In this piece, we discuss the 15 Stocks That Will Benefit From AI.
It is a strange paradox: Sam Altman, the face of OpenAI, warns of an AI bubble as his business approaches a staggering $500 billion valuation. If this is what a bubble looks like, it is unlike anything we have seen before. In contrast to the urgent funding rounds of previous tech manias, the wealth streaming into AI now appears to be a deliberate investment in an ongoing platform transformation.
Altman’s caution comes with a grin. In the same breath that he advises against unrealistic expectations, he nonchalantly mentions OpenAI spending trillions of dollars on data centers. Microsoft and Meta, too, are investing tens of billions in AI infrastructure. These aren’t whimsical wagers. They are strategic moves by firms that see AI as the next great computing platform, similar to the internet and mobile before it.
The adoption stats back this up. The use of reasoning models is growing rapidly, and AI workloads could account for more than 80% of worldwide computing by 2030. Yes, some valuations appear to be stretched, and some firms are overhyped. However, infrastructure investment on this scale is not about chasing immediate returns; rather, it is about establishing the foundation of an economy that is increasingly shaped by intelligent systems.
For investors, the message is clear: not all AI stocks will succeed, but those related to infrastructure, adoption, and real-world implementation will benefit the most.
With this backdrop in mind, let us proceed to our pick of the 15 Stocks That Will Benefit from AI.
Photo by Possessed Photography on Unsplash
Our Methodology
To curate our list of the 15 Stocks That Will Benefit From AI, we used the Finviz screener to extract a list of AI Enablers (companies involved in developing AI models, chips, and cloud infrastructure) and AI Adopters (companies that are leveraging AI for efficiency and innovation) with strong EPS growth estimates for the next year. Next, we ranked these stocks in ascending order based on the number of hedge funds holding stakes in them, as of Q2 2025. We relied on Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Kyndryl Holdings, Inc. (NYSE:KD)
EPS Next Year: 65.76%
Number of Hedge Fund Holders: 39
With a strong EPS growth estimate for the next year and significant hedge fund interest, Kyndryl Holdings, Inc. (NYSE:KD) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
On August 18, 2025, Kyndryl Holdings, Inc. (NYSE:KD) reinforced its position as a leader in technological services by signing the White House’s Pledge to America’s Youth: Investing in AI Education. The effort, which is supported by over 60 U.S. organizations, is consistent with President Trump’s objective of expanding AI instruction nationwide.
With this promise, Kyndryl and the Kyndryl Foundation will work with the White House Task Force on Artificial Intelligence Education to increase AI learning opportunities for K-12 students. CEO Martin Schroeter stressed Kyndryl Holdings, Inc. (NYSE:KD)’s role in building the future workforce, emphasizing the need to provide students with the necessary AI skills and confidence to thrive in the digital age.
Kyndryl Holdings, Inc. (NYSE:KD) is a global technology services company that provides cloud, artificial intelligence, security, and IT infrastructure solutions to industries worldwide, including banking, healthcare, telecom, retail, and government. It is on our list of the Best AI Stocks.
14. Wayfair Inc. (NYSE:W)
EPS Next Year: 97.31%
Number of Hedge Fund Holders: 43
Wayfair Inc. (NYSE:W) is one of the 15 Stocks That Will Benefit From AI.
On August 20, 2025, Jefferies raised its price target on Wayfair Inc. (NYSE:W) from $74 to $91 while retaining a Buy rating, citing improved customer sentiment toward the online home goods firm. Morning Consult survey results showed that sharper pricing enhanced shoppers’ perception of value in Wayfair’s marketplace, resulting in record levels of buy intent.
In light of this progress, Jefferies reaffirmed its sales and EBITDA expectations for 2025 and 2026, which are above consensus. The new price target is a 23% rise over the firm’s previous estimate, indicating rising confidence in Wayfair Inc. (NYSE:W)’s ability to capture demand in a competitive retail environment.
Wayfair Inc. (NYSE:W) is a global e-commerce company that sells furniture, décor, housewares, and home renovation products under several names, including Wayfair, AllModern, Birch Lane, and Perigold. It is on our list of the Best AI Stocks.
