According to OpenAI CEO Sam Altman, artificial general intelligence, or “AGI,” is becoming a meaningless term as there are multiple definitions being used by companies and individuals. The term is losing its relevance considering the rapid advances being made in the artificial intelligence domain.
Altman told CNBC’s Squawk Box that he believes AGI is “not a super useful term.” He answered about this when asked whether the company’s latest GPT-5 model is any closer to achieving AGI. Previously, he did share that he believed AGI could be developed in the “reasonably close-ish future.”
Now that he thinks AGI is losing its meaning and relevance, it is only because multiple definitions are being associated with it and the nature of work is constantly changing.
“I think the point of all of this is it doesn’t really matter and it’s just this continuing exponential of model capability that we’ll rely on for more and more things.”
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. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: 23
Oklo Inc. (NYSE:OKLO) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 14, Wedbush analyst Daniel Ives reiterated an Outperform rating on the stock with an $80.00 price target.
The rating affirmation reflects optimism in Oklo’s long term vision, particularly as the Trump administration increases its focus on the AI revolution data center buildout powered by nuclear energy.
“Overall, we remain confident in OKLO’s long-term vision as the Trump Administration intensifies its focus on the AI Revolution data center buildout with plans to use nuclear energy to power the next 4th Industrial Revolution with the US DoD becoming an increasingly important customer/partner moving forward. We expect to hear further details on OKLO’s projects in the coming months.”
Oklo Inc. (NYSE:OKLO) is an advanced nuclear technology company that designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States.
9. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
C3.ai, Inc. (NYSE:AI) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 13, Oppenheimer analyst Timothy Horan downgraded the stock from Outperform to Perform.
The rating downgrade comes amid C3.ai’s weaker-than-expected preliminary results for the first quarter of fiscal 2026. The firm noted also noted that CEO and founder Tom Siebel is stepping down due to health issues.
“We are downgrading C3.ai to Perform and removing our $45 price target following extremely weak preliminary 1Q26 results. The company significantly lowered revenue expectations for 1Q26, from ~$105M to ~$70M, implying a 35% sequential decline and a major concern given the recurring nature of its Subscription revenues, suggesting the services are not working as advertised. Non-GAAP operating loss was also increased, from -$29M to -$58M. CEO and founder Tom Siebel will be stepping down due to health issues. We are concerned that these results indicate secular weakness in underlying trends. The company is very difficult to forecast, but we are reducing estimates dramatically. Hopefully the earnings call provides more color.”
C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.
8. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 13, Mizuho analyst Gregg Moskowitz reiterated a Neutral rating on the stock with a $150.00 price target.
The firm believes CoreWeave has the potential to grab a significant share of the AI cloud provider market. However, since the stock has already jumped 300% since its IPO earlier this year, the upside and downside is more or less balanced.
“As highlighted in our initiation report, we believe CRWV is positioned to capture meaningful share of an AI cloud provider market growing at a server-melting pace. With that said, we recently downgraded to Neutral as we more broadly assess the risk/reward for CRWV as balanced following a 300% run since its IPO earlier this year (this currently stands at 233% AH; NASDAQ has risen 22%). We reiterate our Neutral rating and $150 PT.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
7. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 52
Elastic N.V. (NYSE:ESTC) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 13, UBS analyst Radi Sultan resumes coverage on the stock with a Buy rating and a price target of $95.00 (from $148.00).
The coverage resumption follows conversations with more than fifteen industry checks which have revealed stable to slightly improved demand environment for Elastic’s services. The firm particularly likes the “the near-term numbers setup + medium-term upside optionality from GenAI”.
“With the stock pricing in ~12% growth in FY26/27E, we are modeling 13% (in FY26/27E) but think risk is skewed to the upside as we believe Elastic could do 15-16% growth in an upside case. We’re also ~4%/6% ahead of the Street for FCF in FY26/27E.”
UBS also believes that the AI narrative will eventually shift in Elastic’s favor. However, the real GenAI opportunity is one or two years away.
“While we did hear positive datapoints on the AI Search lift and we see room for the AI narrative to shift in Elastic’s favor, the real GenAI opportunity still sounds 1-2 years away. The key risk we picked up was competition, but at ~4x CY26E Revs we think this is mostly priced in.”
Elastic N.V. is a search AI company offering cloud-based solutions.
6. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 13, Wells Fargo reiterated the stock as “Overweight” stating that the shares of Dell have more room to run.
“We continue to see Dell as best-positioned AI server momentum story.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $145 implies a 4.22% upside; however, the Street-high target of $165 implies an upside of 18.6%.
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
5. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 12, Evercore ISI analyst Peter Levine reiterated an Outperform rating on the stock with a $220.00 price target.
According to the firm, investors are expected to focus primarily on Palo Alto Networks’ initial fiscal year 2026 guidance. There is going to be less emphasis on the pending Cyberark acquisition, which is unlikely to receive significant commentary at this stage.
