15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More

In this article, we look at the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.

Semiconductor and AI stocks pulled Wall Street lower on Tuesday, with the NASDAQ and the S&P 500 slipping to their lowest levels in more than a week. Markets were particularly shaken by the scrutiny of debt-funded AI spending and the possibility of a more hawkish Federal Reserve.

Nvidia (NVDA), Micron Technology (MU), and AMD (AMD) were amongst the most notable decliners in the tech sector sell-off. Nvidia fell more than 4%, while Micron dropped 13% ahead of its report on Wednesday. Asian chip makers also bore the impact, with SK Hynix and Samsung Electronics both declining.

Meanwhile, Marvell Technology (MRVL) and Advanced Micro Devices lost between 5% and 9%.

“Some of the news lately about AI raises questions about all the spending that’s being done and the capex and ramping of the capacity for semiconductors.”

-Thomas Martin, senior portfolio manager at ⁠Globalt.

According to James Reilly, senior markets economist at Capital Economics, these moves are part of a growing trend of rising volatility in tech stocks generally.

“This volatility is, in our view, evidence of excessive froth and calls into the question the sustainability of this rally.”

Market analysts have also been pointing to concerns sparked by Google and SpaceX. A high-profile leader has moved to OpenAI, while SpaceX is also facing some post-IPO anxieties.

While tech stocks have fallen, the broader market rally remains intact.

“AI and valuations for tech-related companies are returning to the spotlight, as equity markets shift their focus from the Middle East war towards the sustainability of tech-related spending amid rising global interest rates,”

– Mason Mendez, global real assets analyst at Wells Fargo Investment Institute, said in a note.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q1 2026.

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15. Space Exploration Technologies Corp. (NASDAQ:SPCX)

Number of Hedge Fund Holders: –

On June 22, KeyBanc initiated the stock as Sector Weight; noting that it is fairly valued and that it doesn’t see a clear reason to buy or sell the stock at current levels.

SPCX possesses significant disruptive growth avenues, though we believe this is reflected in current valuation and risk/reward appears balanced, in our view.

While SpaceX has huge plans through its Starlink and Starship rocket, the firm is not yet enthusiastic about them. It noted how Starship, the giant reusable rocket, is yet to mature and has suffered setbacks, pushing back timelines several years.

While we believe Starship will ultimately achieve success, we take a conservative approach on its development timeline. Risk/reward appears balanced until we achieve greater visibility on Starship’s progress.

A more immediate concern, the firm noted, is how the structured lockup schedule will gradually release additional shares into the market over time. This will increase the number of shares available for trading, but also lead to “near-term liquidity uncertainty.”

In separate news, Reuters reported how AI startup Reflection AI has signed a deal with SpaceX that will grant the startup ​access to additional computing capacity at the company’s Colossus 2 data center. This move makes Reflection AI the latest outside company to secure AI computing capacity at SpaceX’s Colossus infrastructure.

Space Exploration Technologies Corp. primarily provides satellite-based broadband services. However, its businesses also span rocket launch services, satellite internet and connectivity, artificial intelligence (AI), and cloud computing.

14. NICE Ltd. (NASDAQ:NICE)

Number of Hedge Fund Holders: 24

On June 18, DA Davidson analyst Clark Wright upgraded NICE Systems Ltd (NASDAQ:NICE) to Buy from Neutral on Thursday, maintaining its price target of $110. The firm believes that investor concerns related to AI disruptions in the contact center industry may be overstated.

DA Davidson said in the investor note that it has upgraded NICE shares to buy following conversations with customers at the company’s annual user event. The discussions revealed how the actual impact of AI in contact center appears less disruptive than investors fear.

The firm’s upgrade is also a reflection of potential value from possible sale of Actimize, its specialized business unit and subsidiary, monetization of AI feature usage, and discounted valuation. Overall, the firm believes that the stock’s overall valuation is favorable even though concerns exist regarding AI.

Following an analysis of the value unlock potential from the sale of Actimize, monetization of AI feature usage, and discounted valuation on a relative and historical basis @ <7X CY27 EPS, we believe the risk/reward skews positive at current levels.

NICE Ltd is a provider of AI-powered cloud platforms for customer engagement, financial crime and compliance, as well as digital evidence management.

13. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 50

The data center power market holds significant opportunity, and Enphase Energy is one name that could benefit from it. On June 18, Barclays analyst Christine Cho upgraded the stock from Underweight to Equal weight with a price target of $51.00 (from $30).

In particular, Barclays upgrade reflects opportunity for Enphase in solid-state transformers, or SSTs. The firm estimates that this could represent an estimated $2 billion annual US market by the late 2020s.

The investor note pointed out that hyperscalers are migrating to 800-volt direct-current power architectures to support denser server racks. This could make SSTs a core component of the power system and replace or displace traditional transformers.

Unlike legacy hardware, SSTs resemble inverters in functionality – leveraging active power conversion and control – which plays directly to ENPH’s technical strengths.

However, this opportunity could take time to develop, which is why the firm currently has an Equal weight rating, suggesting a balanced rating.

Enphase Energy, Inc., and its subsidiaries, designs, develops, manufactures, and sells home energy solutions. The stock is being increasingly tied to the AI boom due to its Solid-State Transformer platform that can supply highly efficient power conversion infrastructure directly to massive data centers.

12. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 59

On June 23, JPMorgan upgraded International Business Machines Corporation (NYSE:IBM) to Overweight from neutral and hiked its price target to $291 from $270. The firm said it sees “software acceleration” for the stock and that there could be room for multiple expansion.

We are upgrading to Overweight with greater confidence in a 2H’26 CC software acceleration following a deeper look at IBM’s software business.

The firm noted how software continues to drive better recurring revenue, margins, profitability, and cash flow. An estimated 45% of revenue and about two-thirds of consolidated profit for IBM comes through software, it added.

We view the continued shift toward software as positive considering the higher-margin, ratable nature of software with better cash conversion and a higher-quality earnings stream that supports a higher multiple than the hardware and services businesses.

It noted how IBM’s businesses, hybrid cloud, automation, transaction processing, and data, can help reinforce each other and support demand for infrastructure projects. The firm believes that investors may be underestimating how stable this “engine” is.

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.

11. Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Number of Hedge Fund Holders: 59

On June 22, Evercore ISI analyst Mark Lipacis initiates coverage on Credo Tech (NASDAQ:CRDO) with an Outperform rating and a $325 price target. Analysts at the firm believe that Credo could increasingly benefit from growth in optical connectivity.

Currently, it is mostly known for its copper-based AI connectivity products because it created the active electric cable, or AEC, interconnect standard and developed a reliable full system solution combing both whole cable and chips instead of just chips.

However, we believe it will be increasingly viewed as a broad copper + optical AI-connectivity play as it prosecutes its optical roadmap, which includes optical DSPs, Silicon Photonics ICs, microLED cables and most importantly its ZFOptics modules, where consistent with its AEC playbook, it is also taking a systems approach.

The firm believes that Credo’s current total addressable market of roughly $5 billion to $10 billion could expand by 10 to 20 times due to its product roadmap. The firm models 100% and 60% growth for its AEC solutions during 2026 and 2027. Meanwhile, it believes that CRDO’s optical portfolio could accelerate and contribute up to 25% of revenues in 2027.

Overall, the firm believes Credo’s expected growth is not fully reflected in its stock price, supporting the $325 price target.

10. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 79

While Constellation is a high-quality beneficiary of rising power demand, one investment firm believes much of the opportunity is already reflected in the stock’s valuation. On June 18, Goldman Sachs initiated coverage on the stock with a Neutral rating and a price target of $305.

The firm noted how CEG is a high-quality Independent Power Producer (IPP), boasting the largest nuclear fleet per EPSA, with around 22 GW of capacity. It also has a strong balance sheet and an asset base well-positioned to monetize hyperscale power demand.

Regardless of these positive points, the firm believes they are already reflected in Constellation’s share price.

However, the stock already trades at a meaningful premium to the IPP peer group (~3 turns above VST on FY2 EV/EBITDA and at the lowest FCF yield in our coverage), which in our view fully reflects (1) the scarcity value of the nuclear fleet, (2) the optionality from incremental PPA signings, and (3) the anticipated Calpine synergies.

While the firm isn’t negative on CEG’s long term position, it does express its positive view on the power demand theme through Talen Energy, Vistra, and NRG Energy.

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.

9. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 101

One AI stock Wall Street is bullish on based on its depressed valuation, attractive margin profile, and robust cash flow is Salesforce, Inc. (NYSE:CRM). On June 18, Monness, Crespi, Hardt analyst Brian White upgraded the stock to “Buy” from Neutral and raised the price target to $200.

Salesforce has been the second-worst performing stock in the firm’s coverage universe in 2026, bearing a 41% decline. However, the firm believes this decline has creative an attractive entry point. Monness, Crispi, Hardt noted how Salesforce has been facing investor concerns related to AI and how it could weaken the outlook for traditional software companies.

Since reaching an all-time high in late 2024, Salesforce has plummeted 58% from its peak and we believe the stock’s valuation is now compelling.

The selloff, the firm believes, makes Salesforce valuation now compelling particularly due to its attractive profit margins, strong cash flow, and ongoing share repurchase program. The firm also pointed out to its progress in supporting customers transforming into agentic enterprises.

Salesforce, Inc. provides customer relationship management technology services. The cloud-based CRM company has gained popularity after it unveiled its AI-powered platform called Agentforce.

8. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 112

Intel Corporation may benefit from tailwinds coming from advanced packaging technologies, which has led one firm to raise estimates and its price target for the stock. On June 22, Mizuho analyst Siti Panigrahi raised the price target on the stock to $135 from $128 and reiterated a Neutral rating.

While the firm remains neutral on Intel, it is cautiously positive on the stock considering potential benefits from its advanced chip-packaging technologies. Advanced packaging allows for improved performances, enabling more computing power and supporting the needs and growing demands of AI data centers.

Mizuho anticipates Intel’s EMIB-T technology and TSMC’s CoWoS-L 2.5D approaches to gain traction. Intel’s, however, could be a lower cost option but will need to improve manufacturing yields to around 99% to allow the technology to become competitive and widely adoptive.

We believe driving 8.0x/5.5x reticle sizes, enabling larger package sizes/dense chip connections while we estimate EMIB-T to be cheaper but with need improving yields to 99%, 2) we note glass substrate emerging, driving better thermal conductivity/denser wiring for closer connections, 3) 3D approaches ahead with Foveros/SoIC pushing further vertical integration.

Overall, the firm sees Intel gaining benefits from the shift to more advanced packaging technologies. This is particularly true as AI computing requires larger and more tightly connected chip systems.

Intel Corporation is a multinational semiconductor manufacturer that designs, develops, manufactures, markets, sells, and services computing and related end products and services.

7. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 123

On June 22, Jefferies reiterated the stock as hold and raised its price target to $375 per share from $350. The firm has cautioned that Tesla may begin trading more like a SpaceX proxy as merger speculation builds.

Tesla shares did not sell off ahead of the SPCX IPO or since. Consensus that a merger will be next and soon may turn TSLA into a tracker as shareholders try to minimize stake dilution.

They noted how a merger may change how investors view Tesla. Instead of focusing on Tesla’s main businesses, they may begin to treat TSLA as a way to gain exposure to SpaceX.

A day later, on June 23, Baird reiterated the stock as “Outperform” and said it’s sticking with Tesla and sees a SpaceX merger “sooner rather than later.”

With the deal now complete, we believe focus will shift to a potential merger between the two entities, and we see this as likely to happen sooner rather than later. Acknowledging uncertainty in the timing of a potential merger, we continue to be buyers of TSLA with company-specific catalysts ahead.

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

6. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 154

With memory markets continuing to improve over the past three months, Wall Street is becoming more bullish on Micron Technology. On June 22, Needham analyst N. Quinn Bolton raised the price target on the stock to $1,550.00 (from $500.00) while maintaining a Buy rating.

Ahead of Micron’s earnings report on 6/24, we are meaningfully raising our estimates and increasing our 12-month PT to $1,550.

Needham has highlighted how the memory market has been strengthening over the past 90 days and market fundamentals continue to demonstrate robustness. This strength has been a result of robust demand, strong pricing environment, and also limited capacity additions.

To top off these favorable conditions, the firm noted how long-term agreements being signed are offering suppliers such as Micron with better demand visibility extending over multiple years. This, in turn, reduces uncertainty around future sales which is important considering how large technology companies continue to invest heavily in AI data centers.

Reflecting this multi-year visibility, together with the strategic importance of memory in AI, we believe investors should be comfortable paying a higher valuation multiple for memory stocks.

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

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