Lauren Taylor Wolfe, co-founder of activist investment firm Impactive Capital, recently told CNBC’s Squawk Box that the surge in enthusiasm around artificial intelligence is bearing all the signs of a bubble.
“We are absolutely in an AI bubble now. It is going to burst. I don’t know when, I don’t know the order of magnitude. A lot of people are going to lose money.”
Wolfe believes that most investors betting on the surge are underestimating the risks of heightened AI-related spending by major technology companies.
“There are trillions of dollars that are being earmarked to be spent relative to hundreds of billions of dollars of free cash flow generated by the Mag 7,” she said, referring to the group of large-cap tech stocks that dominate the S&P 500. “They’re going to have to borrow to invest in all this CapEx, and we have yet to see the returns on investment.”
With tech giants spending exorbitantly higher than their profit potentials, current valuations are becoming difficult to justify, she said.
“Show me the trillions of dollars of profits that are going to be generated in the next five years,” she said. “And you just can’t. The math doesn’t work.”
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 Q2 2025.
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10. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 20, BofA Securities analyst Dimple Gosai raised the price target on the stock to $26.00 (from $24.00) while maintaining an Underperform rating.
The raised price target follows Bloom’s new partnership with Brookfield, which the firm describes as a “blue chip counterparty” and strengthens Bloom’s position in the AI-driven power resiliency sector.
The partnership positions the company as Brookfield’s preferred onsite-power provider for grid-constrained data centers, reflecting an estimated 1.8GW at BofA’s forward pricing estimates.
“Bloom’s new Brookfield partnership adds a blue-chip counterparty and reinforces its position at the center of the AI-driven power-resiliency build-out. The up-to-$5B partnership (~1.8GW at our forward pricing) positions Bloom Energy (BE) as Brookfield’s preferred onsite-power provider for grid-constrained data centers, but it remains an early-stage memorandum—not contracted backlog. Brookfield’s prior data-center programs—$20B for 1GW in France through 2030 and $10B for 750MW in Sweden over 10–15 years—point to a long rollout horizon. We see the initial deployments as gradual, not a near-term earnings catalyst. Still, the stock’s 33% rally (+$6.6B in market cap) implies investors are already treating this as executable backlog, effectively valuing the potential Brookfield earnings stream at 33–66× EBITDA vs Bloom’s ~14× five-year average. A strategic win, yes—but the market is paying today for a decade of delivery.”
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
9. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 54
Dell Technologies Inc. (NYSE:DELL) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 22, Piper Sandler initiated the stock as “Overweight” and a $172 price target. The firm believes that Dell’s opportunities are “strong.”
According to analysts at Piper Sandler, Dell should be one of the “primary beneficiaries” of a robust enterprise data center refresh, which “looks particularly strong for 2026.”
It also pinpointed to AI infrastructure buildout and the forthcoming Windows 10 end-of-life as additional catalysts, stating that “~50% of units still need to be refreshed.” With shares “up ~3.5x since November 2022,” Dell is now viewed as an AI beneficiary, having 45% of its server business AI-related.
However, the company continues to face “a secular headwind in the shift towards cloud by enterprises” and probable market share losses in PCs.
“Positively, Dell should be one of the primary beneficiaries of upcoming enterprise datacenter refresh that looks particularly strong for 2026, AI infrastructure buildouts, and Win-10 end-of-life in which ~50% of units still need to be refreshed or remain vulnerable.”
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
8. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 67
Twilio Inc. (NYSE:TWLO) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 20, Mizuho maintained its Outperform rating on the stock with a $140 price target. The rating comes ahead of the company’s third-quarter earnings report, scheduled for October 30.
Twilio shares have fallen approximately 13% since its second-quarter results, underperforming the Nasdaq-100 index’s 6% gain during the same period. Nevertheless, the firm remains bullish on the stock, anticipating that the company will report solid revenue and operating income that beat expectations for the third quarter.
It also believes that Twilio will likely raise its 2025 guidance for both metrics. The firm also anticipates an upward revision to operating income guidance, highlighting how recent investments in voice AI and RCS technology do not reflect the start of a significant investment cycle.
