In this article, we will discuss: 12 AI Stocks That Will Skyrocket. Click here for the 5 AI Stocks That Will Skyrocket.
In an appearance on CNBC’s Market Movers, the network’s Seema Mody commented on the recent trend in the AI industry where executives at the top companies are being shuffled. Over the past couple of months, several high-profile executives in the software companies have departed. These include Workday, which announced on February 9th that its CEO Carl Eschenbach would step aside and co-founder Aneel Bhusri would take over instead; MongoDB’s president of field operations, Cedric Pech, and chief revenue officer Paul Capombassis leaving; and Adobe’s CEO, Shantanu Narayen, leaving the firm after 18 years. Commenting on the trend, Mody outlined that companies were preferring leaders with technological experience.
According to her, “someone who has deep technological experience is what these boards really want.” Quoting ServiceNow CEO Bill McDermott, Mody commented that he had outlined that “this is a time of business reinvention and that the stakes are really high.” She went on to add that while the conversation was focused on the C-Suite, Palantir CEO Alex Karp believes that changes will occur “across the workforce.”
Our Methodology
To curate our list of the 12 AI stocks that will skyrocket, we first made a list of all AI stocks recommended by reputable websites. The stocks were then ranked by the number of sites that had recommended them. Then, once the stocks with two or more recommendations were exhausted, we ranked the remaining stocks by the number of hedge funds that had held them during Q4 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 AI Stocks That Will Skyrocket
12. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holdings: 101
Financial firm UBS discussed chip manufacturing equipment giant ASML Holding N.V. (NASDAQ:ASML)’s shares on March 10th. It reiterated a Buy rating and a €1,500 price target. On the same day, TD Cowen also discussed the firm. It kept a $1,500 share price target and a Buy rating. ASML Holding N.V. (NASDAQ:ASML)’s dominance in the lithography technology industry played a role in the coverage, as TD Cowen named the firm a top European investment pick. Lithography is one of several stages in the chip manufacturing process, and ASML Holding N.V. (NASDAQ:ASML) is the only company in the world capable of making machines capable of extreme ultraviolet lithography.
Bank of America discussed ASML Holding N.V. (NASDAQ:ASML)’s shares on March 5th. It raised the share price target to $1,886 from $1,868 and kept a Buy rating on the stock. As per BofA, the coverage was part of its raising estimates for the sector due to tight capacity in the foundry and memory industries.
ASML Holding N.V. (NASDAQ:ASML) Dutch company that makes and sells machines that are used to manufacture semiconductors. It is headquartered in Veldhoven, Netherlands.
11. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Holdings: 256
Social media Meta Platforms Inc (NASDAQ:META) might be on its way to lay off a large number of employees, according to a report from Reuters quoted by multiple publications. According to the details, the layoffs could affect as much as 20% of the firm’s workforce. However, a Meta Platforms Inc (NASDAQ:META) spokesperson called the reports “speculative reporting about theoretical approaches.”
On March 5th, Arete downgraded Meta Platforms Inc (NASDAQ:META)’s shares to Neutral from Buy. It also cut the share price target to $676 from $732 and noted that worries about the firm’s extensive capital expenditure in the AI era could affect the firm’s profitability. Arete added that even though Meta Platforms Inc (NASDAQ:META) was aggressively investing in AI infrastructure capabilities, its revenue growth was not matching the trend. Consequently, the firm cautioned that the technology company’s margins could be affected as a result. Meta Platforms Inc (NASDAQ:META)’s capital expenditures have worried investors as well; however, some commentators like CNBC’s Jim Cramer believe that the spending is justified to preserve the firm’s moat in the social media industry.
Meta Platforms Inc (NASDAQ:META) is one of the largest social media companies in the world. It is known for its Facebook, Instagram, and WhatsApp platforms.
10. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holdings: 381
Retail and cloud computing giant Amazon.com, Inc. (NASDAQ:AMZN) made a major announcement on February 27th when it announced a strategic partnership with OpenAI. Through the partnership, the pair will create a runtime environment using OpenAI technologies to allow users of Amazon.com, Inc. (NASDAQ:AMZN)’s Amazon Web Services (AWS) Bedrock platform to build generative artificial intelligence applications. Additionally, OpenAI will also use Amazon.com, Inc. (NASDAQ:AMZN)’s Trainium AI chips for its workloads, while the latter will invest $50 million in the AI company.
A day later, financial firm TD Cowen discussed Amazon.com, Inc. (NASDAQ:AMZN)’s shares. It reiterated a Buy rating and a $300 share price target and commented that the deal was a positive development for Amazon. Banking giant Wells Fargo lowered Amazon.com, Inc. (NASDAQ:AMZN)’s share price target on February 23rd. It trimmed the target to $304 from $305 and kept an Overweight rating. According to the bank, compute capacity remains a key metric to watch in the AI industry.
