Semiconductor stocks rallied worldwide after Nvidia announced a $100 billion investment in OpenAI. The startup that ignited the AI arms race plans to deploy Nvidia systems that require 10 gigawatts of power, equivalent to 4 million and 5 million graphics processing units, or GPUs.
Chipmakers closely tied to Nvidia also surged on the news. TSM closed up 3.5%, while SK Hynix gained more than 2.5%. Samsung, a rival, also closed up 1.4%. Even though the company doesn’t yet supply Nvidia with its high-bandwidth memory chips, markets anticipate that the company will gain the green light very soon.
“Ultimately this is a broad market with lots of suppliers. It certainly isn’t a zero-sum game with only one winner, and indeed it appears investors are recognising that.
While this deal may be negative in the short-term for Nvidia’s competitors, it is a sign that the AI trade is alive and well.”
-Ben Barringer, global technology analyst at Quilter Cheviot, told CNBC.
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. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks on Market Radar. On September 23, Wells Fargo analyst Michael Turrin upgraded the stock from Equal Weight to Overweight with a price target of $170.00 (from $105.00).
In an investor note, the analysts highlighted how Coreweave is poised to benefit from the elevated build cycle and hyperscale industry shortages into 2026. These constraints and shortages create the potential for CoreWeave to win market share.
Moreover, CoreWeave is given the opportunity to a “blank check” with Nvidia’s recent backstop to buy all unused capacity through 2032. The firm believes that CRWV’s demand signals are too strong to ignore.
Overall, strong demand, major customers, supply shortages, and Nvidia’s backing make it a major growth winner.
“While the rest of software is stuck waiting for AI monetization to surface, CRWV stands to benefit from the elevated build cycle today & persistent industry shortages into 2026. Raise FY26/FY27 revs by 5%/9% & upgrade to OW from EW, raise PT to $170. Latent demand ROY likely to boost 2H25, FY26 bookings; NVDA backstop protects downside: Supply constraints continue, w/ hyperscaler shortages continuing through (at least) early-2026. See potential for CRWV to pick up market share in the interim (both MSFT, GOOGL recently expanding w/ CRWV, incl ~$0.5B A/R disclosure from 3rd unnamed customer; we believe GOOGL). Further, NVDA’s recent backstop to buy all unused capacity through 2032 gives CRWV a blank check to build out new capacity for 6+ yrs.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the 10 AI Stocks on Market Radar. On September 23, BofA Securities analyst Dimple Gosai raised the price target on the stock to $24.00 (from $21.00) while maintaining a Underperform rating.
According to the firm, Bloom Energy has secured remarkable wins such as those with American Electric (AEP) and Oracle (ORCL). These wins, along with other fast project deployments, has made it a standout beneficiary of the AI data center trade. The stock had a greater than 650% stock rally over the past year.
However, the firm believes that Bloom’s surge isn’t backed by fundamentals. Major wins secured by the company didn’t change the company’s guidance, and the Fremont’s 1GW facility is running at less than 50% utilization.
Moreover, supply chain checks point to revenue growth closer to the firm’s 2026 outlook which remain “well below” Street estimates for 2026-28.
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
8. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 65
Accenture plc (NYSE:ACN) is one of the 10 AI Stocks on Market Radar. On September 23, Wolfe Research analyst Darrin Peller lowered the price target on the stock to $285.00 (from $290.00) while maintaining an Outperform rating.
The firm believes that Accenture holds a “best-in-class” digital franchise built on cloud, security, and industry-focused offerings. Investments in AI and cloud will position it to meet the growing demand for digital transformations.
Looking ahead, the company’s end-to-end capabilities and consulting expertise are anticipated to drive share gains as enterprises adopt generative AI. However, risks such as tariffs and DOGE-related implications remain.
“Price Target: Our YE26 price target of $285 ($290 prior) is predicated on ~19x (unchanged) our CY27 EPS estimate of $15.03 ($15.10 prior). In our view ACN maintains a best-in-class digital franchise, driven by its foundation of higher-value offerings (Cloud, Security, Interactive, Industry X) and sound delivery model. We believe ACN should continue to trade at a premium relative to peers given its history of enhanced execution (prudent supply/demand balancing, consistent margin expansion, and sound FCF generation). Going forward, we believe ACN’s investments into AI, Accenture Cloud, and other digital offerings will allow the company to match supply with increasing demand for cloud/digital transformations. Additionally, we believe improving discretionary demand in 2026 could potentially lead to upside to consensus estimates. Longer-term, we believe ACN’s end-to-end capabilities and strong consulting presence (with unique domain expertise) will allow it to gain share as enterprises increasingly adopt GenAI. Although demand appears somewhat stable, we recognize concerns around tariffs and DOGE implications. Maintain Outperform.”
Accenture plc (NYSE:ACN) offers strategy and consulting services.
7. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 76
Workday, Inc. (NASDAQ:WDAY) is one of the 10 AI Stocks on Market Radar. On September 18, DA Davidson analyst Gil Luria raised the price target on the stock to $260.00 (from $225.00) while maintaining a Neutral rating.
The rating affirmation follows DA Davidson’s virtual attendance at Workday’s 2025 Analyst Day featuring new product announcements and financial disclosures.
The firm said that it is “incrementally positive” towards Workday’s opportunity to benefit from Agentic AI adoption. However, since the growth is already priced in, the firm remains Neutral on the stock.
“We reiterate our NEUTRAL rating and raise our price target to $260 after virtually attending Workday’s 2025 Analyst Day where new product announcements and financial disclosures make us incrementally positive towards Workday’s opportunity to benefit from Agentic AI adoption. Workday is making it easier for customers to adopt new agents across the enterprise. AI Agent revenue is growing quickly, though represents a small portion of the base and an expected release date in 2026 limits upside to near term numbers. We view Workday positively but see growth adequately priced in.”
Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.
6. 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 on Market Radar. On September 23, Citizens JMP analyst Trevor Walsh reiterated a Market Outperform rating on the stock with a $212.00 price target.
While the stock is currently trading at a slight premium relative to its peer group, analysts think that the valuation is justified since the company is extending efforts to expand its cybersecurity platform and capture a wide portion of the total addressable cybersecurity market.
“We maintain our Market Outperform rating and $212 price target on Palo Alto Networks, Inc. Palo Alto Networks currently trades at 37.0x CY26E EV/FCF multiple, while our $212 price target implies 37.7x CY26E EV/FCF. This represents a slight premium to the mean multiple of 31.7x CY26E EV/FCF for the peer group. We believe this valuation is warranted given the company’s ambitious platform strategy and intelligent product expansion efforts to consolidate a wide swath of the total addressable cybersecurity market.”
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
5. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 78
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks on Market Radar. On Sep 23, BofA Securities analyst Mariana Perez Mora raised the price target on the stock to $215.00 (from $180.00) while maintaining a Buy rating. The firm also reiterated Palantir’s position on US 1 List.
BofA believes that Palantir’s “secret sauce” lies in its Ontology architecture and FDEs (forward deployed engineers) go-to-market strategy. BofA isnt the only in this view, with other notable firms such as Goldman Sachs and UBS having similar opinion.
“Palantir is unique relative to traditional software companies in that it leverages forward deployed engineers (FDEs) to help customers identify and build out custom use cases.”
-Goldman Sachs analyst Gabriela Borges.
At UBS, analyst Karl Kierstead said:
“While many sell-side Wall Street analysts may be mixed on the merits of Palantir’s FDE model, Palantir’s customers are not. The consensus customer view of Palantir’s FDEs is positive.”
The company deploys its own software engineers at customer locations to observe workflows.
According to BofA, discussions with Palantir’s Chief Architect Akshay Krishnaswamy have revealed how its unique data system and hands-on engineers, along with Agentic AI capabilities, are helping expand its use cases.
The company has won its first billion-dollar award from UK’s Ministry of Defense reflecting rising demand from US allies. Its Maven Smart System also continues to grow, selected in April by NATO.
“We reiterate our Buy rating and raise our PO to $215 (from $180) to reflect stronger growth across applications (estimate changes on page 4) on a 15x EV/EBITDA on 2035E (unchanged). As part of President Trump’s state visit to the UK, Palantir announced a Strategic partnership with UK’s MOD. The 5-year long, up-to £750mn award marks Palantir’s first billion-dollar (US$) deal outside the US and builds on Palantir’s existing UK exposure (NHS & MOD) and growing international demand among US allies. Palantir’s Maven Smart System continues to grow (see our note) in the US – 8x since early 2024 – and was selected in April by NATO (see our note) to augment intelligence, target recognition, battlespace awareness, and decision-making capabilities for warfighters. We expect other countries to increasingly consider Maven as their global digital battle-management system, as it provides both interoperability with the US and allies as well as governance on their own data. We now expect Government sales to exceed $8bn by 2030 (2025-30E CAGR up to 30% from 27%).”
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 82
Intel Corporation (NASDAQ:INTC) is one of the 10 AI Stocks on Market Radar. On September 19, Stifel analyst Ruben Roy reiterated a Hold rating on the stock with a $24.50 price target.
The rating affirmation follows Nvidia and Intel’s landmark deal to codevelop custom data center and personal computing products leveraging Intel’s x86 CPU architecture and NVIDIA’s GPU technology.
The firm views the collaboration favorably, giving Intel a stronger role in AI infrastructure and expanding Nvidia’s reach.
“NVIDIA (Buy, $176.58) and Intel announced a landmark collaboration to codevelop multiple generations of custom data center and personal computing products. The partnership appears to be purely a product collaboration for now and centers on integrating NVIDIA’s accelerated computing and AI stack with Intel’s x86 CPU architecture, leveraging NVIDIA’s NVLink interconnect technology. We view the collaboration positively for both Intel and NVIDIA as it brings together Intel’s longstanding expertise with the x86 compute architecture with NVIDIA’s GPU leadership.”
