On November 20, Reuters shared warnings from two leading finance executives. The rise of AI has created new risks in financial markets. Investors have been rushing to tech stocks and companies are making huge investments to buy AI technology they can’t make in-house.
During a panel discussion with Citadel Chief Risk Officer Joanna Welsh at the Reuters Momentum AI 2025 conference, Matthew Danzig from Lazard pointed out that AI has become the “number one topic of conversation” among investors and business leaders. Companies are rushing to form their AI strategies while also investing in skills or proprietary datasets in order to compete.
Danzig said that “every company that’s a potential target is figuring out their AI angle.” He also noted that valuations are reaching record highs as investors focus on future gains instead of current fundamentals.
According to McKinsey & Company, the sector will require about $7 trillion in capital by 2030 just for data centers to fund its growth. Yet investors have mostly ignored the rising leverage in the system and weak revenue to support all the debt required to finance this growth.
Additionally, fears of an AI bubble keep returning, which pulls down tech stocks. Joanna Welsh said Citadel, which has $71 billion in assets under management, is ready for market drops at any given time. The hedge fund’s risk models reveal that today’s markets amplify shocks. Welsh pointed out that the “markets are just faster” and that “these volatility spikes and pulses, they hit harder, they fade faster, they repeat more often.”
With this background in mind, let’s take a look at the 15 best-performing AI stocks heading into 2026.
Our Methodology
To compile our list of the 15 best-performing AI stocks heading into 2026, 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 best-performing AI stocks in ascending order based on their year-to-date performance as of November 26, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding the best-performing 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 Best Performing AI Stocks Heading into 2026
15. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Year-to-Date Performance: 44.39%
Number of Hedge Fund Holders: 66
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the best-performing AI stocks heading into 2026. On November 25, DA Davidson increased its price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) from $515 to $580 and kept a Buy rating. This update comes ahead of the company’s results for its fiscal third quarter of 2026, which are to be released on December 2, 2025.
DA Davidson expects CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to report strong results with continued growth in net new annual recurring revenue (NNARR), which should boost investor confidence. The research firm also noted that the company is on track to achieve its target of more than 20% year-over-year growth in NNARR for fiscal year 2027.
Previously, on November 19, Jefferies had also increased its price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) from $515 to $600 and maintained a Buy rating. The firm expects the company’s NNARR in the fiscal third quarter to grow at a high single-digit rate compared to the previous quarter.
Jefferies also noted that based on intra-quarter checks and survey results, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is performing well. The firm believes the company could beat consensus annual recurring revenue (ARR) estimates by about 40 basis points.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leading cybersecurity technology company that uses AI and cloud-based architecture to offer protection across endpoints, cloud workloads, identity, and data.
14. Constellation Energy Corporation (NASDAQ:CEG)
Year-to-Date Performance: 48.02%
Number of Hedge Fund Holders: 91
Constellation Energy Corporation (NASDAQ:CEG) is one of the best-performing AI stocks heading into 2026. On November 18, Reuters reported that the Trump administration has backed Constellation Energy Corporation’s (NASDAQ:CEG) Crane Clean Energy Center in Pennsylvania with a $1 billion loan.
According to the report, Constellation Energy Corporation (NASDAQ:CEG) entered into an agreement in late 2024 with Microsoft Corporation (NASDAQ:MSFT) to restart the reactor, which has been shut since 2019. However, when restarted, it will help power Microsoft Corporation’s (NASDAQ:MSFT) data centers.
The US government is supporting the company’s plan to launch the Crane Clean Energy Center, which will add 835 megawatts of new baseload power to the grid. This news comes as demand for electricity in the US is rising for the first time in 20 years, driven by new technologies such as AI. Nuclear energy is virtually free of carbon emissions, which makes it a good choice for tech companies that need uninterrupted power.
Constellation Energy Corporation (NASDAQ:CEG) said that the loan will help lower financing costs and utilize private investment. This support will help restore power to the grid and support the AI industry in the US.