13. SentinelOne, Inc. (NYSE:S)
EPS Next Year: 73.55%
Number of Hedge Fund Holders: 44
With a strong EPS growth estimate for the next year and significant hedge fund interest, SentinelOne, Inc. (NYSE:S) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
On August 12, 2025, Cantor Fitzgerald restated its Overweight rating and $24 price target for SentinelOne, Inc. (NYSE:S), ahead of its Q2 fiscal 2026 earnings on August 28. The firm emphasized SentinelOne’s strong enterprise adoption, platform expansion, and an expected increase in Net New Annual Recurring Revenue (NNARR).
This confidence comes despite previous challenges— SentinelOne, Inc. (NYSE:S) reduced FY2026 revenue projection by 1% and failed FactSet NNARR and billings estimates in Q1 due to contract delays and spending freezes. Cantor acknowledged execution risks and obstacles in Endpoint Detection and Response, but cited the company’s 28% sales increase over the previous year as evidence of resiliency in a competitive cybersecurity context.
SentinelOne, Inc. (NYSE:S) is a global cybersecurity provider whose AI-powered Singularity Platform automates threat prevention, detection, and response across endpoints, cloud workloads, and identities, allowing for seamless protection against emerging cyber threats. It is on our list of the Best AI Stocks.
12. Sandisk Corporation (NASDAQ:SNDK)
EPS Next Year: 110.25%
Number of Hedge Fund Holders: 44
Sandisk Corporation (NASDAQ:SNDK) is one of the 15 Stocks That Will Benefit From AI.
On August 15, 2025, Cantor Fitzgerald confirmed its Overweight rating and $50 price target for Sandisk Corporation (NASDAQ:SNDK) following the company’s excellent June-quarter results beat. However, a weaker EPS projection for September hurt investor confidence. Management cited a 14-week quarter that increased spending.
Despite near-term margin erosion from higher BiCS8 costs, Cantor expects profitability to stabilize as the cost per bit falls and average selling prices climb. Sandisk Corporation (NASDAQ:SNDK) reported that channel inventories have steadied, with its own levels improving to 135 days from 150 last quarter. The business raised profit expectations for 2025 and 2026, arguing that the stock appears undervalued, particularly after a 10%+ post-results decline, with analyst targets ranging from $37 to $70 and consensus leaning favorable.
Sandisk Corporation (NASDAQ:SNDK) creates and distributes NAND flash-based data storage products, such as SSDs, embedded storage, and detachable drives, to OEMs, cloud providers, and consumers worldwide across a variety of industries and applications. It is on our list of the Best AI Stocks.
11. Remitly Global, Inc. (NASDAQ:RELY)
EPS Next Year: 236.18%
Number of Hedge Fund Holders: 46
With a strong EPS growth estimate for the next year and significant hedge fund interest, Remitly Global, Inc. (NASDAQ:RELY) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
On August 7, 2025, KeyBanc increased its price target for Remitly Global, Inc. (NASDAQ:RELY) to $28 from $27, keeping an Overweight rating following the company’s solid Q2 results and raising FY2025 outlook. Remitly’s 35% revenue growth over the last year, as well as its strong current ratio of 2.85, demonstrated strong execution. KeyBanc also cited the company’s innovation pipeline, which includes Remitly One (a multi-currency wallet) and Remitly Business (introduced earlier this year), as major growth drivers.
With additional product improvements coming in September, analysts see chances to expand the company’s addressable market and improve unit economics. Remitly Global, Inc. (NASDAQ:RELY) boosted its revenue forecast for FY2026, saying that investments in new products could broaden Remitly’s growth runway and enable long-term margin expansion.
Remitly Global, Inc. (NASDAQ:RELY) offers digital cross-border remittances and financial services through its mobile app and website, with customers in the United States, Canada, and other countries. It is on our list of the Best AI Stocks.
10. Etsy, Inc. (NASDAQ:ETSY)
EPS Next Year: 75.78%
Number of Hedge Fund Holders: 47
Etsy, Inc. (NASDAQ:ETSY) is one of the 15 Stocks That Will Benefit From AI.
