In a bold move that highlights just how transformative artificial intelligence is becoming, Amazon CEO Andy Jassy recently warned employees that the company’s growing reliance on AI will likely lead to a smaller corporate workforce in the coming years. In an internal memo, Jassy explained that generative AI is driving major efficiency gains across Amazon’s operations—from customer service to logistics—fundamentally reshaping how the tech giant functions.
This candid acknowledgment from one of the world’s most influential CEOs isn’t just a signal of internal change—it’s a powerful indicator of where the market is headed. As AI becomes embedded in the core of major corporations, investor interest in AI-driven innovation is surging. Companies that develop, deploy, or enable cutting-edge AI technologies are increasingly seen as the next wave of market leaders.
If a global powerhouse is already betting its future on AI, it raises a crucial question: which AI-focused companies are poised to benefit most from this technological revolution? From chipmakers to software innovators, the right investments today could lead to substantial gains tomorrow. Here are 10 AI stocks that will skyrocket as AI reshapes the global economy.
Our Methodology
To compile the list of AI stocks that will skyrocket, we reviewed AI ETFs to compile a preliminary list of stocks and then selected the ones with the highest upside potential based on Wall Street analysts’ average price targets. We have also mentioned the hedge fund sentiment around each stock, as of Q1 2025.
Note: All data was recorded on June 23, 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 AI Stocks That Will Skyrocket
10. Marvell Technology, Inc. (NASDAQ:MRVL)
Upside Potential: 30.01%
Number of Hedge Fund Holders: 73
Marvell Technology, Inc. (NASDAQ:MRVL) is one of 10 AI stocks that will skyrocket. Marvell Technology, Inc. (NASDAQ:MRVL) received a price target increase from Cantor Fitzgerald on June 18, with the firm raising its estimate to $75 from $60. Despite the upward revision, Cantor maintained a Neutral rating on the semiconductor stock. In a research note, Cantor acknowledged that Marvell’s expanding total addressable market aligns with ongoing momentum in the data center space. Analysts called the company’s recent commentary “an overall positive step forward” in understanding its long-term growth trajectory.
However, the note expressed disappointment over the limited updates on ramp progress with cloud giants Amazon and Microsoft. Cantor cited lingering investor concerns over a potential slowdown extending into mid-2026. The firm did note encouraging signs from Marvell’s engagement with a new hyperscale customer but emphasized that visibility into the financial impact remains limited. Without concrete figures, estimating earnings contributions through 2028 remains a challenge, analysts said.
Cantor also questioned Marvell Technology, Inc. (NASDAQ:MRVL)’s goal to reach 20% market share in the data center segment. Analysts suggested that growth in custom silicon is likely to remain concentrated among hyperscalers with large language model deployments, a scenario seen as favorable to Broadcom. The revised $75 price target is based on a valuation of approximately 20 times Cantor’s projected 2026 earnings per share estimate of $3.60, which the firm described as a more fitting multiple for Marvell’s outlook.
9. Nice Ltd (NASDAQ:NICE)
Upside Potential: 30.05%
Number of Hedge Fund Holders: 23
NICE Ltd. (NASDAQ:NICE) is one of 10 AI stocks that will skyrocket. DA Davidson raised its price target on NICE Ltd. (NASDAQ:NICE) to $195 from $185 while maintaining a Buy rating, following the company’s Interactions 2025 event and recent partnership updates. The firm highlighted NICE’s strengthened collaborations with Amazon Web Services and Snowflake, which aim to accelerate the use of artificial intelligence in customer experience (CX) applications.
The research note emphasized that these strategic alliances could significantly enhance NICE’s ability to deliver scalable, AI-powered solutions to enterprise clients. DA Davidson believes the partnerships with AWS and Snowflake position NICE favorably as more organizations look to modernize CX platforms with real-time data and machine learning tools. Following the event and new business developments, the firm raised its earnings estimates. It now forecasts fiscal year 2025 earnings per share of $12.40, up $0.06 from its prior view. The fiscal 2026 forecast was also increased by $0.56 to $13.27, reflecting expectations of growing contributions from recent enterprise deals and limited macroeconomic pressures.
