In this article, we will take a look at the 20 Best AI Stocks to Buy According to Analysts.
The S&P 500 is on track to finish the year with a gain exceeding 17%, thanks to a 26% boost in technology stocks. The solid performance comes as investors continue to pour money into stocks related to artificial intelligence.
Meanwhile, market analyst Ed Yardeni believes the index will hit 7,700 next year, with a 60% chance of achieving his “Roaring 2020s” scenario. He noted, among other things, that tax breaks from the “One Big Beautiful Bill” that was passed this year and AI boom to be behind this growth.
That said, Wall Street had grown concerned that software and internet companies will limit their expenditures in data centers, pulling down chip stocks. The concern is that returns on large-scale AI investments will fall short of market expectations. In this context, Stifel analyst Brad Reback anticipates “a shift in investor sentiment towards the relative safety of incumbent technology given its highly recurring, stable, and very profitable revenue bases and attractive relative valuations.”
Nonetheless, Bank of America analysts stated that AI is “still the place to be” going into 2026 and that chip stocks are among the best ways to profit from the AI boom. The firm’s updated study casts doubt on the AI bubble theory, focusing instead on the positive outlook for chipmakers. Bank of America expects that the AI market will be volatile at first, but will eventually finish strong as data center buildouts continue and companies raise their manufacturing and equipment spending.
Our Methodology
To determine the best AI stocks to buy according to analysts, we conducted an in-depth review of companies advancing AI innovation and infrastructure. We focused on firms poised to benefit from the AI boom and showing strong analyst sentiment, including those with more than 20% upside potential, as of December 29.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
20. Ciena Corporation (NYSE:CIEN)
Analyst Upside: 22.08%
Number of Hedge Fund Holders: 70
Ciena Corporation (NYSE:CIEN) ranks among the best AI stocks to buy according to analysts. On December 12, UBS boosted Ciena Corporation (NYSE:CIEN)’s price target to $230 from $120 while keeping a Neutral rating on the company’s shares. The hike followed Ciena’s fiscal fourth-quarter results, which UBS reported were “sharply above” its forecasts but in line with broader investor projections.
The company’s Q4 revenue came in at $1.35 billion, with earnings per share at $0.91. This performance outperformed street expectations of $1.29 billion in revenue and $0.77 per share. The company’s overall sales increased by around 20%, owing to a significant 50% year-over-year spike in webscale customers, who make up 42% of total sales.
Ciena’s growth strategy is bolstered by an estimated $5 billion in backlog at the end of the year, which follows $7.8 billion in orders throughout fiscal 2025. Although the company did not issue a three-year revenue forecast, UBS expects Ciena Corporation (NYSE:CIEN) could achieve double-digit revenue increases in fiscal years 2027 and 2028 on account of significant AI infrastructure demand from hyperscalers.
Ciena Corporation (NYSE:CIEN) provides networking hardware, software, and services to operators worldwide. Its operations include optical transport and IP routing, network management, multi-domain orchestration, analytics, and consulting. The company’s recent operations have been bolstered by AI-focused networking solutions and data center expansion.
19. Salesforce, Inc. (NYSE:CRM)
Analyst Upside: 26.73%
Number of Hedge Fund Holders: 119
Salesforce, Inc. (NYSE:CRM) ranks among the best AI stocks to buy according to analysts. On December 4, Piper Sandler reaffirmed its Overweight rating and $315 price target for Salesforce, Inc. (NYSE:CRM) following the company’s third-quarter results, noting solid advancements in its artificial intelligence products.
The CRM powerhouse reported Q3 revenue of $10.3 billion, a 9% year-over-year rise, as well as operational cash flow of $2.3 billion, up 17% year-over-year, along with free cash flow of $2.2 billion, up 22% year-over-year. Meanwhile, revenue guidance for the fourth quarter exceeded Wall Street expectations. Salesforce, Inc. (NYSE:CRM) forecasts adjusted earnings per share of $3.02 to $3.04 with revenue of $11.13 billion to $11.23 billion.
Additionally, Salesforce, Inc. (NYSE:CRM) reported a 70% quarter-over-quarter rise in production customers, from 800 to about 2,200. The company’s total ARR is currently near 4% due to its combined data and AI solutions.
