In this article, we discuss the 17 trending AI stocks according to latest news and analyst ratings.
One of the biggest breakthroughs of artificial intelligence in the past few years has been the advances in natural language processing. These AI models in language are now making their way into the business world and the society at large. Over a course of the next decade, informed estimates by investment advisors at Goldman Sachs indicate that these AI tools could drive a 7% increase in global GDP, worth nearly $7 trillion, and lift productivity growth by 1.5 percentage points overall. Expert economists Joseph Briggs and Devesh Kodnani recently wrote in a report that the ability of AI tools to generate content that is indistinguishable from human-created output and to break down communication barriers between humans and machines reflects a major advancement with potentially large macroeconomic effects.
Some of these macro factors are more discernible in the form of numbers. A recent study on artificial intelligence by Stanford University in the United States reveals that businesses are already outpacing academics when it comes to training AI models. For example, in 2023, the AI industry was able to train nearly 51 notable machine learning models (read more about these firms by accessing 33 Most Important AI Companies You Should Pay Attention To) compared to just 15 for academia. This happened despite the costs associated with training models rising. For instance, ChatGPT 4, the latest iteration of the popular ChatGPT that launched the AI wave back in late 2022, cost nearly $80 million to train. Similarly, Gemini Ultra, an AI tool developed by Google, cost $191 million to compute. The number of AI patents is also increasing, evidenced by the fact that since 2010, the number of granted AI patents has increased more than 31 times.
This exciting phase in the world of technology has ushered in a new boom for the world economy, previously plagued by inflation concerns, geopolitical conflicts, and stagnating demand figures. The bullish sentiment on AI needs to be balanced with caution. In the long run, investors should prepare themselves for significant changes to how the world works as AI could automate nearly 300 million jobs. In previous cycles of automation, new jobs and opportunities have risen to replace this. Recognizing these opportunities (read more about them by accessing 20 Industrial Stocks Already Riding the AI Wave) ahead of the time could go a long way towards balancing the risk profiles of growth-heavy portfolios. Recent research suggests that 60% of the workforce presently was occupied in positions that did not exist just half a century ago, lending credence to claims that over 80% of employment growth since the time can be explained by tech-driven innovation.
Our Methodology
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A technician installing a complex of microcontrollers and internet of things devices inside a server rack.
Trending AI Stocks According to Latest News And Analyst Ratings
17. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 96
Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide. The company has not been in the AI spotlight on Wall Street over the past few months, but is emerging as a strong AI play in light of recent developments. The management expects revenue growth to climb from 3% to double digits within a year, driven by a string of AI-related deals in the past few weeks. One of these deals is with OpenAI, a California-based AI firm that launched the AI wave back in late 2022 with the launch of ChatGPT. The firm is also undervalued compared to tech peers, with a PE Ratio of just around 22. The stock has jumped nearly 30% year-to-date.
Even though a recent $10 billion AI server deal between xAI, owned by Tesla chief Elon Musk, and Oracle Corporation (NYSE:ORCL) has apparently collapsed, Jefferies analyst Brent Thrill has reiterated a Buy rating on the stock with a price target of $150, noting that the company continued to witness exceedingly strong demand with the pipeline growing faster than bookings and revenue. The analyst also backed the firm to track towards $65 billion in revenue by 2026.
16. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 78
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Even though the smartphone market, one of the top earners for the firm, has remained soft so far this year, the third fiscal quarter results of the firm and guidance for the fourth quarter managed to top analyst estimates. In the first quarter of the next fiscal year, the company expects revenue growth to be around 5%, although this number could trend higher as AI-powered smartphones and PCs rebound. The firm is famous for providing consumer electronics firm Apple with the chips needed to power their handheld devices. This agreement between the two firms was extended until 2026 at the back end of last year.
This partnership with Apple is one of the reasons why analysts remain bullish on QUALCOMM Incorporated (NASDAQ:QCOM). Investment advisory Baird recently maintained an Outperform rating on the shares and increased the price target to $250 from $200, noting that the firm could provide more than 90 million units for the upcoming iPhone 16, deliver above-average shipments for AI PCs, and sell important components with a double-digit increase in prices during the second half of this year.
15. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 85
Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The company has emerged as a power leader in the AI space over the past few months. The investments in AI data centers have led to a surge in demand for power. Graphic processing units (GPUs) sit at the core of this demand. These units use two or three times more power than traditional central processing units (CPUs) and are needed for AI data center computations. Some estimates place the estimated power usage of data centers in the US to climb 50% as a result of investments in AI over the coming months. The power firm aims to provide electricity and boost business during this time.
This bullish view on AI data center power consumption by Vertiv Holdings Co (NYSE:VRT) is shared by analysts at Mizuho. The investment advisory recently upgraded the stock to Outperform from Neutral and lowered the price target to $92 from $95, underlining that the maker of power and cooling systems for data centers was poised to become more valuable with improved operations and the shares were attractively valued based on a price-to-earnings growth basis.
14. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 82
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. The firm has been a market leader in memory and storage solutions. As tech giants invest in AI data centers, memory remains a key link connecting AI hardware to AI software. The firm has inked several partnerships with AI firms to cash in on the AI chip demand. One of the notable ones is the agreement with GPU powerhouse NVIDIA under which the two firms will work together to develop the Grok chatbot of xAI, an AI firm owned by Tesla chief Elon Musk. Musk has also revealed that his AI company will use Dell hardware to build a new supercomputer.
Even though enterprise server and storage businesses fail to impress, analysts on Wall Street have been forced to reckon with the AI power of Dell Technologies Inc. (NYSE:DELL). Barclays analyst Tim Long recently upgraded the stock to Equal Weight from Underweight with a price target of $97, commenting that while AI servers carry lower gross margins than traditional servers, AI should still benefit the overall top-line growth of the hardware firm.
13. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 75
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. One of the most famous customers of the firm is Taiwan Semiconductor Manufacturing Company, the leading chipmaker in the world. This partnership had helped the shares climb this year as the AI craze led to a rise in demand for high-end chips. However, reports that the US government was considering curbs on chip exports to China had led to a downward turn for the stock. Latest rumors from Washington indicate that this export ban would extend to US allies, but exempt firms working in Japan, South Korea, and the Netherlands. ASML Holding is based in Veldhoven, Netherlands.
Following the new developments, ASML Holding N.V. (NASDAQ: ASML) has earned a confidence boost on Wall Street, with Bank of America analyst Didier Scemama reiterating a Buy rating with a price target of €1,302, noting that the company remained irreplaceable in the buildout of AI infrastructure, with all AI processors and DRAM companies using EUV technology marketed by the firm to manufacture their chips.
12. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 79
Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for the semiconductor industry. The firm is important to companies that manufacture AI chips and those that are increasing their capex to improve chip making to keep up with rising demand. Some of the major names associated with Applied Materials in this regard include Taiwan Semiconductor Manufacturing, Intel, and NVIDIA. Latest reports suggest that companies in the US will spend nearly $1 trillion to build AI infrastructure in the coming years. A large portion of this spend will go towards chipmakers mentioned above. Applied Materials, which provides tools to these chipmakers, will witness a boom in business.
Stifel analysts Brian Chin and Denis Pyatchanin agree with this assessment and recently reiterated a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) stock and increased the price target to $275, highlighting that the firm was well on track to establish higher peak revenue and profitability through the ensuing upcycle, and warranted a higher multiple as it demonstrated improving financial performance, in particular during the downturn.
11. MicroStrategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 22
MicroStrategy Incorporated (NASDAQ:MSTR) provides analytics software and services. The company has remained relevant on the news and among Wall Street analysts due to the big bets it had made on cryptocurrency Bitcoin. It is also a favorite among retail traders who bet on high growth targets like the firm and keep it among the trending stocks online. However, the AI offerings of the firm should also be discussed. In addition to unveiling a host of AI software offerings last year, at the height of the AI craze, the company recently released a new customizable AI bot called Auto. The new bot lets customers of the firm interact with the data analytic offerings of MicroStrategy through the use of natural language.
Wall Street analysts are optimistic about the new developments, with Mark Palmer at Benchmark rating MicroStrategy Incorporated (NASDAQ:MSTR) stock as a Buy with a price target of $215, up from $187.5 previously. Per Palmer, the strategic moves of the analytics firm in Bitcoin as well as AI over the past few months influenced the Buy recommendation.
10. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 135
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. These chips are used by some of the biggest technology companies in the world, including Apple, NVIDIA, and Advanced Micro Devices, among others. The Taiwan-based firm has benefited from the AI boom, with the demand for the products it markets rising rapidly. One such indicator of this is the latest revenue figures released by the company. In the month of July, the firm earned around NT$257 billion, up more than 44% compared to July 2023. The revenue for the first seven months of the year was NT$1.5 trillion, climbing by over 30% compared to the same period in 2023.
Finance experts like Susquehanna analyst Mehdi Hosseini are bullish on the long-term growth prospects of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), with the analyst recently maintaining a Positive rating on the stock with a price target of $250. Recent reports indicate that the firm will raise prices on key 3nm and 5nm nodes in 2025. This rise should help the firm beat analyst expectations on 2025 EPS, which presently sit around $6.3, up nearly 21% on a year-on-year basis.
9. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 115
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. These products have been in high demand as technology giants build AI data centers and base memory products at the heart of their computations for AI software. Sanjay Mehrotra, the CEO of the firm, recently stated that the company expects to grow revenue from hundreds of millions to billions within a year. Mehrotra detailed that his firm expected the demand for memory products to exceed supply until 2025, helping drive the considerable improvements in profitability and ROI for the firm. He noted that these were needed to enable the investment required to support future growth.
This Micron Technology (NASDAQ:MU) thesis is supported by experts on Wall Street, like Bank of America analyst Vivek Arya who has a Buy rating on the stock with a price target of $170. Arya recently noted that the firm has opportunities in areas beside memory as well, including high-capacity DDR5 and data center SSDs as both AI and traditional server demands rise, while edge AI added another dimension of growth.
8. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 45
Palantir Technologies Inc. (NYSE:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations. The firm recently announced that it would be partnering with tech giant Microsoft to provide artificial intelligence services for the defense and intelligence communities. Under the deal, the large language models of the latter via Azure OpenAI service will be integrated with the AI Platform of the latter in the government and classified cloud environments operated by Microsoft. The agreement will help operators safely build AI-driven operational workloads across defense and intelligence verticals, per the two businesses.
This new deal has excited analysts in the finance world, with Dan Ives of Wedbush maintaining an Outperform rating on Palantir Technologies Inc. (NYSE:PLTR) stock with a price target of $38, underlining that the new deal between Microsoft and Palantir was game-changing and a launching pad for the AIP platform of the latter. Per Ives, the deal will generate further momentum within the federal sector over the coming years with many government agencies seeking to integrate AI models to improve operational workloads.
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 115
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The company has many big tech firms as customers, including Meta Platforms, Amazon, and Google, among others. These tech firms are on track to spend record amounts of capital to furnish their AI data center needs in the coming months. Broadcom will be one of the biggest beneficiaries of this spending. The shares of the chipmaker have also gained traction with reports that ByteDance, the Chinese firm that owns popular social media platform TikTok, is partnering with Broadcom to develop a new AI chip.
Finance bigwigs at investment advisory Citi appreciate the new developments involving Broadcom Inc. (NASDAQ:AVGO). In a recent note, the analysts predict that the company is catching up with AI giant NVIDIA in terms of positive sentiment, largely as a result of more AI customers joining, like Open AI and Bytedance, as well as accretion from VMware, a cloud computing firm recently purchased by the chipmaker.
6. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 35
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. The firm has ignited interest from tech giants after revealing new liquid cooling technology in AI data center build that helps the centers operate more efficiently. According to the management, the firm expects the new tech to be in 30% of data center racks it markets over the course of the next few months. This efficiency is important because the computational needs for AI tasks are likely to have a direct impact on the environment as well as power consumption. Presently, liquid cooling is used in only 1% of the racks in the data center market.
Citi analyst Asiya Merchant believes AI server demand strength will continue for companies like Super Micro Computer, Inc. (NASDAQ:SMCI) in the coming months. After the latest earnings report of the company, the analyst noted that strong demand saw revenues come in range of outlook, just slightly below consensus, in light of $800 million of revenues that shifted into July due to component shortages related to Direct-Liquid-Cooling. Guidance also indicated robust demand will continue as high backlog underpins outlook.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. The company has been investing heavily in AI tech over the past few years. Recent reports indicate that Google Cloud, one of the products marketed by the firm, is allowing startups in the AI domain access to high-tech NVIDIA GPUs and customized Google chips in order to build their AI models. This opening up of the cloud to AI startups is only limited to startups funded by Y Combinator, a venture capital firm based in California near Google headquarters, presently. However, the tech giant may allow a wider group of AI firms access to the cloud in the coming months.
