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.
5. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 137
Eli Lilly and Company (NYSE:LLY) is one of the Top 10 Stocks That Will Profit From AI. The company has recently introduced LillyPod, the pharmaceutical industry’s most powerful NVIDIA-powered supercomputer. Embedded with AI, Lillypod is part of a continuous learning system that accelerates drug discovery and development.
On May 12, 2026, Eli Lilly and Company (NYSE:LLY) announced late-phase trial results showing that Foundayo (orforglipron) and lower-dose Zepbound effectively maintain weight loss after patients switch from higher-dose injectables. The company’s ATTAIN-MAINTAIN study indicated that patients transitioning from Wegovy or Zepbound to oral Foundayo maintained most of their initial weight loss after one year. Similarly, the SURMOUNT-MAINTAIN trial showed that reducing Zepbound to 5 mg or continuing at the maximum tolerated dose will result in durable long-term weight maintenance. These findings were published in The Lancet and Nature Medicine and point to new flexible options for chronic obesity management while minimizing weight regain during the transition from one treatment to another.
Previously, on May 6, 2026, Eli Lilly and Company (NYSE:LLY) announced an additional $4.5 billion investment in its Indiana manufacturing sites. This brings the company’s total state commitment to $21 billion since 2020. With this additional commitment, the company intends to support its evolving pipeline and anticipated demand for its medicines. Eli Lilly and Company (NYSE:LLY) also opened its first dedicated genetic medicine facility to support advanced therapies from research to commercial supply.
Eli Lilly and Company (NYSE:LLY) is a healthcare company with headquarters in Indiana. Founded in 1876, the company develops human pharmaceutical products across cardiometabolic health, oncology, and immunology.
4. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 137
Micron Technology, Inc. (NASDAQ:MU) is one of the Top 10 Stocks That Will Profit From AI. The company is also one of the three major global memory manufacturers of High Bandwidth Memory (HBM3E), a critical component for the world’s most powerful AI GPUs.
On April 28, 2026, D.A. Davidson initiated coverage on Micron Technology, Inc. (NASDAQ:MU) with a Buy rating. The firm’s analyst, Gil Luria, has set a price target of $1,000 on the stock, according to a CNBC report. Luria cited the company’s node leadership and long-duration earnings power and further stated that the AI boom is creating a positive feedback loop as well as a structurally higher ceiling for memory pricing, thereby favoring the company. In addition to the analyst’s statements, CNBC noted that Micron Technology, Inc. (NASDAQ:MU) shares have risen 84% year-to-date in 2026, with 41 of 44 Wall Street analysts maintaining bullish ratings on the stock.
In another development, on May 5, 2026, Micron Technology, Inc. (NASDAQ:MU) announced that the company had begun shipping the 245TB Micron 6600 ION, the world’s highest-capacity commercial SSD. The drive was designed for AI and cloud workloads and is capable of performing with 82% fewer racks than HDD-based storage. According to Jeremy Werner, the company’s senior vice president and general manager of Micron’s Core Data Center Business Unit, the drive provides the data center operators a critical new lever to improve rack-level total cost of ownership.
Founded in 1978, the Idaho-based company Micron Technology Inc. (NASDAQ:MU) provides memory and storage solutions sold into client, cloud server, enterprise, graphics, networking, smartphone, mobile device, automotive, industrial, and consumer markets, among others.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) is one of the Top 10 Stocks That Will Profit From AI. As a leader in AI hardware, the company’s 2026 roadmap focuses on Physical AI, merging robotics and digital twins through their Omniverse and Blackwell platforms.
On May 12, 2026, Wells Fargo raised its price target on NVIDIA Corporation (NASDAQ:NVDA) from $265 to $315. The firm’s analyst maintained an Overweight rating on the shares. The update comes ahead of quarterly results, with the firm citing the company’s new capacity-driven model. Wells Fargo dismisses peak margin concerns and argues that the stock is a “buy” at less than 20x P/E. The firm maintains that NVIDIA Corporation (NASDAQ:NVDA)’s durable 2027 consensus estimates and favorable growth outlook justify further upside for the company.
Separately, on May 13, 2026, Reuters reported that NVIDIA Corporation (NASDAQ:NVDA)’s CEO Jensen Huang had joined President Donald Trump’s delegation to China. This new development is anticipated to spark optimism for a resolution to the stalled H200 AI chip sales. Huang boarded Air Force One following a last-minute invitation from Trump. The sales for the chips were authorized in January, but the shipments remain blocked by regulatory disagreements. Chinese tech firms view Huang’s presence as a signal of potential progress in the prolonged trade impasse, according to Reuters.
Founded in 1993, the California-based company, NVIDIA Corporation (NASDAQ:NVDA), is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the Top 10 Stocks That Will Profit From AI. The company has strengthened its position over the recent years as the premier AI software provider through its multi-billion-dollar partnership with OpenAI and the deep integration of Copilot across its entire software stack.
On May 11, 2026, Microsoft Corporation (NASDAQ:MSFT) announced a new strategic partnership with Discord to integrate Xbox Game Pass benefits directly into the Discord Nitro subscription. Under this update, Discord Nitro members now receive a “starter edition” of Xbox Game Pass, which offers easier discovery and access to a massive library of titles. With the enhanced social features, users can jump into games directly from a friend’s Discord activity stream via a new “Play” button. The update also noted that eligible Xbox Game Pass subscribers will soon receive reciprocal Discord Nitro benefits as part of the ongoing collaboration.
Earlier, on April 30, 2026, Scotiabank cut the firm’s price target on Microsoft Corporation (NASDAQ:MSFT) from $600 to $550. The firm’s analyst Patrick Colville kept an Outperform rating on the stock. The analyst told the investors that though the results from the third quarter were positive, the full speed ahead Q4 guidance and “all systems go” for FY27 targets were the main highlights. The company, in its Q3 earnings call, has noted that it has increased its capital expenditure for 2026 to roughly $190 billion following the impact of higher component pricing.
Founded in 1975, Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Top 10 Stocks That Will Profit From AI. In addition to developing its own AI microchips to scale models cost-effectively, the company has been investing heavily in partnerships to integrate AI models such as Claude into AWS.
On May 12, 2026, Amazon.com, Inc. (NASDAQ:AMZN) announced the nationwide rollout of Amazon Now, an ultra-fast delivery service providing groceries and household essentials in 30 minutes or less. The service is currently available in major hubs including Atlanta, Dallas-Fort Worth, Philadelphia, and Seattle. Amazon.com, Inc. (NASDAQ:AMZN) is rapidly expanding this service in cities such as Austin, Houston, and Phoenix, with plans to reach tens of millions of customers by year-end. Using this initiative, the company scales its logistics and meets the increasing consumer demand for immediate access to locally relevant items and daily necessities. Udit Madan, Senior Vice President, Amazon Worldwide Operations, claimed the following.
Amazon Now is for when you need or want the convenience of getting your Amazon order delivered in 30 minutes or less
On May 11, 2026, AWS, a subsidiary of Amazon.com, Inc. (NASDAQ:AMZN), announced the general availability of the Claude Platform on AWS. AWS users can now access Anthropic’s native experience through their existing AWS accounts. The service integrates Anthropic-operated APIs and beta features, like Managed Agents, with consolidated AWS billing and IAM security controls.
Founded in 1994, Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
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