In this article, we will discuss the Top 10 AI and Technology Stocks to Buy According to Analysts
As per Goldman Sachs, there are signs that AI has been surpassing even the bullish expectations of 2024. There has been a substantial increase in usage of the most popular models, with the amount of AI investment from leading hyperscale technology companies anticipated to be about double than what was predicted, added George Lee (co-head of the Goldman Sachs Global Institute).
Key Trends in Broader AI and Technology Sector
The ever-increasing energy demands of Big Tech continue to undermine ambitious climate pledges that the leading tech giants made over the recent years, highlighted BNN Bloomberg, while quoting a report from the non-profit NewClimate Institute. The tech sector continues to witness a climate strategy crisis, with its data centres demanding ever more electricity and water in a bid to power growing fields, like AI and cloud computing.
In the US, over half of the 5,400 data centres carrying out operations in March were running on fossil fuels, highlighted BNN Bloomberg, while quoting the Environmental and Energy Study Institute (a US think tank). As per the International Energy Agency, the data centre-driven energy demand increased 12% from 2017 to 2024, and is projected to double again by 2030.
Amidst these favourable trends, let us now have a look at the Top 10 AI and Technology Stocks to Buy According to Analysts
Our Methodology
To list the Top 10 AI and Technology Stocks to Buy According to Analysts, we sifted through several online rankings to shortlist the stocks catering to the broader AI and technology sector. Next, we narrowed the list to the ones analysts are talking about. We chose the stocks in which analysts see upside to. Finally, the stocks are ranked in ascending order of their average upside potential, as of June 27. We also mentioned the hedge fund sentiments around each stock, as of Q1 2025.
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).
Top 10 AI and Technology Stocks to Buy According to Analysts
10. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Average Upside Potential: ~8.4%
Meta Platforms, Inc. (NASDAQ:META) is one of the Top 10 AI and Technology Stocks to Buy According to Analysts. On June 26, UBS upped the price objective on the company’s stock to $812 from $683, while keeping a “Buy” rating, as reported by The Fly. The firm highlighted Meta Platforms, Inc. (NASDAQ:META)’s long-term opportunity to garner additional revenue due to several AI products. As per the firm, Meta Platforms, Inc. (NASDAQ:META) continues to benefit from consumer and advertiser demand for AI.
Furthermore, the company is not necessarily exposed to the risks from potentially slower-than-anticipated enterprise AI spend, because it is the primary user of its own technology, added UBS. This positioning supports in insulating Meta Platforms, Inc. (NASDAQ:META) from what the firm describes as a potential capacity-demand digestion phase in the overall AI market. Some of the recent developments in the company’s AI strategy include its investment in Scale AI and increased recruitment of AI talent. These were the factors UBS acknowledged while maintaining its rating on Meta Platforms, Inc. (NASDAQ:META)’s stock.
Macquarie Asset Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“The largest individual detractors from performance relative to the benchmark were not owning Meta Platforms, Inc. (NASDAQ:META), not owning Eli Lilly & Co., and our position in Electronic Arts Inc. Meta stock was slightly negative to end the quarter but relative to the benchmark and other communication services stock performed well. Having a zero weight relative to the large benchmark allocation hurt. We continue to follow this company closely and while we have become incrementally more constructive, we still have lingering concerns about the business model and worry the cyclical weakness in advertising spend could create further pressure.”