Evercore ISI also expects FY26 guidance to come in slightly below Wall Street estimates. However, this has already been signaled and won’t be surprising. Investor sentiment remains muted, but the firm holds its optimistic outlook toward the stock.
“In terms of expectations for the FY26 guide, we took down our FY rev from 13.7% to 12.3%. With PANW tempering expectations over the course of the quarter, a below-consensus FY26 guide would be in line with recent signaling/should not come as a surprise. In terms of the quarter, sentiment appears more subdued relative to prior quarters, reflecting the modest revenue and ARR guide upside observed so far in FY25. Recent investor conversations show low conviction and no clear bogey, as top-line beats have averaged just 1% in F1Q–F3Q. A 15% top-line print would likely suffice. We would expect product upside, supported by stronger product results from both CHKP & FTNT. From an NGS ARR lens, the bogey stands at ~32.5% y/y, or $500mn net new ARR, vs. the midpoint of the guide of +31.4% (+$460mn in net new). Our core L/T thesis on PANW remains intact. With the stock down ~18% since the deal announcement, we believe that, for investors with a multi-quarter view, we see meaningful upside from these levels, and our initial work suggests the strategic rationale for CYBR will ultimately prove sound.”
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 13, Bank of America reiterated its bullish stance on Dell and Apple in a note to clients on Wednesday.
The firm cited early-stage artificial intelligence adoption and a pending PC refresh cycle as key drivers for the sector.
The firm maintained a Buy rating on Apple, pointing to “resilient earnings, strong capital returns and optionality to monetize incremental avenues of growth.”
Analysts on Wall Street have a consensus Buy rating on the stock. The average price target of $240 implies a 3.2% upside; however, the Street-high target of $275 implies an upside of 18.3%.
Apple is a technology company known for its consumer electronics, software, and services.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 13, Piper Sandler analyst Harsh Kumar raised the price target on the stock to $225.00 (from $180.00) while maintaining an Overweight rating.
The rating affirmation comes ahead of Nvidia’s upcoming quarterly report, with Piper Sandler anticipating another positive quarter from the chipmaker.
The firm’s optimistic outlook is supported by positive commentary from US hyperscalers. It also highlighted how current estimates do not yet reflect anticipated revenue from China.
“We are expecting another positive quarter from NVDA and see upside to numbers for both the July and October quarters. While we are modeling largely in-line for the July quarter and slightly below Street for October, we are calling for upside given the recent positive commentary from U.S. hyperscalers as well as the inclusion of revenues from China. We note that our estimates and Street estimates do not reflect the inclusion of China business as we are anticipating revenues to start coming in towards the end of this month. China demand in our view could amount to ~$6B in sales for the October quarter and further ramp from there at a ~12-15% growth rate moving forward in a normal quarter. Finally, we are encouraged by hyperscaler commentary around capex plans for 2H and 2026 which should continue to pressure NVDA to meet this demand. We reiterate OW. PT to $225.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Investors Are Watching Right Now. One of the biggest analyst calls on August 14 was for Microsoft. Citi reiterated the stock as “Buy” stating the tech giant remains a top idea at the firm.
“MSFT remains a top pick in software, and we believe this week’s announcement is another indication of the company’s strong pricing power, which we believed combined with accelerating cloud/AI share gains can drive outsized returns.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $631 implies a 20.65% upside; however, the Street-high target of $700 implies an upside of 33.7%.
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: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Investors Are Watching Right Now. On August 13, Telsey analyst Joseph Feldman reiterated an Outperform rating on the stock with a $265.00 price target.
The rating affirmation comes as Amazon continues to leverage its substantial $670 billion annual revenue base to expand market share.
“TAG View: Overall, this expansion to offer same-day delivery of perishable groceries creates a one-stop shop for an array of customer needs. Importantly, we believe this is a strong move for Amazon, deepening relationships with and share of wallet among its Prime member customers, as well as positioning the company to compete better with other leaders in the grocery space..”
This expansion builds on Amazon’s strength and positions it better against its grocery competitors. The firm also believes that the tech giant can leverage its Prime membership base, small business relationships, and technological advantages to continue gaining market share.
Some major growth opportunities further lie in grocery, private brands, pharmacy, logistics, and generative AI. These areas can make the company more valuable in the future.
“TAG Thesis: Broadly, Amazon should continue to gain market share by leveraging its sticky Prime member base, small business relationships, and technological edge. Amazon’s ability to fuel key growth opportunities—grocery, private brands, pharmacy, logistics, and generative AI—should make it more valuable. The solid growth and profitability of AWS and advertising should continue to outperform and support Retail. We maintain our Outperform rating and 12-month price target of $265, which is based on applying an EV/EBITDA multiple of ~15x to our 2026 EBITDA estimate of ~$193B.”
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 in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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