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.
13. Alphabet Inc. (NASDAQ:GOOGL)
6-Month Performance: 49.94%
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) ranks among the best AI stocks that are skyrocketing. On February 6, Piper Sandler raised its price target on Alphabet Inc. (NASDAQ:GOOGL) from $365 to $395 and kept its Overweight rating. This update came after the company reported Q4 results.
Piper Sandler called the company’s Q4 2025 performance “impressive.” Total revenue growth accelerated to 18%, beating Piper Sandler’s expectation of 15.5%. The research firm sees the results as “strong across the board” and increased its estimates for the company following the report.
On February 6, KeyBanc Capital Markets also raised its price target on Alphabet Inc. (NASDAQ:GOOGL) from $360 to $370 and maintained its Overweight rating. The research firm pointed to higher capital expenditures aimed at supporting growth in both Google Services and Google Cloud. While there are concerns about the size of these investments, KeyBanc said the company’s performance metrics across business segments remain strong.
The research firm pointed out that Search accelerated throughout 2025 and Cloud’s backlog rose about 55% quarter-over-quarter in Q4 2025. KeyBanc also pointed to Gemini, Alphabet Inc.’s (NASDAQ:GOOGL) AI assistant, which now has more than 750 million monthly active users.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology company and the parent company of Google. The company’s products include Search, Ads, Chrome, Cloud, YouTube, and Android. It specializes in areas like AI, cloud computing, and hardware.
12. Baidu, Inc. (NASDAQ:BIDU)
6-Month Performance: 52.49%
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) ranks among the best AI stocks that are skyrocketing. On February 4, Tiger Securities increased its price target on Baidu, Inc. (NASDAQ:BIDU) from $135 to $150 and kept its Buy rating.
Tiger Securities highlighted expectations that Baidu, Inc. (NASDAQ:BIDU) will continue to create more value for shareholders after it recently announced the listing of its AI chip unit, Kunlunxin. The company has confidentially filed for an initial public offering (IPO) in Hong Kong IPO for Kunlunxin. Baidu, Inc. (NASDAQ:BIDU) currently owns about 59-60% of the subsidiary and plans to keep majority control after the IPO.
Additionally, Tiger Securities noted that Baidu Cloud is in a good position to benefit from faster AI adoption across China. The research firm also believes Baidu, Inc.’s (NASDAQ:BIDU) robotaxi business may see a higher valuation as investors shift their focus from AI infrastructure to downstream applications.
The research firm is still cautious on Baidu, Inc.’s (NASDAQ:BIDU) short-term revenue and earnings growth. However, Tiger Securities noted that the stock is increasingly being driven by its long-term AI potential. The firm sees several possible catalysts ahead, especially in the robotaxi and AI cloud businesses.
Earlier, on January 26, Barclays also raised its price target on Baidu, Inc. (NASDAQ:BIDU) from $100 to $147 and maintained an Equal Weight rating on the stock.
Baidu, Inc. (NASDAQ:BIDU) is a leading AI and technology company that specializes in internet services and AI. It offers a full AI stack of four layers, including cloud infrastructure, in-house developed deep learning framework PaddlePaddle, self-developed ERNIE foundation models, and applications.
11. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
6-Month Performance: 53.37%
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among the best AI stocks that are skyrocketing. On February 12, DA Davidson initiated coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), giving the stock a Buy rating and setting the price target at $450.
DA Davidson pointed to the company’s “compounding execution moat in leading edge manufacturing” that it sees as a “durable, self-reinforcing advantage” as AI compute demand grows. The research firm noted that Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) competitive advantage comes from its ability to “repeatedly industrialize architectural transitions into predictable, high volume platforms.” DA Davidson pointed out that customers ultimately value goods being delivered on time.
According to the research firm, competitors may be able to match certain features “on paper.” However, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands out because of its ability to convert new devices and power architecture into “high yield, high throughput manufacturing with validated enablement and predictable ramps.”
On February 11, BofA Securities also reiterated its Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of $470 on the stock.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.
10. Nokia Oyj (NYSE:NOK)
6-Month Performance: 67.38%
Number of Hedge Fund Holders: 31
Nokia Oyj (NYSE:NOK) ranks among the best AI stocks that are skyrocketing. On February 2, JPMorgan raised its price target for Nokia Oyj (NYSE:NOK) from $8 to $8.20 and maintained its Overweight rating on the stock.
On February 2, TipRanks reported that Grupo Santander also upgraded its rating on Nokia Oyj (NYSE:NOK) from Neutral to Outperform with a EUR 6.40 price target. These updates came after the company’s fourth-quarter results for 2025.
