Stargate UAE is all set to become a transformative force in the field of artificial intelligence. In the latest news, OpenAI, Oracle, Nvidia, and Cisco are joining hands to build an extensive Stargate artificial intelligence campus in the United Arab Emirates.
“AI is the most transformative force of our time. With Stargate UAE, we are building the AI infrastructure to power the country’s bold vision – to empower its people, grow its economy, and shape its future.”
-Jensen Huang
The announcement follows US President Donald Trump’s Middle East tour last week, where Trump and the U.S. Commerce Department broadcast numerous new AI deals, including the UAE Stargate project scheduled for Abu Dhabi.
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The project, to be built by the US and UAE, will take place in collaboration with the Emirati firm G42. It will span 10 square miles and have a 5-gigawatt capacity. According to the companies, the project’s first part, which is a 200-megawatt AI “cluster,” is anticipated to go live in 2026.
Sam Altman, CEO of OpenAI, noted that the United Arab Emirates project is “a step toward ensuring some of this era’s most important breakthroughs – safer medicines, personalized learning, and modernized energy – can emerge from more places and benefit the world.”
In a separate post, Altman also mentioned how Stargate UAE possesses the potential to offer AI infrastructure and computing capacity within a 2,000-mile radius. This means it can reach up to half the world’s population.
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 Q4 2024.
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10. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 27
SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions. On May 23, JPMorgan analyst Toby Ogg reiterated an “Overweight” rating and EUR290.00 price target on the stock. The reiteration follows SAP’s Sapphire Conference in Orlando, where the company demonstrated a strategic pivot, focusing on suite-as-a-service applications, its Business Data Cloud, and artificial intelligence initiatives such as Joule & AI Agents.
Ogg also pointed toward early interest in SAP’s Business Data Cloud. Moreover, discussions with key SAP partners revealed eagerness for the company’s integration with Databricks, a partnership that allows companies to prepare enterprise data for AI capabilities. The firm believes that these initiatives are seen as growth drivers and aren’t fully reflected in consensus views, offering potential upside.
SAP’s CFO, Dominik Asam, talked about some challenges impacting cash conversion in 2026, but at the same time, also noted the sustainability of SAP’s growth. Overall, the firm holds a positive view about the company’s revenue growth through 2027. This supports a mid-term investment case for the stock.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On May 23, Wedbush analyst Dan Ives reiterated an “Outperform” rating on the stock with a $140.00 price target. The rating update follows Palantir being awarded a $795M U.S. Army modification contract for Maven Smart System software licenses. According to the firm, Palantir is a major player within the US government.
“Palantir remains one of our top names to own in 2025 and this deal represents another opportunity for PLTR to capitalize on while continuing to generate unprecedented traction for its entire portfolio across in the federal and commercial landscapes.”
-Analysts led by Daniel Ives.
The company has secured its first-ever billion-dollar contract with the Department of Defense for data fusion and target identification. In addition to the recent $795M US Army modification contract, the company had received a nearly $480M Maven Smart System back in May 2024, bringing the total value of the contract up to around $ 1.3 B.
The firm further stated that “Palantir in essence in the sweet spot to benefit from a tidal wave” of federal spending on AI across North America and Europe.
8. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 69
Amphenol Corporation (NYSE:APH) designs, manufactures, and markets electrical, electronic, and fiber optic connectors. On May 22, BofA analyst Wamsi Mohan raised the firm’s price target on the stock to $90 from $85 and kept a “Neutral” rating on the shares. The reaffirmation follows Nvidia’s announcement of NVLink Fusion at Computex 2025 earlier in the week.
The NVLink Fusion is Nvidia’s latest silicon technology that lets industries build semi-custom AI infrastructure. NVLink Fusion will allow the company to provide NVLink to cloud service providers, allowing CSPs to connect Nvidia GPUs with ARM-based CPUs from companies such as Qualcomm and Fujitsu. As such, the announcement of NVLink Fusion is supposedly a tailwind to Amphenol’s estimates. However, there is also the belief that CSPs may continue to prefer using the traditional Nvidia Grace Blackwell 200 and 300s.
7. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 89
Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications. On May 23, DA Davidson raised the firm’s price target on the stock to $250 from $230 and kept a “Neutral” rating on the shares. The rating update follows Workday’s in-line Q1 results and 220bps margin beat. The company is significantly investing in growth. Additionally, it is working harder to become a leader in managing AI agents based on its experience in human capital management.
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. On May 23, Jefferies reiterated the stock as “Buy” with a $375 price target. The firm said Salesforce is attractive heading into earnings on May 28. For the fiscal first quarter, Wall Street anticipates Salesforce to report quarterly earnings of $2.54 per share in its forthcoming release, a year-over-year increase of 4.1%. Meanwhile, revenues are expected to amount to $9.74 billion, an increase of 6.6% compared to the year-ago quarter.
“Considering the cautiously optimistic tone from partners and software peers, we expect FY26 guidance to be maintained, but do not expect upside on rev to be flowed through to the FY guide. We believe a cautious approach is appropriate given the current macro.”
