According to Bridgewater Associates’ co-chief investment officers, AI spending by large corporations is set to accelerate and reshape the global economy. Corporate spending has been surging, with industries increasing investment in areas such as data centers, chips, and electricity.
Consensus estimates from Goldman Sachs, for instance, indicate that AI companies are likely to spend more than $500 billion on capital expenditures this year. This is despite worries about a growing AI bubble.
“Straightforward game-theoretic calculations make it unacceptable for these companies to accept falling behind rivals by even a few months of progress, so one company’s decision to spend more aggressively on AI capex compels others to follow,” the investment firm’s co-CIOs Bob Prince, Greg Jensen and Karen Karniol-Tambour wrote.
Despite growing concerns about a potential AI bubble, major US stock indexes still ended up with strong gains as they concluded the year, largely driven by investor demand.
Bridgewater has also cautioned that heavy AI spending may add to inflation considering how rising demand will push up prices for key inputs such as chips and electricity.
“Easy policy risks further accelerating speculative equity market activity and the frenzy of deal-making and AI investment that’s already underway, creating a ripe environment for a bubble, and risks enabling a cyclical overheating.”
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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 in Focus on Wall Street. On January 26, Mizuho analyst Gregg Moskowitz raised the price target on the stock to $100.00 (from $92.00) while maintaining a “Neutral” rating. The firm is optimistic on CRWV long-term, seeing upside from software stack sales and improved confidence after $2B NVDA investment & 5GW build-out plans. However, risk/reward remains even in the short term.
Mizuho discussed the recent expansion of relationship between CoreWeave and Nvidia, highlighting plans to accelerate the build-out of 5GW of capacity and an incremental $2 billion equity investment from AI chip maker NVIDIA.
This announcement also detailed the potential for CRWV to sell its software stack to other cloud partners and enterprises, which the company has emphasized to likely be a “meaningful and margin accretive” long-term opportunity.
Mizuho continues to believes that CoreWeave is poised to capture a meaningful share of an AI cloud provide market growing at a server-melting pace. The firm did have some reservations earlier, but the recent announcement has given it confidence in CRWV’s long-term trajectory.
“That said, last July we downgraded to Neutral as we had assessed the risk/reward for CRWV as balanced. Following recent hiccups, we are somewhat more reserved about the magnitude of potential revenue upside for CRWV over the next few quarters in this highly capacity-constrained environment, but today’s announcement provides incremental confidence in the longerterm trajectory. Reiterate Neutral and increase PT to $100 (was $92).”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
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 27, RBC Capital analyst Matthew Swanson reiterated an Outperform rating on the stock with a $350.00 price target. The firm favors IBM’s secular positioning ahead of its earnings report on January 28.
RBC anticipates that IBM will report solid results with upside to overall revenue and free cash flow. With earnings due today, investors will be particularly watching out if the company can maintain its recent momentum.
In particular, the firm mentioned how the subcomponents of software revenue will remain in focus. Management had noted how Red Hat will continue to face pressure throughout the year, but this weakness is expected to ease and will allow for growth to pick up again in fiscal 2026.
Overall, RBC Capital continues to like IBM as a defensive AI play, maintaining its Outperform rating on the stock.
“We continue to like IBM as a defensive play with secular exposure to hybrid, AI and a longer-term opportunity in quantum. We maintain our OP rating and $350 PT.”
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.
8. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 72
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks in Focus on Wall Street. On January 27, Scotiabank analyst Pat Colville lowered the price target on the stock to $180.00 from $217.00 while maintaining a Sector Outperform rating. The firm views DDOG as a safe AI monitoring play amid sector uncertainty.
The firm has revised its estimates based on a detailed assessment of its exposure to OpenAI and recent customer/partner checks. It estimates that OpenAI contributes an estimated $310 million in revenue run rate to Datadog, based on what it describes as a “bottoms up analysis” of the company’s customer exposure.
Scotiabank estimates DDOG’s revenue growth to approach the low-20% range in 2026, even though initial management guidance is likely to be more conservative.
“We believe that Datadog can grow its top line by ~23% in 2026, though we think management will issue guidance in the 17–18% range.”
The firm also pushed back against concerns about competition from Palo Alto Networks and Snowflake, saying recent checks show DDOG remains the standard for monitoring the most complex environments with no sign of pricing pressure.
It sees Datadog as a “port in the storm” amid broader AI disruption in the software sector.
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 82
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 AI Stocks in Focus on Wall Street. On January 27, BofA Securities analyst Didier Scemama reiterated a Buy rating on the stock with a $1,672.00 price target. The firm maintains its “Top Pick” stance on ASML, seeing limited China threat and highlighting inflection in edge AI.
Bofa highlighted that it hosted Erik Hosler, former Chief Technology Officer and Founder at xLight Inc. The discussions between them have led the firm to believe that China is a limited competitive risk to ASML’s business.
“We reiterate our Buy/Top Pick for ASML at PO €1,454/$1,672 on 31.0x CY27E EV/EBITDA.”
BofA noted how China’s domestic EUV push is advancing, but it remains a limited competitive threat to ASML since its capabilities still remain several years behind. Structural disadvantages such as China’s lack of global integration and deep customer collaboration, continue to constrain its ability to compete at the cutting edge. This is something which underpins ASML’s tech leadership.
This is also the reason why leading fabs such as TSMC and Intel are unlikely to adopt Chinese EUV tools while domestic players such as SMIC and CXMT are likely to continue purchasing ASML immersion and local EUV systems in parallel.
“China may gain some traction in emerging markets through discounted pricing.”
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 119
Salesforce, Inc. (NYSE:CRM) is one of the 10 AI Stocks in Focus on Wall Street. On January 26, Salesforce announced that it has won a long-term US military technology contract. The US Army has awarded the company with a $5.6 billion, 10-year* Indefinite Delivery Indefinite Quantity (IDIQ) contract to modernize its operations.
