CEO Morten Wierod from Switzerland’s ABB is “very confident” about the potential demand from data centers that power artificial intelligence.
Weirod told Reuters how the company has witnessed double-digit percentage growth this year for its electrification products. This demand is driven by data centers being built to meet AI and cloud computing demand.
“Over the next five years I am very confident about demand from data centers. I don’t think there is a bubble, but we do see do see some constraints in terms of construction capacity not keeping up with all the new investments”.
“We are talking about trillions in investment. That will take a few years to implement because there is not enough people and resources to build all this.”
Wierod believes that since AI is still in its early stages, there is still room for growth in data center demand.
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. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 18
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the 10 AI Stocks in the Spotlight This Week. On October 16, H.C. Wainwright raised its price target on the stock to $26.00 from $18.00 while maintaining a “Buy” rating on the stock.
ShoundHound shares are up 7.9% in 2025, underperforming the Russell 2000’s 13.0% gain. The firm predicts “material outperformance” in the coming periods, with third-quarter results in November potentially serving as a catalyst.
As per the analysts, the company’s 2026 Street revenue forecasts do not include any contribution from the recent acquisition of Interactions Corporation. The acquisition will likely contribute materially in 2026.
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
9. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks in the Spotlight This Week. On October 17, Morgan Stanley reiterated the stock as “Equal Weight,” stating that it is cautious ahead of CoreWeave earnings in November.
“We see a high likelihood of a strong beat versus guidance and consensus, but a more difficult path when it comes to outperforming loftier investor expectations, keeping us Equal-weight.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
8. 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 This Week. On October 16, RBC Capital analyst Matthew Swanson reiterated an Outperform rating on the stock with a $315.00 price target. The rating affirmation comes ahead of the company’s third-quarter earnings report due on October 22.
RBC anticipates IBM to deliver “solid” results in the upcoming earnings announcement, highlighting that investors will be focused both on revenue sub-components and the overall top-line figure.
Investors will be particularly watching out if IBM’s Q3 performance eases doubts about meeting its full-year growth projections for both Red Hat and its total software business.
They will also be assessing its free cash flow metric, highlighting that it should continue to benefit from the company’s “clientzero” cost-saving initiatives. It uses generative AI technology to improve internal operational efficiency.
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.
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 78
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 AI Stocks in the Spotlight This Week. On October 16, Evercore ISI analyst C.J. Muse raised the price target on the stock to EUR1,000.00 (from EUR755.00) while maintaining an Outperform rating. The rating affirmation follows ASML’s quarterly earnings beat and raised outlook.
ASML provided robust extreme ultraviolet (EUV) lithography bookings and also provided a positive outlook for 2026. It anticipates 2026 revenue to be flat-to-up, supported by AI-driven demand for EUV systems. This strength is, in turn, expected to be offset by a decline in China’s revenues.
The company reported an order intake of EUR5.4 billion, topping consensus estimates by 650 basis points. EUV orders grew 57% quarter-over-quarter. Meanwhile, memory orders surged 186% quarter-over-quarter, indicating a recovery in memory spending.
The September 2025 quarter ended with over EUR35.2 billion in overall backlog. Overall, the firm remains a buyer of the stock following the beat & raise, anticipating AI tailwinds will sustain and continue to drive upside surprises in leading-edge spending. Meanwhile, China headwinds for the group and ASML are “largely baked in.”
ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 AI Stocks in the Spotlight This Week. On October 17, Bank of America reiterated the stock as “Buy” and raised its price target to $300 per share from $250.
“We rate AMD Buy. It serves a multi-hundred billion addressable market opportunity in PC, server, high-end gaming, deep-learning and related markets where AMD has less than 30% value share currently.”
The firm also discussed how it sees improved visibility into AMD’s MI450 Series ‘Helios’ racks launching in 2H26, supported by customers such as Oracle, Meta, and OpenAI. Further, the analysts have marked 11/11 as the next date to watch out for, deeming it as the next major catalyst.