Constellation Energy Corporation (NASDAQ:CEG) is a leading energy supplier specializing in reliable, emissions-free energy for businesses, homes, and public sector customers.
13. Snowflake Inc. (NYSE:SNOW)
Year-to-Date Performance: 57.87%
Number of Hedge Fund Holders: 102
Snowflake Inc. (NYSE:SNOW) is one of the best-performing AI stocks heading into 2026. On November 24, Jefferies increased its price target on Snowflake Inc. (NYSE:SNOW) from $270 to $300 and kept its Buy rating.
The research firm mentioned strong demand for Snowflake Inc.’s (NYSE:SNOW) services based on its proprietary survey. Jefferies noted that artificial intelligence is emerging as the driving force of this growth. The firm also pointed to positive signs that support its bullish outlook on Snowflake Inc. (NYSE:SNOW). These include pipeline strength and growing partnerships.
Earlier, on November 17, Bank of America raised its price target on Snowflake Inc. (NYSE:SNOW) from $280 to $310 and reiterated a Buy rating.
On November 12, RBC Capital analyst Matthew Hedberg had also increased the price target on Snowflake Inc. (NYSE:SNOW) from $275 to $300 and maintained an Outperform rating. This update came as part of a broader research note previewing third-quarter results in the software industry.
The analyst noted that software stocks are seeing volatility because of investors focusing on AI winners. However, RBC Capital’s checks showed better results compared to previous quarters from cybersecurity vendors in October.
Snowflake Inc. (NYSE:SNOW) is an American cloud-based data platform company. It offers an AI Data Cloud platform, which enables organizations to build, use, and share data, applications, and AI.
12. Alphabet Inc. (NASDAQ:GOOGL)
Year-to-Date Performance: 68.90%
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the best-performing AI stocks heading into 2026. On November 26, Citi reiterated its Buy rating on Alphabet Inc. (NASDAQ:GOOGL) with a price target of $343.
Previously, on November 18, Loop Capital upgraded its rating on Alphabet Inc. (NASDAQ:GOOGL) from Hold to Buy and increased the price target from $260 to $320. The research firm said that worries about AI disrupting Alphabet Inc.’s (NASDAQ:GOOGL) search business have mostly disappeared.
Rob Sanderson, Loop Capital‘s Managing Director, said that the firm’s earlier concerns about “the sustainability of search revenue growth under AI cannibalization and transition risk is no longer a concern shared by investors.” He noted that Alphabet Inc.’s (NASDAQ:GOOGL) search business “remains as healthy as ever.” It is helped by AI Overviews and AI Mode. He also pointed out that the traffic to Gemini has doubled compared to last year.
Loop Capital also highlighted growing recognition of Google Cloud’s positioning and the increasing commercial opportunity for the company’s own AI chips. The firm noted that “the size of opportunity for its proprietary AI processors (TPUs) is becoming better appreciated.”
In other news, TipRanks reported on November 21 that Mizuho is very optimistic about Alphabet Inc. (NASDAQ:GOOGL) and it said that the company has “already won the AI game.”
This view is based on feedback from 15 portfolio managers, which was gathered by Mizuho’s TMT specialist Jordan Klein. He wrote that investors are very confident and bullish on Alphabet Inc. (NASDAQ:GOOGL) and it is by far the “most liked and owned name.”
Klein also wrote that Alphabet Inc. (NASDAQ:GOOGL) “has all the best qualities and technology to dominate AI into next year.”
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 also specializes in areas like AI, cloud computing, and hardware.
11. Broadcom Inc. (NASDAQ:AVGO)
Year-to-Date Performance: 71.38%
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the best-performing AI stocks heading into 2026. On November 25, Goldman Sachs increased its price target on Broadcom Inc. (NASDAQ:AVGO) from $380 to $435 and maintained a Buy rating on the stock ahead of the company’s Q4 results.
The research firm expects investors to focus on Broadcom Inc.’s (NASDAQ:AVGO) AI revenue guidance for fiscal year 2026. This revenue guidance is expected to include contributions from Google and OpenAI. Goldman Sachs believes that the investors will also be looking at how the gross margins develop as demand for XPUs grows. The firm’s analyst also noted that expectations are high for this quarter and investors are optimistic due to strong results from competitors and good news from XPU customers including Google, which recently launched its Gemini 3.