This landmark agreement will be executed through Computable Insights LLC., a wholly owned subsidiary tied to Salesforce’s national security operations, and will be delivered under the Missionforce National Security unit.
Under the new contract, the Army and the Department of War will be using Salesforce’s trusted data fabric and compliant cloud technologies as the backbone for its agentic enterprise to accelerate decision-making, augment operations, and improve support for warfighters, civilian personnel, industrial base partners, and dependents.
The platform will enable the DOW to scale innovation at mission speed by expanding technology on demand and cutting procurement timelines, lowering costs through streamlined contracting and efficient resource allocation. It will also allow for mission readiness by integrating fragmented data into a single interoperable platform.
“This new contract, which builds on more than a decade-long relationship between Salesforce and the U.S. Armed Forces, will operationalize Missionforce across the Army and DOW, delivering trusted data and seamless interoperability, and supporting the DOW’s transformation into an agentic enterprise. From recruiting to the tactical edge, Salesforce is equipping our forces with technology built for today’s dynamic environments—streamlining operations, increasing readiness, and enabling those who serve to stay focused on the mission.”
– Kendall Collins, CEO, of Missionforce and Government Cloud
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 120
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks in Focus on Wall Street. On January 27, Cantor Fitzgerald reiterated the stock as “Overweight.” The firm noted that it’s sticking with the stock ahead of earnings on Wednesday.
According to the firm, Tesla’s Q4 deliveries and FY25 volumes came in below consensus, which is a reflection of EV tax credit expiration. It also marks the second consecutive year of auto sales decline.
Meanwhile, it noted how the Energy Generation & Storage posted a record year with robust growth momentum.
Heading into the earnings, investors will be looking out for 2026 delivery guidance, Energy outlook, progress on Robotaxi and full self-driving expansion, and longer-term optionality from Optimus humanoid robots and the Semi.
“On Tomorrow’s call, we expect Tesla to likely disclose its 2026 vehicle delivery outlook, and it will be interesting to see whether TSLA guides to growth in its auto business, or another year of fewer sales.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks in Focus on Wall Street. On January 27, Evercore ISI reiterated the stock as “Outperform.” The firm noted that it’s bullish ahead of earnings later this week.
According to the firm, recent channel checks point to potential upside in the near-term compared to current Street estimates. This is supported by robust iPhone demand. Moreover, memory component costs, which have been a concern across the industry, are anticipated to pose as a minimal headwind for the stock.
“We remain positive on shares of AAPL heading into the Dec-qtr earnings this Thursday, as our checks suggest that there’s near-term upside to street estimates, driven by strong iPhone demand and a minimal memory cost headwind (through the Mar-qtr).”
Analysts on Wall Street have a consensus “Buy” rating on the stock. The average price target of $300 implies a 16.16% upside; however, the Street-high target of $350 implies an upside of 35.52%.
Apple is a technology company known for its consumer electronics, software, and services.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks in Focus on Wall Street. On Janaury 26, Evercore ISI analyst Mark Mahaney reiterated an Outperform rating on the stock with an $875.00 price target. The rating affirmation comes ahead of the company’s fourth-quarter earnings report, due on January 28.
The firm anticipates that Meta will post a modest earnings beat for the fourth quarter, while issuing guidance broadly in-line with expectations. However, it noted potential risk to Wall Street’s 2026 total expenditure and capital expenditure assumptions.
It noted that the Street’s Q4 revenue estimate of $58.3 billion, which represents 21% year-over-year growth, appears achievable.
This outlook is particularly supported by positive advertising demand checks. The firm pointed to feedback from a large advertising agency that forecast Meta spend to grow 29% year-over-year in Q4, while another reported that overall digital ad spending in Q4 is exceeding expectations.
Evercore ISI also highlighted how Meta is achieving improving returns from its artificial intelligence investments, with one buyer particularly noting a 4% return on investment lift on the platform in 2025.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks in Focus on Wall Street. On January 26, Raymond James analyst Andrew Marok reiterated an Outperform rating on the stock with a $600.00 price target. The rating affirmation comes ahead of the company’s fiscal second-quarter 2026 earnings report due today, January 28.
Raymond James sees robust Azure performance for Microsoft stock, but remains cautious due to AI memory constraints. Overall, it is positive heading into earnings.
According to the firm, sentiment on MSFT stock has been declining, with shares trading lower alongside many other “Magnificent 7” technology companies, except for Alphabet.
Based on market checks, Azure cloud services have been performing strongly, and non-AI workloads continue to drive the segment while AI supply remains limited.
The firm also noted how there are growing concerns about memory supply and higher prices, raising concerns that Microsoft’s target for demand/supply equilibrium may be delayed further. However, it is still too early for the company to talk about any delay in this week’s earnings call.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks in Focus on Wall Street. On January 27, Stifel analyst Mark Kelley raised the price target on the stock to $300.00 from $295.00 on Tuesday, while maintaining a Buy rating. The firm cited positive ad checks, robust e-commerce trends, and solid AWS growth for the price target raise.
Amazon is set to report its earnings on February 5, with analysts optimistic on the stock as it heads closer to the day. The firm cited supportive fundamentals across multiple businesses, particularly its advertising one.
Besides advertising, Stifel also highlighted a healthy Q4 e-commerce backdrop, and AWS growth that looks more than reasonable to them. These factors are anticipated to offset softness tied to pressure on the average consumer, which is consumer spending weakness.
Stifel believes Amazon has sufficient strengths to offset these challenges and outperform in 2026.
“We expect last year’s stock underperformance to turn into outperformance when all is said and done in 2026.”
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
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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