During 2025, Nokia Oyj (NYSE:NOK) focused on improving execution and targeting its long-term opportunities as it repositioned itself. With the acquisition of Infinera, the company strengthened its portfolio and set a clear strategy for how AI is changing the role of networks. At its Capital Markets Day, Nokia Oyj (NYSE:NOK) also announced plans to simplify its operating model into Network Infrastructure and Mobile Infrastructure starting in 2026.
Looking ahead to 2026, Nokia Oyj (NYSE:NOK) aims for disciplined execution to capture growth in AI and Cloud. The company is targeting a comparable operating profit of EUR 2 to EUR 2.5 billion in 2026.
Nokia Oyj (NYSE:NOK) is a Finland-based technology company that specializes in telecommunications equipment, networks, and related technologies. The company offers a range of solutions across cloud and network services, mobile networks, and network infrastructure.
9. MongoDB, Inc. (NASDAQ:MDB)
6-Month Performance: 68.79%
Number of Hedge Fund Holders: 89
MongoDB, Inc. (NASDAQ:MDB) ranks among the best AI stocks that are skyrocketing. On February 9, Goldman Sachs released a research note discussing concerns about how AI could disrupt small and mid-cap software companies. The research firm used a “clear, repeatable AI Impact Framework” to identify where AI may create risks or opportunities for companies, including MongoDB, Inc. (NASDAQ:MDB).
The framework looked at six areas, including orchestration risk, monetization exposure, system-of-record ownership, data integration moat, AI execution, and budget alignment. Goldman Sachs concluded that these software companies, including MongoDB, Inc. (NASDAQ:MDB), benefit from “durable economics, mission-critical platform roles and tangible AI product innovation” that offer “meaningful insulation in a period of elevated uncertainty.” The research firm maintained a constructive outlook on software names, as it sees “credible paths for AI to reinforce rather than undermine long-term growth.”
Earlier, on January 30, BofA Securities increased its price target on MongoDB, Inc. (NASDAQ:MDB) from $480 to $500 and maintained a Buy rating. The firm pointed to the company’s successful dual approach of top-down enterprise sales and bottom-up product-led growth.
BofA Securities also pointed out that MongoDB, Inc. (NASDAQ:MDB) continues to focus on expanding its product portfolio for AI and modernization of legacy applications.
MongoDB, Inc. (NASDAQ:MDB) is an American software company that is known for its globally distributed database platform that supports applications with integrated capabilities for operational data, search, real-time analytics, and AI-powered data retrieval.
8. Datavault AI Inc. (NASDAQ:DVLT)
6-Month Performance: 71.74%
Number of Hedge Fund Holders: N/A
Datavault AI Inc. (NASDAQ:DVLT) ranks among the best AI stocks that are skyrocketing. On January 23, Datavault AI Inc. (NASDAQ:DVLT) announced that it has completed its acquisition of API Media Innovation Inc, a company that provides media infrastructure and event technology solutions.
API Media Innovation Inc offers innovative audio and visual technologies for media, sports, and entertainment. Its clients include some of the most well-known sports venues and events, supported by a strong customer-focused culture that the firm has built over decades. With this acquisition, Datavault AI Inc. (NASDAQ:DVLT) gets new expertise in digital media operations, audience intelligence, and revenue analytics, which puts the company in a strong position to grow its presence in enterprise data, advertising, and AI-as-a-Service markets.
Earlier, on January 5, Maxim Group increased its price target on Datavault AI Inc. (NASDAQ:DVLT) from $3 to $4 and maintained a Buy rating on the stock.
The firm pointed to the company’s recent strategic moves, including the WiSA merger, the acquisition of CSI, new licensing deals, and a $150 million investment in Bitcoin from Scilex. Maxim Group noted that these developments, combined with Datavault AI Inc.’s (NASDAQ:DVLT) IP portfolio across Web 3.0, audio technologies, and data monetization, make the company’s prospects increasingly promising.
Datavault AI Inc. (NASDAQ:DVLT), formerly known as WiSA Technologies, Inc., is a technology company focused on AI-driven data, blockchain, and Web 3.0 asset monetization, alongside spatial audio technologies.
7. Lumen Technologies, Inc. (NYSE:LUMN)
6-Month Performance: 89.39%
Number of Hedge Fund Holders: 32
Lumen Technologies, Inc. (NYSE:LUMN) ranks among the best AI stocks that are skyrocketing. On February 5, Citi reduced its price target on Lumen Technologies, Inc. (NYSE:LUMN) from $11 to $10 and maintained its Neutral rating on the stock. The research firm sees the company’s fourth-quarter results as mixed.