Piper Sandler noted that Salesforce’s Agentforce annual recurring revenue has hit $540 million, accounting for 1.4% of the company’s subscription run-rate. This expansion was complemented by encouraging customer feedback, with nearly 50% of Agentforce bookings coming from current customers who made additional commitments, up from 40% the prior quarter.
Salesforce, Inc. (NYSE:CRM) is a California-based provider of customer relationship management (CRM) technology. Incorporated in 1999, the company connects companies and customers together through its core offerings, including Agentforce, Data Cloud, Industries AI, and Slack.
18. Meta Platforms, Inc. (NASDAQ:META)
Analyst Upside: 27.9%
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) ranks among the best AI stocks to buy according to analysts. On December 11, Piper Sandler reiterated its Overweight rating on Meta Platforms, Inc. (NASDAQ:META) with a $840 price target, naming it the firm’s top large-cap selection. According to the firm, Meta Platforms, Inc. (NASDAQ:META) shares have returned in the mid-single digits over the preceding year despite a 10% multiple compression.
According to Piper Sandler’s advertising buyer survey, the market is expected to develop faster through 2026, which should be favorable for Meta Platforms, Inc. (NASDAQ:META), considering its well-established position in social media. Due to these favorable market conditions, the firm predicts that Meta’s revenue will increase by approximately 20% year-over-year in 2026.
The company’s focus on incorporating AI into its platforms, such as Facebook, WhatsApp, and Instagram, is improving user engagement and boosting ad revenues. In the third quarter of 2025, advancements in AI-powered recommendation algorithms resulted in a 5% rise in time spent on Facebook and a 30% increase on Threads. In the same quarter, Meta Platforms, Inc. (NASDAQ:META) launched AI technologies such as video production, image animation, and AI-generated music to assist advertisers in optimizing their ad creatives and improving performance.
Meta Platforms, Inc. (NASDAQ:META) is focused on developing AI-powered social platforms and immersive technologies, including Messenger, Instagram, and WhatsApp.
17. Adobe Inc. (NASDAQ:ADBE)
Analyst Upside: 29.69%
Number of Hedge Fund Holders: 88
Adobe Inc. (NASDAQ:ADBE) ranks among the best AI stocks to buy according to analysts. Piper Sandler reaffirmed its Overweight rating and $470 price target for Adobe Inc. (NASDAQ:ADBE) on December 11 in response to the company’s fiscal year 2025 results. With a $94 million revenue beat, the software giant outperformed the previous four-quarter average record of $77 million.
Additionally, Adobe Inc. (NASDAQ:ADBE) stated that it anticipates fiscal first-quarter revenue to be between $6.25 billion and $6.3 billion, exceeding Wall Street projections of $6.23 billion. Adobe Inc. (NASDAQ:ADBE) anticipates revenue for the full fiscal year to be around $25.9 billion and $26.1 billion, although analysts projected $25.89 billion.
The software company continued to generate significant cash flow and aggressively repurchased shares, setting its fiscal year 2026 net new Digital Media ARR target at a record $2.6 billion.
According to Piper Sandler, Adobe’s artificial intelligence operations gained solid traction, with AI credit consumption jumping threefold quarter-over-quarter. Meanwhile, the company’s AI-influenced annual recurring revenue has topped $8 billion.
Adobe Inc. (NASDAQ:ADBE) is a software company that specializes in creating, publishing, and promoting digital content. It offers a wide range of tools for professionals and consumers, including Photoshop, Illustrator, Acrobat, and Premiere Pro, which are often bundled in the Adobe Creative Cloud subscription.
16. Baidu, Inc. (NASDAQ:BIDU)
Analyst Upside: 30.53%
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) ranks among the best AI stocks to buy according to analysts. On December 15, Citi opened a 90-day upside catalyst watch on Baidu, Inc. (NASDAQ:BIDU), indicating possible favorable developments in the upcoming months, while maintaining its Buy rating on the company’s shares with a $181 price target.
The announcement of the Kunlunxin spin-off in December creates $3 billion in semiconductor value while preserving strategic chip ownership. Kunlunxin is one of the few Chinese companies developing technology necessary for AI training and inference. It creates accelerators that are used in servers throughout data centers. Its efforts have been crucial to Beijing’s long-standing goal of reducing reliance on US technology, especially Nvidia chips.