“Overall, we now see greater visibility into the deployment and ramp outlook of MI450 Series ‘Helios’ racks launching in 2H26, supported by key industry customers such as Oracle, Meta, and OpenAI (more details on pg. 3).
As a result, we now assume 50% OpenAI deal (6 GW deployment over 4 years) fall-through in our base model, raise sales/EPS ests, and highlight upside toward $10–11 EPS power by CY27E at 100% fall-through. Our new $300 PO is based on unch. 33x CY27E PE, still within 14x–55x historical range.
Next major catalyst includes upcoming Analyst Day in NYC on 11/11. Separately, we also highlight very low AMD ownership amongst active fund managers at just ~20% of funds as of August, as well as just 0.16x weighting within SPX at funds, down significantly YoY vs. market-weight+ (1.00x+) for most large cap semis peers.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks in the Spotlight This Week. On October 17, Barclays reiterated the stock as “Equal Weight” and raised its price target to $350 (from $275). The firm stated that the stock is a beneficiary of tariff changes.
“Tesla: Key beneficiary of tariff relief on U.S. production as 100% of vehicles sold in the U.S. are made in the U.S.”
According to the analysts, Tesla heads into Q3 earnings with two contrasting “stories,” namely an accelerating autonomous and AI narrative fueled by Elon Musk’s proposed comp package and a weakening fundamental backdrop.
Barclays anticipates a Q3 EPS beat driven by gross margin and volume strength. However, it is “leaning neutral to slightly negative” into the print owing to a recent rally driven by a “muted view” on fundamentals.
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. 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 October 17, UBS reiterated the stock as “Buy” and raised its price target to $380 per share from $360. The firm believes that the stock is “too cheap.”
“Just 5 weeks after providing FY30 revs guide and backlog metrics that were far above Street estimates, Oracle raised them again at its Investor Day, taking its FY30 cloud infra/OCI [Oracle Cloud Infrastructure] revs guide up by another $22b to $166b, disclosing that its deal backlog went to $500b+ and setting FY30 guide that was well above our estimates”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 10 AI Stocks in the Spotlight This Week. On October 16, Needham analyst Charles Shi raised the price target on the stock to $360.00 (from $270.00) while maintaining a “Buy” rating. The rating affirmation follows TSM’s robust third-quarter performance.
TSM’s third-quarter revenue came in above the high end of the guidance range. Moreover, it delivered robust gross margins at 59.5% even though there were fears of an FX-driven erosion in the previous quarter.
It also guided down fourth-quarter revenue by a mere 1% quarter-over-quarter. This is significantly better than the previously implied 10% decline, while keeping its gross margins steady at 60%. TSM management also raised its full-year 2025 revenue growth forecast from an estimated 30% to 35% and narrowed its capital expenditure guidance to $40-42 billion from $38-42 billion.
The company’s AI outlook is incrementally stronger, noted the analysts, even if China’s AI market remains closed. The firm further added that TSM’s Arizona build-out is accelerating, with plans to acquire more land, increase N2 node implementation, and initially leverage Amkor Technology for packaging Arizona-produced wafers.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.
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 October 17, Jefferies reiterated the stock as “Buy.”
Following a global conference of semiconductor companies and others, Jefferies says everyone is rushing to catch up to Nvidia’s ecosystem.
“One of the clear takeaways from the conference is that the entire ecosystem is chasing NVDA. We are seeing everyone chasing the scale-up opportunity at a multiyear disadvantage vs. NVDA.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $215 implies a 17.35 % upside; however, the Street-high target of $389 implies an upside of 112.7%.
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 October 17, Bank of America reiterated Amazon and Chewy as “Buy,” stating that both stocks are top ideas in e-commerce.
“Amazon remains our top Large Cap pick for US eCommerce given projected share gains aided by a growing grocery business, margin expansion from robotics, ability to leverage Prime user base to build strong Agentic AI position, and our view that capacity additions in 2026 will drive AWS acceleration.”
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.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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