In the latest development in the feud between OpenAI and Elon Musk, the ChatGPT maker has countersued billionaire Musk, citing a pattern of harassment. The company also asked a federal judge to stop Musk from any “further unlawful and unfair action” against OpenAI in a court case over the company’s future structure that has fueled the AI revolution.
OpenAI claims that Musk has tried “nonstop” to slow down its business for his benefit, accusing him of using “bad-faith tactics” against it to help him control AI technology.
Musk has been actively seeking to stop OpenAI from transitioning to a “for-profit” company, claiming that the transition will be a bad idea, which prioritizes commercial interests and compromises its mission of benefiting humanity.
OpenAI, however, denies these allegations. The company must complete its transition by the end of the year if it seeks to secure the entire $40 billion of its current fundraising round. If the transition fails to complete by year-end, the funding will likely be reduced to US$20 billion.
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“Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI,”
-OpenAI wrote in a filing in Musk’s existing lawsuit against it in U.S. District Court for the Northern District of California.
In response, Musk’s legal team has referred to a $97.4 billion unsolicited takeover bid from a Musk-led consortium. This bid was rejected by OpenAI.
“Had OpenAI’s Board genuinely considered the bid as they were obligated to do they would have seen how serious it was. It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans.”
-Musk’s lawyer Marc Toberoff said in a statement provided to Reuters.
“Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit. Today, we countersued to stop him.”
-OpenAI said in a statement on Wednesday.
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14. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 42
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers. On April 11, TD Cowen analyst Jeff Osborne maintained a “Hold” rating on the stock and set a price target of $20.00. The firm discussed how it expects a positive outlook from the company, but pointed out project completion timings to be a challenge. Bloom’s pipeline, particularly a significant portion of its AEP deal, is facing uncertainties due to legislative impacts in Ohio as well as the timing of larger data center projects.
Back in November, the company signed a supply agreement with American Electric Power (AEP) for up to 1 gigawatt (GW) of its products. The initial installation of Bloom’s fuel cells was set to meet the immediate power needs of AI data centers. Besides the pipeline uncertainty, there is reduced transparency regarding MW/ASP disclosures and concerns over margins stemming from increased costs of larger data center projects. Like many other companies, Bloom Energy is also subject to uncertainties coming from tariffs. All of these factors have collectively led to a Hold rating toward the stock.
13. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On April 11, an article by Wired revealed that Palantir is reportedly working with Elon Musk’s Department of Government Efficiency (DOGE) on a major IRS project. This collaboration will allow it to build a new “mega API” for accessing Internal Revenue Service records. IRS sources told Wired that DOGE, a few of Palantir representatives, and dozens of career IRS engineers have been collaborating to build a single API layer above all IRS databases for the past few days. DOGE would like Palantir’s Foundry software to become the “read center of all IRS systems,” in case the project moves forward. This implies anyone with access could view and possess the ability to possibly modify all IRS data in one place.
12. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On April 10, HSBC upgraded the stock to “Hold” from “Reduce” with a price target of $156.00. The rating upgrade follows resilient cybersecurity demand amid macroeconomic uncertainty and a reasonable valuation.
The firm considers cybersecurity to be “recession resilient,” explaining that spending on security most likely holds up even during economic slowdowns. The analyst wrote that past evidence is indicative of how revenue growth at key cybersecurity firms remains immaterially impacted by economic growth changes.
In other news, a report by Globes has revealed that Palo Alto is eyeing Protect AI, a Seattle-based startup offering AI scanning, large language model security, and generative AI red teaming, for acquisition. The report noted that Palo Alto may acquire ProtectAI for around $650 million to $700 million.
11. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On April 10, Morgan Stanley upgraded the stock to “Overweight” from equal weight. Morgan Stanley said that the ad tech company is executing.
“APP is attracting new budgets to in-app advertising as it gains share and scales verticals like ecommerce. The key change is that we now see ad growth estimates as achievable.”
10. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 105
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors. On April 10, Citi lowered its forecast for U.S. data center builds, cutting its price targets on AI stocks Nvidia and Marvell Technology. The firm reiterated a “Buy” rating on the stock but reduced the price target for Marvell to $96 from $122, citing concerns over Microsoft’s capital spending and broader AI demand. The firm cut its fiscal year 2027 (FY27) revenue and EPS estimates for the company by 5% and 8%, respectively. It also cited a 20% cut to AI ASIC expectations.
“Our AI ASIC cuts reflect our concerns that C2026 trainium volumes may be below our prior expectations as the company may not be the only ASIC provider for the future trainium products.”
The firm also noted that with the stock returning to pre-custom ASIC rally levels and now trading at a price-to-earnings (P/E) ratio of 13x, the bad news “is largely priced in.”
