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.
8. Astera Labs, Inc. (NASDAQ:ALAB)
Stock Upside Potential as of June 18: 13.27%
Number of Hedge Fund Holders as of Q1: 45
Astera Labs, Inc. (NASDAQ:ALAB) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company inked a strategic collaboration with Alchip Technologies. The two are joining forces to accelerate the development of next-generation AI infrastructure.
The collaboration will merge Alchip’s custom ASIC development capabilities with Astera Labs’ comprehensive connectivity portfolio. The integrated solution will deliver interoperable solutions for hyperscalers building next-generation AI infrastructure: Astera Labs and its partner hope to streamline purpose-built AI infrastructure that meets performance demand for next-generation applications.
The strategic partnership should benefit hyperscalers by providing validated complete solutions integrating Astera Labs’ Intelligent Connectivity Platform. It will also promote industry innovation for next-generation AI connection standards such as Ethernet, NVLink Fusion, and UALinkTM.
Astera Labs, Inc. (NASDAQ:ALAB) provides semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform integrates mixed-signal products, microcontrollers, sensors, and the COSMOS software suite for large-scale system management.
7. Accenture plc (NYSE:ACN)
Stock Upside Potential as of June 18: 13.40%
Number of Hedge Fund Holders as of Q1: 69
Accenture plc (NYSE:ACN) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, JPMorgan analyst Tien Tsin Huang reiterated an Overweight rating on the stock and increased the price target to $353 from $349. The adjustment underscores a positive outlook on the company’s performance.
Additionally, the analyst reiterated the Overweight rating based on the expectation that Accenture would deliver better-than-expected fiscal third-quarter results. The company is expected to report revenue in line with forecasts, with a slight increase in earnings due to currency fluctuations. Accenture’s fiscal 2025 revenue is expected to remain steady at its midpoint.
Accenture plc (NYSE:ACN) is a global professional services company that provides a wide range of services, including strategy, consulting, digital, technology, and operations. Its solutions help clients reinvent their businesses, leveraging technology, data, AI, and new working methods.
6. CyberArk Software Ltd. (NASDAQ:CYBR)
Stock Upside Potential as of June 18: 15.46%
Number of Hedge Fund Holders as of Q1: 64
CyberArk Software Ltd. (NASDAQ:CYBR) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, Jefferies reiterated its Buy rating on the stock and increased the price target to $480 from $430. The adjustment comes as the research firm remains confident about the company’s strong positioning in the cyber-attacks market.
According to Jefferies, CyberArk Software has outperformed the overall market with a 16% yearly gain. The impressive run is supported by the company’s 35.12% revenue growth and 77.91% gross profit margin, affirming growth.
Jefferies expects the company to register significant growth in its annual recurring revenue through new Privileged Access Management (PAM) customers, maintenance conversions, and cross-selling opportunities. The firm also expects the company to achieve free cash flow margins of over 27%.
CyberArk Software Ltd. (NASDAQ:CYBR) is a software company specializing in cybersecurity, focusing on Identity Security and Privileged Access Management (PAM). Its solutions help organizations protect their valuable assets by securing access to human and machine identities across various environments. It uses Artificial Intelligence (AI) in its Identity Security Platform to enhance security, efficiency, and user experience.
5. Arista Networks Inc (NYSE:ANET)
Stock Upside Potential as of June 18: 18.44%
Number of Hedge Fund Holders as of Q1: 65
Arista Networks Inc (NYSE:ANET) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company announced the appointment of Todd Nightingale as its President and Chief Operating Officer, effective July 1, 2025. Nightingale brings extensive industry experience, having served as CEO of Fastly and held key leadership roles at Cisco Systems, including overseeing its Enterprise Networking and Cloud division. His expertise is expected to contribute significantly to Arista’s growth.
Under his employment agreement, Nightingale will receive a $350,000 annual salary, a prorated 2025 bonus, and eligibility for discretionary bonuses in 2026. His compensation package includes $30 million in restricted stock units (RSUs) and $2 million in performance-based stock units (PSUs), pending corporate approvals and vesting requirements.
Arista continues strengthening its leadership team with strategic appointments as it reports 22.3% revenue growth over the past year. Nightingale’s role is set to accelerate Arista’s innovation and operational efficiency in the networking space.
Arista Networks Inc (NYSE:ANET) develops and sells data-driven networking solutions from client to cloud, supporting AI, data center, campus, and routing environments worldwide. Its platform includes the Extensible Operating System (EOS) and network applications. Arista offers cloud, AI, and cognitive networking solutions, along with technical support and upgrade services. It serves a wide range of industries and distributes its products through partners and direct sales.
4. Synopsys Inc. (NASDAQ:SNPS)
Stock Upside Potential as of June 18: 24.87%
Number of Hedge Fund Holders as of Q1: 67
Synopsys Inc. (NASDAQ: SNPS) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company announced a strategic collaboration with Samsung Foundry. The two are joining forces to power the next generation of chip designs capable of handling edge artificial intelligence, high-performance computing, and artificial intelligence applications.
