Goldman Sachs CEO David Solomon said that the recent sharp sell-off in software industry stocks was “a little bit too broad,” as he pushed back against growing market anxiety related to artificial intelligence.
“The narrative over the last week has been a little bit too broad,” Solomon said at a UBS financial services conference in Key Biscayne, Fla. “There’ll be winners and losers, and, you know, plenty of companies will pivot and do just fine,” he added.
He described the current macroeconomic setup as “quite good,” highlighting a convergence of aggressive US deregulation and a surge in artificial intelligence investment as factors driving a new era of growth.
Speaking about the software stock-selloff in particular, Solomon said that AI-related disruptions to software businesses are “something that we’re monitoring.”
Comments like these coming from executives aimed to downplay investor fears as share prices of some of the world’s biggest companies came under pressure.
“You’ve clearly seen that breakdown in terms of the monolithic AI trade,” said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions. “You’re going to have these tug-of-war dynamics in a lot of the bigger index weights, just by how the market’s rewarding perceived winners and losers in the AI race.”
Early 2026 has seen several AI product launches weighing on the market, particularly Anthropic’s launch of plug-ins for its Claude Cowork agent.
“You’re going to see a lot of volatility driven by these headline stories that are also going to be very single-name centric,” said Alex Morris, CEO and CIO of F/m Investments.
While some companies have come under pressure from competitive concerns, others have re-emerged as key beneficiaries of the AI spending cycle. Wall Street continues to adjust its views on AI stocks, particularly as price target revisions, rating changes, and industry developments reshape sentiment across key names tied to the AI trade.
On that note, here are the latest updates on AI stocks currently on Wall Street’s radar.
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).
11. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 36
Rivian has gained constructive analyst commentary from Benchmark recently, with analyst Mickey Legg pointing to solid liquidity, in-line deliveries, and funding visibility supporting execution. The firm reiterated a Buy rating on the stock with an $18.00 price target on February 11.
Benchmark anticipates Rivian to report fourth-quarter revenue of $1.27 billion, marginally above the consensus estimate of $1.26 billion. Meanwhile, it expects earnings per share of $(0.61) compared to consensus expectations of $(0.71).
Rivian delivered 42,247 vehicles in 2025, in-line with the firm’s guidance and model. Investors will be focused on the company’s guidance for adjusted EBITDA loss of $1.7-1.9 billion, capital expenditures of $1.6-1.7 billion, and Rivian’s commitment to achieving modest full-year gross profit.
“We believe liquidity remains solid with $7B cash and >$10B incremental capital, supported by VW JV funding and DOE loan access. Maintain Buy & $18 Price Target.”
Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services.
10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 62
AI-focused cloud computing company CoreWeave (NASDAQ:CRWV) received a fresh analyst update from Citizens, who reiterated its Market Outperform rating on the stock with a price target of $180.00.
The research firm characterized CRWV as a leading GPU-as-a-Service (GPUaaS) provider poised to benefit from the rising demand for AI infrastructure. This is underpinned by multi-year contracts and a revenue backlog exceeding $56 billion.
The firm believes CoreWeave is likely to continue capturing large-scale contracts as the GPUaaS total addressable market expands, fueled by accelerated adoption of generative AI and increased outsourcing by hyperscalers.
It added that potential pricing pressure, customer concentration issues, and leverage concerns are some of the several risks facing the company.
In other news, Leading securities law firm Bleichmar Fonti & Auld LLP said that a class action lawsuit has been filed against CoreWeave, Inc. (NASDAQ:CRWV) and certain senior executives, alleging securities fraud after significant stock drops resulting from the potential violations of the federal securities laws.
The cloud computing company has been working with multiple partners, including Core Scientific, with which a merger agreement was announced on July 7, 2025.
During this period, CRWV assured investors that it is well-positioned to benefit from strong demand and boasted the ability to deploy AI infrastructure at scale. However, the company overstated its capacity to meet this demand and also failed to disclose major data center construction delays.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
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