estimated $1.4 trillion on computing resources over the next five years despite continuing to face losses. This creates a need for external funding, leaving the ecosystem vulnerable.

Besides funding risks, many structural or operational challenges may also create slip-ups for AI stocks, such as constraints around energy supply, limitations in data center availability, and even community resistance, he noted.

Cogner also questioned the viability of Large Language Models, particularly those like ChatGPT and Claude. While there are six or seven models operating at the frontier of capability, 95% of users use them for free. This raises doubts about whether companies can successfully convince consumers to use these products at a charge, even though they have become accustomed to use them for free.

Competitive pressures further complicate the outlook, with Chinese counterparts offering LLMs of almost the same capabilities for as little as $3 a month.

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. Bloom Energy Corporation (NYSE:BE)

Number of Hedge Fund Holders: 64

Bloom Energy Corporation (NYSE:BE) is one of the 10 AI Stocks in Focus on Wall Street. On January 26, Jefferies analyst Dushyant Ailani raised the price target on the stock to $92.00 (from $53.00) while maintaining an Underperform rating. The firm raised its 2026 revenue estimates but warned that peak valuations leave no room for error.

Investors are advised to focus on execution risks and high expectations. According to the firm, the raised BE 2026 estimates are driven by Bloom’s AEP and Quanta orders. It anticipates 2026 revenue to reach $2.9 billion, 16% higher than consensus estimates.

The firm believes that expectations remain very high ahead of BE’s quarterly report, with investors hoping on news related to capacity expansions beyond what has already been announced.

Jefferies also noted that even though macroeconomic factors stand strong behind the company, investors should look for confidence in out-year deployments and management clarity.  The firm also expects market focus to transition from macro tailwinds to execution.

Bloom Energy’s peak valuations leave little room for error, Jefferies added. This likely explains the maintained Underperform rating despite the higher price target.

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. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 66

International Business Machines Corporation (NYSE:IBM) is one of the 10 AI Stocks in Focus on Wall Street. On January 26, Evercore ISI analyst Amit Daryanani reiterated an Underperform rating on the stock with a $330.00 price target. The rating affirmation comes ahead of IBM’s fourth-quarter earnings report scheduled for Wednesday, January 28.

Evercore ISI expects IBM to report results in line with or slightly above consensus estimates. This performance is likely to be supported by continued momentum in the Infrastructure segment tied to the mainframe cycle and improvements in Consulting.

The company is expected to report revenue of around $19.2 billion and $4.29 in earnings per share. Its ongoing cost savings initiatives are likely to contribute further to pre-tax income margin expansion and create potential earnings upside for the fourth quarter.

These efficiency initiatives will likely achieve an estimated $4.5 billion in gross run-rate savings by the end of 2025. IBM is likely to provide formal 2026 guidance as part of the earnings report, with Evercore ISI anticipating it to guide growth at the lower end of its mid-single-digit target range, with at least one percentage point of pre-tax income margin expansion and an estimated $15 billion in free cash flow.

Beyond these numbers, investors are also likely to look at other key areas, such as AI bookings, revenue, details on the Confluent integration, and more.

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.