In addition to Kunlunxin, the most significant recent development is Baidu’s November 2025 release of the ERNIE 5.0 foundation model and improved AI product suite, which supports its efforts to further integrate AI across its cloud and search offerings. According to the company, Ernie 5.0 kept up with industry leaders like DeepSeek, Gemini, and GPT-5 in on-stage language, audio, and visual data understanding assessments.
Baidu, Inc. (NASDAQ:BIDU), a leading Chinese technology company, manages China’s largest internet search engine. The company has also expanded into AI-driven initiatives that include self-driving technology.
15. Microsoft Corporation (NASDAQ:MSFT)
Analyst Upside: 32.79%
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) ranks among the best AI stocks to buy according to analysts. On December 17, Morgan Stanley retained Microsoft Corporation (NASDAQ:MSFT) as its top pick in large-cap software, citing sustained demand across its divisions and strong prospects for operating margin growth. Analyst Keith Weiss maintained a Buy rating and a $650 price target for the company’s shares.
Meetings with Microsoft Corporation (NASDAQ:MSFT) executives, according to Weiss, left the firm “with conviction on robust demand translating to durable mid-teens top-line growth and increased confidence in ROI contributing to continued operating margin expansion.”
According to Morgan Stanley, Azure AI’s gross margins, which do not include OpenAI’s revenue share, may currently be around 20%. By FY29, these may rise to 30% and potentially surpass 40%, suggesting “very significant levels of upside to our model in the coming years.”
The firm further stated that this upside is supported by the new Capex-Implied approach for Azure estimations, which takes into account interactions with Microsoft Corporation (NASDAQ:MSFT) leadership that attest to faster bookings, RPO, and product adoption.
Additionally, Morgan Stanley highlighted the attractive returns on AI investments, pointing out that “Azure AI margins already positive and tremendous focus on driving continued efficiency.”
Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.
14. Amazon.com, Inc. (NASDAQ:AMZN)
Analyst Upside: 33.83%
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best AI stocks to buy according to analysts. On December 16, BMO Capital retained its Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) and increased its price target to $304 from $300. The revision came in response to BMO’s cloud expert discussions with former AWS workers, one of whom had visibility to at least $4.7 billion in annual cloud spending, and disclosed accelerated cloud commitments.
BMO identified five major findings from its analysis: accelerated cloud commitments, agents enabling incremental cloud commitments, Claude as the development model of choice, AWS unlikely to build verticalized AI apps, and enterprise AI applications projected to expand by 2027.
Additionally, on December 9, Amazon.com, Inc. (NASDAQ:AMZN) announced that it plans to invest $35 billion in India throughout its operations by 2030. The company has already invested $40 billion, and the new $35 billion will add to that number.
The additional $35 billion investment will be used to expand Amazon.com, Inc. (NASDAQ:AMZN)’s operations, with an emphasis on AI-driven digitization, increased exports, and job creation.
Amazon.com, Inc. (NASDAQ:AMZN) is an American technology company that focuses on e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
13. Tempus AI, Inc. (NASDAQ:TEM)
Analyst Upside: 38.16%
Number of Hedge Fund Holders: 32
Tempus AI, Inc. (NASDAQ:TEM) ranks among the best AI stocks to buy according to analysts. On December 8, TD Cowen reaffirmed its Hold rating on Tempus AI, Inc. (NASDAQ:TEM), with an $88 price target. According to TD Cowen, analyst Dan Brennan will be joined by a co-analyst in covering the healthcare AI company. The added coverage will focus on leveraging TD Cowen’s artificial intelligence abilities to examine Tempus AI’s database and commercial applications.
Citing the company’s vast data assets as a competitive advantage, the firm believes Tempus AI, Inc. (NASDAQ:TEM) is “well positioned to be a leader” in the pharmaceutical R&D efficiency area. As genomics testing and data services gained traction, the company declared a revenue of $334.2 million, while adjusted EBITDA improved to $1.5 million.
In addition, Tempus AI, Inc. (NASDAQ:TEM) management is shifting a sizeable portion of xT CDx volume to FDA-approved and Advanced Diagnostic Laboratory Test tracks, with additional FDA filings planned. The company aims to submit xT for FDA approval by the end of this year, followed by the xR test, establishing a framework for ADLT pricing through 2026.
