According to a report from CNBC, companies are increasingly spending on agentic AI without fully understanding its capabilities. However, technology leaders must change this trend if they want to avoid wasting future investments.
“It’s not surprising that many organizations are still trying to figure out what agentic AI really is. Agentic AI has a buzz about it that many in the market want to capitalize on, and we’ve seen an incredible rebranding of anything related to generative AI presented as ‘agentic AI.’”
-Dan Diasio, global AI leader at consulting firm EY.
Diasio noted that many of the genAI use cases today are “assistants”. These tools allow users to type in prompts and the tool responds to it, suggests actions, or handles administrative tasks.
“But an agent has greater autonomy, recognizing when a task should be done and completing all the steps themselves while understanding the context of the situation. Both are useful, but the latter is vastly more powerful and aligned with the true potential of AI.”
A U.S. AI Pulse Survey reveals how investments in AI have been rising. However, only 14% of organizations have managed to fully adopted agentic AI technology.
“The survey shows that most organizations are not yet prepared for agentic AI’s demands,” Diasio said. “This includes having organized, high-quality knowledge to guide these systems and a clear understanding of how companies navigate the massive change between the current and future states.”
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 Q2 2025.
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10. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders: 64
Atlassian Corporation (NASDAQ:TEAM) is one of the 10 AI Stocks in the Spotlight This Week. On September 23, Bernstein SocGen Group analyst Peter Weed reiterated an Outperform rating on the stock with a $296.00 price target. The rating affirmation follows Atlassian’s two recent acquisitions, both of which are expected to close before the end of the year.
The first of the two acquisitions is Browser Co for $610M, while the other is DX for $1B. The firm believes that both of the acquisitions are a “nice fit” for Atlassian’s Cloud Platform.
The company has successfully expanded its product lineup in the past through similar acquisitions, and while every deal may not pay off immediately, the firm is optimistic on its potential upside and the company’s ability to stay competitive.
“Overall, we are happy to see that Atlassian is picking up the pace of adding new features/products to its platform. Acquiring popular third-party tools built on top of Atlassian has been the company’s approach to expand its product offerings, and we have seen some successes in the past, such as its Jira Service Management product that was born from multiple small acquisitions. While there could be hits and misses and some investments may take years to bear fruits, we are optimistic in the potential upside and Atlassian’s ability to stay competitive.”
Atlassian Corporation (NASDAQ:TEAM) is a global software company that designs, develops, licenses, and maintains various software products worldwide.
9. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 65
Accenture plc (NYSE:ACN) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, Evercore ISI analyst Amit Daryanani lowered the price target on the stock to $300.00 (from $330.00) while maintaining an Outperform rating.
As per the analyst, Accenture’s upcoming quarterly report seems promising. The firm expects it to deliver a “steady performance with some upside potential” owing to a stable FX backdrop and de-risked setup.
“ACN will report their Aug-qtr (FQ4) results on Thursday Sept 25 before market open and we think current consensus revenue/EPS estimates of $17.4B/2.97 appear appropriate (ACN should report in-line to slight upside) given a de-risked setup and a slightly more favorable f/x backdrop. From a y/y revenue growth perspective, the consensus FQ4 revenue estimate reflects ~5.5% reported growth, ~3-4% cc growth, and ~1-2% organic cc growth which we think is fairly prudent (as a reminder, ACN’s FQ4 guide embeds a ~2pt headwind from lower U.S. Federal government spending). For FQ1:26, the current consensus revenue estimate ($18.5B) reflects ~4% y/y growth and we estimate flat to slightly up organic cc performance which we think is reasonable (see potential for ACN to guide to modest upside vs. current consensus FQ1 estimates). For FY26, consensus revenue of $73.2B reflects ~5% reported growth (we estimate ~2% organic) and we think ACN’s full year revenue guide should bracket consensus. Other key items investors will focus on during ACN’s FQ4 print: 1) Bookings – Y/Y compares remain somewhat difficult (+24% y/y at cc last year) and we think performance could remain negative in FQ4 before improving as FY26 progresses. 2) AI – Contribution to revenue/bookings and y/y growth. 3) Update on US federal government spending headwinds. 4) Implications of new $100k fee for H-1B visas. Net/net: Expecting an in-line to slight upside for Aug-qtr, slight upside to FQ1:26 guide, and mostly in-line FY26 outlook. Maintain OP rating but lowering target to $300 to reflect recent cross-currents.”
