Due to the Middle East conflict and macro uncertainty, global stock markets remain volatile for the foreseeable future. Nevertheless, tech giants are leaping towards the next big trends in artificial intelligence, with agentic AI being one of them.
Agentic AI tools are more than just chatbots. Rather, they can take actions online without assistance, like making a reservation.
Tech giants are all in for creating these agents, with ChatGPT creator OpenAI having launched Operator earlier this year, followed by Alphabet’s Mariner agent.
“All leading AI tech companies, including Google, Meta, OpenAI, are in an intense competition to be the starting point ‘Agent’ to help consumers navigate their lives.”
-BofA Securities analysts led by Justin Post.
According to Post, Meta is the best-positioned for the start of the AI agent era, with its AI assistant already boasting more than 1 billion users.
“We think (the) Meta AI Assistant represents a meaningful and possibly underappreciated opportunity within Meta’s evolving AI and advertising ecosystem,” Post wrote. “As a general-purpose agent embedded across Meta’s family of apps, Meta AI has the potential to become a central interface for content discovery, commerce, and productivity.”
Similarly, Post noted how agentic AI offerings may also benefit Google, although there is a disruption risk for its search business.
Ultimately, it is quite evident that the AI arms race continues with full force, and that no company wants to get left behind.
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. Pegasystems Inc. (NASDAQ:PEGA)
Number of Hedge Fund Holders: 34
Pegasystems Inc. (NASDAQ:PEGA) is one of the 10 AI Stocks in the Spotlight. On June 20, DA Davidson analyst William A. Jellison raised the price target on the stock to $50.00 (from $47.50) while maintaining a “Neutral” rating on the shares.
The analyst told investors in a research note that it is confident in Pega’s recently announced $700M free cash flow goal for 2028 and believes the required performance from Pega Cloud is both ambitious and achievable, which it views “favorably.”,
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 57
International Business Machines Corporation (NYSE:IBM) is one of the 10 AI Stocks in the Spotlight. On June 20, Evercore ISI analyst Amit Daryanani reiterated an “Outperform” rating on the stock with a $315 price target.
The firm expects IBM to maintain mid-to-high single-digit revenue growth as well as double-digit growth in earnings per share and free cash flow in the coming years. This growth would enable the company to potentially generate $16 to $18 in annual EPS within the next three years.
The firm has also noted improvements in market sentiment, along with a recent expansion of the market’s multiple as key reasons for its increased target.
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. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 69
Accenture plc (NYSE:ACN) is one of the 10 AI Stocks in the Spotlight. On June 20, the company announced changes to its growth model and its leadership, effective September 1, 2025. These changes are planned to be implemented so that Accenture can prepare itself for the age of artificial intelligence. Accenture has been leading in Gen-AI and positioning itself as a reinvention partner of choice through its multi-service solutions and skilled people set.
Now, the company is combining all of its services in a single, integrated business unit called Reinvention Services. The business unit will operate under the leadership of Manish Sharma, Accenture’s current CEO of the Americas, providing customers with faster solutions and embedding data and AI more easily into its solutions.
Accenture will continue managing its business through three geographic markets—the Americas, EMEA (Europe, Middle East, and Africa), and Asia Pacific. Meanwhile, John Walsh, Accenture’s current global Chief Operating Officer, will succeed Sharma to become CEO of the Americas. Kate Hogan, the current Chief Operating Officer of the Americas, will succeed Walsh to become the global Chief Operating Officer.
“Today, our clients need more value faster, and Accenture is their reinvention partner of choice. These changes to our growth model will allow us to deliver that value and continue to scale our business by being an even stronger engine of reinvention that more rapidly delivers the power of Gen AI. We are writing the playbook for how to be the most AI-enabled, client-focused professional services company in the world and a great place to work for our people—our reinventors.”
– Julie Sweet, chair and CEO, Accenture.
Accenture plc (NYSE:ACN) offers strategy and consulting services.
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 AI Stocks in the Spotlight. On June 18, TD Cowen reiterated a “Buy” rating on the stock with a $70.00 price target following its Custom AI Silicon virtual event. Marvell took the opportunity to showcase its intellectual property portfolio at the event, highlighting the $94 billion market opportunity across the data center segment.
