In this article, we discuss the 15 trending AI stocks on latest ratings and news.
AI data centers and the power needed to keep them running are some of the hottest topics in the technology space. A new report by management consulting firm Gartner sheds expert light on the matter, AI and GenAI are driving rapid increases in electricity consumption, with data center forecasts over the next two years reaching as high as 160% growth. Gartner claims that 40% of existing AI data centers will be operationally constrained by power availability by 2027. Research from the company indicates that the power required for data centers to run incremental AI-optimized servers will reach 500 terawatt-hours (TWh) per year in 2027, which is 2.6 times the level in 2023.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Bob Johnson, VP Analyst at Gartner, has said that the explosive growth of new hyperscale data centers to implement GenAI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough. In turn, per Johnson, this threatens to disrupt energy availability and lead to shortages, which will limit the growth of new data centers for GenAI and other uses from 2026. He added that short-term power shortages are likely to continue for years as new power transmission, distribution and generation capacity could take years to come online and won’t alleviate current problems.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a portfolio of stocks, emphasizing the broad equity portfolio of the company.
Trending AI Stocks on Latest Ratings and News
15. LivePerson, Inc. (NASDAQ:LPSN)
Market Capitalization: $73 Million
LivePerson, Inc. (NASDAQ:LPSN) engages in conversational artificial intelligence. One of the key product offerings of the firm is Conversational Cloud, a tool that integrates voice, messaging, and generative AI to enable businesses to manage AI-powered conversations across platforms. On November 8, following disappointing earnings results for the third quarter of 2024, Craig-Hallum downgraded the stock to Hold from Buy with a $1 price target.
14. Fabrinet (NYSE:FN)
Market Capitalization: $9 Billion
Fabrinet (NYSE:FN) offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services. The company produces fiber-optic cables that power telecommunications, AI data centers, and the global Internet infrastructure. On November 14, Barclays initiated coverage of the stock with an Equal Weight rating and a $292 price target. The advisory believes upside is baked in at the current premium valuation. While Barclays appreciates Fabrinet’s strong positioning with Nvidia optical transceivers, it says the timing and magnitude uncertainty on 1.6T ramp could be a concern for shares. It sees a balanced risk/reward at current Fabrinet share levels.
13. Pure Storage, Inc. (NYSE:PSTG)
Market Capitalization: $16 Billion
Pure Storage, Inc. (NYSE:PSTG) provides data storage technologies, products, and services in the United States and internationally. On November 13, Wells Fargo analyst Aaron Rakers maintained an Overweight rating on the stock with a price target of $75. The analyst thinks Pure Storage’s strategic collaboration and investment with CoreWeave is positive. While noting that the press release does not have a lot of details, the advisory does not believe this deal reflects the anticipated hyperscaler cloud win that Wells and investors are focused on being announced by the end of the year.
12. NRG Energy, Inc. (NYSE:NRG)
Market Capitalization: $19 Billion
NRG Energy, Inc. (NYSE:NRG) operates as an energy and home services company in the United States and Canada. The firm is emerging as an important AI firm because it produces and sells electricity, vital for powering the AI needs of companies and consumers alike. The company recently announced a partnership with Renew Home to launch a Virtual Power Plant by 2035, capable of generating nearly one gigawatt of capacity. This represents enough to power around 200,000 homes during peak demand periods in Texas.
11. Fortinet, Inc. (NASDAQ:FTNT)
Market Capitalization: $72 Billion
Fortinet, Inc. (NASDAQ:FTNT) provides cybersecurity and convergence of networking and security solutions worldwide. The Fortinet SecOps platform offers the broadest range of sensors that utilize AI and other advanced analytics to continuously assess cyberthreats. On November 11, BMO Capital analyst Keith Bachman raised the price target on the stock to $88 from $76 and kept a Market Perform rating on the shares. The company reported a mixed quarter, with the results and outlook for organic billings growth seen as weak, though the advisory still believes that the firewall market could improve in FY25 while noting that Fortinet’s free cash flow generation continues to impress, the advisory told investors in a research note.
10. Dell Technologies Inc. (NYSE:DELL)
Market Capitalization: $95 Billion
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. On November 14, the company announced that it would be expanding the Dell AI for Telecom program in a collaboration with Intel. Per the tech firm, the expansion would include new solutions for communications service providers that support network operations and enterprise edge use cases. The partnership highlights an ongoing development towards smarter, more efficient telecom operations powered by AI, the report underscored.