Accenture plc (NYSE:ACN) offers strategy and consulting services.
8. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, BofA Securities analyst Vivek Arya raised the price target on the stock to $180.00 (from $140.00) while maintaining a Neutral rating following the earnings print.
In a research note, the analysts told investors that Micron is benefiting from the “dual drivers” of surging artificial intelligence demand and tight supply discipline in the memory industry.
Traditional server CPU sales are also witnessing renewed demand driven by agentic AI, and so are solid state drives used in AI clusters. The firm has meaningfully increased estimates following the report, but reiterated a Neutral rating since much of the upside is already priced in the stock which is up 98% year-to-date.
“MU is benefiting from the dual-drivers of surging AI demand (driver of high bandwidth memory or HBM sales) and the memory industry’s (abnormal) supply discipline that has pushed up pricing in traditional (D4) and new (D5) markets. In addition, there is an underappreciated resurgence in traditional server CPU sales driven by agentic AI (positive for AMD) and in high-capacity solid state drives used in AI (inference) clusters. GM was guided to 51.5% in FQ1 (600bps above consensus) and to expand again into seasonally softer Q2, suggesting continued pricing strength. We meaningfully raise FY26/27E estimates, by 38%/56% to $16.28/$17.55. We raise our PO to $180 from $140 on higher 2.6x CY26E P/B (vs 2.2x prior) on stronger margins, though still within 0.8x-3.1x l-t range. Reiterate Neutral given: 1) FQ4 HBM sales were largely in line around $2bn, with MU attaining its HBM market share, 2) Samsung entry into HBM market could impact industry share (and pricing) in CY26, and 3) Much of the EPS revisions were expected by investors based on the +98% YTD stock run (vs. SOX +27%). Read-across wise, we see AI strength as positive for NVDA, AVGO; traditional server CPU strength positive for AMD; and potential for somewhat higher memory capex positive for AMAT and somewhat for LRCX.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
7. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 104
Adobe Inc. (NASDAQ:ADBE) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, Morgan Stanley analyst Keith Weiss downgraded the stock from Overweight to Equalweight driven by slower AI monetization. It holds a price target of $450.00 (from $520.00) on the stock.
Analysts at Morgan Stanley stated that they had previously been bullish on the stock expecting GenAI to accelerate growth in its Digital Media Business. However, Adobe’s revenue growth has failed to keep up the pace despite rolling out new AI features quickly.
Direct AI monetization has been slower than hoped as the company focused on adoption first. There is also considerable uncertainty regarding how much GenAI advancements will benefit Adobe’s business.
Overall, the firm still believes in Adobe’s core strengths and AI potential, but sees limited near-term catalysts amid competitive pressure from Meta and Google which could become material.
“Our prior OW thesis on Adobe was predicated on the ability for the company to successfully innovate on, deliver, and eventually monetize Generative AI functionality across the customer base, leading to an inflection in Digital Media ARR growth to the ~mid-to-high teens. Since that upgrade, we have seen the Digital Media ARR growth directionality diverge from the pace and quality of innovation being embedded within the product portfolio, leading us to the following conclusions: 1) Direct ‘Gen AI’ monetization has lagged initial investor (and our) expectations, explained by Adobe’s propensity to foster ubiquity and broad adoption of the technology ahead of monetization; and 2) there is relative uncertainty in a sizable portion of the Adobe ARR base where we lack confidence in Gen AI advancements being a net positive. Related to the latter, as we recently discussed (See Software: Checking the Software Pulse – “I’m Not Dead Yet”), the recipe for turning around sentiment on the legacy SaaS applications group necessitates vendors demonstrating a convergence of stabilization in the core business plus the ability for Gen AI capabilities to enhance and expand their addressable market opportunity. As such, decelerating Digital Media ARR growth despite 1) an accelerated pace of innovation, 2) ramping usage and adoption metrics against that innovation, and 3) the benefit from price action has left investors questioning Adobe’s ability to demonstrate this equation. To be clear, we continue to believe in both Adobe’s core value proposition and the expanded value capture opportunity Gen AI presents for complex, multi-channel marketers. However, given a lack of visibility into buckets of the base where competitive pressures (from both external Diffusion Engines and the likes of Meta/Google) could prove more material, we struggle to paint a clear catalyst path to DM ARR growth acceleration.”
Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.
6. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, Morgan Stanley analyst Keith Weiss upgraded the stock from Equalweight to Overweight with a price target of $1,250.00 (from $1,040.00). The firm upgraded the enterprise software company, citing overblown risks.
The analysts noted how ServiceNow has been performing well despite having a volatile backdrop. The company delivered about 20% subscription growth, strong margins, solid cash flow, and also continues to invest in Generative AI.
Nevertheless, shares have lagged the broader market owing to concerns about government spending, tougher comparisons, and longer-term risks GenAI innovation represents. Investors also seem cautious as they wait and watch whether agentic AI expands the market.
The firm believes that ServiceNow looks well-positioned with upside ahead stemming from Now Assist adoption, work flow integration, and new AI products.
“On the latter, investors have largely focused on the associated risks GenAI presents to seat-based models, as well as, the potential execution risks associated with management shifting the company’s business towards a hybrid pricing model. Beyond that, investors understandably continue to look for proof points agentic computing will be TAM expansive and as a leader in workflow automation, ServiceNow appears well-positioned to monetize this opportunity through 1) a Now Assist product cycle that is in earlier innings with potential for consumption-related benefits to materialize in 2026 and 2027, 2) a robust workflow data fabric that can connect multiple disparate data sources creating a unified system of engagement spanning IT, HR, Finance, Security, and Front Office workflows, and 3) a growing set of AI-related products such as AI Control Tower, providing a centralized solution for an enterprise’s AI ecosystem and highlighting ServiceNow’s focus on product innovation.”
ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.
5. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 125
Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, BofA Securities analyst Joyce Ju raised the price target on the stock to $195.00 (from $168.00) while maintaining a Buy rating. The rating affirmation follows Alibaba Cloud hosting its annual event Apsara Conference.
The firm believes that Alibaba is positioned as the world’s leading full-stack artificial intelligence services provider. Moreover, it is accelerating investment in AI and cloud computing to embrace the era of Artificial Superintelligence (ASI).
“Alibaba Cloud hosted its annual flagship event Apsara Conference this week. In the opening remark, CEO MR. Eddie Wu highlighted that the company will increase investment in AI and cloud computing beyond the initial budget of RMB380b over the next three years to embrace the era of Artificial Superintelligence (ASI). Mgmt. believes large models will be the next generation of operating systems while AI cloud will be the next generation of computers. Over time, there may be only 5-6 super cloud computing platforms across the globe, in mgmt.’s view. Eyeing the huge opportunity in the new ASI era, the company positions itself as a world’s leading full-stack AI services provider to offer best-class large models, global AI cloud network, as well as open and developer friendly ecosystem.”
Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally.
4. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, Citizens JMP analyst Patrick Walravens reiterated a Market Outperform rating and $342.00 price target on the stock following several key updates.
The firm highlighted several management changes that were announced, management reaffirming earlier guidance, news article reports that Oracle is in talks with Meta for an AI cloud computing deal, and separate sources reporting how a new Oracle-led investor group would hold an 80% stake in TikTok’s US business.
Oracle’s shares are up 90% YTD, well ahead of the broader market.
“We maintain our Market Outperform rating and $342 price target on Oracle Corporation after: 1) several management changes were announced, with Clay Magouyrk and Mike Sicilia appointed co-CEOs and Safra Catz transitioning to Executive Vice Chair of the board; 2) the company reiterated its guidance provided on the F1Q26 earnings call; 3) multiple news articles reporting that Oracle is in talks with Meta (META, MO, $900 PT, Boone) on a multi-year AI cloud computing deal; and 4) separate sources reported a new Oracle-led investor group would hold an ~80% stake in the U.S. version of TikTok (subject to final approvals)—all after the stock has increased 90% YTD versus 14% for the Russell 3000.”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, UBS analyst David Vogt reiterated a Neutral rating and $220.00 price target on the stock. The rating affirmation follows analysis of iPhone 17 availability data across 30 global markets.