On August 20, 2025, Truist Securities boosted its price target for Etsy, Inc. (NASDAQ:ETSY) to $75 from $70, retaining a Buy rating based on positive Truist Card Data signals. The firm revealed that marketplace revenue is rising above consensus for the quarter to August 16, boosted by softening year-over-year comparisons into late 2025. Truist noted Etsy’s ongoing growth initiatives, such as increased product quality, discoverability, and marketing efficiency, particularly in securing ad auctions.
Although macroeconomic uncertainties and tariff threats persist, the firm believes Etsy, Inc. (NASDAQ:ETSY)’s exposure is manageable. With favorable seasonal tailwinds ahead, experts anticipate a positive year-end result and higher growth into 2026.
Etsy, Inc. (NASDAQ:ETSY) provides three global online marketplaces—Etsy, Reverb, and Depop—that link craftsmen and businesses with buyers and provide services such as advertising, payments, logistics, and seller support tools. It is on our list of the Best AI Stocks.
9. Microchip Technology Incorporated (NASDAQ:MCHP)
EPS Next Year: 84.97%
Number of Hedge Fund Holders: 56
With a strong EPS growth estimate for the next year and significant hedge fund interest, Microchip Technology Incorporated (NASDAQ:MCHP) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
On August 19, 2025, J.P. Morgan restated its Buy rating on Microchip Technology Incorporated (NASDAQ:MCHP) with a $92.50 price target, indicating confidence in the company’s cyclical recovery. This follows the company’s August 12 presentation at the KeyBanc Technology Leadership Forum, during which management noted strong booking momentum—July orders were the greatest in three years—along with 10.8% sequential revenue growth and stronger distributor sell-through.
Meanwhile, on August 8, 2025, Morgan Stanley raised its price target on Microchip Technology Incorporated (NASDAQ:MCHP) to $63, reiterating its Equal Weight rating.
Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures embedded control systems, such as microcontrollers, analog devices, memory, and FPGAs, for the automotive, industrial, computing, aerospace, communications, and consumer sectors worldwide. It is on our list of the Best AI Stocks.
8. Lyft, Inc. (NASDAQ:LYFT)
EPS Next Year: 133.37%
Number of Hedge Fund Holders: 56
Lyft, Inc. (NASDAQ:LYFT) is one of the 15 Stocks That Will Benefit From AI.
On August 19, 2025, TD Cowen reiterated its Buy rating and $22 price target for Lyft, Inc. (NASDAQ:LYFT), following the departure of co-founders Logan Green and John Zimmer from the board, completing a two-year leadership transition under CEO David Risher. On August 15, the firm highlighted Lyft’s elimination of its dual-class share structure, describing the action as “shareholder-friendly” and a vote of confidence in Risher’s leadership.
TD Cowen continues to rank Lyft, Inc. (NASDAQ:LYFT) as its “Best Smidcap Idea for ’25,” noting impending growth opportunities and a stronger governance structure. Analysts believe that the combination of strategic leadership changes and operational focus represents a new era of stability and growth for the ridesharing business.
Lyft, Inc. (NASDAQ:LYFT) operates a ridesharing marketplace in the United States and Canada, connecting drivers and customers and providing multimodal transportation alternatives such as car rentals, shared bikes, and scooters via its mobile app. It is on our list of the Best AI Stocks.
7. Affirm Holdings, Inc. (NASDAQ:AFRM)
EPS Next Year: 1558.68%
Number of Hedge Fund Holders: 63
With a strong EPS growth estimate for the next year and significant hedge fund interest, Affirm Holdings, Inc. (NASDAQ:AFRM) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
On August 21, 2025, RBC Capital reaffirmed its Sector Perform rating and $75 price target for Affirm Holdings, Inc. (NASDAQ:AFRM), citing both opportunities and difficulties ahead. Analysts warned of a potential loss of Walmart volume—about 5% of GMV—which could dampen fiscal 2026 estimates, but planned U.K. launches with Shopify may offset this impact.
Just days before, on August 13, Affirm Holdings, Inc. (NASDAQ:AFRM) strengthened its partnership with Stripe by introducing the first BNPL integration on Stripe Terminal, broadening its reach to in-store shoppers across over one million devices. While RBC acknowledged increased U.S. competition, Affirm’s persistent outperformance on GMV forecasts and rising omnichannel presence reflect the company’s evolving role in the payment ecosystem.