On November 25, TipRanks reported that Bank of America said that Broadcom Inc. (NASDAQ:AVGO) has “the upper-hand” in the AI market. The research bank expects the company’s AI sales to grow more than 100% year-over-year in calendar year 2026. This growth is tied to additional TPU projects and Anthropic projects.
However, Bank of America analysts warned that if Google licenses more Tensor Processing Units (TPUs) directly, it could reduce Broadcom Inc.’s (NASDAQ:AVGO) total addressable market for developing ASICs for other clients.
In other news, Mizuho also said that Google’s plan to offer TPU capacity to Meta Platforms, Inc. (NASDAQ:META) in 2026, alongside growing demand from Anthropic, could offer a short-term boost to Broadcom Inc.’s (NASDAQ:AVGO) ASIC business. The analysts at Mizuho said that Broadcom Inc. (NASDAQ:AVGO) remains “our TOP PICK.”
Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions.
10. AppLovin Corporation (NASDAQ:APP)
Year-to-Date Performance: 71.56%
Number of Hedge Fund Holders: 110
AppLovin Corporation (NASDAQ:APP) is one of the best-performing AI stocks heading into 2026. On November 21, Citi reiterated its Buy rating on AppLovin Corporation (NASDAQ:APP) with a price target of $820.
Earlier, on November 7, Wells Fargo increased its price target on AppLovin Corporation (NASDAQ:APP) from $633 to $721 and kept an Overweight rating. Wells Fargo noted that mobile gaming, rather than web ads, played a key role in the company’s strong Q3 performance and Q4 guidance.
On November 6, Piper Sandler also raised its price target on AppLovin Corporation (NASDAQ:APP) from $740 to $800 and maintained an Overweight rating after the company’s Q3 results, which beat consensus estimates. The company also provided strong forward guidance for Q4.
Piper Sandler noted the success of AppLovin Corporation’s (NASDAQ:APP) Axon Ads Manager. The roll-out of Axon Ads Manager is going very well and it has seen a 50% increase in spending week-over-week since early October.
The research firm believes the strong guidance is supported mainly by better gaming seasonality and higher spending from current e-commerce customers. The forecast does not yet take into account new advertisers that are not yet onboarded.
AppLovin Corporation (NASDAQ:APP) is an American technology company that offers end-to-end software and AI solutions for businesses of all sizes to reach, monetize, and grow their audiences.
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Year-to-Date Performance: 77.60%
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best-performing AI stocks heading into 2026. On November 25, Bank of America Securities reiterated its Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a $300 price target.
In other news, on November 17, TD Cowen reaffirmed its Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a price target of $290. This decision came after a call with the company’s CFO, Jean Hu, and Corporate Vice President, Financial Strategy & Investor Relations, Matt Ramsay.
TD Cowen is confident that Advanced Micro Devices, Inc. (NASDAQ:AMD) can capture value in the growing AI market. The company’s management has explained that its $1 trillion AI market opportunity includes GPUs, CPUs, and server-side networking components like DPUs and NICs. However, it does not include switches and it only includes a limited opportunity in China. Advanced Micro Devices, Inc.’s (NASDAQ:AMD) goal of more than 60% compound annual growth rate in Data Center revenue does not include China because of political uncertainties.
The company expects its overall revenue to grow by more than 35% over the next 3 to 5 years. The primary driver of this growth is expected to be the Data Center business, while its “core business” segments like Client, Gaming, and Embedded are expected to grow by over 10%.
On November 18, Citi analyst Christopher Danely said in a note that “almost everyone has [the] same positions” across the semiconductor industry, but Advanced Micro Devices, Inc. (NASDAQ:AMD) is the most favored and has the strongest buying momentum. The analyst called it the “king of the hill.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that manufactures GPUs, microprocessors, and high-performance computing solutions and serves a number of high-growth industries like gaming, data centers, and AI.
