In this article, we will take a look at the Top 10 Stocks That Will Profit From AI.
With the rapid growth of generative artificial intelligence (AI), capital flows in the market are showing notable shifts, targeting infrastructure, chipmakers, and cloud computing. Investors are on the lookout for companies that profit from this AI boom. However, there are also concerns about the time constraints of these emerging opportunities.
Billionaire hedge fund manager Paul Tudor Jones, founder of Tudor Investment, offered a bullish outlook for the sector during a CNBC “Squawk Box” interview on May 7, 2026. Jones believes that the current AI-fueled market will run out in a year or two. He compared today’s environment with the productivity miracles sparked by Microsoft’s early dominance in the 1980s and the commercialization of the internet in 1995. While doing so, Jones noted that the launch of advanced models like Claude in January 2026 reflects a transformation stage similar to the 1981 Microsoft era. Based on his estimates, we have run through 50% to 60% of a cycle that potentially lasts five years.
Although he has long expressed concerns about regulation and the potential for breathtaking corrections once the cycle reaches its peak, Jones confirmed that he holds several AI-related securities in his portfolio. This echoes enthusiasm in the market, where investors are seeking stocks that could capture the ongoing opportunity before it passes.
Against this backdrop, we have come up with 10 picks that are anticipated to profit from AI.
Our Methodology
We identified our top 10 stocks by screening the stocks that will benefit from AI growth. We classified the list as AI Enablers (companies developing AI models, chips, and cloud infrastructure) or AI Adopters (companies leveraging AI for efficiency and innovation) and selected stocks with high growth potential. We ranked these stocks by the number of hedge funds holding a stake in each. The fourth-quarter hedge fund data available in the Insider Monkey database has been used for this purpose.
We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. All the pricing data are current as of market close on May 13, 2026.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. HCA Healthcare, Inc. (NYSE:HCA)
Number of Hedge Fund Holders: 74
HCA Healthcare, Inc. (NYSE:HCA) is one of the Top 10 Stocks That Will Profit From AI. The Tennessee-based company has been integrating generative AI into clinical workflows to automate medical documentation and administrative tasks.
Among the most recent developments, HCA Healthcare, Inc. (NYSE:HCA) announced that, through its wholly owned subsidiary, HCA Inc., it completed a $3 billion public offering of senior unsecured notes on April 30, 2026. The offering includes three tranches maturing in 2031, 2033, and 2036. Their interest rates ranged from 4.7% to 5.3%. These notes are fully guaranteed by the parent company, and they aim to diversify long-term funding and improve the company’s financial flexibility. The notes were issued under an existing base indenture and new supplemental indentures following an underwriting agreement signed on April 27, 2026, and include customary covenants, optional redemption features, and change-of-control repurchase rights.
Separately, on April 28, 2027, Bernstein lowered its price target on HCA Healthcare, Inc. (NYSE:HCA) from $541 to $503 while maintaining a Market Perform rating on the stock. The firm modestly lowered the company’s long-term EBITDA forecasts, projecting a 5.1% CAGR. Bernstein’s analyst cites risks from slowing state supplemental payments, insurance coverage reductions, and potential bad debt growth. On the other hand, the firm also noted that strong operating execution and well-controlled margins could potentially offset these financial challenges.
Founded in 1968, HCA Healthcare, Inc. (NYSE:HCA) is a leading American for-profit company, providing healthcare services through its 186 hospitals and approximately 2,400 sites of care in 20 states and the United Kingdom.
9. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 78
BlackRock, Inc. (NYSE:BLK) is one of the Top 10 Stocks That Will Profit From AI. The company has deeply integrated Large Language Models (LLMs) and generative AI into its Aladdin platform to meet institutional clients’ needs.
Among the most recent developments, BlackRock, Inc. (NYSE:BLK) participated in a $222 million funding round for Circle (CRCL) on May 11, 2026, valuing the stablecoin issuer’s new Arc blockchain network at $3 billion. The investment signals a major move by Wall Street to utilize digital foundations for global banking and AI beyond basic payments.
Prior to this, on May 6, 2026, BlackRock, Inc. (NYSE:BLK) launched a $30 million philanthropic initiative in Texas to train over 12,000 workers for electrical careers. The program was part of the company’s $100 million Future Builders Initiative. With the program, the company aims to address the surging power demand driven by population growth and AI expansion. The initiative involves partnering with Texas State Technical College, IEC Dallas, and etA, and funding the pre-apprenticeships and a new Associate degree program. Larry Fink, Chairman and CEO of BlackRock, Inc. (NYSE:BLK), made the following statement.