Affirm Holdings, Inc. (NASDAQ:AFRM) offers transparent buy now, pay later solutions that empower consumers with flexible payment alternatives while assisting merchants to accelerate growth, enhance order value, and reach new customers with no hidden fees. It is on our list of the Best AI Stocks.
6. Toast, Inc. (NYSE:TOST)
EPS Next Year: 60.25%
Number of Hedge Fund Holders: 64
Toast, Inc. (NYSE:TOST) is one of the 15 Stocks That Will Benefit From AI.
Citing robust second-quarter earnings momentum, Truist Securities raised its price target on Toast, Inc. (NYSE:TOST) from $50 to $51 on August 13, 2025, and reaffirmed its Buy rating. Despite impending short-term margin headwinds, the company emphasized projections for greater recurring gross profit growth over the next few years.
Due to Toast, Inc. (NYSE:TOST)’s plan to increase its spending on distribution in the second half of 2025, Truist marginally reduced its adjusted EBITDA projections for 2025 and 2026. Additionally, the investment firm assumes that possible tariffs could raise average hardware costs by 15% in 2026.
Analysts stressed that these challenges should be overcome by recurring revenue strength, as the new target implies a 49x multiple on 2026 free cash flow and confidence in long-term growth.
With its point-of-sale, operations, payroll, supply chain, and fintech solutions, Toast, Inc. (NYSE:TOST) provides a cloud-based platform for restaurants all over the world, assisting companies in improving efficiency and streamlining management for both online and in-person dining experiences. It is on our list of the Best AI Stocks.
5. Reddit, Inc. (NYSE:RDDT)
EPS Next Year: 83.53%
Number of Hedge Fund Holders: 72
With a strong EPS growth estimate for the next year and significant hedge fund interest, Reddit, Inc. (NYSE:RDDT) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
Following a series of impressive upgrades, Reddit, Inc. (NYSE:RDDT) is garnering new momentum on Wall Street. After Reddit’s impressive second-quarter earnings, Deutsche Bank increased its price target to $205 from $180 on August 4, 2025, and reaffirmed its Buy rating. The platform reported a 21% increase in global DAUs to 110.4 million, roughly 70% year-over-year revenue growth, and 91% gross profit margins. July also showed ongoing net additions in the United States and international markets.
Despite challenges from Google, analysts attributed steady user growth to new publisher agreements and marketing techniques. On August 18, momentum increased even more when Argus Research began covering Reddit, Inc. (NYSE:RDDT) with a $250 target and a Buy rating, demonstrating their faith in the platform’s ability to deliver long-term growth.
Through interest-based forums, Reddit, Inc. (NYSE:RDDT) runs a global digital community platform that brings people together to participate in discussions, share content, and engage with a wide range of subjects, interests, and experiences—all of which promote learning and a sense of community. It is on our list of the Best AI Stocks.
4. Coupang, Inc. (NYSE:CPNG)
EPS Next Year: 123.60%
Number of Hedge Fund Holders: 80
Coupang, Inc. (NYSE:CPNG) is one of the 15 Stocks That Will Benefit From AI.
Following the company’s impressive second-quarter results, Morgan Stanley raised its price target on Coupang, Inc. (NYSE:CPNG) from $32 to $35 on August 20, 2025, reiterating its Overweight rating. Coupang demonstrated increasing business momentum with a 30% gross profit margin and a 19% increase in revenue. Taiwan is currently the focus of investor attention, as the company foresees a bright future there.
According to Morgan Stanley, the unit is a “key driver of longer-term growth,” and Coupang, Inc. (NYSE:CPNG)’s expansion story revolves around its eventual profitability. The higher target highlights confidence in the company’s global trajectory by reflecting forecasts of higher earnings contributions from Taiwan, as well as reduced share price volatility and lower correlation in recent years.
With its main operations in South Korea and growing presence in Taiwan and other regions, Coupang, Inc. (NYSE:CPNG) runs a worldwide e-commerce ecosystem that includes retail, grocery, food delivery, digital content, fintech, and luxury fashion. It is on our list of the Best AI Stocks.