Tempus AI, Inc. (NASDAQ:TEM) is a technology company focused on precision medicine by applying artificial intelligence to healthcare data. The company provides next-gen sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing.
12. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Analyst Upside: 41.42%
Number of Hedge Fund Holders: 36
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) ranks among the best AI stocks to buy according to analysts. B.Riley maintained its price objective of $105 and upgraded Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) from Neutral to Buy on December 1. According to the firm, Kratos has an improved risk-reward profile since it holds “ample proprietary IP enabling an array of affordable solutions.”
B. Riley emphasized that Kratos Defense & Security’s capabilities in autonomy, hypersonics, and affordable and robust C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) could assist the company maintain and surpass expectations.
The firm’s study shows a modest decline in valuation multiples throughout the defense technology industry, with its tracked group of comparable companies currently trading at 8.7x FY26 EV/Revenue and 26.5x median EV/EBITDA, down from 10.5x and 29.0x previously. B.Riley argues that these premium multiples are nonetheless warranted for fast-growing defense technology companies amid what it calls “a generational recapitalization of strategic weapon systems” that rewards nimble innovators over traditional defense contractors.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops advanced technology, products, and systems for defense, national security, and commercial markets. It operates two main segments, including the Government Solutions and Unmanned Systems.
11. Broadcom Inc. (NASDAQ:AVGO)
Analyst Upside: 41.69%
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) ranks among the best AI stocks to buy according to analysts. Citing robust development in the AI semiconductor industry, Benchmark increased its price target for Broadcom Inc. (NASDAQ:AVGO) from $385 to $485 on December 12, retaining a Buy rating on the company’s shares. According to Broadcom Inc. (NASDAQ:AVGO), its AI semiconductor division achieved $6.5 billion in Q4, improving 76% year-over-year and 25% sequentially.
The company reported $21 billion in orders from Anthropic over the last two quarters, while its six-quarter AI order backlog climbed to $73 billion. Broadcom’s list of clients now includes giants like Meta, ByteDance, and Google, as well as an additional contract with OpenAI to supply $1 billion in chips by late 2026.
According to Reuters, while Broadcom’s backlog is scheduled to ship over the next 18 months, CFO Kirsten Spears warned that margins could fall. She stated that the Q1 consolidated gross margin is likely to fall roughly 100 basis points sequentially, owing to a higher percentage of AI revenue.
Analysts quoted by Reuters emphasize two main risks for the company, including its excessive concentration on just five AI customers, and weaker margins on AI systems, which are likely to account for a greater share of the total revenue in coming quarters, notably in the second half of fiscal year 2026.
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments: Semiconductor Solutions and Infrastructure Software.
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Analyst Upside: 42.54%
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks among the best AI stocks to buy according to analysts. On December 2, TD Cowen restated its Buy rating and $290 price target for Advanced Micro Devices, Inc. (NASDAQ:AMD), naming it one of its “Best Ideas 2026” as the company prepares to unveil its Helios AI platform. Despite recent share price decline, the firm expressed optimism about AMD’s position in the artificial intelligence computing industry, stating that the current prices offer “an attractive entry point” for investors ahead of key product launches.
While acknowledging the potential of instability in the AI industry, TD Cowen highlighted AMD’s hardware roadmap, advancements in building its ROCm software ecosystem, and client successes as factors supporting its optimistic view of the company’s AI computing approach.
The firm particularly emphasized that the future Helios rack and MI450 products represent “a key inflection in AMD’s story beginning in mid-2026,” and it advised investors to buy the stock before this expected period of growth.
At the same time, AMD is intensifying its MI300 accelerators and preliminary work on the MI400 line. Over the coming years, both chip families are anticipated to be crucial to the company’s AI progress. Demand, according to management, is expanding beyond early showcase clients, with interests ranging from cloud providers to businesses.
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and builds high-performance computing, graphics, and AI technologies used across data centers, PCs, and emerging AI workloads.
9. ServiceNow, Inc. (NYSE:NOW)
Analyst Upside: 45.12%
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) ranks among the best AI stocks to buy according to analysts. Guggenheim upgraded ServiceNow, Inc. (NYSE:NOW) from Sell to Neutral on December 16, stating that the stock’s recent slide brought it back into fair value despite the brokerage’s warning that the company still faces structural issues.