8. Intel Corporation (NASDAQ:INTC)
Year-to-Date Performance: 81.90%
Number of Hedge Fund Holders: 81
Intel Corporation (NASDAQ:INTC) is one of the best-performing AI stocks heading into 2026. On November 18, Intel Corporation (NASDAQ:INTC) shared its strategic plans at the RBC Capital Markets Global Technology, Internet, Media and Telecommunications (TIMT) Conference 2025.
John Pitzer, corporate vice president, Global Treasury and Investor Relations, at Intel Corporation (NASDAQ:INTC) led the discussion. He talked about the company’s efforts to improve margins, increase market share, AI strategy and some challenges it is facing. The company is dealing with supply constraints, which are expected to peak in the first quarter of 2026.
A key part of Intel Corporation’s (NASDAQ:INTC) strategy includes the $5 billion investment by NVIDIA Corporation (NASDAQ:NVDA), which is expected to close by the end of the year. As part of this partnership, Intel Corporation (NASDAQ:INTC) will provide a custom Xeon part for data centers. NVIDIA Corporation (NASDAQ:NVDA) will integrate this chip and manage the go-to-market strategy.
Intel Corporation (NASDAQ:INTC) is also focused on its AI strategy, which includes advancements in PC and server markets. The company is also focusing on inference-specialized GPUs that support agentic and physical AI.
Pitzer noted that improving gross margins is very important for Intel Corporation (NASDAQ:INTC). The company is making efforts to become more cost-efficient, especially because data center margins are currently somewhat depressed.
Intel Corporation (NASDAQ:INTC) is an American company that manufactures central processing units (CPUs) and semiconductors.
7. Alibaba Group Holding Limited (NYSE:BABA)
Year-to-Date Performance: 85.52%
Number of Hedge Fund Holders: 130
Alibaba Group Holding Limited (NYSE:BABA) is one of the best-performing AI stocks heading into 2026. On November 18, Reuters reported that Alibaba Group Holding Limited (NYSE:BABA) has launched a major upgrade to its AI chatbot. This suggests that the company is aiming to compete more strongly in the consumer AI market, where it has lagged competitors.
The company has introduced a new free app that uses the latest version of its Qwen large language model. The app is currently available in China as both a mobile app and a website. Alibaba Group Holding Limited (NYSE:BABA) said it plans to release an international version later.
The company said that with a single command, the chatbot can “generate a full research report and automatically produce a polished, multi-slide PowerPoint presentation in seconds.”
Alibaba Group Holding Limited (NYSE:BABA) pointed out that the Qwen App, which has entered public beta testing, is being described as “the best personal AI assistant with the most powerful model.”
This marks a strategic shift for Alibaba Group Holding Limited (NYSE:BABA). Previously, the company focused mainly on enterprise customers through its cloud services and had not invested much in developing its ChatGPT-style consumer app.
This move also responds to strong competition in China’s AI market after DeepSeek started a price war by prioritizing low-cost AI compute and app development, which has pressured other companies.
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.
6. CoreWeave, Inc. (NASDAQ:CRWV)
Year-to-Date Performance: 85.73%
Number of Hedge Fund Holders: 62
CoreWeave, Inc. (NASDAQ:CRWV) is one of the best-performing AI stocks heading into 2026. On November 19, Wells Fargo reaffirmed its Buy rating on CoreWeave, Inc. (NASDAQ:CRWV) with a price target of $150.
However, on November 11, JPMorgan downgraded CoreWeave, Inc. (NASDAQ:CRWV) from Overweight to Neutral and lowered the price target from $135 to $110. The firm cited supply chain challenges that are affecting revenue timing.
The delays are due to a third-party data center developer falling behind schedule. As a result, some of CoreWeave, Inc.’s (NASDAQ:CRWV) expected revenue for the fourth quarter will now come in later than previously projected. JPMorgan noted that the capacity constraints, which were affecting major hyperscalers, are now impacting CoreWeave, Inc. (NASDAQ:CRWV).