The scale of growth underway in Texas demands a workforce ready to build it.
One of the world’s largest asset managers, BlackRock, Inc. (NYSE:BLK), provides a comprehensive range of investment, advisory, and risk management solutions, including iShares ETFs and the Aladdin technology platform. The company was founded in 1988 and governs its operations from its headquarters in New York.
8. Lumentum Holdings Inc. (NASDAQ:LITE)
Number of Hedge Fund Holders: 97
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the Top 10 Stocks That Will Profit From AI. The company is a critical provider of high-speed optical interconnects and laser technologies required to connect AI clusters in massive data centers.
On May 7, 2026, Barclays raised the firm’s price target on Lumentum Holdings Inc. (NASDAQ:LITE) from $750 to $1,000. The firm’s analyst Tom O’Malley kept an Equal Weight rating on the company’s stock. The adjustment follows the Q3 2026 earnings report released on May 5, 2026, in which the company highlighted 90% year-over-year revenue growth to $808.4 million, driven primarily by transceiver and laser chip growth. According to Tom O’Malley’s research note, the company has a clearer line of sight to $25 in earnings per share in 2027.
In another recent development, on May 11, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) announced its inclusion in the Nasdaq-100 Index, marking a significant milestone in the company’s journey. The inclusion is expected to be made formal on May 18, 2026, before the market opens. Michael Hurlston, President and CEO at Lumentum Holdings Inc. (NASDAQ:LITE), believes that the inclusion will improve the company’s visibility with global investors.
Founded in 1979, Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products. It operates through two segments: Cloud and Networking, which deals with optical and photonic components, modules, and subsystems, and Industrial Tech, which includes solid-state lasers, kilowatt-class fiber lasers, ultrafast lasers, diode lasers, and gas lasers.
7. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 112
Vertiv Holdings Co (NYSE:VRT) is one of the Top 10 Stocks That Will Profit From AI. As 2026 AI chips generate unprecedented heat, the company’s advanced liquid cooling and power management solutions for high-density AI servers play a major role in maintaining the stability of global AI data centers.
On April 23, 2026, Morgan Stanley raised its price target on Vertiv Holdings Co (NYSE:VRT) from $285 to $350 while maintaining the Overweight rating on the company’s stock. According to the firm’s analyst, the company has sustained first-quarter order strength and confirmed that the previous quarter’s performance was not an outlier. The firm found the 2026 outlook more supportive than previously reported. Despite a recent rise in guidance, analysts believe the company remains positioned for further positive model revisions.
Separately, a week later, on April 27, 2026, Vertiv Holdings Co (NYSE:VRT) announced that it had acquired Strategic Thermal Labs (STL). Strategic Thermal provides expertise in cold-plate design and server-side thermal validation. With its acquisition, the company can better simulate high-density compute environments, which would help in enhancing its liquid-cooling capabilities for AI and high-performance computing. Scott Armul, Vertiv Holdings Co (NYSE:VRT)’s chief product and technology officer, made the following statement.
STL strengthens Vertiv’s ability to emulate and validate system-level solutions and enabling customers to improve performance and lifecycle outcomes in liquid-cooled environments.
Based in Ohio and founded in 2016, Vertiv Holdings Co. (NYSE:VRT) is an electrical equipment & parts company that specializes in critical digital infrastructure technologies & life cycle services for data centers and communication networks.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 132
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Top 10 Stocks That Will Profit From AI. Their “AI Everywhere, for Everyone” strategy focuses on providing an open software ecosystem (ROCm) and hardware that spans from data centers to AI PCs.
On May 13, 2026, Bank of America adjusted the firm’s price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) by $50, raising it from $450 to $500 while keeping a Buy rating on the stock. The firm has raised its 2030 AI data center market outlook from $1.4 trillion to $1.7 trillion as the analyst expects accelerating sales through 2026, with 2027 gains driven by improved tokenomics and next-generation compute architectures.
Earlier, in another development, on May 6, 2026, Bernstein upgraded its rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) from Market Perform to Outperform with a price target of $525, up from $265. According to the firm’s analyst, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s first quarter results were very positive, with data center, client, and gaming performing above expectations. The firm anticipates the company’s earnings per share to exceed $14 by 2027, potentially reaching $20 in 2028, assuming the market can sustain the AI boom. Analysts believe shares will likely continue to climb despite their rallies.
Founded in 1969, Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company. Based in California, the company specializes in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.
While we acknowledge the potential of AMD 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 AMD and that has 100x upside potential, check out our report about the cheapest AI stock.
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