Even as AI-powered search engines disrupt the core business of Alphabet Inc. (NASDAQ:GOOG), analysts like Scott Devitt of Wedbush, who has an Outperform rating on the shares with a price target of $205, believe the internet giant has a highly defensible search moat. Per the analyst, the search advancements of the firm are underappreciated by the market. Devitt notes that the firm has several advantages over peers, including an unmatched breadth of data to develop and train AI models, a large user base, AI-optimized compute infrastructure, access to engineering talent, and a track record of monetization.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 246
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. The firm recently posted earnings that beat analyst expectations on top and bottom lines and reiterated that capex on AI would continue to increase in the coming months. The firm projects 2024 capital expenditures coming in at $37 billion to $40 billion, up from previous estimates of $35 billion to $40 billion. Meta CEO Mark Zuckerberg told investors recently that Meta AI was on track to be the most used AI assistant in the world by the end of the year.
Analysts at investment advisory Barclays believe that investors are mis-modeling the hidden costs of AI spend to around 5% of the EPS. However, the advisory maintained an Overweight rating on Meta Platforms, Inc. (NASDAQ:META) stock with a price target of $520, underlining that even though the present outlook on AI was bullish, the risks associated with higher capex on AI would not be fully realized before the latter part of 2025 and early 2026.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 302
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. One of the important areas where the tech giant is implementing AI solutions is the web services business. This business, which grew 19% during the second-quarter and accounted for more than $26 billion in revenue, beat the Wall Street consensus estimates by close to 2% of around 17.6%. AI chips used to implement features on the cloud are slowly coming towards a better supply balance and the narrative around the AI prowess of the firm is also improving.
These developments regarding Amazon.com, Inc. (NASDAQ:AMZN) are encouraging, according to analysts at investment advisory RBC Capital. The advisory has an Outperform rating on the shares with a price target of $215, and recently noted that the bull thesis on the firm was largely on track as investments in AI infrastructure to help support web services demand looked to be paying off.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 150
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Even though AI power on mobile devices is often a hot subject around Wall Street, the increased capabilities of personal computers and laptops running AI is often under-discussed. Recent analysis by global tech analytics firm Canalys reveals that the PC industry is on pace to ship 44 million AI-capable PCs in 2024. This would more than double to 103 million units in 2025. Apple is leading the market in this regard. The number of AI-powered PCs shipped during the second quarter of 2024 has hit close to 9 million. The AI PCs of Apple, named Mac, account for 60% of shipments, showcasing supremacy over rival Microsoft which shipped 39% of AI-capable PCs during the time.
The bullish sentiment around the tech giant is shared by experts on Wall Street. In a recent investor note, research analyst Wamsi Mohan of Bank of America maintained a Buy rating on Apple Inc. (NASDAQ:AAPL) stock with a price target of $256. The analyst even sought to allay fears regarding new EU rules, stressing that the firm appeared able to comply with the latest App Store link-out restrictions in the European Union as the Core Technology Fee would offset the lower App Store take rates required by the Digital Markets Act.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 186
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The stock has been hit recently amid a broader selloff in the tech sector and reports of delays in the production of new AI chips branded Blackwell. However, the bigger picture remains rosy. The company has taken measures to ease investor concerns on the new chip, AI labs of the firm have been upsizing and lengthening their instance commitments, and enterprises are rapidly growing as a proportion of the demand mix. All these indicators point towards a bullish outlook for the AI giant.
Analysts led by Timothy Arcuri at investment advisory UBS have also recently backed NVIDIA Corporation (NASDAQ:NVDA) to emerge from the Blackwell troubles unscathed, reiterating a Buy rating on the shares with a price target of $150. Arcuri and his team noted that initial Blackwell customer volume shipments were only delayed four to six weeks at most, putting them at the very end of January 2025. This delay, per the team, was likely to be filled in large by customers taking more H200 chips due to very short lead times.
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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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