The firm claims that valuation, not an improving outlook, was the driving force behind the upgrade. Although ServiceNow, Inc. (NYSE:NOW) has consistently reported strong quarterly results, the company has not been able to keep up with its peers, which has weakened the argument for betting against it and prevented it from recreating a compelling growth narrative.
The firm identified two primary concerns that are affecting ServiceNow’s sentiment. Firstly, it stated that although management has highlighted artificial intelligence as a major growth driver, expectations surrounding AI have not yet converted into significant revenue.
It also highlighted the growing risk associated with acquisitions. Just this year, ServiceNow, Inc. (NYSE:NOW) has completed a number of transactions and is reportedly considering a far larger acquisition of a security software firm.
According to Bloomberg, ServiceNow, Inc. (NYSE:NOW) is in negotiations to purchase cybersecurity firm Armis. The acquisition might reach almost $7 billion, making it ServiceNow’s largest acquisition to date.
ServiceNow, Inc. (NYSE:NOW) provides a cloud-based platform that helps organizations automate and manage digital workflows across IT, HR, customer service, and other business functions.
8. Zscaler Inc. (NASDAQ:ZS)
Analyst Upside: 46.49%
Number of Hedge Fund Holders: 50
Zscaler Inc. (NASDAQ:ZS) ranks among the best AI stocks to buy according to analysts. On December 16, Mizuho upgraded Zscaler Inc. (NASDAQ:ZS) to Outperform, noting valuation support despite ongoing concerns about near-term growth prospects. According to analyst Gregg Moskowitz, Zscaler Inc. (NASDAQ:ZS) shares “have been very weak since reporting a very solid F1Q,” with the decrease attributed to “F2Q net new ARR guidance slightly lower than prior” and the lack of “a specific contribution from the recent Red Canary acquisition.”
Despite significant top-line growth, Zscaler’s gross margins were under pressure due to the rapid adoption of newer products with lower margins. This position demanded higher operating expenses as the company sought market share in high-growth areas such as AI safety and expanding Zero Trust systems.
While the firm keeps pushing for “more transparency from management on ZS’s organic growth this year,” Mizuho is convinced that the company is “very well-positioned within SASE/Zero Trust.” The latest selloff, it believes, significantly reimburses investors for these risks.
Zscaler Inc. (NASDAQ:ZS) is a cloud-based security company that provides cybersecurity solutions by protecting user access to applications and data, regardless of location. It replaces traditional hardware-based security, such as VPNs and firewalls, with its cloud-native Zero Trust Exchange platform, which secures internet access and private applications.
7. NVIDIA Corporation (NASDAQ:NVDA)
Analyst Upside: 51.50%
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) ranks among the best AI stocks to buy according to analysts. NVIDIA Corporation (NASDAQ:NVDA) announced on December 15 that it had purchased AI software company SchedMD in an effort to combat growing competition by doubling down on open-source technologies and increasing investments in the artificial intelligence ecosystem.
SchedMD is the company that created Slurm, an open-source workload manager that is vital in high-performance computing (HPC) and large-scale artificial intelligence applications. NVIDIA Corporation (NASDAQ:NVDA) affirmed that Slurm will remain open source and vendor-neutral following the acquisition. As a result, the software will remain appropriate for varied setups containing hardware from various vendors.
In recent months, NVIDIA Corporation (NASDAQ:NVDA) has sought to expand its open source and open AI products.
At the beginning of December, the company launched Alpamayo-R1, a new open reasoning vision language model aimed at autonomous driving research. NVIDIA Corporation (NASDAQ:NVDA) also stated at the time that it had introduced new workflows and guidance for its Cosmos world models, which are open source according to a permissive license, helping developers better leverage the models to construct physical AI.
NVIDIA Corporation (NASDAQ:NVDA) designs and sells specialized processors, initially for gaming but now also crucial for AI, data centers, professional visualization, and the automotive industry.