On February 4, Raymond James downgraded its rating on Lumen Technologies, Inc. (NYSE:LUMN) from Outperform to Market Perform. This update comes after the company’s sale of its Mass Markets fiber-to-the-home business to AT&T Inc. (NYSE:T) for $5.75 billion, which reduced total debt by more than $4.8 billion and net leverage by a full turn to below 4x.
Raymond James pointed out that now that the sale has closed and Lumen Technologies, Inc. (NYSE:LUMN) is working to restructure its balance sheet, it faces new challenges. The research firm expressed concerns about the company’s revenue trajectory, saying that a return to revenue growth may still be about two years away.
Additionally, Raymond James noted that Lumen Technologies, Inc. (NYSE:LUMN) has appointed its third head of sales in three years, which could slow the restoration of growth.
Lumen Technologies, Inc. (NYSE:LUMN) is an American telecommunications and technology company that offers networking, edge cloud, collaboration, and cybersecurity solutions.
6. ASML Holding NV (NASDAQ:ASML)
6-Month Performance: 89.53%
Number of Hedge Fund Holders: 82
ASML Holding NV (NASDAQ:ASML) ranks among the best AI stocks that are skyrocketing. On January 29, Bernstein analyst David Dai increased the price target on ASML Holding NV (NASDAQ:ASML) from $1,642 to $1,911 and kept an Outperform rating.
This update comes after the company reported its 2025 fourth-quarter and full-year results. ASML Holding NV (NASDAQ:ASML) reported very strong fourth-quarter net bookings of EUR 13.2 billion, which were far above market expectations.
On January 29, RBC Capital also maintained its Outperform rating and raised its price target on ASML Holding NV (NASDAQ:ASML) from $1,550 to $1,625 on the stock. This increase in price target came after the company reported record quarterly bookings of EUR 13.2 billion, which exceeded estimates of EUR 8 billion to EUR 10 billion.
RBC Capital pointed out that strong demand driven by AI is supporting orders for DRAM and Advanced Logic, which is more than offsetting slower business in the Chinese market. The research firm expects revenue to continue growing at a double-digit pace into fiscal year 2027. This growth will be supported by tight DRAM supply, adoption of more advanced nodes in AI processors, and renewed competition among foundries.
ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that designs and develops advanced semiconductor equipment systems, including photolithography machines, which are used to produce chips.
5. Intel Corporation (NASDAQ:INTC)
6-Month Performance: 90.51%
Number of Hedge Fund Holders: 81
Intel Corporation (NASDAQ:INTC) ranks among the best AI stocks that are skyrocketing. On February 12, DA Davidson initiated coverage on Intel Corporation (NASDAQ:INTC), giving the stock a Neutral rating and setting the price target at $45. The firm noted that there are “real developments across the business for investors to get excited about” at the company.
DA Davidson sees Intel Corporation’s (NASDAQ:INTC) current strategy as “one of the hardest resets in semiconductor history.” The research firm noted that the company is trying to rebuild its leading-edge process capability while also working to become a trusted third-party foundry. DA Davidson called Intel Corporation (NASDAQ:INTC) the “ultimate ‘show me’ story,” meaning the company still needs to prove that it will succeed.
Earlier, on January 28, Tigress Financial Partners raised its price target on Intel Corporation (NASDAQ:INTC) from $52 to $66 and kept its Buy rating. The firm pointed to AI data center tailwinds, progress in the 18A manufacturing process, and potential AI PC refresh cycles to support the company’s turnaround strategy.
Tigress Financial Partners sees these factors as part of “an increasingly compelling multi-year upside story.”
Intel Corporation (NASDAQ:INTC) is an American company that manufactures central processing units (CPUs) and semiconductors.
4. Applied Digital Corporation (NASDAQ:APLD)
6-Month Performance: 150.39%
Number of Hedge Fund Holders: 38
Applied Digital Corporation (NASDAQ:APLD) ranks among the best AI stocks that are skyrocketing. On January 28, Northland increased its price target on Applied Digital Corporation (NASDAQ:APLD) from $40 to $56 and maintained its Outperform rating on the stock.
This update comes after “some exciting commentary” from the company’s Q2 earnings call. Applied Digital Corporation’s (NASDAQ:APLD) management pointed out that it is in advanced discussions with a new top-of-the-stack IG hyperscaler for up to three sites totaling about 900 megawatts (MW).