It also believes that gross margin pressures won’t prevent the company from achieving over 20% compound annual growth rates in operating income and free cash flow through 2027.
Overall, Mizuho remains bullish on Twilio’s multiple growth drivers, highlighting how voice AI adoption and messaging/voice price increases should support growth into 2026.
Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company.
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 76
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 20, Barclays analyst Tom O’Malley downgraded the stock from Overweight to Equalweight with a price target of $80.00. The firm is stepping aside amid visibility concerns on 2025 DC targets and AI share shift toward Broadcom.
According to the firm, the application-specific integrated circuits story into 2026 “is less robust than initially expected.” The company’s optics growth should remain strong into next year, driven by its 800G cycle. However, there are concerns regarding long-term share dynamics with Broadcom (AVGO) gaining share at 1.6T.
“MRVL is one of the biggest battleground stocks in our coverage. On one hand, the company has a strong IP portfolio and has been at the epicenter of the interconnect evolution making it an obvious stock to own in an AI build-out. On the other hand, versus other AI names who are showing a clear path to continued upward fundamental revisions, we worry about MRVL’s ability to hit DC targets for next year (~$7B). Beyond ’26, we see increased AI engagements but the lion’s share of AI XPU moving to AVGO and see share moving away from the core Optical business mainly at 1.6T. We are stepping aside here and will look to re-engage post clarity on the ASIC roadmap.”
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
6. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 20, Wedbush raised its price target on the stock to $270.00 from $250.00 while maintaining an “Outperform” rating. The firm is bullish on the stock as AI integration deepens and fuels long-term growth acceleration.
According to the firm, Snowflake holds the potential to accelerate growth by refining its go-to-market strategy by integrating its recent engineering innovations and marketing efforts to scale its core capabilities across its platform.
The firm believes that the company remains “in the early innings of capitalizing on AI demand.” 50% of new customers use its platform for AI use cases, and 25% of organizations use Snowflake’s AI capabilities on a weekly basis.
“Snowflake remains in the early innings of capitalizing on AI demand with strong and innovative capabilities for its customer base to leverage which is leading to stronger deal flow for the company with 50% of new logos leveraging SNOW for AI use cases and 25% of organizations leveraging SNOW’s AI capabilities on a weekly basis. SNOW continues to put an emphasis on retrieval quality for AI within Cortex to let users do more with their data early in the data life cycle to bring together data into one unified view to optimize workflows, and optimize efficiencies. While the company faces significant competition for this multi-trillion-dollar market opportunity, we believe SNOW’s innovation engine remains a key differentiator across the industry with more organizations looking to simplify AI applications across operations to boost efficiencies and productivity through easy-to-use AI products with SNOW continuing to innovate within this key vertical which already stands out amongst competition.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 21, Goldman Sachs reiterated the stock as ‘Buy” and raised its price target on Apple to $279 per share from $266. The raised price target comes ahead of earnings on October 30.
Goldman Sachs expects the tech giant to exceed revenue and earnings estimates for the quarter. The anticipated revenue and earnings beat will likely be driven by strong iPhone performance with an estimated 10% year-over-year growth.
The firm forecasts Apple’s gross margins to reach 46.5%. This includes the impact of guided tariff costs amounting to $1.1 billion. Meanwhile, services revenue is likely to maintain 13% year-over-year growth, even though App Store spending trends are slowing down.
Looking ahead, the firm anticipates continued strength in demand for iPhones.
“Into F2026, we expect continued strength in iPhone demand, supported by both US carrier competition and continued form factor changes with the expected launch of the iPhone 18 foldable.”
Apple is a technology company known for its consumer electronics, software, and services.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 21, Mizuho reiterated the stock as “Outperform” and raised its price target to $435 per share from $430. The firm now believes Anthropic is Broadcom’s fourth customer.
“Reiterate AVGO at Outperform, raise PT to $435 (prior: $430), 42.7x our C26E P/E as we note AVGO now potentially with 5 Hyperscale ASIC customers (out of a possible ~7), as it continues to see its TAM/share expand with leadership in the AI ASIC market.”
