According to Ark Invest founder and Chief Executive Cathie Wood, artificial intelligence holds the potential to accelerate the development of humanoid robots.
“I know a lot of people are worried about all [the] ‘AI hype. But as we’re looking to the future, especially with embodied AI, which is all about robotaxis and transforming the world of transportation completely — and then healthcare, which is probably one of the most profound applications of AI, we think that this investment will pay off. I think the chaser is going to be humanoid robots. And I think that is going to be the biggest of all the embodied AI opportunities.”
– Cathie Wood, speaking to CNBC on the sidelines of the Future Investment Initiative (FII) in Riyadh, Saudi Arabia.
While Wood is optimistic about the future of AI, the surge in enthusiasm around it is also leading to concerns about the prospects of an AI bubble.
For instance, investment firm Bernstein told CNBC’S “Squawk Box” that surging asset prices and extreme valuations reflect that an AI bubble is the “likely outcome.”
ChatGPT founder Sam Altman has also previously shared that he believes AI could be in a bubble.
“Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes.”
While both sides present compelling arguments, it remains too early to determine the course AI will eventually take, or when AI spending can begin to consistently translate into earnings.
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.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
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10. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the 10 AI Stocks on the Market’s Radar. On October 31, Jefferies raised its price target on the stock to $53.00 from $31.00 while maintaining an “Underperform” rating. According to the firm, the recent BAM deal is the primary reason for the price target increase.
Brookfield Asset Management recently announced plans to invest up to $5 billion in Bloom’s solid-oxide fuel cell technology, fuelling the next wave of AI-driven data centers.
Despite the price target increase on the deal, the firm remains hesitant and continues to seek clarity regarding the profitability of the joint venture structure.
In this aspect, fourth quarter is going to be a key marker for investors with BE likely to disclose its backlog. Ideally, this will include a significant portion of sales for 2026 and 2027.
“We hesitantly raise our ests on the heels of the BAM deal but still seek clarity around profitability of the JV structure and how that truly impacts BE’s cash flows. Separately, we expect 4Q will be a key marker for investors as the co will disclose their backlog, which should ideally bake in a significant portion of ’26 / ’27 sales. Timing of deployment remains critical to meet elevated investor expectations.”
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.
9. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 63
Celestica Inc. (NYSE:CLS) is one of the 10 AI Stocks on the Market’s Radar. On October 29, BMO Capital raised the firm’s price target the stock to $370 from $300 and kept an Outperform rating on the shares. The rating affirmation follows Celestica’s Q3 earnings beat.
The firm’s key takeaway is that it sees stronger than expected demand from its three large hyperscaler customers heading into FY2026.
CLS is also witnessing a “growing pipeline of opportunities” driven by strong market demand, CLS’s competitive advantages, and helpful technology trends.
The stock remains attractive for BMO as it has the potential to perform better than expected, and also because AI capex spending remains strong beyond FY2027.
“We remain Outperform on CLS and have raised our estimates following Q3/25 results and the investor day. Our key takeaway is that CLS is seeing stronger-than-expected demand from its three large hyperscaler customers heading into FY2026—with a growing pipeline of additional opportunities driven by a combination of strong endmarket demand, its competitive differentiation and favorable technical trends that play to its strengths. We believe the stock remains attractive given the potential upside to our estimates and our view that AI capex spending will remain strong beyond FY2027.”
Celestica Inc. (NYSE:CLS) offers a range of product manufacturing and related supply chain services.