DA Davidson noted that NICE Ltd. (NASDAQ:NICE) continues to show solid execution in expanding its AI product offerings and enterprise footprint. The raised price target and revised earnings outlook reflect greater confidence in the company’s growth trajectory and its ability to capitalize on rising demand for intelligent CX solutions.
8. PagerDuty, Inc. (NYSE:PD)
Upside Potential: 31.07%
Number of Hedge Fund Holders: 36
PagerDuty, Inc. (NYSE:PD) is one of 10 AI stocks that will skyrocket. Canaccord Genuity has lowered its price target on PagerDuty, Inc. (NYSE:PD) to $21 from $23, on June 2, while maintaining a Buy rating on the stock. The adjustment follows the release of PagerDuty’s first-quarter financial results, which slightly exceeded the company’s own guidance.
PagerDuty, Inc. (NYSE:PD) reported revenue of $119.8 million for the quarter, marking an 8% increase compared to the same period last year. The firm highlighted the company’s disciplined approach to cost management, which contributed to operating margins outperforming expectations. Despite the lower price target, Canaccord remains optimistic about PagerDuty’s future prospects. The research firm pointed to a potential upward inflection in growth beginning in 2026, suggesting that recent strategic initiatives and operational improvements could set the stage for stronger revenue expansion in the coming years.
PagerDuty, known for its digital operations management platform, helps organizations respond effectively to IT incidents and service disruptions. The company’s focus on improving efficiency and streamlining incident response has positioned it well in a competitive market. Canaccord’s outlook reflects a balanced view of PagerDuty’s near-term performance and long-term growth potential. Investors are encouraged by the company’s steady revenue growth and margin discipline, even as broader market uncertainties persist.
7. Salesforce, Inc. (NYSE:CRM)
Upside Potential: 33.69%
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) is one of 10 AI stocks that will skyrocket. Salesforce, Inc. (NYSE:CRM) has introduced Agentforce 3, the latest version of its digital labor platform designed to help businesses manage and scale AI agents more effectively. The upgrade marks a significant step forward in Salesforce’s efforts to lead enterprise automation by providing companies with greater control, transparency, and operational efficiency.
Agentforce 3 brings a suite of enhancements focused on real-time observability, streamlined integration, and faster time to value. The platform includes a newly introduced Command Center that allows businesses to monitor agent performance at scale, support for Model Context Protocol (MCP) to ensure seamless deployment across systems, and over 100 prebuilt industry-specific actions tailored for faster results. These improvements come amid strong momentum for Salesforce’s AI products. The company reports more than 8,000 customers have adopted Agentforce over the last six months, coinciding with a 233% increase in enterprise AI agent usage across industries.
The business impact is already being seen. Case studies from early users show measurable gains in customer service efficiency, task automation, and retention rates. With Agentforce 3, Salesforce, Inc. (NYSE:CRM) further strengthens its position as a core platform for digital operations. The product’s growing adoption reinforces CRM’s ability to drive subscription growth, cross-sell opportunities, and deeper customer lock-in. As businesses seek to modernize workflows and reduce operating costs, Salesforce is poised to benefit from long-term demand for scalable, enterprise-grade automation solutions.
6. MongoDB, Inc. (NASDAQ:MDB)
Upside Potential: 34.02%
Number of Hedge Fund Holders: 72
MongoDB, Inc. (NASDAQ:MDB) is one of 10 AI stocks that will skyrocket. Macquarie has raised its price target on MongoDB, Inc. (NASDAQ:MDB) to $230 from $215, while maintaining a Neutral rating on the stock on June 6. The move follows what the firm described as a “solid” fiscal first quarter, offering reassurance after previously disappointing guidance for fiscal year 2026 revenue and margins. In a research note to investors, Macquarie analysts said MongoDB’s Q1 performance helped ease concerns that emerged last quarter, when the company issued cautious full-year projections that fell short of expectations. The improved sentiment follows stronger-than-expected revenue and signs of operational stability during the quarter, though Macquarie emphasized that challenges remain.