Earlier, on January 8, Craig-Hallum also raised its price target on Applied Digital Corporation (NASDAQ:APLD) from $39 to $40 and kept its Buy rating. The firm pointed to advanced talks on three sites representing 900 MW of potential capacity, with each campus possibly expanding to 1 gigawatt (GW). Together with the existing Forge 1 and Forge 2 campuses, this could translate to 5 GW of growth capacity over the next several years.
Craig-Hallum also noted Applied Digital Corporation’s (NASDAQ:APLD) technology investments. These include a $15 million investment in Corintis, a private firm developing liquid chip-cooling technology for AI applications, and a partnership with Babcock & Wilcox Enterprises, Inc. (NASDAQ:BW).
Applied Digital Corporation (NASDAQ:APLD) is a technology company that designs, develops, and operates digital infrastructure for the high-performance computing (HPC) and artificial intelligence (AI) industries.
3. Bloom Energy Corporation (NYSE:BE)
6-Month Performance: 208.61%
Number of Hedge Fund Holders: 64
Bloom Energy Corporation (NYSE:BE) ranks among the best AI stocks that are skyrocketing. On February 6, BTIG increased its price target on Bloom Energy Corporation (NYSE:BE) from $145 to $165 and maintained a Buy rating. This update came after the company reported its fourth-quarter earnings.
BTIG analyst Gregory Lewis highlighted that demand for prompt power solutions is “broad based” across many customer groups, including data centers and commercial and industrial clients. The analyst noted that Bloom Energy Corporation (NYSE:BE) is “positioned to take advantage thanks to its spare capacity and operating leverage.”
On February 6, TD Cowen also raised its price target on Bloom Energy Corporation (NYSE:BE) from $105 to $160 but kept its Hold rating. The research firm pointed to accelerating power demand from data centers and commercial and industrial customers, which helped drive a 140% increase in the company’s backlog.
TD Cowen praised Bloom Energy Corporation’s (NYSE:BE) “phenomenal” execution. However, the firm also noted that there are concerns about the company’s current valuation, which influenced its decision to keep a Hold rating.
Bloom Energy Corporation (NYSE:BE) designs and manufactures fuel cell systems for on-site power generation for data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors.
2. Micron Technology, Inc. (NASDAQ:MU)
6-Month Performance: 240.58%
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) ranks among the best AI stocks that are skyrocketing. On February 11, Morgan Stanley increased its price target on Micron Technology, Inc. (NASDAQ:MU) from $350 to $450 and kept its Overweight rating.
The research firm pointed to ongoing increases in DRAM prices and supply shortages as key reasons behind its more positive view. Morgan Stanley pointed out that DDR5 spot prices have already climbed 30% year-to-date and are now 130% higher than January contract prices.
On February 10, Deutsche Bank also raised its price target on Micron Technology, Inc. (NASDAQ:MU) from $300 to $500 and kept its Buy rating. The firm pointed to tight supply and demand conditions in the memory market, which it believes will benefit the company in the coming quarters.
Deutsche Bank is confident that Micron Technology, Inc. (NASDAQ:MU) can take advantage of growth in High Bandwidth Memory (HBM) and improving memory market trends. The research firm raised its calendar year 2026 earnings per share estimate for the company to $46.50.
Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products.
1. Western Digital Corporation (NASDAQ:WDC)
6-Month Performance: 275.14%
Number of Hedge Fund Holders: 84
Western Digital Corporation (NASDAQ:WDC) ranks among the best AI stocks that are skyrocketing. On February 4, Cantor Fitzgerald increased its price target on Western Digital Corporation (NASDAQ:WDC) from $325 to $420 and kept its Overweight rating after the company’s Innovation Day event held in New York City.
During the event, company management talked about technology advances, product roadmaps, and shared an updated financial model.
Cantor Fitzgerald pointed out that Western Digital Corporation’s (NASDAQ:WDC) expected growth and profitability are “significantly better than the company (and industry) had previously projected.” The firm now forecasts that the company’s earnings per share for calendar year 2028 could range between $19 and $32.
Earlier, on February 3, Goldman Sachs also raised its price target on Western Digital Corporation (NASDAQ:WDC) from $220 to $250 and maintained its Neutral rating. The company confirmed that its HAMR product rollout is still on track for the first half of 2027.
Additionally, Western Digital Corporation (NASDAQ:WDC) said that one more customer has entered the qualification stage for its HAMR solutions. Goldman Sachs raised its 2026-2028 non-GAAP earnings per share estimates for the company by an average of 22% after the company updated its long-term guidance.
Western Digital Corporation (NASDAQ:WDC) is an American company that manufactures hard disk drives and other data storage products.
While we acknowledge the potential of WDC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDC and that has a 100x upside potential, check out our report about this cheapest AI stock.
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