In this article, we will discuss the 12 Most Promising AI Stocks According to Wall Street Analysts.
Artificial intelligence (AI) continues to accelerate rapidly, moving from emerging technologies to influencing how businesses carry out operations. As per SAP, the changes occurring in 2025 revolve around autonomous AI agents, specialized AI models, user interface design, and enterprise adoption patterns. On 13th January, an AI behemoth highlighted that the first Trump Administration focused on America’s strength and success in AI, boosting an environment where the broader US industry can compete.
Therefore, mainstream AI is now a critical part of every new application, which helps fuel economic growth, promote US interests, and make sure that America can sustain its leadership in cutting-edge technology. On a related note, Trump announced billions of dollars in private sector investment focused on building AI infrastructure in the country.
Trump Announces $500 Billion Investment for AI Infrastructure
US President Donald Trump announced a private sector investment of up to $500 billion focused on financing infrastructure for AI, targeting to outperform rival nations in the business-critical technology. Mr. President went on to add that ChatGPT’s creator OpenAI, SoftBank, and Oracle are discussing a JV called Stargate, which is expected to build data centers and create over 100,000 jobs in the US. Notably, these companies, together with several other equity backers of Stargate, decided to commit $100 billion for immediate deployment. The remaining investment is expected to take place over the upcoming 4 years.
As per Trump, this is the largest AI infrastructure project in history. Also, Stargate is expected to build the physical and virtual infrastructure which will focus on powering the next generation of AI, including data centers around the US.
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AI Rally to Continue in 2025, Says UBS
As per UBS, the AI rally has aided in driving 2 straight years of healthy returns for the NASDAQ Composite, which also includes a 28% rally last year. The Mag 7 group of technology stocks drove more than half of the S&P 500’s gains in 2024. In the previous year, continued upward revisions in AI capex from the Big 4 tech giants supported keeping the AI rally on track. UBS expects the upward revisions to continue over the near term.
Even though AI revenues might again lag behind capex in 2025, UBS expects that AI monetization will improve sharply in 2025. The AI adoption continues to accelerate across industries and is well-placed to broaden in 2025. Also, the arrival of more clearly useful AI agents is expected to further support return on investment (ROI).
With this in mind, let us now have a look at the 12 Most Promising AI Stocks According to Wall Street Analysts.
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Our Methodology
To list the 12 Most Promising AI Stocks According to Wall Street Analysts, we conducted extensive research and scanned through several online rankings. After getting an initial list of 15-18 stocks, we shortlisted the ones in which analysts saw upside potential. Finally, the stocks were arranged in ascending order of their average upside potential, as of January 21, 2025. We also mentioned hedge fund sentiments around each stock, as of Q3 2024.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Most Promising AI Stocks According to Wall Street Analysts
12) Synopsys, Inc. (NASDAQ:SNPS)
Average Upside Potential: ~19%
Number of Hedge Fund Holders: 53
Synopsys, Inc. (NASDAQ:SNPS) has a strong presence in the Al space mainly because of its contributions through tools that help create, verify, and optimize complex Al-driven software and hardware systems. Redburn-Atlantic initiated coverage on the company’s shares, giving a “Buy” rating and a price target of $600. Synopsys, Inc. (NASDAQ:SPS), which is known for its software products and services, utilized in designing electronic systems and integrated circuits, is anticipated to benefit from the rising complexity and increased costs related to developing cutting-edge solutions.
Al solution monetization is also one of the potential growth catalysts for the company. With Al being adopted across various sectors, the capability to monetize Al solutions effectively is expected to result in numerous opportunities. Synopsys, Inc. (NASDAQ:SNPS) is involved in developing solutions for emerging technologies including Al and 3D-IC.
Such areas can be growth drivers for the broader semiconductor industry, and the company’s investments in such fields place it well to capture market opportunities. With chip designs becoming more complex to support Al applications, Synopsys, Inc. (NASDAQ:SNPS)’s EDA tools and IP offerings become more important for semiconductor companies. Parnassus Investments, an investment management company, released the Q3 2024 investor letter. Here is what the fund said:
“Synopsys, Inc. (NASDAQ:SNPS) plays a crucial role in optimizing semiconductor processing power beyond physical design limits. It benefits from companies like Google and Amazon designing their own chips and the proliferation of AI accelerator development. Its proprietary EDA technology and rising demand for custom chips and AI accelerators should drive durable revenue and earnings growth.”
