In this article, we will discuss the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts.
Consumer Electronics Show (CES) 2025 revolved around AI. If not, it’s all that exhibitors could show. Talking about the highlight of the show, it was undoubtedly the keynote from Jensen Huang. The keynote included new products to advance gaming, autonomous vehicles, robotics, and agentic AI. Huang kicked off his talk by reflecting on the company’s 3-decade journey. Later on, he highlighted several significant advancements.
Takeaways From CEO Jensen Huang’s Keynote at CES 2025
As per Huang, AI has been advancing at an ‘incredible pace.’ It started with perception AI, meaning understanding images, words, and sounds. Then it came to generative AI, meaning creating text, images, and sound. And now, it’s the era of physical AI, meaning AI that can proceed, reason, plan, and act. The AI giant introduced GeForce RTX 50 Series GPUs, which are powered by Blackwell architecture. These GPUs provide significant improvements in AI-driven rendering, enhancing gaming and creative workflows. Furthermore, Huang unveiled “Cosmos,” which is a suite of foundational AI models capable of generating photorealistic video. The models have been designed in such a way that train robots and automated systems more efficiently, further advancing robotics and autonomous technologies.
The company and its partners have rolled out AI Blueprints for agentic AI, which includes PDF-to-podcast for efficient research and video search and summarization for assessing significant quantities of video and images — allowing developers to build, test, and run AI agents anywhere.
Agentic AI- Road Ahead in 2025
TechInformed interviewed experts from leading technology companies to explore predictions about Agentic AI. As per Steven Webb, UK chief technology and innovation officer, Capgemini, 2025 will see wider adoption of small language models (SLMs) and AI agents as an era of Agentic AI is fast approaching. Using multiple SLMs throughout a toolchain is expected to play a critical role in the AI evolution. This will include going beyond the already familiar LLMs such as GPT.
Furthermore, Alan Jacobson (chief data and analytics officer at Alteryx) believes that 2025 will see the rise of Gen AI agents used to solve problems. This is an approach that is made possible by reducing costs and improving the performance and speed of LLMs. Frameworks for orchestrating Agentic AI work are expected to emerge. Notably, a large percentage of use cases are expected to start to employ this approach.
With this in mind, let us now have a look at the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts
Photo by Maximalfocus on Unsplash
Our Methodology
To list the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts, we conducted extensive research and sifted through numerous online rankings. After getting an initial list of 25-30 stocks, we chose the ones that were popular among hedge funds and that analysts saw upside to. Finally, the stocks were arranged in ascending order of their average upside potential, as of 14th January. 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).
20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts
20) C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 17
Average Upside Potential: 25.8%
C3.ai, Inc. (NYSE:AI) operates as an enterprise AI software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. One of the critical developments for the company was its expanded strategic partnership with Microsoft. This collaboration focuses on accelerating enterprise AI adoption by integrating its suite of Enterprise AI application software on the Microsoft Commercial Cloud Portal. This partnership is expected to significantly boost C3.ai, Inc. (NYSE:AI)’s market reach.
With government entities increasingly prioritizing AI investments, C3.ai, Inc. (NYSE:AI) is well-placed to capture a significant share of this market. Its existing relationships and track record in these sectors are expected to offer a competitive advantage and fuel substantial growth over the coming years. The company has seen a growth of 29% YoY in Q2 2025 in its revenues. By establishing C3.ai, Inc. (NYSE:AI) as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine, the company continues to make it easy for businesses to adopt and deploy its applications. Therefore, it is an inflection point for Enterprise AI, fueling growth.
Furthermore, alliances with firms in the energy sector (such as Baker Hughes) and government contracts are expected to open new revenue streams. The increased investment by governments in AI initiatives offers numerous opportunities for contracts, mainly in defense, healthcare, and infrastructure. JMP Securities increased their price target on the company’s shares from $40.00 to $55.00, giving a “Market Outperform” rating on 10th December.
19) QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
Average Upside Potential: 25.95%
QUALCOMM Incorporated (NASDAQ:QCOM)’s Snapdragon processors are being optimized for AI workloads, and the company has been developing new products specifically tailored for AI applications in mobile and PC markets. QUALCOMM Incorporated (NASDAQ:QCOM)’s capability to integrate modem technology with powerful application processors in its Snapdragon platforms offers a unique advantage in providing comprehensive solutions for smartphones, PCs, and other devices. Notably, this integration ability is expected to become increasingly valuable as devices need more complex processing for AI and other advanced applications.
As generative AI accelerates demand for the company’s technology and becomes increasingly relevant throughout multiple industries, QUALCOMM Incorporated (NASDAQ:QCOM) remains well-placed to address a $900 billion opportunity (as per its own estimates) by 2030 across an expanding ecosystem of new customers and partners. TD Cowen expressed continued confidence in the company’s shares, maintaining a Buy rating and a price objective of $200.00. Its positive outlook stems from QUALCOMM Incorporated (NASDAQ:QCOM)’s capabilities in low-power processing, which it believes is expected to fuel growth in AI-driven embedded applications.
Also, Rosenblatt Securities highlighted QUALCOMM Incorporated (NASDAQ:QCOM)’s leadership in addressing diverse markets via energy-efficient processors, advanced connectivity, and AI capabilities. By fiscal 2029, the company aims a $4 billion in PC revenue, fueled by a proliferation of AI-enabled notebooks. The company expects that 90% of PCs would include AI features, with 100 million devices leveraging Copilot+ annually. Madison Investments, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said
“Alphabet Inc., Eli Lilly and Company, QUALCOMM Incorporated (NASDAQ:QCOM), Microsoft Corporation, and Apple Inc. were the largest detractors. Qualcomm has given back some of its first half gains after the CFO commented at a conference that its entrance into the AI PC business would take time to ramp. We continue to see Qualcomm as well positioned with growth from AI moving into the mobile phone, from new opportunities in the Internet of Things (IoT), and within the Auto industry but will also look to future growth as they enter the PC market.”
18) Synopsys, Inc. (NASDAQ:SNPS)
Number of Hedge Fund Holders: 53
Average Upside Potential: 27.8%
Synopsys, Inc. (NASDAQ:SNPS) is involved in the AI business as it offers advanced tools and technologies enabling the design and development of AI hardware and software. The company is well-positioned to capitalize on the burgeoning demand for AI and 3D-IC technologies in the semiconductor industry. Its investments in AI-specific solutions and 3D-IC (Integrated Circuit) design capabilities are expected to fuel significant market share gains and drive revenue growth. As these technologies spread across various industries, Synopsys, Inc. (NASDAQ:SNPS) is expected to see rapid adoption of its advanced tools, potentially strengthening its leadership position in the electronic design automation (EDA) market.
With AI applications becoming more prevalent, there is an increased need for specialized hardware to aid complex computations. This is where Synopsys, Inc. (NASDAQ:SNPS) comes into the picture as it offers AI-driven EDA tools that help streamline and optimize the chip design process. The company’s Synopsys.ai suite helps integrate AI across the entire EDA stack, further enhancing efficiency and performance in chip development. Therefore, the sustained demand for its chip design software, thanks to the adoption of AI technology, is expected to aid its long-term revenue prospects.
Moving forward, the AI-driven reinvention of compute has been accelerating the pace, scale, and complexity of technology R&D. This expands Synopsys, Inc. (NASDAQ:SNPS)’s opportunity to solve engineering challenges from silicon to systems. Needham & Company LLC gave a “Buy” rating, setting a $640.00 price objective on 5th December. Parnassus Investments, an investment management company, released a 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.”
17) Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Average Upside Potential: 28.0%
Salesforce, Inc. (NYSE:CRM) established itself as a leading AI business by embedding AI across its CRM platform and associated applications. At the heart of the company’s strategy is the push into AI-driven solutions. It recently announced the roll-out of Agentforce, a new product designed to leverage the next generation of AI via intelligent agents. The AI integration goes beyond Agentforce. Salesforce, Inc. (NYSE:CRM) continues to enhance its core offerings, which include Sales Cloud and Service Cloud, with AI capabilities. Its Data Cloud remains well-positioned to benefit from the AI trend, as customers explore AI-driven CRM deployments.
Analyst Bradley Sills from Bank of America Securities gave a ‘Buy’ rating on the shares of Salesforce, Inc. (NYSE:CRM), giving a price target of $440.00. The analyst remains optimistic about the combination of factors, such as advancements in its Agentforce 2.0 platform. Integration of Agentforce in numerous Salesforce clouds and third-party applications like SAP, Adobe, and Workday enhances its functionality and revenue growth potential. The improvements in AI reasoning capabilities via the Atlas engine can drive additional revenue opportunities, contributing 1% – 2% growth in FY 2026 and FY 2027.
Parnassus Investments, an investment management company, released a Q2 2024 investor letter. Here is what the fund said:
“Salesforce, Inc.’s (NYSE:CRM) growth continues to moderate, and investors question its prospect as it relates to AI. We remain confident that the company, which developed the original salesforce automation product and pioneered the SaaS (software as a service) delivery model, is well positioned to capitalize on emerging AI opportunities.”
16) Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 51
Average Upside Potential: 29.03%
Coherent Corp. (NYSE:COHR) is engaged in making optical circuit switches for AI data centers, as the growth of AI and ML technologies continues to create significant needs for data processing. Notably, well-established AI giant Nvidia happens to be one of the company’s transceiver customers. In Q1 2025, Coherent Corp. (NYSE:COHR) saw its revenue coming at $1.35 billion, reflecting an increase of 28% YoY, thanks to the AI demand. The company’s focus on leveraging AI presents significant growth opportunities.
Notably, AI integration is expected to develop more advanced, efficient semiconductor products, potentially opening new market segments or applications. Also, AI-driven analytics are expected to optimize equipment maintenance schedules, which can help reduce downtime and improve production consistency. Morgan Stanley upped its price target on the company’s shares to $120 from $100, keeping an “Equal Weight” rating.
Invesco Distributors, Inc., an investment management firm, released its Q3 2024 investor letter. Here is what the fund said:
“Coherent Corp. (NYSE:COHR): This laser company develops and manufactures optoelectronic components and devices used in the communications, electronics and industrial markets. The company has been benefiting from growing awareness of an improved growth outlook driven by artificial intelligence (AI), given that its optical transceivers are key enablers for networking of AI servers.”
15) Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Average Upside Potential: 29.6%
Oracle Corporation (NYSE:ORCL) remains a significant player in the AI space as it leverages artificial intelligence throughout its cloud infrastructure, applications, and analytics offerings. Its focus on AI and generative AI (GenAI) workloads continues to turn heads. The company has been successful in attracting notable customers like Meta and NVIDIA for its AI infrastructure, reflecting strong market adoption. Oracle Corporation (NYSE:ORCL) is well-placed to benefit from the growth of AI-related spending in the coming years.
With AI becoming more integral to enterprise operations, Oracle Corporation (NYSE:ORCL)’s strong position in database technology and growing cloud infrastructure offerings are expected to offer a competitive advantage. Its focus on developing AI-optimized hardware and software solutions is expected to lead to increased adoption of its cloud services and fuel revenue growth. While the company’s competitors treat AI as an add-on, Oracle Corporation (NYSE:ORCL) focuses on integrating AI deeply into its systems in a full-stack model that allows full operational workloads and chains of command which can include automation and enhanced decision-making.
In Q2 2025, Oracle Corporation (NYSE:ORCL) spent ~$4 billion on capital expenditures alone, demonstrating a 72% rise from the prior quarter, largely fueled by AI infrastructure investments. Parnassus Investments, an investment management company, released the Q3 2024 investor letter. Here is what the fund said:
“Oracle Corporation (NYSE:ORCL) announced second-quarter results that exceeded consensus expectations, driven by growth in its cloud infrastructure business, which is benefiting from demand for AI applications. Investor sentiment was further bolstered by the company’s announcement of a new partnership with Amazon.”
14) Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 58
Average Upside Potential: 30.1%
Core Scientific, Inc. (NASDAQ:CORZ) has been strategically transitioning toward the burgeoning Artificial Intelligence and High-Performance Computing (AI/HPC) sector, a move that places it well to capitalize on the growing AI sector. During Q3 2024, the company grew its HPC business, both in terms of contracted power and total capacity. The company also reallocated 100 megawatts of infrastructure previously designated for bitcoin mining to its HPC business, increasing its total HPC hosting capacity to 800 megawatts.
Core Scientific, Inc. (NASDAQ:CORZ)’s partnership with CoreWeave points to a significant milestone in Core Scientific’s transition. Apart from providing a stable revenue stream, it also places Core Scientific, Inc. (NASDAQ:CORZ) as a key player in the rapidly growing AI infrastructure market. The company’s strategic pivot comes at a time when the demand for AI and HPC infrastructure has been growing. Core Scientific, Inc. (NASDAQ:CORZ)’s existing power infrastructure and data centers offer a significant competitive advantage. Furthermore, the scarcity of power throughout the US grid makes its assets increasingly valuable, giving it a first-mover advantage in the AI/HPC space.
The increasing demand for power in the AI sector places the company’s infrastructure assets in a favorable position. Also, Core Scientific, Inc. (NASDAQ:CORZ)’s ability to rapidly set up AI/HPC data centers by leveraging existing infrastructure offers a time advantage over competitors. Roth Mkm initiated coverage on shares of the company and gave a “Buy” rating with a price target of $25.50 on 15th November.
13) ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 64
Average Upside Potential: 30.4%
ASML Holding N.V. (NASDAQ:ASML) provides lithography technology that enables the production of high-performance CPUs, GPUs, TPUs, and AI accelerators. The company remains well-positioned to capitalize on the burgeoning demand for AI chips that need the most advanced semiconductor manufacturing processes. ASML Holding N.V. (NASDAQ:ASML)’s EUV lithography systems are critical for producing high-performance chips powering AI applications, from data centers to edge devices. With AI spreading across industries, the demand for such sophisticated chips can grow substantially, leading to increased orders for the company’s advanced lithography tools.
ASML Holding N.V. (NASDAQ:ASML)’s technology remains critical for manufacturing High Bandwidth Memory (HBM), which is a critical component in AI accelerators and high-performance computing systems. Amidst the current optimism about HBM demand, the company is expected to see a steady stream of business. Furthermore, with AI capabilities spanning across consumer devices like smartphones and PCs, there appears to be strong potential for improved demand for ASML Holding N.V. (NASDAQ:ASML)’s equipment from several chip manufacturers.
Sandeep Deshpande, an analyst at JPMorgan, gave an “Outperform” rating on the shares of the company, with a price objective of $1,148. Polen Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“During the period, we added to our ASML Holding N.V. (NASDAQ:ASML) position in the face of recent volatility across the semiconductor sector broadly. As readers may recall, we trimmed the position in 4Q 2023 as we expected stagnating business trends to set in during 2024. Stagnation did occur, as did Al hysteria. We now foresee robust growth and believe ASML will see a significant ramp in business trends in 2025 and beyond. ASML’s business backlog and its customers’ persistent development of leading-edge chip sizes drive our expectation of rapid growth for the company in the coming years. In our view, shares trade at a very reasonable valuation for one of the world’s most competitively advantaged growth companies, particularly considering the accelerated growth we expect.”
12) NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Average Upside Potential: 31.0%
NVIDIA Corporation (NASDAQ:NVDA) is well-placed to benefit from the heightened investment in AI technology. Data centers require GPUs for AI training and inferencing. The company expects a $1 trillion opportunity for its business, stemming from the fact that data centers have been upgrading legacy computing systems to AI-optimized hardware. Mizuho upped its price target for NVIDIA Corporation (NASDAQ:NVDA) from $140 to $165, maintaining an “Outperform” rating.
