In this article, we will take a look at the overlooked AI stocks to buy now.
For the last couple of years, artificial intelligence has taken Wall Street by storm, driving innovation that’s transforming the way industries function. With investors piling stocks of the companies that dominate headlines, there might be those stocks that might be the market’s next breakout stories, but are currently under the radar.
Just as everyone used to be hyped about AI, the current hype seems to be about an “apparent” AI bubble. In an interview with Investopedia on October 1, Christopher Gannatti, Global Head of Research at financial services firm WisdomTree, said:
“The Mag 7’s share prices are a daily referendum on whether AI is considered hype or reality. They are priced as if AI is not just a growth driver, but the growth driver. It kind of started with the hyperscalers—Microsoft, Amazon, Alphabet—saying, ‘We have a certain amount of cash flow. We’re going to make investments.” Gannati further said, “AI companies are investing in one another, and using those investments to buy goods and services from each other. So, there’s a bit of circularity. None of these things is guaranteed. If the business environment changes, the music might need to stop—not necessarily forever, but for a while.”
On October 14, Jared Bernstein, a policy fellow at the Stanford Institute for Economic Policy Research and former chairman of President Biden’s Council of Economic Advisers, told CNBC that the current rise in AI stocks shows signs of a market bubble. Referring to one of his recent articles, Bernstein said that it’s challenging to predict bubbles precisely, but the typical traits include rapidly rising asset prices and extreme valuations. Moreover, AI investments now represent a larger share of the US economy, even higher than the proportion at the peak of the dot-com era. While there are many comparable differences in the fundamentals, such as the much stronger profitability and financial strength of AI companies compared to those in the dot-com era, he says there are enough historical parallels to raise concerns about the ongoing trends.
So far, technology companies have consistently demonstrated healthy gains from AI, keeping Wall Street satisfied. This should help the AI sector counter concerns about a potential bubble, as the companies jumping on the AI bandwagon are backed by the healthier balance sheets, deep pockets, and big names. For now, it’s good to see a significant shift toward AI.
Our methodology:
We have compiled a list of the 10 overlooked AI stocks to buy through a leading AI-stock ETF, Global X Artificial Intelligence & Technology ETF. While using its holdings as a base, we have filtered for stocks with a market capitalization of over $2 billion and an upside potential of at least 10%. Out of these stocks, we selected those that have the lowest number of hedge fund holdings, as data extracted from Insider Monkey’s Q2 2025 database, and ranked them in ascending order. The upside potential is calculated using one-year price targets by Yahoo Finance.
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. WeRide Inc. (NASDAQ:WRD)
Number of Hedge Fund holdings: 14
Upside Potential as of October 21, 2025: 58.66%
On September 29, 2025, Citi began coverage on WeRide Inc. (NASDAQ:WRD) with a ‘Buy’ rating and a price target of $15.50, suggesting a potential upside of nearly 58% from the current levels. This optimism is centered on the robotaxi sector, which the firm believes has reached an “inflection point.” Citi believes the penetration will rise from 0.1% in 2025 to 9.0% in 2030, and subsequently to 30% in 2035.
In addition to the growth in the Robotaxi industry, the firm highlighted the company’s overseas business expansion and high-computing-power domain control platform, demonstrating a strong cost structure and strategic collaborations with leading platform enterprises.
Separately, WeRide Inc. (NASDAQ:WRD) was invited to present at the 2025 World Intelligent Connected Vehicles Conference in Beijing from October 15 to 18. At the event, the company showcased four autonomous vehicle models, namely Robotaxi GXR, Robobus, sanitation truck S6, and sweeper S1, highlighting their versatile applications in mobility and urban services. While the other models are for short-distance transport and unmanned cleaning, the GXR specializes in 24/7 driverless operation, allowing WeRide Inc. (NASDAQ:WRD) to share its latest innovations with the world.
WeRide Inc. (NASDAQ:WRD) is a Chinese autonomous driving company that engages in cutting-edge technology for self-driving vehicles. Incorporated in 2017, the company has tested in over 30 cities across ten countries.
9. Pony AI Inc. (NASDAQ:PONY)
Number of Hedge Fund holdings: 19
Upside Potential as of October 21, 2025: 25.88%
On October 17, 2025, Pony AI Inc. (NASDAQ:PONY) announced its collaboration with Stellantis, a Dutch electric vehicle manufacturer, to develop L4 autonomous vehicles for the European market. While integrating Pony.ai’s autonomous driving technology through its European division headquartered in Luxembourg, the partnership will feature Stellantis’ autonomous driving-ready platform.
Initially, both entities plan to start deploying test vehicles powered by the Peugeot e-Traveller model only in Luxembourg, followed by a high-scale launch across European cities starting in 2026. The main focus of this partnership is on light commercial vehicles (LCVs), a segment led by Stellantis through its Pro One commercial vehicle business unit.
What’s even more interesting is that Stellantis’ autonomous driving-ready platform, exhibiting Level 4 capabilities, demonstrates the highest safety and reliability standards. When combined with Pony AI Inc. (NASDAQ:PONY)’s proven autonomous technology, it will lead to a new generation of smart and sustainable mobility solutions.
Pony AI Inc. (NASDAQ:PONY) is a Chinese autonomous mobility business providing robotaxi services, vehicle integration and engineering, robotruck services, and road-testing services. Founded in 2016, the company is committed to creating safe and efficient autonomous driving technology.
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