11) UiPath Inc. (NYSE:PATH)
Average Upside Potential: ~20%
Number of Hedge Fund Holders: 34
UiPath Inc. (NYSE:PATH), which specializes in automation, integrates AI technologies and, therefore, stands at a critical juncture in the broader AI industry. The company leverages AI to enable intelligent automation. Bryan Bergin from TD Cowen maintained a “Hold” rating on the company’s shares, offering a price target of $16.00. The analyst stated that UiPath Inc. (NYSE:PATH) has shown positive signs under its recent reorganization, with higher clarity and focus, primarily in its agentic AI and go-to-market execution.
UiPath Inc. (NYSE:PATH) has showcased its ability to enhance its subscription-based business model while, at the same time, scaling its AI-driven capabilities. The company’s long-term focus on AI development and enterprise growth is expected to help it as the firm captures market share in the growing automation space. UiPath Inc. (NYSE:PATH)’s Chief believes that the company offers a differentiated approach to agentic automation, which can expand its market opportunity by enabling customers to automate more complex and variable workflows in order to deliver enterprise-wide AI transformation.
The expansion of the AI industry continues to increase demand for intelligent automation, where automation solutions can handle repetitive, complex, and decision-driven processes. With companies adopting AI-driven strategies, they need platforms to integrate AI models into their workflows. UiPath Inc. (NYSE:PATH) allows organizations to deploy AI models directly in the automation pipelines.
10) NVIDIA Corporation (NASDAQ:NVDA)
Average Upside Potential: ~20.2%
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is a leading player in the Al industry as its technology plays a key role in powering Al applications, primarily deep learning and machine learning. The company’s stock was again in the news after Trump’s announcement to invest significantly in Al infrastructure. Analysts at UBS expect that results for the current quarter and guidance for the fiscal first quarter will be healthy. Furthermore, the analysts also see revenue streams for NVIDIA Corporation (NASDAQ:NVDA) from OEMs as they build inventory. Blackwell, which was launched last year, is expected to act as a critical revenue driver for the company over the upcoming years.
NVIDIA Corporation (NASDAQ:NVDA) has made numerous strides in the Al and semiconductor sectors. It launched new generative Al models and blueprints in a bid to enhance its Omniverse platform, targeted at advancing robotics, AVs, and vision Al applications. Also, it announced a partnership with Arbe Robotics, focused on enhancing automotive free space mapping and Al-driven capabilities. The company will integrate Arbe’s ultra-high-definition radar technology with its in-vehicle computing platform.
Notably, JPMorgan Chase & Co. upped its price objective on shares of NVIDIA Corporation (NASDAQ:NVDA) from $155.00 to $170.00, giving an “Overweight” rating on 21st November. Infuse Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“We do still own some NVIDIA Corporation (NASDAQ:NVDA) as the forward multiple isn’t egregious and it powers over 90% of AI workloads. This company is only becoming increasingly important though the hyperscalers are actively trying to save money through their own ASIC programs. The moat CUDA provides has been underestimated time and time again. While I don’t think Nvidia has quite the upside as some of the other companies in the portfolio, it has a product that the best companies in the world literally can’t get enough of.”
9) Salesforce, Inc. (NYSE:CRM)
Average Upside Potential: ~25.3%
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) is a leading player in the AI industry, which uses AI to enhance CRM platforms and deliver AI-powered solutions to clients. Investment firm TD Cowen upgraded the company’s shares from a “Hold” to a “Buy” rating and upped the price target from $380 to $400. Derrick Wood and his team, working at TD Cowen, identified new growth drivers for 2025-2026, including SKU upgrades, a robust renewal pipeline, momentum with AI products, and inorganic growth.
Even though Agentforce is anticipated to have a minimal impact on Salesforce, Inc. (NYSE:CRM)’s revenue in 2025, Derrick Wood believes that its contribution is expected to increase in H2 of the year and fuel the company’s remaining performance obligations. Furthermore, the analyst expects Agentforce to start contributing more significantly to revenue improvement by 2026. To provide a brief context, Agentforce is a product that has been designed to leverage the next generation of AI via intelligent agents.
With businesses seeking AI-powered solutions to improve customer interactions and streamline operations, Agentforce is placed favorably to capture this growing demand. Investment management company Vulcan Value Partners recently released its Q4 2024 investor letter. Here is what the fund said:
“There were five material contributors to performance: Amazon.com Inc., Salesforce, Inc. (NYSE:CRM), Live Nation Entertainment Inc., Carlyle Group Inc., and Alphabet Inc. There were no material detractors. Salesforce is the world’s leading SaaS vendor for customer relationship management (CRM) and salesforce automation (SFA) software. Salesforce offers many other products including software for marketing automation, customer service automation, analytics, application integration, and enterprise collaboration among others. Salesforce is deeply entrenched within its customer base, has high retention, high recurring revenue, and is a scalable business with high free cash flow and margin potential. Salesforce reported solid earnings and provided several positive data points around its AI strategy.”