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, providing processors and graphics technologies for gaming, data centers, and AI-driven high-performance computing. On April 8, TD Cowen analyst Joshua Buchalter maintained a “Buy” rating on the stock and lowered the associated price target to $110.00 from $135.00. The firm’s buy rating stems from its optimism in AMD’s potential for growth despite company issues and negativity in the computing sector.
Analysts believe that AMD’s upcoming launch of the MI355X mid-year will likely drive momentum in their data center GPU segment, positively impacting the stock. AMD also looks like an attractive opportunity, considering that its valuation is approximately 13 times the estimated 2026 earnings. This is a lucrative deal for investors considering potential traction in the data center GPU market. Even though tariffs are a concern, AMD is focused on capturing value in the AI sector and positioning itself as a feasible alternative to NVIDIA.
8. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On April 10, Goldman Sachs reiterated the stock as “Neutral” and cut its price target on the stock to $260 per share from $275.
“For Tesla , we believe that weaker auto demand/consumer sentiment, tariff costs (including in Energy), and US EV policy risk are offset by longer-term potential from its AI related efforts;”
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On April 9, TD Cowen lowered the firm’s price target on the stock to $200 from $265 and kept a “Buy” rating on the shares. According to the firm, widespread tariffs, irrespective of semi exemptions, “add an accelerant to an already-potent mix of investor concerns on compute/AI.”
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. On April 10, Morgan Stanley reiterated the stock as “Overweight”, stating that it is sticking with the stock despite tariff headwinds.
“With the largest base of pent up iPhone demand ever new AI features rolling out (slowly) around the world, and a renewed focus on device form factor changes, we believe Apple can accelerate iPhone growth starting in FY27, before replacement cycles contract in the 2 years thereafter..”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $250 implies a 26% upside, however, the Street-high target of $308 implies an upside of 55%.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the biggest analyst calls on Thursday, April 10, was for Nvidia Corporation. Cantor Fitzgerald reiterated the stock as “Overweight,” stating that the stock is defensive.
“We view the AI bucket as still the best place to be long — where we think there is upside to CY25 consensus, particularly at NVDA, AVGO, and TSMC.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $175 implies a 58% upside, however, the Street-high target of $235 implies an upside of 113%.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On April 10, Oppenheimer lowered the firm’s price target on Alphabet (GOOGL) to $185 from $225 and kept an “Outperform” rating on the shares. According to the firm, the modelling tariffs are going to be temporary except for China, and will most likely impact Q2 results.
Its macro ad forecast assumes advertisers will prioritize flexibility, performance, and measurability, with social media budgets to be most at risk. Therefore, the firm presumes Alphabet (GOOG) to be the most protected. The firm views risk/reward in the following order: Alphabet, Pinterest, Trade Desk, and Meta. Moreover, it believes the latter will still be getting an AI premium despite greater exposure to discretionary spending and China-based sellers.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On April 10, Thomas Champion from Piper Sandler maintained a “Buy” rating on the stock with a price target of $610.00. The new price target follows performance checks with an Ad Buyer and evaluation of Meta’s upcoming financial performance. The firm anticipates Q2 revenue to fall between $42.5 billion and $45.5 billion, which reflects a year-over-year growth of 9% to 16.5%.
Piper Sandler also expressed expectations that the company will adjust the operational expense forecast for fiscal year 2024 at $114-$119 billion, whereas capital expenditures are projected at $60-$65 billion. It is also looking forward to key developments concerning Meta’s advancements in artificial intelligence. This is particularly true for Llama 4 and the prospective opportunities related to agentic AI technologies.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On April 10, multiple news sources reported that Microsoft has decided to suspend its billion-dollar data center project in Licking County, Ohio. The move marks the latest hint that AI technology may not require massive infrastructure as previously anticipated. The company has confirmed that it will halt early-stage projects on rural land in central Ohio’s Licking County, and reserve two of the three sites for farmland.
“In recent years, demand for our cloud and AI services grew more than we could have ever anticipated and to meet this opportunity, we began executing the largest and most ambitious infrastructure scaling project in our history…Walsh said “any significant new endeavor at this size and scale requires agility and refinement as we learn and grow with our customers. What this means is that we are slowing or pausing some early-stage projects.”
-Noelle Walsh, President of Microsoft’s cloud computing operations.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On April 10, Truist reiterated the stock as “Buy” but reduced the price target to $230 from the previous $265. The firm said it’s cutting its price target but standing by the stock. This is because it believes that despite short-term headwinds, the company’s strategic position and market presence will help its growth over the longer term.
“We’re reducing our estimates and PT to $230 from $265 for AMZN on tariff concerns, particularly with China which is now subject to 125% rate.”
While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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