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company known for its consumer electronics, like iPhones and MacBooks. One of the most notable analyst calls on Friday, May 23, was for Apple Inc. Evercore ISI reiterated the stock as “Outperform.” The firm said it’s sticking by the stock despite several uncertain issues.
Macroeconomic headwinds and shifting consumer behavior have led to persistent concerns about Apple’s Services segment and Gross Margins. The analyst also highlighted the evolving relationship between Apple and OpenAI, where OpenAI will acquire the AI device startup co-founded by Apple veteran Jony Ive in an estimated $6.5 billion all-stock deal.
The deal adds Ive and approximately 55 hardware engineers to OpenAI’s team, seemingly a part of a generational technology shift. Even Gene Munster, Managing Partner at Deepwater Asset Management, has warned that OpenAI represents the first serious competitive threat to Apple.
“Before AI, there was no real threat to Apple’s or Google‘s business,” he noted, emphasizing that OpenAI is “catalyzing this shift into something tangible.”
-Gene Munster
“AAPL – No End To Pain: While worries on Services and GMs [gross margin] remain, the recent issues have been around OpenAI and the impact of Jonny Ive moving there as another risk specially over the medium term.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $235 implies a 20% upside, however, the Street-high target of $308 implies an upside of 57.7%.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On May 23, Bank of America reiterated the stock as “Buy.” The firm is bullish on the stock heading into earnings next week.
Wall Street expects a record quarter from Nvidia, anticipating that the company reports quarterly revenue of $43.38 billion, 66% higher year-over-year. Meanwhile, adjusted net income is expected to be $21.29 billion, or 87 cents per share, up from $15.24 billion, or 61 cents per share, from the year-ago period.
“Despite these near-term headwinds we maintain Buy on NVDA, a top sector pick given its unique leverage to the global AI deployment cycle, and possibility for China sales recovery on new redesigned/compliant products later in the year.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $160 implies a 21.8% upside, however, the Street-high target of $235 implies an upside of 79.69%.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On May 23, Citizens JMP analyst Andrew Boone reiterated a “Market Perform” rating on the stock.
Boone has highlighted a shift in Google’s ad strategy that now aligns with its advanced AI search capabilities. Google Marketing Live, Google’s online event brimming with AI, demonstrated the latest advertising products from the company and the integration of AI into its search functions.
According to Boone, AI search is broadening Google’s total addressable market for search by handling more complex queries. This increased ad load is likely to maintain revenue projections for Google’s search business. However, rising competition for search queries could limit Alphabet’s stock valuation. Since the competitive landscape for Alphabet seems competitive and constraining, the firm places a neutral outlook on the shares.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $200 implies a 18.72% upside, however, the Street-high target of $234 implies an upside of 38.9%.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On May 23, Jefferies analyst Brent Thill reiterated a “Buy” rating and $550.00 price target on MSFT.
Thill discussed key highlights from Microsoft’s recent event, which centered around its AI capabilities. The company plans to enhance Microsoft Copilot, incorporating reasoning capabilities through the addition of Researcher and Analyst agents. Albeit its adoption is in early stages, the company has plans to expand Microsoft Copilot’s use.
Discussing further, the firm also noted how Microsoft boasts a robust financial position. Its revenue is growing at a good rate, while it also has strong profitability metrics. These factors back Microsoft’s aggressive AI expansion strategy. However, there is one challenge that may limit Copilot’s broader integration, which is the need for improved data access and governance. Nevertheless, overall market sentiment is cautiously optimistic.
The company is also striving to establish itself as a central hub for AI by promoting an open platform approach. Microsoft’s CEO has also shared that Copilot updates are the most significant ever since Teams launched, signaling a major AI leap. The firm shares this enthusiasm.
Moreover, additional features such as Copilot Search and Copilot Memory are anticipated to enrich the tool’s functionality. All in all, investors are very focused on Microsoft’s stock performance and endeavors in the AI domain, while the firm is overall bullish on its direction and overall potential for growth.
“We attended MSFT Build in Seattle and came away with 5 key takes: Copilot gains reasoning via Researcher & Analyst agents, rolling out over the coming months; Copilot adoption is still early but intent to roll out strong; Data access & governance cited as biggest barriers for Copilot; Macro sentiment remains cautiously optimistic w/ MSFT seen as a safe haven; MSFT is leaning into an open platform to be the AI hub.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
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. On May 23, Youssef Squali from Truist Financial maintained a “Buy” rating on the stock. The firm said it is sticking with the e-commerce giant.
“Halfway through 2Q25, Amazon NA [North America] revenue looks to be tracking ahead of consensus. Our analysis of the Truist Card Data (through 5/19) indicates that Amazon’s QTD US Revenue for 2Q25 is tracking $1-2B ahead of consensus expectations of ~$97B, implying a healthy 8-9% Y/Y growth, which is in line with growth in 1Q25, reflecting no notable impact from macro concerns.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $235 implies a 16.9% upside, however, the Street-high target of $288 implies an upside of 43.29%.
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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