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.
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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.
8. Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 78
Core Scientific, Inc. (NASDAQ:CORZ) is one of the 10 AI Stocks on the Market’s Radar. On October 30, Macquarie upgraded the stock to “Outperform” with a revised price target of $34.00. The firm upgraded the stock up post CoreWeave (CRWV) deal termination.
The company recently announced that it failed to receive the mandatory number of votes to approve the company’s planned sale to CoreWeave (CRWV).
In response, CRWV noted that it “looks forward to continuing its commercial partnership with CORZ.” In other news, Roth Capital raised the firm’s price target on (CORZ) to $40 from $23.50 and kept a Buy rating on the shares.
The firm believes that CORZ can now resume its standalone path and resume talks with customers after shareholders voted for takeover by CRWV.
Core Scientific, Inc. (NASDAQ:CORZ) has transitioned into an AI business by leveraging advanced infrastructure and expertise in HPC (high-performance computing).
7. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 10 AI Stocks on the Market’s Radar. On October 30, JPMorgan reiterated the stock as “Overweight” and raised its price target on the stock to $1,075 per share from $1,020 following earnings.
The analyst told investors in a research note how ServiceNow has reported better than expected Q3 results on federal government bookings and “robust” artificial intelligence growth.
The company reported third quarter EPS of $4.82, topping consensus estimate of $4.27. Revenue for the quarter came in at $3.41B versus the consensus estimate of $3.35B.
Looking ahead, it raised its full-year guidance, now anticipating subscription revenue to range between $12.84 billion and $12.85 billion for the year.
“ServiceNow stands out as the pioneer and leader of cloud-based IT Workflow management and is in the early stages of transforming into a true multi-product success story as it expands its presence in Employee, Customer, and Creator Workflows.”
-JP Morgan
Discussing the earnings, finance Chief Gina Mastantuono told CNBC that the annual contract value for ServiceNow’s AI business is anticipated to surpass $500 million this year and reach $1 billion by 2026.
“The value AI is going to create in enterprise is like nothing that we’ve seen in a very, very long time. We have real customers, it’s not just hype, and we have real values and we’re driving real outcomes for those customers.”
ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks on the Market’s Radar. On October 31, Jefferies upgraded the stock rating from “Underperform” to “Hold” while raising its price target to $246.99 from $203.07.
The rating upgrade follows Apple’s September quarter revenue growth of estimated 8%, topping both Jefferies estimates and consensus expectations by 6% and 1% respectively.
The iPhone’s revenue growth was weaker at 6%. However, other products, including Mac and iPad outperformed expectations. The company’s gross margin of 47.2% beat estimates by an estimated 0.5% even though it faces $1.1 billion in tariff costs.
Looking ahead, it has guided for 10%-12% revenue growth in the December quarter, 6% above consensus forecasts.
According to the firm, estimates are “up only slightly” because it assumes a $100 price increase for the iPhone 18 to cover higher component costs.
This will likely limit volume growth, it noted. The firm also believes that product mix will likely negatively impact margins.
“AAPL’s Sep Q rev grew ~8%, 6%/1% > JEFe/cons. iPhone rev growth weaker at 6%, but other products (Mac & iPad) beat. GM at 47.2% is ~0.5% beat including US$1.1bn tariff. It guides 10%–12% rev growth in Dec Q (6% > cons). JEFe is up only slightly, as a US$100 price hike assumed for iPhone 18 to cover higher component costs will limit vol growth, and product mix likely –ve for margin. But strong 1QFY26 and hope for 18 Fold would likely limit downside. U/G to HOLD.”
Apple is a technology company known for its consumer electronics, software, and services.
5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks on the Market’s Radar. On October 30, Bank of America reiterated the stock as “Buy” and raised its price target on the stock to $335 per share from $280 following earnings.
“We see Alphabet as well positioned long term with leading AI technology to apply to search, YouTube and Cloud businesses.”
Analysts at the firm believe that Google is well-positioned for artificial intelligence due to its advanced models, proprietary TPU technology, and huge user base.
The firm also believes there may be several beneficiaries arising from its growing AI capabilities. Meanwhile, long-term projects such as Waymo and quantum computing aren’t yet reflected in the company’s valuation.
