In this article, we will look at the 11 Must-Buy AI Stocks Analysts Are Betting On.
Whoever controls artificial intelligence could have an advantage, possibly reshaping the geopolitical balance of power. That’s the sentiment echoed by analysts at Bank of America at a time when the AI-driven run in the equity markets appears to have faded. However, nothing could be further from the truth by the global artificial intelligence deals under President Donald Trump’s administration.
The initial artificial intelligence boom was tied to innovations within private-sector tech companies. Fast forward, Bank of America notes that Wall Street is increasingly looking at opportunities tied to growth in the public sector. Increased focus on sovereign AI deals that involve nations’ ability to produce and control AI infrastructure data regulations and nations affirm the AI trade in the equity market is alive and well.
“With c. $16tn annual global economic value on the line, AI is becoming key in setting the new world order. It is not just the race for technological development but also for resources, supply chains, regulation and standards that are on the line. Whoever controls AI could have an advantage, possibly reshaping the geopolitical balance of power,” Bank of America analyst Haim Israel said in a note.
Major tech companies building out product portfolios tied to sovereign AI and leveraging the technology as a catalyst for national economic and industry growth are some of the catalysts likely to drive momentum on AI stocks. With that in mind, let’s take a look at 11 Must-Buy AI Stocks Analysts Are Betting On.
Our Methodology
To make the list of 11 Must-Buy AI Stocks Analysts Are Betting On, we scanned the US equity markets and settled on companies with significant exposure to artificial intelligence and popular among elite hedge funds. We analyzed stocks with significant upside potential and determined why analysts are betting on them. Finally, we ranked the stocks in ascending order based on their upside potential.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Must-Buy AI Stocks Analysts Are Betting On
11. ServiceNow, Inc. (NYSE:NOW)
Stock Upside Potential as of June 18: 7.85%
Number of Hedge Fund Holders as of Q1: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company received a significant boost after Ascendion, a leading force in artificial intelligence-driven software, joined its Consulting and Implementation Partner Program.
Ascendion plans to help businesses move beyond basic artificial intelligence integration by joining ServiceNow Consulting and Implementation Partner Program. It plans to accelerate the embedding of intelligent solutions directly into workflows to achieve tangible business-focused results. Ascendion is also leveraging the ServiceNow Platform to help organizations modernize their operations and improve service delivery.
“Our partnership with ServiceNow is not just about digital transformation—it’s about preparing businesses to lead in an AI-first world. We combine smart tools with strategic execution, helping our clients stay competitive and relevant,” said Dharam Gurbani, Chief Growth Officer – Global Growth Markets at Ascendion.
Ascendion is to contribute expertise across several areas of the ServiceNow ecosystem, including AI-powered services. The partnership also aligns with the company’s vision to blend cutting-edge AU with human creativity.
ServiceNow, Inc. (NYSE:NOW) is a technology company that helps organizations manage and automate their business processes. It provides solutions for various areas, including IT, customer service, employee experience, and security.
10. SAP SE (NYSE:SAP)
Stock Upside Potential as of June 18: 10.03%
Number of Hedge Fund Holders as of Q1: 33
SAP SE (NYSE:SAP) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, Piper Sandler analyst Brent Bracelin initiated coverage with an ‘Overweight’ rating EUR 350 price target. The overweight rating underscores expectations for the company’s earnings growth, followed by significant expansion in the valuation multiples.
The analyst reiterated the company’s bullish rating, positioning itself as a leader in the rapidly expanding cloud segment within the software industry. Consequently, the analyst expects the shift towards the cloud service sector to help SAP sustain double-digit revenue growth while enhancing margins significantly. The robust growth is expected to lead to an annual increase in free cash flow of between 15% and 20% through 2030.
SAP SE (NYSE:SAP) is a company that develops enterprise software to manage business operations and customer relations. It’s a leading Enterprise Resource Planning (ERP) software provider, helping companies streamline their processes, manage data, and improve communication between departments.
9. Amazon.com, Inc. (NASDAQ:AMZN)
Stock Upside Potential as of June 18: 11.82%
Number of Hedge Fund Holders as of Q1: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company’s advertising unit, Amazon Ads, entered a strategic partnership with Roku, Inc. (NASDAQ:ROKU). The two are joining forces to create the largest authenticated footprint in connected TV.
Amazon Ads and Roku are to enable advertisers to reach an estimated 80 million US households through the Amazon demand-side platform. The partnership aims to enable unprecedented precision at scale by allowing markets to access logged-in users across all apps and devices in a way that was not possible before.
Early tests following the integration have already shown a 40% increase in unique reach and a 30% reduction in over-frequency. Consequently, advertisers delivered three times more value from their campaigns.
Advertisers are set to benefit from better performance, planning, optimization, and measurement due to the extraordinary scale. Addressability across popular streaming apps, such as The Roku Channel, Prime Video, and other top CTV streaming services on Roku and Fire TV operating systems, has also received a boost owing to the exclusive alliance between two industry leaders in CTV.
Amazon.com, Inc. (NASDAQ:AMZN) started as an online bookselling company. It has since morphed into an internet-based business enterprise that provides cloud computing, digital streaming and AI services, and an e-commerce platform. The platform operates in more than 20 countries worldwide.
