On Tuesday, October 21, Lauren Taylor Wolfe, co-founder of the activist investment firm Impactive Capital, appeared on CNBC’s “Squawk on the Street” to talk about the excitement around artificial intelligence (AI). She said this surge in enthusiasm around AI has all the signs of a bubble that is eventually going to burst.
Taylor Wolfe said:
“I don’t know when, I don’t know the order of magnitude. A lot of people are going to lose money.”
She pointed out that a lot of money is being spent by major technology companies, but investors might be underestimating the risks that come with this surge in AI-related spending. Taylor Wolfe said that trillions of dollars are being set aside for AI investments and this compares to hundreds of billions of dollars in free cash flow generated by the “Mag 7,” which are the large technology stocks that dominate the S&P 500. She noted that these companies are “going to have to borrow to invest in all this CapEx, and we have yet to see the returns on investment.”
Taylor Wolfe said:
“Show me the trillions of dollars of profits that are going to be generated in the next five years. And you just can’t. The math doesn’t work.”
She believes the current market environment can be compared to the late 1990s dotcom bubble, when investors invested in any company associated with the internet without taking into account their value or business model.
On the other hand, some experts do not completely agree with her. Joseph Briggs, an economist at Goldman Sachs, said in a note on October 16 that the surge in investments in AI infrastructure in the US is sustainable. He believes that the overall macroeconomic case for AI investment is still strong. However, Briggs also warned that it is not very clear which companies will be the ultimate winners since technology is changing fast.
With this background in mind, let’s take a look at the 10 best American AI stocks to buy according to analysts.
Our Methodology
To compile our list of the 10 best American AI stocks to buy according to analysts, 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 the best American stocks in the AI market. Next, we focused on the top 10 stocks that analysts believe have the most potential for growth. Finally, we ranked the 10 best American AI stocks to buy based on their average price target upside potential according to analysts as of October 22, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q2 2025 database of 983 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best American AI Stocks to Buy According to Analysts
10. AppLovin Corporation (NASDAQ:APP)
Average Price Target Upside Potential According to Analysts: 22.43%
Number of Hedge Fund Holders: 109
AppLovin Corporation (NASDAQ:APP) is one of the best American stocks to buy in the AI market according to analysts. On October 7, Oppenheimer reaffirmed its Outperform rating on AppLovin Corporation (NASDAQ:APP) with a price target of $740.
This decision comes after reports of the Securities and Exchange Commission (SEC) probing AppLovin Corporation (NASDAQ:APP) over its data-collection practices.
The SEC is investigating allegations that AppLovin Corporation (NASDAQ:APP) violated service agreements on pushing targeted ads to consumers, according to an October 6 report by Bloomberg that cites people familiar with the matter.
While acknowledging that AppLovin Corporation (NASDAQ:APP) has not been accused of wrongdoing, the report said that the SEC is responding to a whistleblower complaint filed this year and short-seller reports.
Oppenheimer also pointed out that a review of SEC Freedom of Information Act (FOIA) logs showed four more open requests on AppLovin Corporation (NASDAQ:APP) made by Bloomberg.
The research firm noted that this news could cause increased near-term volatility for AppLovin Corporation (NASDAQ:APP). However, Oppenheimer reiterated its long-term bullish thesis while stating that the firm’s outlook for the company is still intact.
AppLovin Corporation (NASDAQ:APP) is an American technology company that offers end-to-end software and AI solutions for businesses of all sizes to reach, monetize, and grow their audiences.
9. Astera Labs, Inc. (NASDAQ:ALAB)
Average Price Target Upside Potential According to Analysts: 23.91%
Number of Hedge Fund Holders: 56
Astera Labs, Inc. (NASDAQ:ALAB) is one of the best American stocks to buy in the AI market according to analysts. On October 17, Stifel increased its price target on Astera Labs, Inc. (NASDAQ:ALAB) from $174 to $185 while keeping a Buy rating.
Stifel expects Astera Labs, Inc. (NASDAQ:ALAB) to give a higher outlook for the December quarter and set another record in quarterly revenues.
The research firm believes that Astera Labs, Inc.’s (NASDAQ:ALAB) product mix will shift significantly for the calendar year 2025. The Aries PCIe retimers, which made up more than 90% of revenue in 2024, will account for about 72% to 77% of the company’s total revenue in 2025. Stifel expects new product lines such as the Scorpio Smart Switch Fabric and the Taurus Ethernet smart cable modules to make up more than 10% of the company’s revenue.
The firm expects Leo CXL smart controllers to account for less than 5% of Astera Labs, Inc.’s (NASDAQ:ALAB) revenue in 2025, which is higher than less than 1% in 2024. This shows the company’s expanding product portfolio.
Astera Labs, Inc. (NASDAQ: ALAB) is a semiconductor technology company that provides rack-scale AI infrastructure through purpose-built connectivity solutions.
8. ServiceNow, Inc. (NYSE:NOW)
Average Price Target Upside Potential According to Analysts: 24.78%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the best American stocks to buy in the AI market according to analysts. On October 14, UBS reduced its price target on ServiceNow, Inc. (NYSE:NOW) from $1,100 to $1,075 while keeping a Buy rating ahead of the company’s Q3 2025 results.