8) Baidu, Inc. (NASDAQ:BIDU)
Average Upside Potential: ~26.7%
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) is involved in the AI industry as it leverages expertise in artificial intelligence to fuel innovations throughout a wide range of industries. Citi analysts sustained a “Buy” rating on the company’s shares. The firm’s analyst Alicia Yap foresees a potential near-term catalyst and highlights the company’s ongoing transformation. Looking ahead into Q1 2025 and beyond, Yap mentioned that while Baidu, Inc. (NASDAQ:BIDU)’s advertising revenue growth depends on the broader economic climate and advertiser sentiment, its strategic pivot towards AI-enhanced search might be reaching a turning point and has a potential for monetization.
The company’s future prospects remain tied to its AI strategy. It continues to leverage its vast data ecosystem and relationships to fuel AI adoption throughout its services. As AI content adoption has been increasing, the pressure on monetization is expected to ease, potentially resulting in an inflection point in Baidu, Inc. (NASDAQ:BIDU)’s return on invested capital (ROIC). Therefore, the focus on core strengths in search and AI Cloud has the potential to yield better returns as compared to earlier investments in non-core areas.
By integrating AI throughout its ecosystem, such as search, cloud services, and autonomous driving, Baidu, Inc. (NASDAQ:BIDU) has been creating a comprehensive AI platform capable of driving significant growth. Its vast data resources and established market position in China offer a robust foundation for AI development and deployment.
7) SentinelOne, Inc. (NYSE:S)
Average Upside Potential: ~29.2%
Number of Hedge Fund Holders: 37
SentinelOne, Inc. (NYSE:S) is an Al-driven cybersecurity firm, and it leverages artificial intelligence and machine learning to detect, prevent and respond to cyber threats. Oppenheimer initiated coverage on the company’s shares with an “Outperform” rating, giving a price target of $32.00. The firm’s analysts showcased optimism regarding SentinelOne, Inc. (NYSE:S)’s prospects, highlighting a significantly improved leadership team, which resulted in better operational execution and a transformation in sales and go-to-market strategies.
Elsewhere, Cantor Fitzgerald, a research firm, gave an “Overweight” rating on the company’s shares with a price target of $30.00. The research firm expressed its confidence in the company’s trajectory, highlighting its continued investment in emerging solutions such as Purple Al, Cloud Native Security, and Singularity Data Lake. SentinelOne, Inc. (NYSE:S) is well-placed to capitalize on the displacement of legacy security products with companies seeking more advanced, Al-driven solutions. While the company operates in a competitive industry, SentinelOne, Inc. (NYSE:S)’s unique system architecture and Al-driven approach continue to act as key differentiators.
Baron Funds, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“We are huge believers in the practical uses of AI, and we have several investments in companies that adapt AI models to enhance their products and services. These include companies like GitLab Inc., Sentinelone Inc. (NYSE:S), and Couchbase, Inc., which were among our top detractors at one point in the second quarter (GitLab and SentinelOne recovered significantly in the last week of the quarter). As of the second quarter at least, the market has just not been ready to reward AI companies beyond those providing “picks and shovels.” This led to all three of these companies trading at or near all-time low valuation levels during the quarter. Nevertheless, we believe that in the coming quarters the market will broaden its level of interest from AI hardware to “adaptive AI” investments like GitLab, SentinelOne, and Couchbase. In that scenario, all three of these stocks have significant upside potential.
GitLab is a subscription software company that enables enterprise software developers to develop new software applications rapidly and securely for their firms. GitLab uses AI to help with code suggestions, to check for holes in security, and to automate collaboration among the many developers within an enterprise. GitLab recently launched a product called Duo that we believe will provide revenue upside for the company and enhance the competitiveness of their product of offerings. SentinelOne is a cybersecurity company that provides endpoint protection (a much more advanced version of legacy “anti-virus” software) both at customers’ physical sites and in the cloud. It uses AI to detect anomalous behavior on the network and to automate the remediation of the security flaws that led to the intrusion. Both companies are recurring revenue entities, with high gross margins (78% for SentinelOne and 90% for GitLab) and are growing rapidly (revenue growth of 25% or more). Yet both are trading at or near all-time low valuation levels. SentinelOne slightly beat full-year revenue guidance but guided to an operating loss that was $7.5 million worse than consensus (entirely accounted for by the increased operating expense pulled in from acquisitions – including PingSafe which allows SentinelOne to scan cloud-based workloads without the need to install a software agent). This led to a one-day stock drop of as much as 31% which we attribute purely to market skittishness. By quarter end, SentinelOne’s shares had fully recovered. We believe the company can grow revenues by 25% from 2024 through 2028 and that free cash flow will go up over 10-fold in this period. We see the stock at least doubling from its current price.”
