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.
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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.
9. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 63
Delivering its “best quarter of 2025,” an AI stock on Wall Street’s radar post earnings has been Cloudflare. On February 11, KeyBanc analyst Jackson Ader reiterated an Overweight rating and $300.00 price target.
According to the firm, Cloudflare exceeded the firm’s estimates by over $24 million, a 4.2% beat against expectations. It was another quarter of acceleration, noted the firm, demonstrating continued acceleration in its growth momentum.
The company’s guidance for 2026 reflects almost 29% growth at the midpoint, with the firm suggesting that acceleration to 30% growth in 2026 is “plenty achievable.”
KeyBanc further noted that Cloudflare is expected to continue its acceleration into 2026, with its revenue momentum keeping it Overweight on the stock.
“On a full-year basis, NET is set to continue to accelerate in 2026 to over 30% with net-new ACV growing nearly 50% in 4Q25. It was the highest growth since 2021 and was aided by the largest ACV deal in history. Momentum in revenue keeps us Overweight on the stock.”
Cloudflare, Inc. (NYSE:NET) is a cloud services provider that powers AI workloads through its Workers AI platform.
8. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 66
Crowdstrike is trading at an attractive valuation, according to one Wall Street firm. On February 13, HSBC analyst Stephen Bersey upgraded CrowdStrike Holdings (NASDAQ: CRWD) from Hold to Buy with a price target of $446.00
“We upgrade CrowdStrike to Buy on attractive valuation and AI growth, alongside non-GAAP EPS CAGR of 38.3% over FY26-29e.”
HSBC likes Crowdstrike’s leadership position in a mission-critical, high growth area of cybersecurity. The firm also appreciates its cloud-native architecture and scale due to its structural advantage in AI/ML driven detection given its continuous ingestion of threat signals across its entire customer base.
The firm also pointed to structural advantages over competitors, noting how the likes of Palo Alto face greater friction scaling endpoint data aggregation. Looking ahead, the firm projects robust financial performance, estimating a non-GAAP EPS CAGR of 38.3% over FY26-29 supported by strong revenue CAGR of 27.5% and non-GAAP operating margin expansion of 775bp.
“CrowdStrike’s CY26 non-GAAP operating margin of 21.6% is below the 40%+ margins for other large, well-established software companies, suggesting significant room for further improvement.”
Rising penetration of cloud-based software and the AI revolution will further benefit the company, noted the firm.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 76
Marvell Technology drew fresh analyst support from Stifel this week. On February 11, analyst Tore Svanberg reiterated a Buy rating on the stock with a $114.00 price target. The firm has updated its model post XConn acquisition, noting long-term UALink upside despite limited near-term EPS impact.
The data infrastructure semiconductor solutions leader announced on Tuesday that it has completed its previously announced acquisition of XConn Technologies, a provider of advanced PCIe and CXL switching silicon. The deal aims to strengthen Marvell’s UALink capabilities in the long term.
The firm has updated its model following this acquisition, incorporating its impacts. It anticipates initial revenue contributions to begin in Marvell’s fiscal third quarter of 2027, accelerating to a $50 million annualized run rate by the fourth quarter. Stifel has also increased its FY28 revenue estimate by $100 million to reflect the anticipated XConn contribution.
However, Marvell’s financials are going to be impacted in several ways. This includes an adjustment to FY27 non-GAAP operating expenses by an estimated $25 million annually and a decrease in Other Income by approximately $12 million annually because of reduced interest income from the $325 million cash outlay.
“Starting in the Apr Q, we have increased our projected diluted weighted-average shares outstanding by approx. 2.7mn shares coinciding with the equity issued to complete the acquisition. Net/net, we are adjusting our FY27E NG EPS estimate from $3.41 to $3.37, though our FY28E NG EPS estimate is being maintained at $4.90. FY29E: We are adjusting our FY29E revenue estimate from $17.58bn to $17.73bn, and leaving our NG EPS estimate unchanged at $6.68. That said, should the integration of XConn prove successful (contemplating potential tailwinds such as cross-selling), we believe there could be NG EPS upside.”
Marvell Technology, Inc. (NASDAQ:MRVL) develops and manufactures semiconductors, with a heavy focus on data centers.
6. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
Freedom Capital Markets analyst Almas Almaganbetov double upgraded Palantir Technologies Inc to Buy on February 13, setting the price target at $170. Firm analysts see durable, structural AI demand for the stock, coupled with sustained hypergrowth driven by AIP.
Highlighting Q4 2025 results, the firm noted how PLTR materially exceeded management’s guidance and their estimates, backed by accelerating growth in the U.S. commercial and U.S. government segment.
The main catalyst in the US market, the firm noted, was PLTR’s Artificial Intelligence Platform (AIP). AIP has been accelerating sales momentum and converting pilots into large-scale contracts. Meanwhile, international performance continues to lag owing to structural adoption and procurement barriers.
The company has also demonstrated improved operating execution with expanded gross and operating profitability that exceeded market expectations. Meanwhile, its upbeat outlook for Q1 2026 and full-year 2026 that exceeded consensus estimates is a reflection of assurance in durable and structural demand for AI infrastructure.
Increasing its 2026-27 revenue forecasts, the firm noted that it does not see new AI agents as a threat to the company’s long-term business model.