The research firm also pointed out the company’s expansion into government contracts by launching CoreWeave Federal. CoreWeave, Inc. (NASDAQ:CRWV) has gained new customers like NASA and the UK government, which makes the government business opportunity more visible.
Despite the near-term challenges, JPMorgan believes CoreWeave, Inc. (NASDAQ:CRWV) has a “tremendous long-term opportunity” to benefit from the growing AI market. The firm highlighted the company’s momentum through big business deals and an expanding customer base.
On November 11, Macquarie also cut its price target on CoreWeave, Inc. (NASDAQ:CRWV) from $140 to $115 and kept a Neutral rating. The research firm noted that delays will affect the company’s performance in the fourth quarter.
CoreWeave, Inc. (NASDAQ:CRWV) is an American AI cloud-computing company that offers cloud solutions for scaling, supporting, and accelerating generative AI.
5. Palantir Technologies Inc. (NASDAQ:PLTR)
Year-to-Date Performance: 120.47%
Number of Hedge Fund Holders: 81
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best-performing AI stocks heading into 2026. On November 13, Freedom Capital Markets increased its price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $125 to $170 but kept a Sell rating.
This update came after the company reported Q3 2025 results, which beat both guidance and market expectations. Palantir Technologies Inc. (NASDAQ:PLTR) reported strong growth in its US Commercial segment. However, Freedom Capital noted that European operations stayed flat. The company’s management provided Q4 guidance above market expectations and increased its full-year 2025 outlook.
Freedom Capital also pointed to potential risks for Palantir Technologies Inc. (NASDAQ:PLTR) in 2026. These include a possible slowdown in US Commercial growth after a record year, potential pressure on defense budgets, and margin challenges because of investments in hiring for its AI initiatives. Freedom Capital believes that Palantir Technologies Inc.’s (NASDAQ:PLTR) stock valuation is elevated and noted that the current high growth is “unlikely to persist indefinitely.”
Previously, on November 4, Morgan Stanley had also raised its price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $155 to $205 but maintained an Equal Weight rating. The firm’s analyst noted that the company had reported its ninth straight quarter of accelerated growth. Morgan Stanley noted that this momentum is expected to grow, citing Q4 growth guidance and strong new business bookings in Q3.
Palantir Technologies Inc. (NASDAQ:PLTR) is an American software company that specializes in big data analytics and AI platforms. The company serves key government and commercial enterprises.
4. Micron Technology, Inc. (NASDAQ:MU)
Year-to-Date Performance: 163.67%
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) is one of the best-performing AI stocks heading into 2026. On November 24, Morgan Stanley reiterated its Buy rating on Micron Technology, Inc. (NASDAQ:MU) and raised the price target from $325 to $338.
In other news, on November 17, Rosenblatt increased its price target on Micron Technology, Inc. (NASDAQ:MU) from $250 to $300 and kept its Buy rating on the stock.
Rosenblatt noted that demand for DRAM is growing. However, the DRAM supply growth is expected to be limited through 2026. The research firm pointed out that the demand for DRAM is increasing, driven by AI accelerators requiring High Bandwidth Memory (HBM) and AI models being deployed at the network edge, including smartphones and PCs.
The research firm observed that prices for DRAM and NAND are rising faster than previously expected. This led Rosenblatt to raise its financial projections for Micron Technology, Inc. (NASDAQ:MU).
Previously, on November 7, Wells Fargo also increased its price target on Micron Technology, Inc. (NASDAQ:MU) to $300 from $220 and maintained an Overweight rating. This update came after meetings with the company’s CEO, Sanjay Mehrotra and Executive Vice President of Global Operations, Manish Bhatia.
Wells Fargo pointed out that the meetings confirmed the firm’s positive view of Micron Technology, Inc.’s (NASDAQ:MU) strong market position, solid execution, and the outlook for the memory industry.
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.