Mizuho analyst, Vijay Rakesh, believes that the company’s GB200 NVL72 and GB300 are expected to provide significant support. The analyst also highlighted that NVIDIA Corporation (NASDAQ:NVDA)’s entry into the sovereign market is expected to expand in 2025, potentially making a contribution of ~$10 billion, or roughly 9-11% of the company’s data center revenue. McKinsey believes that global demand for data center capacity is expected to rise at an annual rate of between 19% – 22% from 2023 to 2030 to reach an annual demand of 171 to 219 gigawatts (GW). This is expected to significantly benefit NVIDIA Corporation (NASDAQ:NVDA), which controls 70% – 95% of the advanced AI chip market share as per Mizuho Securities.
Manole Capital Management, an investment management company, focused on covering the Financial and Technology sectors, released its Q3 2024 investor letter. Here is what the fund said:
“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”
11) Five9, Inc. (NASDAQ:FIVN)
Number of Hedge Fund Holders: 29
Average Upside Potential: 32.6%
Five9, Inc. (NASDAQ:FIVN) uses AI to revolutionize customer service operations and improve agent productivity. It integrates AI across its platform to automate processes, offers intelligent insights, and provides personalized customer experiences. Five9, Inc. (NASDAQ:FIVN) has been investing in AI solutions, which is expected to be a significant opportunity if adoption increases. The company’s AI offerings are the strong contenders in the market. Its focus on AI aligns with broader industry trends that focus more on intelligent and automated customer service solutions.
As businesses focus on automation and enhancing their customer service operations, AI-powered contact center solutions are expected to be more valuable. Five9, Inc. (NASDAQ:FIVN)’s strong AI offerings place it well to capitalize on this growing trend. If the company can establish itself as a leader in AI-powered CCaaS solutions, it can fuel significant growth and gain a competitive edge. Moreover, AI solutions often command higher price points that can result in increased customer stickiness, potentially improving revenue growth and customer retention rates.
Brown Capital Management, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“Five9, Inc. (NASDAQ:FIVN) is a leader in cloud-based contact-center software, which serves as the routing engine to connect callers to agents. With the growth of e-commerce, consumers are making fewer in-person visits to stores but contacting companies more frequently, driving the need for world-class contact-center software solutions like Five9’s. It has been a tough couple of years for Five9’s stock and this quarter provided no relief. Competitive concerns, questions about AI’s long-term impact on the business and deteriorating macroeconomic conditions have all cast clouds over the company’s stock. Five9’s consumer segment, one of its largest divisions, has really struggled of late as clients hire fewer call-center agents, pressuring Five9’s seat-based revenue model. Total revenue growth decelerated to 13% year-over-year in the most recent quarter, down from 28% and 17% in 2022 and 2023, respectively. Moreover, management guided to 16% for the full year 2024, which some consider optimistic given the weak start to the year. These worsening sales trends further weighed on shares during the quarter.
Looking through the current industry doldrums, we see a bright future for Five9. The company inked its largest deal ever during the quarter, which will generate more than $50 million in annual revenue once fully rolled out. We believe this is an important signal of Five9’s long-term potential. The company is attacking a $60 billion market opportunity, is winning new business at industry-leading rates and is gaining share from legacy incumbents stuck with antiquated technology. We continue to assess the potential threat of AI, but so far it has provided an uplift to company results. The company’s AI product is very popular with large enterprises as it assists agents with customer interactions and can sometimes be used to fully automate interactions. Far from shrinking the number of industry seats, as some fear, management said revenue per seat doubles when customers adopt their AI applications. We expect sales growth to pick up markedly in the coming years, which should result in much stronger stock performance.”
10) SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 37
Average Upside Potential: 37.3%
SentinelOne, Inc. (NYSE:S) is an AI-driven cybersecurity firm leveraging AI and ML to offer advanced endpoint protection, threat detection, and response solutions. The company’s strategic focus on AI-driven security and expansion into cloud-native solutions places it well with current market trends. With organizations adopting cloud computing and facing sophisticated cyber threats, the demand for advanced, AI-powered security solutions is anticipated to grow. SentinelOne, Inc. (NYSE:S)’s investments in areas like Purple AI and Cloud Native Security place it well to capitalize on these trends.
The success of such initiatives is expected to diversify the company’s revenue streams and create higher-margin business opportunities. If SentinelOne, Inc. (NYSE:S) establishes itself as a leader in AI-driven cloud security, it can fuel sustainable long-term growth and achieve a competitive edge against both traditional security vendors and cloud-native challengers. SentinelOne, Inc. (NYSE:S)’s ability to address increased demand for AI-driven data management solutions and facilitate cloud migrations for large enterprises places it well in the dynamic environment.
Since organizations have been adopting AI across industries, the complexity and volume of cyber threats targeting AI systems and other digital assets have been increasing. SentinelOne, Inc. (NYSE:S)’s AI-powered Singularity platform remains well-placed to address this demand with advanced features. 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.”
9) Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 22
Average Upside Potential: 39.6%
Informatica Inc. (NYSE:INFA) is an AI-driven business that specializes in data management, providing tools and platforms enabling companies to realize the power of their data and operational efficiency. The company is well-positioned to capitalize on the ever-evolving demand for AI and data management solutions via its strong focus on GenAI and cloud-based offerings. Informatica Inc. (NYSE:INFA)’s capability to prepare and manage data for AI applications caters to a critical need for enterprises looking to leverage AI technologies. Through continuous investments and expansion of AI-related capabilities, the company can tap into a rapidly growing market segment.
With companies grappling with the challenges of managing and utilizing huge amounts of data for AI and analytics, the company’s comprehensive suite of data management tools can provide support. By placing itself as a key enabler of AI-driven digital transformation, Informatica Inc. (NYSE:INFA) is expected to drive the adoption of its solutions and improve market share. Therefore, the growth of the AI industry can support the company by improving the demand for intelligent data management solutions that are crucial to the development and deployment of AI applications.
Truist Financial gave a “Buy” rating on the shares of Informatica Inc. (NYSE:INFA) on 12th December and a price objective of $34.00. AI regulations and ethical considerations have been driving demand for strong data governance. The company’s AI-powered governance solutions support companies to ensure compliance and transparency.
8) Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Average Upside Potential: 41.5%
Dell Technologies Inc. (NYSE:DELL) leverages its expertise in infrastructure, computing, and partnerships to empower AI applications throughout various industries. The company’s Infrastructure Solutions Group (ISG) demonstrated strong growth, mainly in AI servers. Jeff Clarke, the company’s vice chairman and chief operating officer, highlighted that Dell Technologies Inc. (NYSE:DELL) saw a combined 10 percent revenue growth in both its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) in Q3 2025, thanks to AI-related technology.
The company shipped $2.9 billion of AI servers in Q3 2025, resulting in an AI server backlog of $4.5 billion. Moving forward, the growth is expected to be aided by cloud service providers, enterprises, and national AI infrastructure initiatives. Dell Technologies Inc. (NYSE:DELL)’s strong engineering capabilities and end-to-end solutions, such as integration, design, deployment, optimization, and support services, place it well to capture market share from other original equipment manufacturers and original design manufacturers.
Dell Technologies Inc. (NYSE:DELL)’s ability to provide comprehensive AI solutions, from edge devices to data center infrastructure, provides a competitive edge and places the company to capture a significant share of the expanding AI market. Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released Q2 2024 investor letter. Here is what the fund said:
“Dell Technologies Inc. (NYSE:DELL) was a top contributor despite reporting disappointing first-quarter earnings results because investors looked through the near-term disappointment and expected strong growth from AI-related servers and personal computers. We expect Dell to participate in the growth of artificial intelligence hardware, especially as enterprises invest more aggressively. We like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”
7) Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 107
Average Upside Potential: 41.8%
Micron Technology, Inc. (NASDAQ:MU)’s advanced DRAM products, like HBM3 (High Bandwidth Memory), are critical for handling the high-speed data processing demands of AI models. The memory industry continues to experience a transformative period fueled by AI and data center demand growth. Micron Technology, Inc. (NASDAQ:MU) remains well-positioned to capitalize on these trends, with its data center revenue making more than 50% of total revenues for the first time in Q1 2025.