3. DoorDash, Inc. (NASDAQ:DASH)
EPS Next Year: 68.91%
Number of Hedge Fund Holders: 81
With a strong EPS growth estimate for the next year and significant hedge fund interest, DoorDash, Inc. (NASDAQ:DASH) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
A significant milestone was reached on August 19 when the European Commission started evaluating DoorDash, Inc. (NASDAQ:DASH)’s proposed $3.9 billion acquisition of UK-based Deliveroo under its streamlined merger procedure, indicating probable approval. First reported in May, the buyout occurs as Deliveroo faces declining post-pandemic demand.
A day earlier, on August 18, DoorDash announced its efforts to integrate AI into its business. Mariana Garavaglia, the company’s chief people officer, said AI was enabling staff members to innovate more quickly, automate processes, and customize training initiatives. When taken as a whole, these actions highlight DoorDash, Inc. (NASDAQ:DASH)’s dual objective of expanding internationally and strengthening its technology advantage.
With brands like DoorDash Marketplace and Wolt Marketplace, DoorDash, Inc. (NASDAQ:DASH) runs a global commerce platform that links retailers, customers, and independent contractors via food delivery, logistics, and digital services. It is on our list of the Best AI Stocks.
2. Intel Corporation (NASDAQ:INTC)
EPS Next Year: 160.27%
Number of Hedge Fund Holders: 91
Intel Corporation (NASDAQ:INTC) is one of the 15 Stocks That Will Benefit From AI.
Intel Corporation (NASDAQ:INTC) said on August 20 that its new Xeon 6 processors, which provide industry-leading memory bandwidth and performance for workloads driven by AI and compliance, are powering Amazon’s EC2 R8i and R8i-flex instances. With early adopters like Netflix and CrowdStrike already reporting productivity gains, the milestone demonstrates Intel’s close partnership with AWS.
On August 21, Bank of America reaffirmed its Neutral rating and $25 price target on Intel Corporation (NASDAQ:INTC), warning that Intel Corporation (NASDAQ:INTC)’s stock would stay range-bound until its 18A process yields and external customer validation are clarified. Reports that the U.S. government would convert prior funding into a 10% equity position also raised concerns about possible dilution risks, according to BofA. In the end, analysts emphasized that manufacturing competitiveness is critical to Intel’s prospects.
Providing hardware and software platforms that enable AI, cloud, networking, edge, and digital transformation for businesses and consumers, Intel Corporation (NASDAQ:INTC) is a global designer and manufacturer of semiconductors, processors, and computer systems. It is on our list of the Best AI Stocks.
1. Micron Technology, Inc. (NASDAQ:MU)
EPS Next Year: 57.58%
Number of Hedge Fund Holders: 96
With a strong EPS growth estimate for the next year and significant hedge fund interest, Micron Technology, Inc. (NASDAQ:MU) secures a spot on our list of the 15 Stocks That Will Benefit From AI.
Barclays’ reaffirmation of its Overweight rating and $140 price target, which reflected optimism regarding improving fundamentals, drove shares of Micron Technology, Inc. (NASDAQ:MU) higher on August 11. MU raised sales guidance to $11.2 billion from $10.7 billion, with gross margins climbing to 44.5%. Resilient shipment volumes and broad-based price strength across the datacenter, PC, and mobile markets helped lift its EPS projection from $2.50 to $2.85.
However, Barclays noted possible demand pull-forward in mobile devices and PCs. Micron Technology, Inc. (NASDAQ:MU) emphasized the growing popularity of its HBM3e 12-hi memory, which is outpacing previous 8-hi models in terms of production volume. The company anticipates that supply will be completely sold by 2026.
Through its Micron and Crucial brands, Micron Technology, Inc. (NASDAQ:MU) creates and markets cutting-edge memory and storage solutions for the data center, PC, mobile, automotive, industrial, and consumer industries worldwide. It is on our list of the Best AI Stocks.
While we acknowledge the potential of MU to grow, 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 MU and that has 100x upside potential, check out our report about this cheapest AI stock.
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