3. Applied Digital Corporation (NASDAQ:APLD)
Year-to-Date Performance: 219.74%
Number of Hedge Fund Holders: 38
Applied Digital Corporation (NASDAQ:APLD) is one of the best-performing AI stocks heading into 2026. On November 12, Applied Digital Corporation (NASDAQ:APLD) reported that it expects to receive funding from a funding deal it announced earlier. This deal involves a perpetual preferred equity financing facility that could provide up to $5 billion with Macquarie Asset Management.
The company plans to draw about $787.5 million by the end of November 2025. These funds will help Applied Digital Corporation (NASDAQ:APLD) build two AI Factory campuses in North Dakota. These campuses are called Polaris Forge 1 and Polaris Forge 2.
According to the report by Applied Digital Corporation (NASDAQ:APLD), $450 of the expected funding will be used to complete Polaris Forge 2 in Harwood, North Dakota. This campus has also leased 200 MW of critical IT supply to a US-based Investment Grade Hyperscaler. The customer also holds the first right of refusal for an additional 800 MW, which could bring the total expansion potential of the site to 1 GW.
The remaining $337.5 million will be funded by Macquarie Asset Management into Polaris Forge 1, Applied Digital Corporation’s (NASDAQ:APLD) AI factory campus in Ellendale, North Dakota. This is subject to the company closing a $2.35 billion senior secured notes offering and other customary conditions. This funding will provide capital for the 400-MW campus and help cover transaction costs and general business expenses.
This funding supports Applied Digital Corporation’s (NASDAQ:APLD) ongoing work on its AI infrastructure strategy and the confidence in the company’s ability to deliver at scale.
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.
2. Western Digital Corporation (NASDAQ:WDC)
Year-to-Date Performance: 237.27%
Number of Hedge Fund Holders: 84
Western Digital Corporation (NASDAQ:WDC) is one of the best-performing AI stocks heading into 2026. On November 20, Bank of America Securities reiterated its Buy rating on Western Digital Corporation (NASDAQ:WDC) and raised the price target from $170 to $197.
Previously, on October 31, TD Cowen had also increased its price target on Western Digital Corporation (NASDAQ:WDC) from $90 to $200 and kept a Buy rating.
TD Cowen’s analysis indicates that the outlook for the hard disk drive (HDD) industry remains positive. The research firm also noted that Western Digital Corporation (NASDAQ:WDC) reported “flawless” results. TD Cowen sees more growth potential for the stock as the company’s business visibility extends into 2027.
The research firm also noted that Western Digital Corporation (NASDAQ:WDC) could achieve a cyclical high gross margin of over 50%. This compares to about 31% in the previous cycle in 2021.
Additionally, according to a report by Reuters on October 31, JPMorgan analysts pointed out that Western Digital Corporation (NASDAQ:WDC) has secured purchase orders that extend through the calendar year 2026 with five of its biggest customers. This suggests that these customers are not willing to risk running out of storage capacity as “AI-related demand continues to march higher.”
Western Digital Corporation (NASDAQ:WDC) is an American company that manufactures hard disk drives and other data storage products.
1. Bloom Energy Corporation (NYSE:BE)
Year-to-Date Performance: 332.78%
Number of Hedge Fund Holders: 64
Bloom Energy Corporation (NYSE:BE) is one of the best-performing AI stocks heading into 2026. On November 25, BofA Securities increased its price target on Bloom Energy Corporation (NYSE:BE) from $26 to $39 but kept an Underperform rating.
This update comes as Bloom Energy Corporation (NYSE:BE) has surged more than 300% year-to-date. BofA Securities noted that the company’s execution has improved, which led to revised estimates. However, the firm is concerned about consensus revenue forecasts and believes the stock’s current price level leaves limited room for growth.
BofA Securities now expects Bloom Energy Corporation (NYSE:BE) to see about a 40% MW compound annual growth rate through 2028. This suggests that demand for the company’s products is increasing. However, the research firm cautioned that maintaining this growth trajectory past 2027 would need a big jump in new awards.
The firm still sees a negative risk/reward profile. BofA Securities also noted that Q4 backlog metrics will be the next catalyst for what it sees as “muted order activity versus splashy headlines.”
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.
While we acknowledge the potential of BE 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 BE and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