“We believe results will reinforce the view that: 1) Google is well positioned for AI with a leading LLM, proprietary TPU technology and massive user base, and 2) there can be multiple beneficiaries from growing AI capabilities. Also, early-stage bets like Waymo and quantum computing offer meaningful long-term optionality, not reflected in valuation. At AH price of ~$294 stock is valued at 24x our ’27 EPS, (vs S & P 22x), in line with historical premium despite a big AI growth cycle ahead. Next catalyst: Gemini 3.0 launch in 4Q. Risk: OpenAI’s ads launch in 2026 could intensify competition.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks on the Market’s Radar. On October 30, Cantor Fitzgerald reiterated an “Overweight” rating on the stock with a $300 price target. The firm said that the stock is too inexpensive to ignore despite AI bubble fears.
The firm said that despite talks of an “AI bubble,” Nvidia is still trading at roughly 21 times its projected 2026 EPS of $9–$10.
“NVDA Remains too Inexpensive to Ignore: While concerns around the AI bubble continue to dominate headlines, NVDA still only trades at 21x our updated CY26 EPS upside of $9-10. And if we look to CY27, we had previously highlighted EPS upside of $11, though clearly this is also now very conservative based on bookings trends, with a stretch goal closer to $12+; where NVDA is only trading at a 17x multiple today. So we have zero concerns around any type of frothy valuation here, and with a clear path for numbers tracking meaningfully higher, NVDA remains our hands down Top Pick with plenty of room for continued upside.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks on the Market’s Radar. On October 30, Oppenheimer downgraded the stock to “Perform” from Outperform without a price target.
The firm said that there’s “too much uncertainty” surround the company’s AI investments following Q3 earnings.
“Downgrading META to Perform (from Outperform) as risk/reward properly reflected after-hours.”
According to Analyst Jason, Meta’s “significant investment in Superintelligence despite unknown revenue opportunity mirrors 2021/2022 Metaverse spending,” where high-cost projects offered limited near-term returns.
The firm believes investors will struggle to rationalize the stock’s price-to-earnings multiple until there is visibility into 2027. This is because Meta’s “aggressive” revenue growth is offset by high spending.
Drawing comparisons to Alphabet, the firm noted how “GOOG [has] predictable earnings at a reasonable PE.” It further noted “both companies [are] trading at the same PE (21x 2027E), and Search could outgrow META at some point in 2026.”
Meta Platforms has been expanding its advertising capabilities and also invests heavily in artificial intelligence and the metaverse.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks on the Market’s Radar. On October 31, Truist Securities analyst Terry Tillman reiterated a Buy rating on the stock with a $675.00 price target following the company’s first-quarter fiscal 2026 results.
The firm calls Microsoft one of the best “pick and shovel” plays with financial flexibility. Truist is optimistic about Microsoft’s Azure cloud platform and commercial bookings momentum, quoting accelerating demand trends across various end markets and products.
It believes that Microsoft is “one of the best combined growth and profit AI pick and shovel stories” offering significant balance sheet flexibility. Therefore, it recommends investors buy shares during the current weakness.
“Further Thoughts Post 1QFY26 Report and Callback With the Co; Following 1QFY26 results & callback with company IR, we provide some additional updates on several topics, including accelerating demand, capex, OpenAI partnership and model impact from updated agreement and brief macro commentary. Reiterate our Buy rating and suggesting buying on today’s modest weakness (shares off 3% vs. S&P500 and Nasdaq off 1% and 1.6%, respectively). We are incrementally confident in durable Azure and commercial bookings momentum based on accelerating demand trends across a variety of end markets and products. One of the best combined growth and profit AI pick and shovel stories along with significant balance sheet flexibility, in our opinion.”
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: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks on the Market’s Radar. On October 31, Piper Sandler raised its price target on the stock to $300 from $255 and kept an “Overweight” rating on the shares.
The rating affirmation follows Amazon’s third-quarter 2025 results which were “better than expected and above negative buyside sentiment.”
AWS growth has picked back up to 20% y/y with more power capacity expected to double by 2027. Operating income also beat the high end of guidance excluding one-time charges.
The firm believes that Amazon “appears on the cusp of an AI product cycle,” while it continues to cut down costs.
“3Q25 Wrap: AWS Is Back On Track; 3Q results were better than expected and above negative buyside sentiment. AWS accelerated to +20% y/y with meaningful power capacity coming online & set to double again by 2027. Op income excluding $4.3BN in one-time charges was above the high end of guidance. AMZN remains relentless on lowering cost to serve and appears on the cusp of an AI product cycle. On higher estimates, we’re raising our PT to $300 from $255. Reiterate OW.”
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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