“We maintain our $170 price target for PLTR and upgrade our rating from “Sell” to “Buy,” as the recent sharp pullback in the share price appears unjustified given continued hypergrowth and the underlying strength of the AIP platform.”
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
5. Palo Alto Networks Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 85
Attention is turning to Palo Alto Networks’ upcoming fiscal second quarter 2026 earnings report, scheduled on Tuesday, February 17, 2026. On February 11, DA Davidson analyst Rudy Kessinger lowered the price target on the stock to $210 from $240.00, while maintaining a Buy rating.
Despite the PT cut, the firm anticipates strong upside on NGS ARR and RPOs due to robust channel feedback. It believes that the company’s fiscal year 2026 guidance would likely be “inched higher” organically after being “just reiterated last quarter.”
Additionally, with the recent Chronosphere acquisition closing before quarter end, and the potential closing of the CYBR acquisition before the earnings report, the revised guidance is sure to demand several adjustments to assess the organic revision.
The firm asserted that both deals will result in “higher growth on an as-combined, pro forma basis.”
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
4. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Intensifying DRAM shortages and sharp DDR5 pricing momentum have pushed memory stock Micron back into Wall Street’s spotlight, reshaping the outlook for the semiconductor memory market. On February 11, Morgan Stanley analyst Joseph Moore raised the price target on Micron Technology to $450.00 (from $350.00) while maintaining an “Overweight” rating.
“As much as happened in the last 12 months in DRAM, we remain excited for what’s ahead,” analyst Joseph Moore wrote in a note to clients. “With another round of significant price increases coming in Q1 and still indications that supply growth in 2026 will do little to alleviate the intense shortage we expect further pricing increases through this year.”
According to the firm, DDR5 spot pricing has already increased 30% year-to-date and currently sits 130% above January contract prices. Mainstream DRAM pricing may potentially double again while still remaining more than 10% below current spot prices. These continue to trend upward.
“Further, we have confidence that mainstream prices may approach that high teens ASP per GB level, as we are seeing buyers who were not early to lock in pricing paying close to that much already.”
The continued pricing momentum reflects how memory makers may remain key beneficiaries of the AI infrastructure cycle.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Benchmark has framed 2026 as an investment year for Tesla, believing in the EV maker’s long-term value tied to its valuation into a physical AI and platform-based company. On February 11, analyst Mickey Legg reiterated a Buy rating on the stock with a $475.00 price target.
The firm noted that Tesla has entered 2026 amid a strategic shift, prioritizing reinvestment and platform development over near-term earnings optimization. Even though the company has been facing this transition, Q4 results have been a reflection of margins resilience, energy growth, and cash generation.
That said, Benchmark believes that its outlook for 2026 reflects “an investment year as spending accelerates across autonomy, AI, robotics, and energy infrastructure.” The firm maintains its valuation framework against this backdrop, contending that any near-term upside is likely to be driven by technical and sentiment-driven factors.
Meanwhile, longer-term value creation for the company remains tied to Tesla’s evolution into a physical AI, software, and fleet-based platform.
“Maintain Buy & $475 Price Target.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple’s AI roadmap is drawing in renewed scrutiny from Evercore ISI, with the research firm anticipating a delay in its Apple Intelligence 2.0 launch. On February 11, analyst Amit Daryanani reiterated an Outperform rating on the stock with a $330.00 price target.
The firm noted that recent headwinds during the testing phase may lead Apple to delay the expected March launch of Apple Intelligence 2.0, an advanced phase of its personal AI system. Moreover, investors should be bracing themselves for a multi-phase release of Apple’s new AI features this year.
A new/upgraded Apple Intelligence may be rolled out mid-year, with the likelihood of a complete overhaul of Siri this fall. Evercore added how privacy appears to be of paramount importance for Apple, with the tech giant prioritizing data protection along with seamless integration before launching the upgrades.
“Maintain OP and $330 target.”
Despite these delays, the firm remains constructive on the stock.
Apple is a technology company known for its consumer electronics, software, and services.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
Nvidia is gaining Wall Street momentum after UBS reaffirmed its bullish stance on the AI chipmaker. On February 11, UBS analyst Timothy Arcuri raised the price target on NVIDIA Corporation (NASDAQ:NVDA) to $245.00 (from $235.00) while maintaining a Buy.
A positive earnings setup, bullish supply chain signals, and rising focus into GTC were highlighted as significant catalysts for the stock.
“Given middling stock performance, supply chain signals that remain bullish, and a management team that seems frustrated with the prevailing doubts around growth and margin sustainability, the earnings set-up here seems positive – especially as we head toward GTC next month.”
The company anticipates fiscal fourth-quarter revenue to reach approximately $67.5 billion, about $2.5 billion above the company’s guidance. While China demand remains uncertain, based on increasing adoption of domestic GPUs, the firm believes that Nvidia could still see incremental revenue from the region.
Looking ahead, it models fiscal Q1 revenue near $76 billion, which is slightly above investor expectations of $74-75 billion.
Nvidia is expected to maintain its 75% gross margin guidance, even though investors have begun to question about margin sustainability due to perceived competitive threats from Google/Broadcom TPU.
“investors have begun to question the sustainability of these levels given perceived threats from Google/AVGO TPU – a debate NVDA will surely address on this call and at GTC (especially in the context of the Groq deal).”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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