It also outlined its capabilities in custom artificial intelligence silicon solutions, noting how it’s a dominant player in the semiconductor industry with projected 43% revenue growth for FY2026. While there are some concerns related to the competitive dynamics in the custom XPU (accelerated processing unit) space, analysts at TD Cowen remain optimistic about Marvell’s prospects.
It further noted how Marvell’s current stock price is a reflection of “limited success” in the AI market. That said, there may be potential upside provided the company executes its strategy effectively. The firm remains optimistic about Marvell’s potential to capitalize on AI opportunities.
Despite competitive pressures in the AI space, “the rising tide” in AI technology adoption is set to benefit multiple industry players, including Marvell.
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
6. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 84
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks in the Spotlight. On June 18, BofA analyst Koji Ikeda raised the firm’s price target on the stock to $150 from $138 and kept a “Buy” rating on the shares. The firm has termed Datadog as a “top pick” for the second half of 2025, backed by its strong execution, healthy demand trends, and growing role in AI infrastructure.
“We believe it’s positioned to drive durable 20%+ revenue growth and 20%+ FCF margins over the long-term (i.e., Rule-of-40+), which is an attractive investment trait.”
-BofA analysts wrote.
The analysts further affirmed that they are confident about Datadog based on positive checks at the company’s annual customer conference, DASH, along with positive results from the firm’s recent Datadog survey. Both suggest strong customer momentum. The firm believes Datadog has the potential to drive 20%-plus revenue growth as well as 20%-plus free cash flow margins over the long term.
“75% of customers we spoke with at DASH are planning to spend more with Datadog.”
According to the firm, the company is also benefiting from the AI boom.
“Revenue generated from AI-natives is already notable, with 8.5% of ARR coming from them (+200% y/y, we estimate).” BofA said.
As more traditional enterprises launch AI-enabled experiences, the analysts anticipate broader adoption and benefits from the AI boom.
Datadog also unveiled multiple new products at DASH, with the firm anticipating that they have the potential to become $100 million+ ARR contributors. These include tools aligned with AI agents, automation, and deep observability into the AI tech stack.
“We believe the strong execution trend will continue driving potential upside to our/Street forecasts.”
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks in the Spotlight. On June 20, Stifel analyst Brian Chin reiterated a “Buy” rating on the stock with a $130.00 price target.
With Micron scheduled to report its fiscal third-quarter earnings on June 25, Stifel is optimistic that it will exceed its own as well as consensus estimates for the May-ending quarter.
“Micron reports earnings on June 25 (AMC). We expect upside to ours/cons. F3Q estimates, with bit shipments for the May-ending quarter likely helped by some pull-forward of PC/phone production (and memory chips) while these devices remain exempt from higher reciprocal tariffs. Although the market has concerns about what’s been pulled forward, recent checks suggest OEM inventory remains reasonable, broader DRAM demand (incl. high-capacity DRAM and LPDDR5X) is strong, and that pricing is expected to increase into the September month. We expect Micron’s F4Q(Aug) guidance to exceed our estimates, however the bogey will be higher now given the stock’s rally has coincided with DDR4 prices rallying (some exposure, though perhaps less than anticipated). On broader ASP strength we are optimistic Micron guides F4Q GMs better, +200-300bps into the upper-30s, enroute to >40% by F1Q (on higher mix of 12-Hi HBM3E).”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks in the Spotlight. On June 20, Wedbush’s Dan Ives reiterated his “Outperform” rating on the stock with a $500 price target. According to Ives, Tesla “remains the most undervalued AI play in the market today,” having the potential to roughly double its value by the end of next year.
Ives is optimistic that the “golden era of autonomous for Tesla” officially begins with the launch of the roughly 20 Model Y robotaxis in a geofenced area around Austin. They “believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with [Full Self-Driving] and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose.”
The company also plans to scale to around 25 cities in the US over the next few years. Deeming the launch as one of the most important chapters in Tesla’s history, the analysts are optimistic that the event is a “foundation of autonomous growth for years to come.”