“We believe that the primary value for Intel lies in the ability to directly participate in higher-density rack-scale AI infrastructure, which has been lacking for the company.”
Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer products and technologies, delivering data storage, computer, networking, and communications platforms.
3. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks on Market Radar. On September 18, Rosenblatt analyst Hans Mosesmann reiterated a Buy rating on the stock with a $200.00 price target.
The rating comes ahead of its upcoming earnings report on September 23, with the firm expecting Micron to exceed its August 11 pre-announcement figures and deliver stronger-than-consensus guidance for the November quarter.
“We expect Micron to deliver a modest beat relative to its August 11 pre-announcement, with a stronger upside to consensus on the November quarter outlook. Our Buy rating on MU is supported by constrained DRAM and NAND Flash wafer supply through 2026, alongside accelerating demand from AI workloads. We expect that demand for DRAM has already exceeded available supply, and AI systems’ need to store massive volumes of data is driving strength in storage markets. With HDD lead times stretching to 12 months, more costly eSSDs are increasingly filling the gap for nearline storage, pushing prices higher across segments. Key topics of interest on the earnings call may include the current supply-demand balance, timing of greenfield capacity ramps, trade-offs across DRAM product categories such as HBM, GDDRx, LPDDR5, DDR5, and DDR4 and potential for customized HBM4 logic. We view each memory cycle as establishing structurally higher peaks. The prior peak occurred in 3QF22 (May 2022) at $8.6B in revenue, 47.4% Non-GAAP gross margin, and $2.59 Non-GAAP EPS. For the current up-cycle, we model Non-GAAP gross margin reaching at least 55% in 4QF26, supported by $14.5B in revenue and $4.78 EPS. MU remains our top long idea as the memory up-cycle accelerates into FY26.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks on Market Radar. On September 19, Citizens JMP analyst Andrew Boone raised the price target on the stock to $290.00 (from $250.00) while maintaining a Market Outperform rating. The rating follows Google’s announcement of major AI integrations into Chrome.
Google has introduced the “next Chrome era,” which it believes is the “biggest upgrade to Chrome in its history.” Google AI has been integrated in Chrome across multiple levels, the firm noted.
Gemini in Chrome will be made available to AI Pro and Ultra subscribers in the US, with the firm anticipating its broader expansion to all users as agentic-driven costs start to come down.
“AI features include the ability to use Gemini in Chrome to schedule a booking (e.g., a haircut) or order items (e.g., groceries), and to compare and summarize information across tabs or other Google apps like Calendar, YouTube, and Maps. Additionally, AI Mode search results can be generated from the Chrome address bar (called the “omnibox”), while questions can be asked of details on a web page with contextually relevant answers. Simply put, this is the first step toward agents beginning to help internet browsers complete actions and find and summarize information at the browser level, enabling AI to bring tasks and information instead of the other way around. By Google leaning into distribution, we think it can win AI search.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks on Market Radar. On September 23, Evercore ISI analyst Mark Lipacis raised the price target on the stock to $225.00 (from $214.00) while maintaining an Outperform rating. The rating affirmation follows the company’s deal with OpenAI.
The two companies are collaborating to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure. Nvidia intends on investing up to $100 billion in OpenAI as the new NVIDIA systems are deployed.
After speaking with Nvidia’s CFO, the firm has come out confident on the stock, stating that the company remains the AI ecosystem play of choice and that Street estimates are too low.
The firm also reiterated Nvidia as its Top Pick. Analysts believe that Wall Street is underestimating demand, and that NVidia is uniquely positioned to handle the scale that OpenAI needs for its infrastructure buildout.
“Post our callback with NVDA’s CFO regarding the OpenAI deal, we came away with further confidence that NVDA remains the AI ecosystem play of choice and that Street estimates are too low – Reiterate NVDA as a top pick.
Key takes from the callback: NVDA is the preferred supplier to OpenAI, as OpenAI has underestimated demand for its solution and wants to get ahead of demand going forward, and NVDA is uniquely positioned as the scale solution provider that could help OpenAI with this infrastructure buildout. The deal is for at least 10GW of AI infrastructure, and mgmt. confirmed that historically, NVDA’s TAM was $30bn-$40bn per GW, although going forward it could be higher. The deal would include GPUs, racks, networking and software. The OpenAI deal is additive to what NVDA was expecting before We Estimate $5.5bn in Additional Revs for NVDA in 2HCY26. The company would not give details about the pace and duration of the ramp. We increase our 2H26 revenue estimate by $5.5bn, using Colossus, Prometheus and Project Rainier as benchmarks”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Must-Watch AI Stocks on Wall Street and 10 AI Stocks in Focus on Wall Street
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