Mizuho sees Anthropic on the track to ramp $10B of revenue with “AI Racks” in the second half of 2026. According to the analysts, this news is potentially negative for Marvell (MRVL), and Anthropic “adds additional tailwinds” for Broadcom.
“AVGO – Anthropic to potentially be ‘customer #4’ as OAI now ‘#5’ and incremental with 2GW in 2025E. We now believe Anthropic is AVGO’s fourth customer, ramping to $10B of revenue with ‘AI Racks’ in 2HF26E (potentially negative for MRVL/Trainium). The 10GW OAI partnership (Link) is incremental: AVGO’s fifth customer ramping 4QF26E as OAI is targeting ~2GW capacity buildout in 2026E, up ~2× y/y. We see OAI ramping 2GW/3GW/4GW in 2026/27/28E respectively across GPUs/ASICs. We believe other major CSPs ramping 2–4GW over the next few years, notably below headline GW amounts. AVGO also launched its third-gen CPO Tomahawk 6-Davisson with ~70% lower power needs and 1M flap-free hours (we believe could need >5M flap-free hours for reliability). AVGO also announced its new Thor Ultra 800G NIC with telemetry, load-balancing RoCE and open architecture, while also expanding its Jericho product line to support Scale Across. Raising ests/PT to $435 as Anthropic adds additional tailwinds.”
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 20, Bank of America reiterated Alphabet as “Buy” and raised its price target to $280 per share from $252. The price target raise comes ahead of Alphabet earnings later this month.
According to the firm’s checks, third-quarter advertising spending is ahead of expectations, driven by factors such as improving macroeconomic conditions, accelerating data use, and ad spend.
“Checks indicate 3Q ad spending ahead of expectations, supported by improving macro, increasing data use, & ad spend to offset organic search traffic declines.”
Regarding earnings, the firm has raised its revenue forecast above Street consensus. It now anticipates third-quarter revenue of $86.0 billion versus the Street’s $85.0 billion. However, its EPS estimate of $2.17 trails the consensus $2.29 due to anticipated legal charges of $3.9 billion.
The firm also expects solid search performance with steady paid click growth. This could alleviate AI disruption risk and also support multiple expansions. BofA also said that it anticipates growing momentum in Gemini usage and that recent Cloud deals may aid backlog growth.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 21, Mizuho reiterated its rating for the stock as “Outperform,” stating that it’s sticking with the tech giant.
“We see NVDA remaining the leader in the AI training and inference chips for Data Center applications (we estimate > 95% share today), which we believe is growing at ~60% CAGR to > $500B by 2028E.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $215 implies a 20.47% upside; however, the Street-high target of $389 implies an upside of 118.37%.
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 Trending AI Stocks on Wall Street’s Radar. On October 21, Bank of America reiterated the stock as “Buy” with a $900 price target. The firm said it’s sticking with the tech giant ahead of earnings later this month.
Bofa believes that Meta has the potential for upside driven by improving macroeconomic conditions and accelerating AI benefits. It anticipates Meta to report third-quarter revenue of $50.0 billion and earnings per share of $7.30, beating consensus estimates of $49.5 billion and $6.69, respectively.
It believes that market expectations might be even higher, potentially between $50.5 billion and $51.0 billion for the quarter.
For the fourth quarter of 2025, the firm anticipates revenue of $58.8 billion and earnings per share of $8.90, higher than Street estimates of $57.3 billion and $8.12. Looking ahead, it is forecast that Meta will guide fourth-quarter revenue between $55.5 billion and $59 billion.
Moreover, ongoing infrastructure investments may lead Meta to narrow its full-year 2025 expense guidance to $115-117 billion from the previous $114-118 billion range. It may also raise the lower end of its capital expenditure forecast by $2 billion to a new range of $68-72 billion.
“Meta is an investment in increasing social and mobile Internet usage, and also offers exposure to the increasing use of AI/ML technology and potential long-term Metaverse opportunity.”
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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