In this article, we will be looking at the 10 AI Stocks That Are About to Explode.
On May 19, CNBC reported that the AI rally continued during the latest earnings season. However, companies that make the hardware behind the AI boom are warning that the conflict involving Iran is putting pressure on their supply chains and profitability.
The growing tensions in the Middle East have pushed oil prices higher and disrupted supply chains that are important for the technology industry. The report said shortages of important chipmaking materials, including helium, are expected as the US and Iran remain in conflict.
Sebastien Naji, analyst at William Blair, told CNBC that rising energy costs are currently the biggest issue for manufacturers and fabs. He added that the longer the conflict with Iran lasts, the “more significant the second and third order impacts on component costs, vendor margins and overall AI data center economics.”
Michael Field, chief equity strategist at Morningstar, told CNBC, citing recent gains in chip stocks, noted that “any disruption so far has been completely overshadowed by the upswing in investor confidence in AI.”
With this background in mind, let’s take a look at the 10 AI stocks that are about to explode.
Our Methodology
To compile our list of the 10 AI stocks that are about to explode, we looked for the largest and most popular AI companies. We reviewed Insider Monkey’s database of prominent AI stocks and various online resources to compile a list of more than 50 AI stocks. Next, we focused on the stocks that analysts believe have the most potential for growth. Finally, we ranked the 10 AI stocks that are about to explode based on their average price target upside potential according to analysts as of May 18, 2026. These stocks are also popular among elite hedge funds.
Why do we care about what hedge funds do? 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 AI Stocks That Are About to Explode
10. Constellation Energy Corporation (NASDAQ:CEG)
Average Price Target Upside Potential According to Analysts: 42.96%
Number of Hedge Fund Holders: 76
Constellation Energy Corporation (NASDAQ:CEG) ranks among AI stocks that are about to explode. On April 30, Constellation Energy Corporation announced that its Pin Oak Creek Energy Center has started commercial operations.
The company said Pin Oak is a 460 MW, state-of-the-art natural gas facility built to supply reliable and dispatchable power to the ERCOT grid. It is designed to operate during periods of high power demand and can also run for longer periods if system conditions demand it. Constellation Energy Corporation said the project was developed to help meet rising electricity demand in Texas from homes, businesses, and industry. According to the company, Pin Oak Creek is expected to strengthen grid reliability and support economic growth in the state.
Earlier, on April 16, Constellation Energy Corporation also announced the commissioning of the 105 MW Pastoria Solar Project. The company said it is the largest renewable energy project contracted by the California Department of Water Resources (DWR) so far as part of its plan to fully decarbonize operations by 2035.
Constellation Energy Corporation is a leading energy supplier specializing in reliable, emissions-free energy for businesses, homes, and public sector customers.
9. Alibaba Group Holding Limited (NYSE:BABA)
Average Price Target Upside Potential According to Analysts: 43.45%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) ranks among AI stocks that are about to explode. On May 15, Susquehanna increased its price target on Alibaba Group Holding Limited from $170 to $185 while maintaining a Positive rating on the stock.
The research firm said that Alibaba Group Holding Limited has seen a decline in profitability as it continues to invest heavily in long-term growth initiatives. Susquehanna noted that the company’s management sees major growth opportunities ahead, supported by accelerating cloud growth and triple-digit AI growth.
Earlier, on May 14, Benchmark reaffirmed its Buy rating on Alibaba Group Holding Limited with a price target of $220 on the stock. This update came after the company announced its financial results for the quarter and fiscal year ended March 31, 2026.
Benchmark said Alibaba Group Holding Limited reiterated a clear path toward breakeven in its quick commerce business. The firm noted that unit economics are expected to turn positive by the end of the fiscal year, while losses are projected to decline by half over the next two years. The research firm expects more than 35% compound annual EBITA growth for China e-commerce.
Alibaba Group Holding Limited is a Chinese multinational technology company focused on e-commerce, retail, AI, digital media and entertainment, cloud, and technology.
8. Workday, Inc. (NASDAQ:WDAY)
Average Price Target Upside Potential According to Analysts: 43.99%
Number of Hedge Fund Holders: 70
Workday, Inc. (NASDAQ:WDAY) ranks among AI stocks that are about to explode. The stock’s average analyst upside potential of 43.99% supports its inclusion on the list. On May 20, Cantor Fitzgerald cut its price target on Workday, Inc. from $200 to $160 while keeping its Overweight rating on the stock ahead of the company’s first-quarter fiscal 2027 earnings report.
The research firm pointed out that Workday, Inc. is down 40% so far this year and is now trading at 12.3 times its fiscal 2027 earnings per share estimate. Cantor Fitzgerald noted that channel checks were neutral to slightly negative. According to the firm, slower growth expectations for fiscal 2026 and fiscal 2027 are being driven more by saturation in the company’s core human capital management market than by concerns over AI disruption.
Cantor Fitzgerald said conversations with partners suggested that AI is affecting budgets for human capital management and financial software in some cases, especially as companies shift their spending priorities. The firm noted that investor expectations remain weak because of concerns about AI disruption and market saturation.