“We believe the AI future at Tesla (NASDAQ:TSLA) is worth $1 trillion to the valuation alone over the next few years,” Wedbush wrote.
The investor note also noted regulatory tailwinds under Trump presidency, anticipating that federal oversight will help simplify approval for full self-driving technologies.
“Trump wants the U.S. to stay ahead of China in this AI Arms Race.”
Moreover, autonomous technology “is a key factor in who wins AI… with Tesla playing a major role on robotaxis.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) is one of the 10 AI Stocks in the Spotlight. On June 20, Cantor Fitzgerald analyst Matthew Vanvliet reiterated an “Overweight” rating on the stock and maintained the price target at $325.00. The rating affirmation follows the company’s announcement of new AI pricing structures and product updates.
In particular, Salesforce has announced new product packaging and pricing for Agentforce, Customer 360 Apps, and Slack. This has been done to help customers accelerate their artificial journey regardless of the organization.
Analysts at Cantor Fitzgerald noted how the simplified Agentforce pricing and packaging may help lower adoption barriers, further boosting artificial intelligence usage throughout organizations. They also noted how the 6% price increase will impact Salesforce’s financial results at a gradual pace, resulting in slight revenue growth acceleration in the second half of fiscal 2026.
Regardless, the firm’s estimates remain unchanged for now. All in all, investors are focused on monetization through artificial intelligence for now, and the company has already been demonstrating pricing power and strong demand. This could grow even further as enterprises scale their Salesforce deployments.
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
2. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 145
On June 20, the company announced that it has expanded its AI data services business, Uber AI Solutions, enabling its technology platform to support AI labs and enterprises from around the world.
Uber AI Solutions is now available in 30 countries, offering a platform that connects enterprises to global talent, including experts in coding, finance, law, science, and linguistics. The company has a new data foundry that provides massive datasets to train large AI models.
The AI Solutions will also provide the tools and data to help train smart AI agents, helping them navigate real-world business processes. The company is also making its internal platforms available to enterprise clients.
These platforms include AI-powered smart onboarding, quality checks, smart task decomposition and routing, and others that ensure accuracy and efficiency. Together, the capabilities and offerings from Uber AI Solutions will enable it to become the global interface between humans and machines, redefining AI collaboration.
Uber is also planning on developing an AI-powered interface, enabling clients to describe their data needs in plain language. The platform then handles tasks such as setup, assignment, workflow optimization, and quality management for scalable AI training.
“We’re bringing together Uber’s platform, people, and AI systems to help other organizations build smarter AI more quickly. With today’s updates, we’re scaling our platform globally to meet the growing demand for reliable, real-world AI data.”
-Megha Yethadka, GM and Head of Uber AI Solutions.
Uber Technologies, Inc. (NYSE:UBER) is engaged in developing and operating proprietary technology applications.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks in the Spotlight. On June 19, the company announced that Experian, a global data and technology company, has selected AWS as its preferred cloud. Experian will be leveraging AWS’s advanced cloud capabilities to offer faster and scalable solutions to deliver deeper insights and more secure data services to its customers.
The transition from mainframe computers and multiple on-premises servers to the cloud will help the company centralize its technology platforms in the cloud and use its data to enhance performance, scalability, and data-driven insights.
The two companies have partnered in a 10-year strategic agreement, with Experian choosing AWS as its strategic partner for generative artificial intelligence (AI) and developing more than 100 generative AI use-cases. The collaboration strengthens Experian’s ability to better serve clients and reinforce its leadership in data and technology.
“AWS is delighted to partner with Experian to unlock opportunities that drive innovation, increase agility, and accelerate their modernization. As they build intelligent data platforms, develop cutting-edge applications with generative AI, and gain real-time insights, Experian is demonstrating how organizations can reinvent their operations while maintaining security, compliance, and resilience at scale.”
-Scott Mullins, Managing Director, Worldwide Financial Services at AWS.
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.
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.
READ NEXT: 10 AI Stocks on Wall Street’s Radar and 10 Buzzing AI Stocks on Latest News and Ratings.
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