9. Arm Holdings plc (NASDAQ:ARM)
Market Capitalization: $149 Billion
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. The company recently announced a strategic partnership with Panasonic Automotive Systems that aims to standardize automotive architecture for Software-Defined Vehicles. The two firms are also part of SOAFEE, an industry-led collaboration between companies that brings the automotive and software industries together to make the AI-enabled software-defined vehicle a reality.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. On November 14, the company released internal benchmarks for its Ryzen AI 9 HX 370 processor. The benchmarks showcase up to 75% faster performance for the AMD chip than Intel’s Core Ultra 7 258V processor. This performance is important as the two companies engage in a battle for AI supremacy, where processing power and speed are of paramount importance. Bank of America recently highlighted in a research note that AMD was showing market share gains over rival Intel, referencing latest PC shipment data that showed 15% quarter-over-quarter growth for AMD as Intel undershipped by 3%.
7. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $268 Billion
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. On November 14, the company hosted an Investor Day during which it reaffirmed its long-term targets, buoyed by strong demand for its products and services due to the AI boom. The company said that the emergence of artificial intelligence technology has created a significant opportunity for the semiconductor industry, which is likely to fuel global chip sales to over $1 trillion by 2030. The firm also said it sees an opportunity to increase the number of EUV exposures through the remainder of this decade.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Market Capitalization: $851 Billion
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. On November 13, news publication Forbes reported that a group of 13 former TSM staff have filed a lawsuit against the company in California over an alleged discriminatory scheme that favors Taiwanese foreign workers at its US plants. Per the report, the employees claim that TSM has favored employees who are Taiwanese citizens and forced out American workers. TSM is investing tens of billions to develop chip facilities in America as the AI boom leads to an increase in demand for these chips.
5. Meta Platforms, Inc. (NASDAQ:META)
Market Capitalization: $1.5 Trillion
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. On November 14, the EU announced that it had fined the company more than $800 million for breaching EU antitrust rules by tying its online classified ads service Facebook Marketplace to its personal social network Facebook and by imposing unfair trading conditions on other online classified ads service providers. The latest fine comes as the company ramps up investments in AI infrastructure, with Morgan Stanley projecting that the firm expects $52 billion in CapEx by 2025.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization: $2.1 Trillion
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. On November 14, Needham analyst Laura Martin raised the price target on the stock to $250 from $210 and kept a Buy rating on the shares ahead of the firm’s Needham Growth Conference panels that will include some of the company’s former employees. Needham is citing Amazon’s focus on customer-centric innovation, with most of its product development coming directly from customer feedback, along with its focus on scale from the very beginning of all new initiatives, the advisory told investors in a research note.
3. Alphabet Inc. (NASDAQ:GOOG)
Market Capitalization: $2.2 Trillion
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. Latest reports indicate that Gemini, the generative AI assistant offered by Google, is launching on iOS, the mobile software platform of tech giant Apple, as a standalone application. Since its launch, Gemini has become one of the most powerful and popular AI assistants in the world. Tech website Quartz reports that the AI assistant is capable of natural conversations with interruptions and topic changes. It comes to iPhones with ten distinct voice options and supports 12 languages, including Spanish, Arabic, and Hindi, with more planned.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 14, news publication Bloomberg reported that OpenAI, the AI startup backed by multi-billion dollar funding from Microsoft, is on the verge of introducing a new artificial intelligence agent named Operator. The new AI agent can use a computer to complete tasks on a user’s behalf, such as writing code or booking travel, per the report. Microsoft has invested close to $14 billion in the startup over the past five years.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 14, Wedbush analyst Matt Bryson raised the price target on the stock to $160 from $138 and kept an Outperform rating on the shares ahead of quarterly results. The advisory’s FY2025 numbers increase in line with its increased sales forecast for Q3 revenues, with the upside last quarter flowing into Q4. The increase in Wedbush’s FY2026 revenue and EPS forecast reflects its confidence around spending into the out year. The advisory’s price target lifts in conjunction with the growth in its out-year estimates as Wedbush continues to derive its target by applying a 36-times multiple to its FY2026 EPS.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA Corporation (NASDAQ:NVDA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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