Workday, Inc. is a leading American company that provides cloud-based financial management, human capital management, and student information systems. It offers an enterprise AI platform for managing money, people, and agents.
7. Salesforce, Inc. (NYSE:CRM)
Average Price Target Upside Potential According to Analysts: 44.08%
Number of Hedge Fund Holders: 115
Salesforce, Inc. (NYSE:CRM) ranks among AI stocks that are about to explode. On May 19, Deutsche Bank reiterated its Buy rating on Salesforce, Inc. with a price target of $255 on the stock.
The research firm said that it expects the company to report a “seasonally slow but steady” start to fiscal 2027. Deutsche Bank believes Salesforce, Inc. will probably meet “muted” fiscal first-quarter as the software-as-a-service sector continues to face a weak environment.
According to Deutsche Bank, its recent field discussions suggest the company may see less upside in its key metrics compared with recent quarters. The firm also said the upcoming earnings report is unlikely to lead to meaningful estimate revisions, which it believes are needed to improve investor sentiment and “catalyze the stock.”
In separate news, on May 12, Citi reduced its price target on Salesforce, Inc. from $200 to $188 while maintaining a Neutral rating ahead of the company’s Q1 results, which are scheduled to be released on May 27, 2026. Citi said it lowered its fiscal 2027 estimates after its fieldwork pointed to longer deal cycles and increased portfolio optimization at renewals.
Salesforce, Inc. is a leading American AI cloud-based software company that specializes in customer relationship management (CRM) solutions. The company offers software, tools, services, and applications for sales, customer service, marketing, e-commerce, and analytics.
6. Snowflake Inc. (NYSE:SNOW)
Average Price Target Upside Potential According to Analysts: 44.79%
Number of Hedge Fund Holders: 90
Snowflake Inc. (NYSE:SNOW) ranks among AI stocks that are about to explode. On May 19, Benchmark increased its price target on Snowflake Inc. from $190 to $200 and kept its Buy rating.
The research firm expects the company to report product revenue and operating income above market expectations. Benchmark noted that Snowflake Intelligence, Cortex Code, and Observe are helping drive AI adoption across over 9,000 accounts. According to the firm, cloud consumption and generative AI workloads are expected to support increased usage of Snowflake Inc.’s AI Data Cloud.
In other news, on May 15, RBC Capital reduced its price target on Snowflake Inc. from $245 to $220 and maintained its Outperform rating on the stock.
This update comes as part of a broader research note by the firm previewing Q1 results for software companies. RBC Capital pointed out that the outlook for Snowflake Inc. is tricky but favorable. According to the firm, strong checks and growing adoption of Cortex Code could help the company deliver strong first-quarter results with no deceleration to modest acceleration in product revenue.
Snowflake Inc. is an American cloud-based data platform company. It offers an AI Data Cloud platform, which enables organizations to build, use, and share data, applications, and AI.
5. SAP SE (NYSE:SAP)
Average Price Target Upside Potential According to Analysts: 47.51%
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) ranks among AI stocks that are about to explode. On May 15, BMO Capital reaffirmed its Outperform rating on SAP SE with a price target of $200 on the stock after attending the company’s Sapphire 2026 conference.
The research firm spent two days at the conference and came out more positive about SAP SE’s growth outlook. BMO Capital believes the stock trades at a compelling valuation. The firm said that it expects the company to maintain low double-digit growth over the next few years.
Source: unsplash
However, BMO Capital noted that it does not see any meaningful upside to estimates in calendar year 2026, and it also pointed to some downside risk depending on the situation in the Middle East.
At its annual Sapphire conference, SAP SE introduced its Autonomous Enterprise, which is designed to improve key business workflows by enabling humans and AI to work together more effectively, safely, and profitably.
SAP SE is a German multinational software company with a leading position in enterprise applications and business AI. The company is one of the world’s largest providers of enterprise resource planning software.
4. Accenture plc (NYSE:ACN)
Average Price Target Upside Potential According to Analysts: 48.09%
Number of Hedge Fund Holders: 71
Accenture plc (NYSE:ACN) ranks among AI stocks that are about to explode. On May 6, Accenture plc (NYSE:ACN) announced that it has made a strategic investment in XBOW, an agentic AI-powered autonomous cybersecurity testing platform.
The company said that this investment, made through Accenture Ventures, will allow Accenture plc (NYSE:ACN) and XBOW to help clients identify and mitigate risks in increasingly complex, AI-driven technology environments.
XBOW uses advanced AI to combine scale, speed, and pattern recognition with the creativity, judgement, and strategic thinking of human hackers. It is designed to work within enterprise environments and find weaknesses before hackers can exploit them. As part of the partnership, XBOW will be integrated into Accenture plc’s (NYSE:ACN) Cyber.AI solution, which supports organizations in transforming their security operations and shifting toward continuous, AI-powered cyber capabilities.