Despite the Q1 rebound, the firm views the stock’s risk-reward profile as balanced, citing a mix of near-term execution risks and longer-term growth opportunities. The analysts acknowledged that while MongoDB remains a key player in modern data infrastructure, questions persist about the pace of enterprise adoption and potential competition in cloud-native database offerings. Macquarie also noted that while fundamentals have stabilized, it does not yet see a compelling reason to shift to a bullish stance given ongoing macro and margin pressures.
5. Elastic N.V. (NYSE:ESTC)
Upside Potential: 38.01%
Number of Hedge Fund Holders: 52
Elastic N.V. (NYSE:ESTC) is one of 10 AI stocks that will skyrocket. KeyBanc Capital Markets has initiated coverage of Elastic N.V. (NYSE:ESTC) with a Sector Weight rating and no assigned price target, citing both the platform’s flexibility and the competitive landscape it faces. In a note to investors, KeyBanc described Elastic as a “highly flexible” data and analytics platform capable of addressing multiple enterprise use cases, including search, observability, and security. The firm acknowledged the strength of Elastic’s core technology, particularly in enterprise search, where the company has built a loyal user base and consistent developer adoption.
However, the analysts expressed caution over Elastic’s positioning in the observability and SIEM (security information and event management) markets. While Elastic N.V. (NYSE:ESTC) has made strides in expanding its use-case footprint, KeyBanc noted that the platform lacks strong differentiation in those segments, which are already crowded with well-established incumbents and emerging players. Additionally, KeyBanc highlighted that Elastic faces go-to-market challenges that could limit its competitive edge. Successfully executing across multiple complex markets, each with unique buyer personas and sales motions, may present headwinds to growth despite the platform’s technical merits.
4. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Upside Potential: 38.03%
Number of Hedge Fund Holders: 19
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of 10 AI stocks that will skyrocket. Morgan Stanley has lowered its price target on Recursion Pharmaceuticals (NASDAQ:RXRX) to $5 from $8, while maintaining an Equal Weight rating on the stock. The revision comes in response to the company’s recent strategic updates, including a restructured pipeline, workforce reduction, and revised financial guidance. In a note to investors, the firm cited Recursion’s recent decision to prioritize core programs and streamline operations, including a 20% reduction in headcount, as key drivers for the model revision. The company also issued updated guidance on cash burn, signaling tighter capital discipline as it focuses on long-term sustainability.
Morgan Stanley noted that while the moves could support operational focus and extend cash runway, they also reflect the challenges of advancing a broad pipeline under current market conditions. The firm views the restructuring as a necessary, though measured, step to align resources with the most promising opportunities in the portfolio. Despite the reduced target, Morgan Stanley’s Equal Weight rating suggests a neutral stance, with the belief that both upside and downside risks are now more balanced given the new strategy and cost structure.
Recursion Pharmaceuticals, Inc. (RXRX) is recognized for its advanced use of computational methods and machine learning to accelerate drug discovery. The firm combines biology, chemistry, and automation with data-driven approaches to identify potential treatments faster and more efficiently than traditional methods.
3. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Upside Potential: 38.04%
Number of Hedge Fund Holders: 20
DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of 10 AI stocks that will skyrocket. Advanced Micro Devices Inc. (NASDAQ:AMD) has entered a strategic partnership with DigitalOcean Holdings, Inc. (NYSE:DOCN) to broaden the availability of cloud-based GPU services tailored for artificial intelligence and machine learning applications. This collaboration aims to provide developers and enterprises with greater access to high-performance computing resources needed to accelerate AI workloads. Under the partnership, DigitalOcean will integrate AMD’s latest GPU technology into its cloud infrastructure, enhancing the platform’s ability to support demanding AI tasks such as training large models, data processing, and inference. The move is expected to offer customers improved performance and cost-efficiency compared to traditional options.