6. SoundHound AI, Inc. (NASDAQ:SOUN)
Analyst Upside: 60.15%
Number of Hedge Fund Holders: 22
SoundHound AI, Inc. (NASDAQ:SOUN) ranks among the best AI stocks to buy according to analysts. SoundHound AI, Inc. (NASDAQ:SOUN) has been capitalizing on the growing demand for AI applications of late. On December 10, the company announced a collaboration with OpenTable to introduce an in-car speech AI technology that enables drivers to use voice commands to book restaurants.
The system links users to OpenTable’s global network of more than 60,000 restaurants and interfaces with automobile entertainment systems. At CES 2025, SoundHound AI, Inc. (NASDAQ:SOUN) unveiled its voice commerce platform with in-car food ordering features. In addition to the current takeout ordering options, the OpenTable integration broadens the platform to incorporate restaurant reservations.
Additionally, on November 25, Parkopedia and SoundHound AI, Inc. (NASDAQ:SOUN) announced an expanded relationship to launch an AI parking agent for cars as a component of SoundHound’s in-car voice purchase platform.
The partnership mixes SoundHound’s voice technology with Parkopedia’s global parking database, which spans roughly 90 million spots in 20,000 cities. In addition to highlighting special offers and offering real-time pricing and accessibility alternatives, the Parkopedia AI Agent makes recommendations about parking close to attractions.
SoundHound AI, Inc. (NASDAQ:SOUN) is a global leader in voice and conversational AI. Its product suite includes voice‑first solutions for retail, automotive, restaurants, finance, and more, from voice ordering and dynamic drive‑thrus to generative‑AI assistants for automotive and enterprise.
5. BlackSky Technology Inc. (NYSE:BKSY)
Analyst Upside: 64.13%
Number of Hedge Fund Holders: 16
BlackSky Technology Inc. (NYSE:BKSY) ranks among the best AI stocks to buy according to analysts. On December 17, BlackSky Technology Inc. (NYSE:BKSY) stated that it had successfully brought its third Gen-3 satellite into commercial operations, only three weeks after debut. The satellite incorporation represents a considerable increase in commissioning speed when compared to earlier launches, with the company noting that although its first Gen-3 satellite took five days to give early imagery, both of the subsequent units delivered imagery in just twelve hours.
Just over a month ago, BlackSky Technology Inc. (NYSE:BKSY) showed off its Gen-3 satellite capabilities at the Dubai Airshow by collecting a high-resolution image of a formation of L-15 planes during a live air show. The company claimed that its AI-powered analytics spotted every aircraft in the image, demonstrating what the company calls “real-time, space-based intelligence: enabling faster insight, greater situational awareness, and mission-ready analytics.”
BlackSky Technology Inc. (NYSE:BKSY) stated that it intends to continue extending its constellation at a regular rate, with each new Gen-3 satellite designed to boost capacity, reduce latency, and improve flexibility for customer applications.
BlackSky Technology Inc. (NYSE:BKSY) offers a range of products and services related to geospatial intelligence, imagery, and data analytics, as well as mission systems.
4. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Analyst Upside: 65.60%
Number of Hedge Fund Holders: 19
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) ranks among the best AI stocks to buy according to analysts. On December 17, JPMorgan raised Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) from a Neutral to an Overweight rating, boosting the price target to $11 from $10. The change follows the solid results of Recursion’s MEK 1/2 inhibitor, REC-4881, which showed potent effectiveness in FAP patients during the TUPELO trial.
After 12 weeks of treatment, the trial showed a 43% median reduction in total polyp burden, with 75% of evaluable patients experiencing reductions. Notably, 82% of patients sustained stable decreases 12 weeks after discontinuing medication, with a median reduction of 53% from baseline.
JPMorgan sees explosive potential for REC-4881 in the United States, projecting peak sales of more than $1 billion with a 60% chance of success. These clinical outcomes, as well as pharmaceutical agreements that have produced more than $500 million in milestone payments to date, have helped to confirm Recursion’s AI-driven pipeline.
According to the firm’s study, growing patient groups, stronger penetration rates, and pricing might all provide additional upside for Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX).
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), a clinical-stage biotech, is pioneering the use of artificial intelligence and machine learning to accelerate drug discovery, with a focus on rare diseases and oncology.