6) Micron Technology, Inc. (NASDAQ:MU)
Average Upside Potential: ~32.5%
Number of Hedge Fund Holders: 107
Micron Technology, Inc. (NASDAQ:MU) plays a key role in enabling the broader AI industry. Its products are critical to the infrastructure needed to power AI technologies. In the recent past, the company’s shares were under pressure after it provided a downbeat forecast due to weak demand for PCs and smartphones. That being said, memory’s importance in developing AI and in the growth of data centers places Micron Technology, Inc. (NASDAQ:MU) for long-term revenue growth and margin expansion.
Citi analyst Christopher Danely reiterated a “Buy” rating on the company’s shares, setting a price objective of $150.00. Even though the PC and cell phone DRAM markets remain weak, they account for only 25% of the company’s revenue and can recover by Q2 2025, says Danely. The analyst went on to add that the data center segment, a strong part of Micron Technology, Inc. (NASDAQ:MU)’s DRAM business, represents half of its revenue and is on an upward trend each quarter, courtesy of the increasing demand for AI applications.
Furthermore, the HBM segment is expected to post high gross margins, which can help contribute to overall margin growth. Hence, Danely’s rating stems from an expected market recovery and opportunities in critical business segments. Notably, the demand for HBM is mainly aided by rapid expansion of AI applications and data center growth. Delaware Funds by Macquarie, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Micron Technology, Inc. (NASDAQ:MU) – Fundamentals here also appear solid though concern about global demand for handsets and PCs drove the shares down during the quarter. We expect Micron to be a significant beneficiary of growth in AI demand as investment in new data centers is extremely memory (semiconductor) intensive.”
5) Dell Technologies Inc. (NYSE:DELL)
Average Upside Potential: ~38.9%
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) is one of the leading players in the AI industry as it provides essential infrastructure, tools, and solutions that allow AI adoption throughout industries. The company’s stock is well-placed to benefit from the buoyed AI demand. Dell Technologies Inc. (NYSE:DELL)’s management highlighted that interest in its portfolio remains at an all-time high, fueling record AI server orders demand of $3.6 billion in Q3 2024 and a pipeline that grew over 50%, with growth coming from all types of customers.
The company’s strategic positioning emphasizes its end-to-end AI solutions, which range from large-scale data centers to AI PCs. Dell Technologies Inc. (NYSE:DELL)’s competitive advantage in the AI space revolves around its strong engineering capabilities and ability to provide end-to-end solutions. This consists of integration, design, deployment, optimization, and support services, making it stand apart from other OEMs and ODMs.
Mizuho Securities increased the price target on the shares of Dell Technologies Inc. (NYSE:DELL) to $155 from $135, maintaining an “Outperform” rating. The firm believes that Dell Technologies Inc. (NYSE:DELL) is well-placed to capture more market share in the AI server segment as capital expenditures increase. Mizuho’s price target and rating are backed by the assessment of the company’s strategic positioning in a dynamic technological landscape, where AI and server capabilities are important for various industries.
4) Adobe Inc. (NASDAQ:ADBE)
Average Upside Potential: ~42.9%
Number of Hedge Fund Holders: 123
Adobe Inc. (NASDAQ:ADBE) is a major player in the broader AI industry as it has embedded artificial intelligence throughout its products and services. The company has made strides with its Firefly GenAI technology and continues to integrate AI capabilities throughout its Creative, Document, and Experience Clouds. The company’s optimistic outlook is driven by its steps to improve AI-powered features and expand its use throughout the suite of design and marketing software. Adobe Inc. (NASDAQ:ADBE)’s emphasis on commercial-safe generative AI gives it a competitive edge, helping marketers in creating and optimizing advertising across various media.
The company’s investments in AI technology, mainly its Firefly generative AI platform, can significantly expand its total addressable market. As creative tools become more accessible and powerful, Adobe Inc. (NASDAQ:ADBE) can attract new user segments. Furthermore, with AI becoming more integrated into creative workflows, the company’s expertise in creative software and AI places it in a favorable position to capture emerging opportunities.