This expansion addresses growing demand from startups, small businesses, and mid-sized companies seeking accessible AI computing without the complexity and expense of managing their own hardware. By combining DigitalOcean’s user-friendly cloud platform with AMD’s advanced GPU solutions, the partnership aims to empower a broader range of organizations to develop and deploy AI-driven applications. The collaboration also reflects AMD’s broader strategy to increase its footprint in the cloud computing market, competing with established GPU providers. For DigitalOcean, the partnership enhances its competitive positioning by adding cutting-edge hardware capabilities to its cloud services.
The AMD-DigitalOcean alliance signals a commitment to making AI infrastructure more accessible, supporting innovation across industries as AI adoption accelerates globally.
2. Atlassian Corporation (NASDAQ:TEAM)
Upside Potential: 42.68%
Number of Hedge Fund Holders: 82
Atlassian Corporation (NASDAQ:TEAM) is one of 10 AI stocks that will skyrocket. Mizuho has lowered its price target on Atlassian Corporation (NASDAQ:TEAM) to $325 from $355, while maintaining an Outperform rating following the company’s recent user conference. The adjustment reflects what the firm describes as a “meaningful recent contraction” in comparable valuation multiples, driven by broader market concerns and an increased likelihood of a recession.
In a research note to investors, Mizuho emphasized that while macroeconomic uncertainty has impacted near-term sentiment and sector valuations, it continues to view Atlassian’s long-term fundamentals positively. The firm said the company’s growth trajectory remains underappreciated and believes Atlassian is well-positioned to outperform peers over a multi-year horizon. Atlassian Corporation (NASDAQ:TEAM), known for its collaborative software tools including Jira, Confluence, and Trello, has seen consistent demand from both large enterprises and smaller development teams. Mizuho pointed to the company’s ongoing investments in cloud migration, product innovation, and AI-enhanced features as drivers of future revenue and customer expansion.
Despite the revised price target, the Outperform rating signals confidence in Atlassian’s ability to navigate macro challenges while continuing to grow its user base and improve profitability. Mizuho maintains that Atlassian’s combination of product breadth, customer loyalty, and long-term margin potential sets it apart from many competitors in the enterprise software space.
1. Alibaba Group Holdings Limited (NYSE:BABA)
Upside Potential: 45.30%
Number of Hedge Fund Holders: 125
Alibaba Group Holdings Limited (NYSE:BABA) is one of 10 AI stocks that will skyrocket. Alibaba Group Holdings Limited (NYSE:BABA) reported its strongest gross merchandise value (GMV) growth in three years during its annual 6.18 shopping festival, held from late May through mid-June. The performance has lifted market expectations for a rebound in the company’s core marketing revenue (CMR) for the June quarter, the first quarter of its fiscal 2026.
The 6.18 festival, one of China’s largest mid-year shopping events, serves as a key indicator of consumer sentiment and platform activity. According to Citigroup analyst Alicia Yap, the results were “encouraging” and suggest Alibaba’s e-commerce operations may be regaining momentum following several quarters of muted growth. Yap reaffirmed her Buy rating on Alibaba Group Holdings Limited (NYSE:BABA) and maintained a $169 price target, which implies nearly 50% upside from current trading levels. She noted that the strong GMV results could support a positive surprise in CMR performance, which remains a critical driver of Alibaba’s profitability.
While macroeconomic uncertainties and regulatory overhangs have weighed on Chinese tech stocks, the 6.18 results offer a potential turning point for investor sentiment. Analysts will be closely watching Alibaba’s earnings for further signs of a sustained recovery in its core commerce segment.
While we acknowledge the potential of BABA to grow, 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 BABA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Small Cap Tech Stocks With Biggest Upside Potential and 7 Most Popular AI Penny Stocks Under $5 To Avoid.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