Amazon.com, Inc. (NASDAQ:AMZN) is one of the largest technology companies in the world. It has a commanding presence in the eCommerce and cloud computing industries.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holdings: 63
Enterprise computing firm International Business Machines Corporation (NYSE:IBM)’s shares were on financial firm Wedbush’s radar on February 25th. It reiterated an Outperform rating and a $340 share price target and commented that the technology company’s presence in the enterprise computing market could be clouded by the fears of AI-generated disruption. While most attention is focused on AI, International Business Machines Corporation (NYSE:IBM) has also carefully established itself as a key player in the quantum computing industry. On March 12th, it took the wraps off of the industry’s first quantum computing-based supercomputing architecture through which researchers will be able to access tools through well-known open software frameworks.
Investment bank Morgan Stanley also discussed International Business Machines Corporation (NYSE:IBM)’s shares on February 25th. It cut the share price target to $247 from $304 and kept an Equal Weight rating on the shares, as per The Fly. Anthropic’s Claude Code tool played a role in Morgan Stanley’s coverage as it pointed to the tool’s impact on the mainframe business.
International Business Machines Corporation (NYSE:IBM) is one of the largest enterprise computing companies in the world. The firm is headquartered in Armonk, New York.
8. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holdings: 284
Technology giant Alphabet Inc. (NASDAQ:GOOGL)’s shares were on banking giant Wells Fargo’s radar on February 23rd. It upgraded the stock to Overweight and raised the share price target to $387 from $354. Wells Fargo commented that Alphabet Inc. (NASDAQ:GOOGL)’s compute capacity and customer data were among the advantages that the firm enjoyed. The bank added that the technology company was planning to expand its compute capacity to 35 gigawatts by 2028 end from 15 gigawatts at the end of 2025.
Compute capacity requires power, and on February 24th, Alphabet Inc. (NASDAQ:GOOGL) announced that it had entered into agreements with utilities AES Corp and Xcel Energy to power up data centers in Pine Island, Minnesota and Wilbarger County, Texas. As part of the deal, Alphabet Inc. (NASDAQ:GOOGL) also announced that it would invest $50 million in Xcel’s efforts to build a battery storage network in Minnesota.
Alphabet Inc. (NASDAQ:GOOGL) is one of the largest technology companies in the world. It operates in the search engine, cloud computing, video streaming, and other industries.
7. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holdings: 111
Following data center firm Oracle Corporation (NYSE:ORCL)’s latest financial results, financial firm Guggenheim came out with optimistic coverage for the firm. It reiterated a $400 share price target and a Buy rating for the stock. Guggenheim pointed out that Oracle Corporation (NYSE:ORCL)’s investments in AI data centers will pay off and added that the firm will also improve its financial situation. Guggenheim also added the technology company to its Best Ideas list for 2026. Oracle Corporation (NYSE:ORCL)’s financial metrics have generated concerns as the firm’s debt to finance its AI infrastructure rises.
However, on March 11th, Stifel had cut Oracle Corporation (NYSE:ORCL)’s share price target to $220 from $275 and kept a Buy rating on the stock. Stifel remained optimistic about the firm’s EPS growth as it outlined that infrastructure-as-a-service (IaaS) growth and momentum in software-as-a-service (SaaS) applications could help the firm with its EPS growth in 2027. Oracle Corporation (NYSE:ORCL)’s fiscal third-quarter earnings report saw the firm grow its revenue by 22% annually to $17.2 billion.
Oracle Corporation (NYSE:ORCL) is a data center infrastructure provider that enables software companies to access computing capacity.
6. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holdings: 91
On March 13th, investment bank UBS was out with a pessimistic note about software firm Adobe Inc. (NASDAQ:ADBE). It reduced the share price target to $290 from $340 and kept a Neutral rating on the shares, as per The Fly. The coverage came after Adobe Inc. (NASDAQ:ADBE)’s fiscal first-quarter results, as analysts warned that despite beats on multiple metrics, tailwinds such as AI disruption and recurring revenue growth pressures remained as headwinds.
Ahead of the earnings, Adobe Inc. (NASDAQ:ADBE) had announced that it had expanded its partnership with Major League Baseball (MLB) to provide fans with digital experiences. Through the deal, the software firm will also act as the sponsor for MLB’s opening day for the next three years. On the 9th, RBC Capital reiterated a $430 share price target and an Outperform rating on Adobe Inc. (NASDAQ:ADBE)’s shares. As was the case with UBS, RBC also discussed recurring revenue to point out that the software firm’s annual recurring revenue growth was key to its performance.
Adobe Inc. (NASDAQ:ADBE) is one of the largest software companies in the world. It is primarily known for its productivity software.
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