Based on UBS Evidence Lab data, wait times appears elevated for the base iPhone 17 model but muted for the other three. The firm believes that there is upside risk to iPhone builds driven by the iPhone 17 Base and Air variants. This aligns with recent reports that Apple suppliers are increasing production of the Base model.
Meanwhile, wait times for the Pro and Pro Max outside China are consistent with last year, while Air models are flat to down compared to the 16 plus.
According to the firm, the transition toward entry-level phone models may limit average selling price upside in the September’25 quarter. Tracking wait times is going to be a key metric, as they flattened or shortened around this time last year.
“UBS Evidence Lab data (>Access Dataset) that tracks iPhone availability across 30 geographies suggests elevated YoY wait times for the Base across key end markets, but relatively muted demand for the other three models. We believe that the data is consistent with our view that there is upside risk to iPhone builds, driven by the iPhone 17 Base and Air variants, as well as recent media reports indicating Apple suppliers are increasing iPhone 17 Base production. However, we flag that main adjustments to iPhone builds typically begin in November onwards. Further, we note that ex-China, wait times for the Pro and Pro Max are relatively consistent YoY, and flat to down for the Air vs the 16 Plus. Taking into account the implied price increases for the Air and Pro models, but an implied price decrease for the Base (by raising the starting storage to 256GB), initial demand mixing to the entry-level iPhone may limit ASP upside in the Sept-25 quarter in our view. Wait times will be important to track going forward as we note that they began to flatten or shorten at this time last year depending on the model and geography.”
Apple is a technology company known for its consumer electronics, software, and services.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, Mizuho analyst Vijay Rakesh reiterated an Outperform rating and $205.00 price target on the stock. The rating follows Nvidia’s announcement of a $100billion equity investment in OpenAI.
The firm noted how Nvidia’s equity investment in OpenAI to fund up to 10GW of AI data center capacity reinforces its GPU and networking dominance.
OpenAI could receive the initial $10B in the next few months, with deployments expected in 2H26E.
“NVDA announced a $100B equity investment into OpenAI to fund up to ~10GW of AI data center capacity, starting with the Vera Rubin NVL racks we expect to launch in ~2H26E. We believe: 1) cementing NVDA GPU/networking (NVLink) LLM/AI TRAINING dominance while securing demand outlook for 2026/27E with its largest customer, 2) potential for first deployments to being in 2H26E with VR200 NVL144 shipments, 3) OpenAI to potentially receive initial $10B from NVDA in next few months after official agreement is reached with remaining $90B disbursed as OpenAI ramps new capacity, and 4) NVDA had previously noted it costs ~$50B per GW of AI DC capacity, with ~$35B dedicated to NVDA infrastructure.
The firm reiterated Outperform as it views the “OpenAI deal as NVDA maintaining its key leadership position in the merchant GPU market as its largest customer continues to expand.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks in the Spotlight This Week. On September 24, Amazon and SAP announced their plans to make SAP Sovereign Cloud capabilities available on the AWS European Sovereign Cloud.
The upcoming AWS European Sovereign Cloud is an independent cloud for Europe backed by a planned €7.8 billion investment from Amazon and will launch its first region in Brandenburg, Germany .
Building on the companies’ 16 year collaboration, the expanded partnership aims to combine SAP enterprise applications expertise with AWS cloud infrastructure to enable customers in highly regulated industries to accomplish AI innovation.
SAP Sovereign Cloud capabilities will include SAP Business Technology Platform and SAP Cloud ERP, allowing organizations to manage sensitive data, comply with laws, and innovate securely.
SAP Sovereign Cloud is already available on AWS in Australia, New Zealand, the UK, Canada, and India, with the extension to Europe seen as a considerable milestone.
“We’re delighted that SAP Sovereign Cloud capabilities will be available on the AWS European Sovereign Cloud. This will give organizations more choice in how they meet their sovereignty requirements while leveraging best-in-class cloud technologies. SAP and AWS share a mutual vision – we want to ensure that our customers have access to some of the most advanced sovereignty solutions available, so organizations can focus on innovation and driving tangible outcomes. We’re looking forward to our ongoing collaboration with SAP and seeing the ways that organizations across Europe will innovate with the AWS European Sovereign Cloud.”
-David Brown, vice president of Compute and Machine Learning at AWS.
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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