This decision came after UBS performed checks with partners and customers of ServiceNow, Inc. (NYSE:NOW). The research firm found the company’s core business to be “fine/solid.”
However, UBS noted that the feedback regarding AI adoption was a little disappointing, which matches with the firm’s checks on other Software-as-a-Service (SaaS) companies. The research firm pointed out that the sentiment in the SaaS and applications market is cautious and might be the worst it has been in years. Despite this, UBS reiterated its Buy rating on ServiceNow, Inc. (NYSE:NOW).
Previously, on October 9, Oppenheimer had also reaffirmed its Outperform rating on ServiceNow, Inc. (NYSE:NOW) with a $1,150 price target. This decision came after the research firm had a conversation with a major partner of ServiceNow, Inc. (NYSE:NOW).
Oppenheimer noted that the partner reported strong business activity and a good pipeline in Q3 2025, which indicates that ServiceNow, Inc. (NYSE:NOW) is seeing positive operational performance.
ServiceNow, Inc. (NYSE:NOW) expects to release its Q3 2025 earnings report on October 29.
ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise operations.
7. Salesforce, Inc. (NYSE:CRM)
Average Price Target Upside Potential According to Analysts: 28.58%
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the best American stocks to buy in the AI market according to analysts. On October 13, Reuters reported that Salesforce, Inc. (NYSE:CRM) has announced it will invest $15 billion in San Francisco over the next five years. This investment is aimed at boosting AI adoption.
According to the report by Reuters, Salesforce, Inc. (NYSE:CRM) is looking to strengthen its competitive edge against major tech companies.
Salesforce, Inc. (NYSE:CRM) is already integrating AI into its products, including Slack, the company’s workplace messaging platform. The company is competing with other tech firms to attract businesses that want to adopt AI technology.
This investment would support a new AI incubator hub on Salesforce, Inc.’s (NYSE:CRM) San Francisco campus. It will help companies adopt AI agents to perform tasks on behalf of users.
Previously, on October 8, Salesforce, Inc. (NYSE:CRM) had also announced plans to spend $1 billion in Mexico over the next five years.
Salesforce, Inc. (NYSE:CRM) 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. CoreWeave, Inc. (NASDAQ:CRWV)
Average Price Target Upside Potential According to Analysts: 29.19%
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the best American stocks to buy in the AI market according to analysts. On October 16, CoreWeave, Inc. (NASDAQ:CRWV) unveiled its new fully managed AI Object Storage service, which is designed specifically for AI workloads.
This AI Object Storage is powered by CoreWeave, Inc.’s (NASDAQ:CRWV) Local Object Transport Accelerator (LOTA) technology and makes a single dataset instantly accessible anywhere in the world for no extra charges.
Unlike traditional object storage systems that work only within one part of an IT infrastructure, CoreWeave, Inc.’s (NASDAQ:CRWV) AI Object Storage performance scales as AI workloads grow. It also keeps a superior throughput across distributed GPU nodes in any region, on any cloud, or on-premises.
The system includes private interconnects, direct cloud peering, and 400 GBps-capable ports to protect the data integrity of trillions of objects for workloads around the world. According to the report by CoreWeave, Inc. (NASDAQ:CRWV), this multi-cloud networking system helps developers access the same high-throughput GPU performance without having to face challenges like data sprawl or resource-heavy data replication.
CoreWeave, Inc. (NASDAQ:CRWV) is an American AI cloud-computing company that offers cloud solutions for scaling, supporting, and accelerating generative AI.
5. Vistra Corp. (NYSE:VST)
Average Price Target Upside Potential According to Analysts: 29.88%
Number of Hedge Fund Holders: 111
Vistra Corp. (NYSE:VST) is one of the best American stocks to buy in the AI market according to analysts. On October 22, Vistra Corp. (NYSE:VST) reported that it has acquired 7 modern natural gas generation facilities from Lotus Infrastructure Partners, which have a total capacity of about 2,600 megawatts.
This transaction was completed after Vistra Corp. (NYSE:VST) got all the necessary regulatory approvals.
This acquisition adds highly efficient assets and expands Vistra Corp.’s (NYSE:VST) power generation portfolio in several key competitive markets including PJM, New England, New York, and California.
With this acquisition of modern facilities, Vistra Corp. (NYSE:VST) expects to provide more reliable, affordable, and flexible power to its customers as the demand for electricity grows, especially from AI data centers.
Vistra Corp. (NYSE:VST) is a leading retail electricity and power generation company that operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities.
4. Adobe Inc. (NASDAQ:ADBE)
Average Price Target Upside Potential According to Analysts: 29.91%
Number of Hedge Fund Holders: 104
Adobe Inc. (NASDAQ:ADBE) is one of the best American stocks to buy in the AI market according to analysts. On October 20, Adobe Inc. (NASDAQ:ADBE) introduced its new Adobe AI Foundry. This service will help companies create custom generative AI models using their own intellectual property.
