On February 10, CNN reported that investors are becoming more careful about where they put their money in the AI space. Investors now want stronger evidence that a business can truly gain from the rise of AI.
According to the report, some software companies are starting to look like potential losers in the AI race. On the other hand, hardware companies, especially semiconductor chipmakers, are being seen as AI winners.
Steve Sosnick, chief strategist at Interactive Brokers, told CNN that the strong wave of AI enthusiasm was lifting many stocks. However, he added:
“Now it’s forcing Wall Street to be much more selective and really decide who are the winners and losers. And that’s going to require a lot more detailed analysis, rather than just sort of riding the momentum train.”
Dan Ives, global head of technology research at Wedbush Securities, described the recent sell-off in software stocks as “overblown.”
James Reilly, senior markets economist at Capital Economics, noted that even though the overall stock market continues to move higher, AI exposure will affect certain companies differently. He said:
“Ultimately, firms’ exposures to the AI revolution can be grouped into one of three boxes: those who enable, those who adopt and those who are disrupted.”
With this background in mind, let’s take a look at the 15 AI stocks that are skyrocketing.
Our Methodology
To compile our list of the 15 AI stocks that are skyrocketing, we looked for the largest and most popular AI companies. We reviewed Insider Monkey’s database of prominent AI stocks and various online resources to compile a list of more than 50 AI stocks. Finally, we ranked the 15 AI stocks that are skyrocketing in ascending order based on their 6-month performance as of February 13, 2026.
Additionally, we mentioned the hedge fund sentiment surrounding the best AI stocks, which was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds.
Why do we care about what hedge funds do? 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).
15 AI Stocks That Are Skyrocketing
15. Alibaba Group Holding Limited (NYSE:BABA)
6-Month Performance: 40.35%
Number of Hedge Fund Holders: 130
Alibaba Group Holding Limited (NYSE:BABA) ranks among the best AI stocks that are skyrocketing. On January 15, Morgan Stanley reiterated its Overweight rating on Alibaba Group Holding Limited (NYSE:BABA) with a price target of $180. The firm pointed to strong growth in the company’s Qwen AI assistant.
Morgan Stanley believes Qwen could develop into an “all-in-one AI superapp and life assistant,” which may help boost Alibaba Group Holding Limited’s (NYSE:BABA) share price along with revenue growth in its cloud business. However, the research firm pointed out that higher marketing spending to support user adoption could lead to bigger losses in other segments. Morgan Stanley estimates that these losses could reach about CNY 7 billion in the fiscal third quarter.
On January 14, Jefferies also reiterated its Buy rating on Alibaba Group Holding Limited (NYSE:BABA) with a price target of $225. Jefferies believes the company’s Cloud business will capture the majority of incremental industry AI cloud revenue, and expects to see the market share grow in 2026.
According to Jefferies, growing AI adoption and AI agent opportunities will support increased cloud demand for Alibaba Group Holding Limited’s (NYSE:BABA) services.
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company focused on e-commerce, retail, AI, digital media and entertainment, cloud, and technology.
14. Keysight Technologies, Inc. (NYSE:KEYS)
6-Month Performance: 42.91%
Number of Hedge Fund Holders: 44
Keysight Technologies, Inc. (NYSE:KEYS) ranks among the best AI stocks that are skyrocketing. On February 10, Keysight Technologies, Inc. (NYSE:KEYS) announced SOS Enterprise, an advanced edition of its engineering data management platform that builds on its SOS Core software and is designed to automate engineering data governance and traceability. This solution will help organizations prepare for AI adoption at scale.
According to the report, SOS Enterprise creates a single system of record that brings together fragmented design and information and turns it into governed, reusable knowledge across distributed enterprises. This solution supports clear data lineage, automated compliance tracking, and standardized engineering information management across a range of sites and regulatory environments. The platform prepares engineering teams to integrate AI tools into their design and verification workflows by treating design files and verification data as versioned and traceable assets.
In other news, on February 2, Baird raised its price target on Keysight Technologies, Inc. (NYSE:KEYS) from $221 to $230 and maintained its Outperform rating on the stock. The research firm pointed to strength in AI and data center markets.
Earlier, on January 15, Goldman Sachs also increased its price target on Keysight Technologies, Inc. (NYSE:KEYS) from $240 to $243 while keeping a Buy rating. The firm cited strong data center demand.
Keysight Technologies, Inc. (NYSE:KEYS) is a leading American company providing electronic design, emulation, and test solutions to support innovation in the communications, aerospace, defense, automotive, semiconductor, and general electronics markets.
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