This investment is part of Accenture plc’s (NYSE:ACN) broader strategy to transform enterprise protection and offer a new class of managed cybersecurity services designed for the AI era. The terms of the deal were not disclosed.
Accenture plc (NYSE:ACN) is a leading global professional services company that specializes in information technology (IT) services and management consulting.
3. Palantir Technologies Inc. (NASDAQ:PLTR)
Average Price Target Upside Potential According to Analysts: 49.26%
Number of Hedge Fund Holders: 89
Palantir Technologies Inc. (NASDAQ:PLTR) ranks among AI stocks that are about to explode. On May 15, Reuters reported that institutional investors increased their exposure to semiconductor and technology companies during the first quarter of 2026.
According to a Reuters review of filings submitted to the US Securities and Exchange Commission by around 6,600 hedge funds, pension funds, college funds, and other investors, it appears that many are positioning themselves to benefit from the strong rally that continued into the second quarter.
Reuters noted that 143 investors started a position in Palantir Technologies Inc.. Among these investors was Mubadala Capital, the sovereign wealth fund of the UAE. According to its filing, Mubadala Capital acquired a new stake in the company worth about $9.9 million during the first quarter.
Earlier, on May 6, Citi increased its price target on Palantir Technologies Inc. from $210 to $225 while keeping its Buy rating on the stock. The firm pointed out that the company delivered a strong first-quarter report. Citi added that growing demand for AI is helping accelerate the company’s business in the United States. Citi also increased its estimates for the company following the earnings results.
Palantir Technologies Inc. is an American software company that specializes in big data analytics and AI platforms. The company serves key government and commercial enterprises.
2. SoundHound AI, Inc. (NASDAQ:SOUN)
Average Price Target Upside Potential According to Analysts: 60.52%
Number of Hedge Fund Holders: 22
SoundHound AI, Inc. (NASDAQ:SOUN) ranks among AI stocks that are about to explode. On May 8, Northland cut its price target on SoundHound AI, Inc. from $14 to $12 while maintaining an Outperform rating on the stock.
The research firm said it is maintaining its revenue estimates but reducing its adjusted EBITDA expectations after the company slightly beat its first-quarter revenue forecast but missed EBITDA estimates due to investments in technology and growth efforts.
SoundHound AI, Inc. reported Q1 revenue of $44.2 million, up 52% year-over-year. The company also announced an agreement to acquire LivePerson. According to SoundHound AI, Inc., the deal will combine its voice and agentic AI capabilities with LivePerson’s digital messaging services. The combined business is expected to create a $500 million revenue opportunity, strengthen the balance sheet, and accelerate the path to profitability.
This acquisition would significantly expand SoundHound AI, Inc.’s enterprise customer base in the conversational AI sector, giving the combined company relationships with 25 companies in the Fortune 100. The company also expects 2027 revenue range to reach at least $350 million to $400 million, including more than $100 million in potential growth contribution from LivePerson’s long-standing customers. The transaction is expected to close in the second half of 2026.
SoundHound AI, Inc. is a leader in conversational intelligence and voice AI solutions for creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants.
1. Vistra Corp. (NYSE:VST)
Average Price Target Upside Potential According to Analysts: 63.59%
Number of Hedge Fund Holders: 102
Vistra Corp. (NYSE:VST) ranks among AI stocks that are about to explode. Carillon Tower Advisers, an investment management company, stated the following regarding Vistra Corp. in its fourth quarter 2025 investor letter for the Carillon Eagle Mid Cap Growth Fund:
“Vistra Corp. is an integrated electricity and power generation company. Investors have been slightly disappointed in the lack of announced power purchase agreements (PPAs) across its generation fleet, with only one material deal disclosed to date. Investor sentiment and share performance have not been helped by a lack of disclosure surrounding this agreement, as well as by Vistra’s recent choppy results and an overall slight moderation in the AI-related enthusiasm that had helped lift the company’s valuation.”
In other news, on May 11, Raymond James reduced its price target on Vistra Corp. from $208 to $202 while keeping its Strong Buy rating on the stock.
Analyst J.R. Weston pointed out that the company operates a large thermal fleet, has a strong retail business, and has expanded its nuclear operations with the acquisition of Energy Harbor Corp. in 2024.
The research firm noted that this shift in recent years shows improving fundamentals and growing ability to monetize large-load demand through long-duration power purchase agreements. Raymond James pointed to previously reported nuclear agreements with Meta and Amazon Web Services in PJM and ERCOT markets.
During the first quarter of 2026, Vistra Corp. disclosed around 4.5 gigawatts of completed or in-process opportunities. The company also pointed to additional Comanche Peak and PJM gas uprate potential and noted that bridge-power solutions are becoming a larger part of customer discussions.
Raymond James said stronger hedge visibility into 2027, commercial optionality, and a proven share buyback strategy were key reasons for keeping its Strong Buy rating on the stock.
Vistra Corp. is a retail electricity and power generation company that serves customers, businesses, and communities. It operates a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities.
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