In this article, we will take a look at the 10 Best AI Stocks to Buy According to Goldman Sachs.
Artificial Intelligence has driven the stock market to all-time highs as the industry continues to grow and expand. Goldman Sachs recently warned that once AI spending slows down, the stock market can dip by 20%. Currently, major tech companies are investing heavily in AI infrastructure and software development. Goldman Sachs analyst Ryan Hammond in the firm’s research note pointed to the risk of hyperscalers certainly cutting back on AI expenditures.
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“A reversion of long-term growth estimates back to early 2023 levels would imply 15% to 20% downside to the current valuation multiple of the S&P 500,” Hammond added in the research note.
At the moment, AI spending seems to be steaming ahead, but Hammond cited that a few analysts are expecting a sharp deceleration to take place in Q4 2025 and 2026.
Goldman Sachs analyst Eric Sheridan appeared on Yahoo Finance’s Opening Bid on September 8 and shared his thoughts on the AI market and labor market data. Sheridan said that the labor market has an impact on the technology field. Companies are balancing legacy operating cost efficiencies with the need to reinvest in the forward AI curve over the next three to five years.
“Most of the companies I cover have had low to no net employee growth over the last six to eight quarters as they’ve realigned their organizations for where they’re going over the longer term with respect to AI. It’s sort of pulling OPEX out of the business model with an eye towards putting that capital back into capital expenditures that go toward the infrastructure layer,” said Sheridan.
Sheridan further added that the AI industry is seeing a transition from an infrastructure layer investment theme towards an application theme. The market is experiencing differences in AI applications deployed by consumers and by enterprises. Enterprises have restricted budget requirements, while people are more likely to adopt AI in a consumer computing environment compared to enterprise computing networks.
“I think at the end of the day you are seeing very different skews about AI being adopted between consumers and enterprises,” noted Sheridan.
The analysts believe that AI will see different trajectories over the long term as the companies continue to shift their strategies across different phases of AI growth.
With these trends in view, let’s take a look at the 10 Best AI Stocks to Buy According to Goldman Sachs.
Source: unsplash
Our Methodology
To compile the list of 10 best AI stocks to buy according to Goldman Sachs, we shortlisted the 10 AI companies with the highest stakes held by Goldman Sachs’ investment fund. We ranked these companies in ascending order of the Goldman Sachs portfolio percentage in the stock. We have also added the total number of hedge funds holding stakes in these companies. The data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q2 2025.
Note: The data was recorded on September 23.
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).
Goldman Sachs AI Stocks: 10 Stocks to Buy
10. Palantir Technologies Inc. (NASDAQ:PLTR)
Percentage of Portfolio Holding: 0.33%
Portfolio Holding Value: $2.44 Billion
Number of Hedge Fund Holders: 78
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best AI stocks to buy according to Goldman Sachs. On September 18, Palantir Technologies Inc. (NASDAQ:PLTR) received a military AI contract from the U.K. government worth £750 million.
The U.K.’s Defence Secretary John Healey signed a deal with Palantir expected to be around £750 million. Palantir’s AI technology will enable British forces commanders to efficiently identify targets on the battlefield. Palantir’s technology will be integrated into the British Armed Forces network to upgrade their AI-powered capabilities and assist in decision-making, military planning, and targeting.
“This partnership is a major vote of confidence in UK leadership in defence, data, and AI technology, and as an ideal location for companies to invest and expand. By harnessing the power of AI, we will boost the effectiveness of our Armed Forces, ensuring they have the tools they need to keep the British people safe. The work will unlock billions of pounds of investment into UK innovation, creating hundreds of skilled UK jobs and making defence the leading edge of innovation in NATO,” said Defence Secretary John Healey.
The U.K. Armed Forces commanders will be able to obtain real-time battlefield awareness from warships to tanks to cruise missiles. The technology is already operational for naval border defence through Project Kraken. Palantir’s core technology services assist in complete visibility from manpower gaps to channel shipping. This deal is a fundamental shift from human-driven military planning to AI-powered force readiness and war management.
Following the announcement, Palantir Technologies Inc. (NASDAQ:PLTR) surged over 6.53% on September 23.
Palantir Technologies Inc. (NASDAQ:PLTR) offers software to assist in counterterrorism investigations and operations. The company has created four principal software platforms, including Gotha, Foundry, Apollo, and Palantir AI Platform (AIP).
9. Oracle Corporation (NYSE:ORCL)
Percentage of Portfolio Holding: 0.37%
Portfolio Holding Value: $2.72 Billion
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the best AI stocks to buy according to Goldman Sachs. On September 17, Moody’s Ratings flagged significant ‘counterparty risk’ for Oracle Corporation (NYSE:ORCL) following its $300 billion AI contract with OpenAI.
Oracle is set to provide 4.5 gigawatts of compute to OpenAI over the next five years, which Moody’s sees as overwhelming for the company. The credit rating agency believes that this deal has tremendous potential for Oracle’s AI infrastructure business. But Moody’s also pointed out Oracle’s pipeline isn’t swelling; it is locking in. Moody’s has lowered the credit rating outlook to negative from stable, issuing a rating of Baa2, which is at the lower end of investment-grade credit ratings.
“Counterparty risk is always a key consideration in any type of project financing, particularly where there is a high reliance on revenue from a single counterparty. And in our view, Oracle’s data center build is effectively one of, if not the world’s largest, project financing,” according to Moody’s analyst.
The analyst also noted that the company’s debt will increase faster than its EBITDA, which could add to a forecast high leverage of 4x before Oracle’s EBITDA begins to surpass its debt.
“It is likely that free cash flow will also be negative for an extended period before reaching breakeven,” the analyst added.
The rating agency specifically highlighted the growing counterparty risk with Oracle, relying on major commitments from a small number of AI companies to fund its business model.
Since the Moody’s credit rating downgrade, Oracle Corporation (NYSE:ORCL) shares have plunged over 6.65% as of September 23.
Oracle Corporation (NYSE:ORCL) is a leading provider of integrated suites of applications, including secure, autonomous infrastructure in the Oracle Cloud. The company’s Oracle Cloud Infrastructure for AI computing is offering AI-powered applications and services.
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