On February 3, Bradley Tusk, Tusk Ventures founder and CEO, joined ‘The Exchange’ on CNBC to discuss a critical reality check facing the AI industry and the hyperscalers driving it. He argued that the initial excitement surrounding AI infrastructure is beginning to collide with economic and political obstacles. Tusk examined recent corporate activity, such as Oracle’s CapEx announcements, and noted that while building cloud capacity to meet customer demand is a sound business move, the entire model currently relies on the assumption that GenAI requires incredibly expensive and energy-intensive chips. He highlighted that this investment cycle depends on massive data centers that consume unprecedented amounts of energy, a trajectory that he believes is based on faulty assumptions regarding both economic necessity and the ability to execute.
On the economic front, Tusk contrasted the massive debt and infrastructure spending with the actual revenue being generated by leading AI firms. He noted that OpenAI and Claude are projected to earn a combined $30 billion to $35 billion this year, which he described as minuscule compared to the capital being deployed. While he acknowledged that venture capitalists typically invest early in economic transformations when numbers are small, he expressed skepticism about the quality of the products currently being sold to justify such heavy borrowing.
That being said, we’re here with a list of the 12 worst AI stocks to invest in according to Reddit.
Our Methodology
We sifted through Reddit threads to compile a list of AI stocks that users have shared bearish opinions on over the past 3 months. The stocks are ranked in descending order of the number of hedge funds that have stakes in them, as of Q3 2025. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1000 elite money managers.
Note: All data was sourced on February 6.
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).
12 Worst AI Stocks to Invest In According to Reddit
12. Micron Technology Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Micron Technology Inc. (NASDAQ:MU) is one of the worst AI stocks to invest in according to Reddit. On February 6, UBS analyst Timothy Arcuri raised the firm’s price target on Micron to $450 from $400 and kept a Buy rating on the shares.
On February 1, Phillip Securities analyst Yik Ban Chong initiated coverage of Micron with a Buy rating and a $500 price target, citing strong demand for the company’s high bandwidth memory products. The firm anticipates that Micron will be able to gain market share from SK Hynix as its HBM4 production scales following Q2.
Mizuho also raised its price target on the stock to $480 from $390 on January 27, while maintaining an Outperform rating. The firm expects improved revenues and margins for memory companies in 2026, driven by a projected 330% increase in NAND prices compared to the previous year and a further 50% rise in 2027. This valuation adjustment stems from anticipated price growth occurring while production remains largely flat.
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products internationally. It operates through the Cloud Memory Business Unit, Core Data Center Business Unit, Mobile & Client Business Unit, and Automotive & Embedded Business Unit segments.
11. Fiserv Inc. (NASDAQ:FISV)
Number of Hedge Fund Holders: 83
Fiserv Inc. (NASDAQ:FISV) is one of the worst AI stocks to invest in according to Reddit. On February 2, Northcoast analyst Kartik Mehta downgraded Fiserv from Buy to Neutral.
In other news, on January 28, ServiceNow and Fiserv announced an expanded commitment to accelerate AI-driven transformation within financial services. Fiserv will scale its use of ServiceNow Now Assist for Financial Services Operations and IT Service Management to enhance operations across its IT and customer service environments. The partnership aims to make AI an operational advantage by embedding it directly into workflows, allowing teams to manage complexity with greater resilience, confidence, and proactive scale.
On January 16, Stephens lowered its price target on Fiserv Inc. (NASDAQ:FISV) to $75 from $80 with an Equal Weight rating as part of its 2026 outlook for the Financial Technology group. Following a difficult 2025, the firm informed investors that it expects sentiment toward the Payment and IT Services sectors to improve in the year ahead.
Fiserv Inc. (NASDAQ:FISV) is a fintech company that offers account processing, digital banking, payment services, e-commerce solutions, merchant services, and cloud-based point-of-sale systems.