The companies are to power the most complex multi-designs that enable customers to deliver advanced technologies to the market. They have already achieved a successful customer tape from an HBM3 design on the Samsung SF2 process and I-cube technology.
Synopsys has also achieved certification for its AI-driven digital and analog flows in Samsung SF2 processes. The milestone allows the company to accelerate the development of high-performance designs. Additionally, the company has expanded its IP portfolio to support the development of applications for high-performance computing in the automotive markets.
Synopsys Inc. (NASDAQ:SNPS) delivers electronic design automation (EDA) software and IP solutions for designing and testing integrated circuits. Operating through Design Automation and Design IP segments, it offers tools for digital and custom IC design, verification, FPGA design, TCAD, and AI-driven solutions. Its IP portfolio includes interfaces like USB, PCIe, Ethernet, and HDMI, as well as processor cores, embedded memories, security, automotive, and SoC infrastructure components.
3. Lumen Technologies, Inc. (NYSE:LUMN)
Stock Upside Potential as of June 18: 26.54%
Number of Hedge Fund Holders as of Q1: 39
Lumen Technologies, Inc. (NYSE:LUMN) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company announced its wholly owned subsidiary Level 3 Financing plans to raise $1 billion in the market to refinance debt.
Level 3 will offer a $1 billion aggregate principal of First Lien Notes due in 2033. The unit will leverage net proceeds from the offering to redeem all $924.522 million in aggregate principal amount of senior secured notes due in 2030. The refinancing move extends the maturity date of Level 3 financing debt from 2030 to 2033.
Lumen Technologies, Inc. (NYSE:LUMN) is a global communications and IT services company that offers solutions that help businesses connect people’s data and applications securely. Its solutions also help companies realize artificial intelligence potential through its metro connectivity edge cloud and managed service capabilities.
2. Nokia Oyj (NYSE:NOK)
Stock Upside Potential as of June 18: 27.36%
Number of Hedge Fund Holders as of Q1: 18
Nokia Oyj (NYSE:NOK) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company announced that Federico Guillén will retire on December 31, 2025, stepping down as President of Network Infrastructure and from the Group Leadership Team on June 30, 2025. David Heard, former CEO of Infinera, will take over the role starting July 1, 2025, reporting to Nokia’s President and CEO Justin Hotard. Heard joined Nokia through its Infinera acquisition in February 2025 and will be based in Dallas.
Additionally, Victoria Hanrahan has been named Chief of Staff to the President and CEO, joining the Group Leadership Team immediately. Her focus will be on improving strategic execution and organizational alignment. Hotard praised Guillén’s leadership in building a strong and profitable business while highlighting Heard’s expertise in scaling operations and AI-optimized solutions.
Prior to Nokia, Heard held leadership roles at JDSU, BigBand Networks, Lucent, and AT&T. Hanrahan previously worked at Hewlett Packard Enterprise in marketing and strategy. These changes reflect Nokia’s focus on strengthening its Network Infrastructure leadership and driving innovation.
Nokia Oyj provides mobile, fixed, and cloud network solutions globally, operating across Network Infrastructure, Mobile Networks, Cloud & Network Services, and Nokia Technologies. The company offers fiber, copper, and optical networks, IP routing, radio access technologies, and network management services. It also provides cloud solutions, 5G core, private wireless, and AI-driven network APIs to enhance connectivity. Additionally, Nokia licenses patents and its brand while serving telecom providers, enterprises, governments, and hyperscalers.
1. Adobe Inc. (NASDAQ:ADBE)
Stock Upside Potential as of June 18: 27.92%
Number of Hedge Fund Holders as of Q1: 111
Adobe Inc. (NASDAQ:ADBE) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, Bernstein SocGen Group reiterated an ‘Outperform’ rating on the stock and hiked the price target to $530 from $525.
Bernstein SocGen Group remains bullish about Adobe’s outlook owing to its potential to deliver 10% revenue growth in the near term. The firm also touted the company’s improving margins and significant stock buybacks, which are expected to trigger mid-teens earnings per share growth. In addition, the research firm expects the company to benefit from the acceleration of artificial intelligence.
According to Bernstein, Adobe has evolved from a ‘show me a story’ to an ‘explain to me and show me a story.’ Consequently, it views the company as an AI winner in the enterprise. Nevertheless, the research firm remains cautious, awaiting clarity on its AI monetization strategy and go-to-market initiatives.
Adobe Inc. (NASDAQ:ADBE) is a global technology company operating across Digital Media, Digital Experience, and Publishing & Advertising. Its Creative Cloud offers tools for content creation, while Document Cloud supports digital workflows.
While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) 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 ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.
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