10 Buzzing AI Stocks Analysts are Watching

According to Deutsche Bank, 2026 is going to be the hardest year for artificial intelligence. Analysts Adrian Cox and Stefan Abrudan said the technology will survive, but warned that the honeymoon period is over.

They expect AI to be hit by three themes in particular this year: disillusionment, dislocation, and distrust, particularly as concerns accelerate over OpenAI’s high cash burn.

This matters as AI investment and optimism are buoying the global economy, accounting for most of economic and earnings growth in the US last year.

While AI remains transformative, analysts believe its real-world impact has been limited so far. Benefits have been most visible to Silicon Valley and to savvy early adopters, rather than average business leaders who focus on revenues and operational improvements.

The bank also highlighted major bottlenecks across the AI supply chain, including shortages of computing power, memory, energy, and skilled talent.

AI depends on the most complex supply chain in history and any one of hundreds of thousands of components can derail the process.

-Cox and Abrudan wrote.

Memory, they believe, is by far the most critical pressure point as workloads transition from training models to using AI tools. Nevertheless, demand remains strong, with major hyperscalers continuing to invest heavily and governments pushing towards sovereign AI.

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 Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

10. ServiceTitan Inc. (NASDAQ:TTAN)

Number of Hedge Fund Holders: 48

ServiceTitan Inc. (NASDAQ:TTAN) is one of the 10 Buzzing AI Stocks Analysts are Watching. On January 20, Morgan Stanley analyst Josh Baer upgraded the stock from Equalweight to Overweight with a price target of $131.00 (up from $125.00). The firm sees ServiceTitan as an underpriced compounder and a leading vertical software asset, very well positioned for AI.

Morgan Stanley’s upgrade comes nearly one year after it initiated coverage of the stock at “Equal-weight,” believing it was a great company and fairly priced. There were some concerns earlier, particularly regarding high investor expectations and valuation, success in Commerical segment, and GTM profitability.

The firm said that it is now constructive across all these areas, which makes it both a great company and a great stock. Morgan Stanley also believes that TTAN is very well-positioned for artificial intelligence.

We see ServiceTitan as an underpriced compounder – a leading vertical software asset very well positioned for AI.

The bank said that the combination of steady growth and margin expansion can drive the stock to its $131 price target. It noted that shares see an attractive upside and a 5:1 bull/bear skew on a one-year horizon, while also viewing the company as a core portfolio holding over the longer term.

It further added that ServiceTitan looks attractive on its own and also when compared to peers in the Vertical software space.

Further, ServiceTitan screens well on an absolute and relative basis to our coverage under our framework for identifying attractive Vertical end-markets and attractive Vertical Software companies.

ServiceTitan Inc. (NASDAQ:TTAN) provides an end-to-end cloud-based software platform in the US and Canada. Its platform connects and manages a range of business workflows.