Adobe Inc. (NASDAQ:ADBE)’s capability to combine domain-specific knowledge with advanced AI capabilities is expected to result in innovative solutions creating new market categories and revenue streams. Polen Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”
3) Advanced Micro Devices, Inc. (NASDAQ:AMD)
Average Upside Potential: ~49.6%
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading player in the broader AI industry as a result of its focus on offering cutting-edge hardware solutions suited for AI workloads. The company continues to benefit from the growing demand for GPUs. The company’s data center revenue, which is mainly aided by AI accelerators, shot up 122% YoY in Q3 2024. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s revenue growth is poised to accelerate in 2025, courtesy of its AI chip technology advancement. Also, customers expanding their use of the company’s products in their data centers will add to this revenue growth.
Citi maintained a “Buy” rating on the company’s shares and anticipates healthy demand in data centers, AI, and communication segments. The firm expressed optimism about Advanced Micro Devices, Inc. (NASDAQ:AMD), which stems from the potential upside from AI sales. The company’s potential in the AI accelerator market is significant, thanks to the strong growth of AI applications throughout industries. AMD CEO Lisa Su expects the AI accelerator market to reach $500 billion by 2028, driven by advancements in agentic chatbots, AVs (autonomous vehicles), and smart manufacturing systems.
Even if Advanced Micro Devices, Inc. (NASDAQ:AMD) captures a mid-single-digit share of this dynamic market, it can see billions of dollars in revenue. The company’s emphasis on high-volume AI workloads and its capability to provide competitive performance at attractive price points can help gain traction across a wide spectrum of customers, from cloud service providers to enterprise data centers.
2) MongoDB, Inc. (NASDAQ:MDB)
Average Upside Potential: ~53.6%
Number of Hedge Fund Holders: 49
MongoDB, Inc. (NASDAQ:MDB) is a key enabler in the AI ecosystem, which offers a modern and scalable database platform supporting the data-driven nature of AI applications. Macquarie initiated coverage on the company’s shares with a “Neutral” rating and a price target of $300, lauding its appeal among developers, primarily for AI applications. Also, Cantor Fitzgerald initiated coverage on the company’s shares with an “Overweight” rating and a $344 price target. MongoDB, Inc. (NASDAQ:MDB) saw this upgrade because of its fast-growing cloud service, MongoDB Atlas.
MongoDB Atlas is a fully managed cloud database service, making up 68% of total Q3 2025 revenue. As per the firm, AI-driven demand is expected to push growth into the mid-20% range for FY25, beating the estimates of 17%. MongoDB, Inc. (NASDAQ:MDB)’s AI-driven demand stems from its capability to handle unstructured data, large datasets, and support for real-time data analytics.
MongoDB, Inc. (NASDAQ:MDB) continues to invest in its legacy app modernization and AI offerings as its document model and distributed architecture remain well-suited for customers focused on building highly-performant, modern applications. Therefore, the company is in a strong position to act as a central pillar of the emerging AI tech stack and reap the benefits from the next wave of application development over the upcoming years.
1) Pagaya Technologies Ltd. (NASDAQ:PGY)
Average Upside Potential: ~148.1%
Number of Hedge Fund Holders: 21
Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology company, leveraging AI and data analytics to offer solutions for the broader financial services industry. John Hecht from Jefferies gave a “Buy” rating on the company’s shares, providing a price target of $25.00. The company’s technology allows it to provide a range of financial products, such as personal loans, auto loans, and point-of-sale financing. Therefore, this diversification strategy placed Pagaya Technologies Ltd. (NASDAQ:PGY) as a versatile player in the alternative lending space.
AI continues to drive broader US markets, with application companies such as Pagaya Technologies Ltd. (NASDAQ:PGY) well-placed to reap the benefits. Advancements in AI research are expected to improve the company’s proprietary machine learning models, allowing more accurate credit risk assessment. Furthermore, financial institutions continue to adopt AI to streamline operations and improve the decision-making process. Pagaya Technologies Ltd. (NASDAQ:PGY)’s AI-driven platform remains well-placed to tap this growing demand, mainly in fields such as credit underwriting, risk management, and investment strategies.
With AI adoption broadening, more industries (apart from traditional banking) can seek AI-driven financial solutions. Benchmark reaffirmed a “Buy” rating on the shares of Pagaya Technologies Ltd. (NASDAQ:PGY), issuing a $21.00 price target on 16th October.
While we acknowledge the potential of PGY as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than PGY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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