3. Monday.com Ltd. (NASDAQ:MNDY)
Analyst Upside: 69.25%
Number of Hedge Fund Holders: 55
Monday.com Ltd. (NASDAQ:MNDY) ranks among the best AI stocks to buy according to analysts. On December 17, BTIG began coverage of Monday.com Ltd. (NASDAQ:MNDY) with a $210 price target and a Buy rating. The firm emphasized monday.com’s solid expansion, citing the company’s 26% revenue increase in Q3 and forecasted free cash flow margins of 27% in fiscal year 2025.
According to analyst Allan Verkhovski, market worries around the influence of AI-driven Google SEO and recent financial outcomes seem exaggerated. He noted that monday.com’s new products are fast scaling, with annual recurring revenue from these products hitting $133 million, accounting for 10% of its total revenue and growing 84% year-over-year.
BTIG showed optimism regarding management’s fiscal year 2027 revenue target of $1.8 billion, which represents a two-year CAGR of 21%. The firm cited AI monetization potential, accelerating metrics from the previous quarter, and distinct offerings like Campaigns and Vibes as factors that support an appealing risk/reward profile for the company.
Monday.com Ltd. (NASDAQ:MNDY) develops software applications internationally. The company provides Work Operating System, which is a cloud-based visual work OS that consists of modular building blocks used and assembled to create software applications and work management tools.
2. Oracle Corporation (NYSE:ORCL)
Analyst Upside: 73.08%
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) ranks among the best AI stocks to buy according to analysts. Mizuho reaffirmed its Outperform rating and $400 price target for Oracle Corporation (NYSE:ORCL) on December 15. The firm called Oracle’s fiscal second-quarter results “mixed,” pointing out that while the Cloud segment’s performance was largely in line with expectations, there was a slight revenue miss that was largely driven by licenses.
Although this was offset by higher capital expenditures and negative free cash flow, Oracle Corporation (NYSE:ORCL) showed greater momentum in its cloud operations and remaining performance commitments. Given the higher revenues, the company’s operating income improved from $4,220 million in Q2 2025 to $4,731 million in Q2 2026.
Mizuho emphasized the company’s overview of its financing strategy for AI infrastructure, which includes vendor financing, GPU rental arrangements, and possible customer bring-your-own-chip agreements.
The firm observed that Oracle management reaffirmed the company’s commitment to preserving an investment-grade balance sheet and specifically addressed market worries around a potential $100 billion debt demand. Additionally, Oracle Corporation (NYSE:ORCL) confirmed that all milestones remain on schedule and refuted a Bloomberg report that suggested delays in providing data-center capacity to OpenAI.
Oracle Corporation (NYSE:ORCL) offers an extensive suite of database and cloud computing software and hardware. The Company offers databases and relational servers, application development and decision support tools, as well as enterprise business applications.
1. Serve Robotics Inc. (NASDAQ:SERV)
Analyst Upside: 126.91%
Number of Hedge Fund Holders: 10
Serve Robotics Inc. (NASDAQ:SERV) ranks among the best AI stocks to buy according to analysts. Serve Robotics Inc. (NASDAQ:SERV) announced on December 12 that it has reached its stated 2025 target by deploying over 2,000 delivery robots across numerous US locations. According to the company, since the start of the year, its fleet has grown twentyfold.
With more cities scheduled for early 2026, the robots are currently operating in Los Angeles, Atlanta, Dallas-Fort Worth, Miami, Fort Lauderdale, Chicago, and Alexandria, Virginia.
The company claims that its robots achieve a 99.8% completion rate and function with Level 4 autonomy in metropolitan conditions. Each robot generates zero exhaust emissions and is intended to replace typical delivery truck trips.
Furthermore, on December 18, Oppenheimer began coverage of Serve Robotics Inc. (NASDAQ:SERV), with an Outperform rating and a $20 price target. The firm described Serve Robotics as a “Physical AI pioneer”, with an initial focus on last-mile delivery applications.
Oppenheimer also emphasized the company’s leadership in global data in complex scenarios like sidewalks, which it says translates into benefits in software efficiency and hardware design.
Serve Robotics Inc. (NASDAQ:SERV) develops AI-powered, low-emission robots that serve people in public spaces for food delivery activity in the US. The company spun-off from Uber in 2021.
While we acknowledge the potential of SERV 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 SERV and that has 100x upside potential, check out our report about this cheapest AI stock.
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