With AI Foundry, Adobe Inc. (NASDAQ:ADBE) aims to give enterprises more control over content creation while also speeding up the creation of on-brand media across image, video, audio, vector, and 3D formats.
Adobe Inc. (NASDAQ:ADBE) highlighted that the models are built on top of Adobe Firefly, which is the company’s suite of generative AI models. This ensures that the outputs are “pixel-perfect, brand-protected and ready for external use.”
AI Foundry will help companies work directly with Adobe Inc. (NASDAQ:ADBE) to design AI models that are unique to their brand. This new service is expected to help the company grow its revenue and support evolution in the company’s AI monetization strategy.
Adobe Inc. (NASDAQ:ADBE) is a global leader in digital media and digital marketing solutions. It provides creator tools and services to individuals, teams, and enterprises to create, publish, and promote content.
3. Oracle Corporation (NYSE:ORCL)
Average Price Target Upside Potential According to Analysts: 33.50%
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the best American stocks to buy in the AI market according to analysts. On October 17, BMO Capital reaffirmed its Outperform rating on Oracle Corporation (NYSE:ORCL) with a price target of $355.
BMO Capital highlighted that Oracle Corporation (NYSE:ORCL) shared its fiscal year 2030 revenue and EPS targets. The company now expects to achieve a total revenue of $225 billion and EPS of $21 for fiscal year 2030. BMO Capital noted that the company’s forecast exceeded investor expectations.
The firm also pointed out that Oracle Corporation (NYSE:ORCL) is one of the few companies that provides long-term guidance to investors.
BMO Capital remains positive about Oracle Corporation’s (NYSE:ORCL) future. The firm believes that the company is positioned strongly to leverage its mix of applications, data platforms, and cloud offerings.
Oracle Corporation (NYSE:ORCL) is an American multinational computer technology company specializing in database software, cloud infrastructure, and enterprise software solutions. The company offers one of the industry’s broadest and deepest suites of AI-powered cloud applications.
2. Okta, Inc. (NASDAQ:OKTA)
Average Price Target Upside Potential According to Analysts: 37.93%
Number of Hedge Fund Holders: 57
Okta, Inc. (NASDAQ:OKTA) is one of the best American stocks to buy in the AI market according to analysts. On October 6, Stifel reaffirmed its Buy rating on Okta, Inc (NASDAQ:OKTA) with a $130 price target.
This decision came after a virtual fireside chat which featured Okta, Inc.’s (NASDAQ: OKTA) President of Customer Identity Cloud, Shiv Ramji, and Senior Vice President of Design & Research, Kristen Swanson. They discussed the company’s strategic plans following the Oktane user conference.
The discussion focused on Okta, Inc.’s (NASDAQ:OKTA) Identity Security Fabric strategy and explored opportunities across important areas like Identity Governance Administration (IGA), Privileged Access Management (PAM), and Customer Identity and Access Management (CIAM).
The executives also discussed the company’s new portfolio designed to secure AI agents. This is an area where Okta, Inc. (NASDAQ:OKTA) is developing solutions across detection, provisioning, authorization, governance, and threat response.
Stifel highlighted that Okta, Inc. (NASDAQ:OKTA) showed strong innovation across its product portfolio during the chat. The firm especially noted the company’s early efforts to create a comprehensive security system for AI agents.
Okta, Inc. (NASDAQ:OKTA) is an American identity and access management company that provides security solutions for businesses and developers.
1. Strategy Inc (NASDAQ:MSTR)
Average Price Target Upside Potential According to Analysts: 95.86%
Number of Hedge Fund Holders: 45
Strategy Inc (NASDAQ:MSTR) is one of the best American stocks to buy in the AI market according to analysts. On October 21, Citi initiated coverage of Strategy Inc (NASDAQ:MSTR), giving the stock a Buy rating and setting the price target at $485.
Citi initiated coverage of Strategy Inc (NASDAQ:MSTR) “at a Buy/High Risk.” The price target is based on the firm’s “forward 12-month rolling base-case Bitcoin forecast of $181k (63% upside from current levels)”. Citi believes that Strategy Inc’s (NASDAQ:MSTR) “net asset value (NAV) premium can range 25%-25%.”
The firm noted that while Strategy Inc (NASDAQ:MSTR) can offer strong returns on the upside, it can also lose a lot of value on the downside. This is especially because Strategy Inc (NASDAQ:MSTR) is “a Digital Asset Treasury (DAT) company making its stock a leveraged and more volatile play on Bitcoin.”
Citi pointed out that in 2020, Strategy Inc (NASDAQ:MSTR) became the first public company to “adopt Bitcoin as its primary treasury reserve asset.” The company now holds approximately 3% of all Bitcoin in circulation and plans to continue buying more Bitcoin by “issuing convertible debt, preferred equity, and MSTR stock.”
Strategy Inc (NASDAQ:MSTR) is an American company that has adopted Bitcoin as its primary treasury reserve asset. The company also provides advanced AI-powered enterprise analytics software.
While we acknowledge the potential of MSTR 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 MSTR and that has a 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 11 Best American Semiconductor Stocks to Invest In and 12 Best Fintech Stocks to Buy According to Analysts.
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.
