10 Trending AI Stocks on Wall Street

6. Workday, Inc. (NASDAQ:WDAY)

Number of Hedge Fund Holders: 85

Workday, Inc. (NASDAQ:WDAY) is one of the 10 Trending AI Stocks on Wall Street. On July 10, Piper Sandler analyst Brent Bracelin downgraded the stock from “Neutral” to Underweight with a price target of $235.00. The rating downgrade follows major changes in CIO spending priorities driven by artificial intelligence.

“Our latest CIO survey reinforced a bullish spending backdrop for AI infrastructure while elevating risks to the broader application category,” analysts wrote.

Concerns regarding declining application software spending and potential pricing pressures were noted as factors particularly behind the downgrade for Workday.

“Per employee pricing risk coupled with eroding appetite to invest materially in applications could further pressure growth at WDAY.”

The firm believes that Workday may be a “potential AI casualty on headcount drag,” with 52% of CIOs expecting AI to reduce staff, up from 39%. Since the company’s software helps enterprises manage workforces, a “headcount drag” related to AI may prove to be negative.

Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.