In this article, we are going to look at the 5 AI Stocks That Are About to Explode. For a longer list and more details on how we picked these stocks, you can go to 10 AI Stocks That Are About to Explode.
5. SAP SE (NYSE:SAP)
Average Price Target Upside Potential According to Analysts: 47.51%
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) ranks among AI stocks that are about to explode. On May 15, BMO Capital reaffirmed its Outperform rating on SAP SE (NYSE:SAP) with a price target of $200 on the stock after attending the company’s Sapphire 2026 conference.
The research firm spent two days at the conference and came out more positive about SAP SE’s (NYSE:SAP) growth outlook. BMO Capital believes the stock trades at a compelling valuation. The firm said that it expects the company to maintain low double-digit growth over the next few years.
Source: unsplash
However, BMO Capital noted that it does not see any meaningful upside to estimates in calendar year 2026, and it also pointed to some downside risk depending on the situation in the Middle East.
At its annual Sapphire conference, SAP SE (NYSE:SAP) introduced its Autonomous Enterprise, which is designed to improve key business workflows by enabling humans and AI to work together more effectively, safely, and profitably.
SAP SE (NYSE:SAP) is a German multinational software company with a leading position in enterprise applications and business AI. The company is one of the world’s largest providers of enterprise resource planning software.
4. Accenture plc (NYSE:ACN)
Average Price Target Upside Potential According to Analysts: 48.09%
Number of Hedge Fund Holders: 71
Accenture plc (NYSE:ACN) ranks among AI stocks that are about to explode. On May 6, Accenture plc (NYSE:ACN) announced that it has made a strategic investment in XBOW, an agentic AI-powered autonomous cybersecurity testing platform.
The company said that this investment, made through Accenture Ventures, will allow Accenture plc (NYSE:ACN) and XBOW to help clients identify and mitigate risks in increasingly complex, AI-driven technology environments.
XBOW uses advanced AI to combine scale, speed, and pattern recognition with the creativity, judgement, and strategic thinking of human hackers. It is designed to work within enterprise environments and find weaknesses before hackers can exploit them. As part of the partnership, XBOW will be integrated into Accenture plc’s (NYSE:ACN) Cyber.AI solution, which supports organizations in transforming their security operations and shifting toward continuous, AI-powered cyber capabilities.
This investment is part of Accenture plc’s (NYSE:ACN) broader strategy to transform enterprise protection and offer a new class of managed cybersecurity services designed for the AI era. The terms of the deal were not disclosed.
Accenture plc (NYSE:ACN) is a leading global professional services company that specializes in information technology (IT) services and management consulting.
3. Palantir Technologies Inc. (NASDAQ:PLTR)
Average Price Target Upside Potential According to Analysts: 49.26%
Number of Hedge Fund Holders: 89
Palantir Technologies Inc. (NASDAQ:PLTR) ranks among AI stocks that are about to explode. On May 15, Reuters reported that institutional investors increased their exposure to semiconductor and technology companies during the first quarter of 2026.
According to a Reuters review of filings submitted to the US Securities and Exchange Commission by around 6,600 hedge funds, pension funds, college funds, and other investors, it appears that many are positioning themselves to benefit from the strong rally that continued into the second quarter.
Reuters noted that 143 investors started a position in Palantir Technologies Inc. (NASDAQ:PLTR). Among these investors was Mubadala Capital, the sovereign wealth fund of the UAE. According to its filing, Mubadala Capital acquired a new stake in the company worth about $9.9 million during the first quarter.
Earlier, on May 6, Citi increased its price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $210 to $225 while keeping its Buy rating on the stock. The firm pointed out that the company delivered a strong first-quarter report. Citi added that growing demand for AI is helping accelerate the company’s business in the United States. Citi also increased its estimates for the company following the earnings results.
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.
2. SoundHound AI, Inc. (NASDAQ:SOUN)
Average Price Target Upside Potential According to Analysts: 60.52%
Number of Hedge Fund Holders: 22
SoundHound AI, Inc. (NASDAQ:SOUN) ranks among AI stocks that are about to explode. On May 8, Northland cut its price target on SoundHound AI, Inc. (NASDAQ:SOUN) from $14 to $12 while maintaining an Outperform rating on the stock.
The research firm said it is maintaining its revenue estimates but reducing its adjusted EBITDA expectations after the company slightly beat its first-quarter revenue forecast but missed EBITDA estimates due to investments in technology and growth efforts.
SoundHound AI, Inc. (NASDAQ:SOUN) reported Q1 revenue of $44.2 million, up 52% year-over-year. The company also announced an agreement to acquire LivePerson. According to SoundHound AI, Inc. (NASDAQ:SOUN), the deal will combine its voice and agentic AI capabilities with LivePerson’s digital messaging services. The combined business is expected to create a $500 million revenue opportunity, strengthen the balance sheet, and accelerate the path to profitability.
This acquisition would significantly expand SoundHound AI, Inc.’s (NASDAQ:SOUN) enterprise customer base in the conversational AI sector, giving the combined company relationships with 25 companies in the Fortune 100. The company also expects 2027 revenue range to reach at least $350 million to $400 million, including more than $100 million in potential growth contribution from LivePerson’s long-standing customers. The transaction is expected to close in the second half of 2026.
SoundHound AI, Inc. (NASDAQ:SOUN) is a leader in conversational intelligence and voice AI solutions for creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants.
1. Vistra Corp. (NYSE:VST)
Average Price Target Upside Potential According to Analysts: 63.59%
Number of Hedge Fund Holders: 102
Vistra Corp. (NYSE:VST) ranks among AI stocks that are about to explode. Carillon Tower Advisers, an investment management company, stated the following regarding Vistra Corp. (NYSE:VST) in its fourth quarter 2025 investor letter for the Carillon Eagle Mid Cap Growth Fund:
“Vistra Corp. (NYSE:VST) is an integrated electricity and power generation company. Investors have been slightly disappointed in the lack of announced power purchase agreements (PPAs) across its generation fleet, with only one material deal disclosed to date. Investor sentiment and share performance have not been helped by a lack of disclosure surrounding this agreement, as well as by Vistra’s recent choppy results and an overall slight moderation in the AI-related enthusiasm that had helped lift the company’s valuation.”
In other news, on May 11, Raymond James reduced its price target on Vistra Corp. (NYSE:VST) from $208 to $202 while keeping its Strong Buy rating on the stock.
Analyst J.R. Weston pointed out that the company operates a large thermal fleet, has a strong retail business, and has expanded its nuclear operations with the acquisition of Energy Harbor Corp. in 2024.
The research firm noted that this shift in recent years shows improving fundamentals and growing ability to monetize large-load demand through long-duration power purchase agreements. Raymond James pointed to previously reported nuclear agreements with Meta and Amazon Web Services in PJM and ERCOT markets.
During the first quarter of 2026, Vistra Corp. (NYSE:VST) disclosed around 4.5 gigawatts of completed or in-process opportunities. The company also pointed to additional Comanche Peak and PJM gas uprate potential and noted that bridge-power solutions are becoming a larger part of customer discussions.
Raymond James said stronger hedge visibility into 2027, commercial optionality, and a proven share buyback strategy were key reasons for keeping its Strong Buy rating on the stock.
Vistra Corp. (NYSE:VST) is a retail electricity and power generation company that serves customers, businesses, and communities. It operates a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities.
While we acknowledge the potential of VST 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 VST and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Aggressive Growth Stocks to Buy According to Wall Street Analysts and 10 Mid-Cap Stocks That Are On Fire Right Now.
Disclosure: None.