With AI and high-performance computing applications fueling demand for HBM, Micron Technology, Inc. (NASDAQ:MU)’s technological edge is expected to translate into market share gains and higher margins. Its leadership in advanced memory technologies, mainly HBM, places it well to capitalize on the ever-evolving AI and data center markets. The company increased its HBM market TAM (total addressable market) estimate to surpass $30 billion in 2025. Rosenblatt analyst, Steve Frankel, reiterated a “Buy” rating on the shares of Micron Technology, Inc. (NASDAQ:MU) with a price target of $250. The analyst is optimistic about the big opportunity for DRAM content deployment in AI platforms.
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.”
6) Varonis Systems, Inc. (NASDAQ:VRNS)
Number of Hedge Fund Holders: 42
Average Upside Potential: 43.6%
Varonis Systems, Inc. (NASDAQ:VRNS) is a leader in data security, which has significantly integrated AI into its offerings to enhance data protection and streamline security operations. Some of the critical initiatives include Athena AI, AI Security Solutions, and AI-powered Data Discovery and Classification. Cantor Fitzgerald initiated coverage on the shares of Varonis Systems, Inc. (NASDAQ:VRNS), providing an “Overweight” rating and a price target of $60.00. The firm cited that the increasing importance of data security investments bodes well for the company.
The firm added that numerous trends have been fueling this focus, such as the adoption of AI and ML workloads, and accelerated growth of data volumes. Such trends, together with the shift towards hybrid cloud environments and technological advancements enhancing user experience, can boost Varonis Systems, Inc. (NASDAQ:VRNS)’s performance. Looking ahead, the firm noted that generative AI is a key focus, which can significantly influence annual recurring revenue in fiscal 2025.
Numerous key growth drivers have been propelling Varonis Systems, Inc. (NASDAQ:VRNS)’s growth in the competitive cybersecurity market. One of the critical drivers is the company’s Generative AI (GenAI) technology, which has been garnering attention from partners and customers. Another growth catalyst is the Managed Data Detection & Response (MDDR) offering. This service provides automated threat response capabilities and can see increased adoption across Varonis Systems, Inc. (NASDAQ:VRNS)’s customer base.
5) Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 123
Average Upside Potential: 49.6%
Adobe Inc. (NASDAQ:ADBE) continues to focus on innovation, mainly in the AI space. It has made numerous strides with its Firefly generative AI technology and has been integrating AI capabilities throughout its Creative, Document, and Experience Clouds, targeting to enhance user productivity and expand product offerings. The company introduced enhancements to Photoshop and Illustrator, such as Distraction Removal and Generative Shape Fill, which uses AI to streamline creative workflows. On 20th November, Morgan Stanley analyst, Keith Weiss, gave a “Buy” rating on the shares of Adobe Inc. (NASDAQ:ADBE) with a price target of $660.00.
The analyst expressed optimism about the company’s strategic positioning in the GenAI landscape. Morgan Stanley has tagged Adobe Inc. (NASDAQ:ADBE)’s extensive workflows and datasets as “key assets” that can help it capitalize on GenAI innovations. The company’s differentiated position places it in a good position to benefit from GenAI. Moreover, its enhanced transparency and clear growth catalysts are expected to fuel investor confidence and help Adobe Inc. (NASDAQ:ADBE) achieve significant GenAI-driven growth by next year.
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.”
4) Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Average Upside Potential: 54.0%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a critical player in the AI ecosystem, using its expertise in designing cutting-edge processors, GPUs, and associated technologies to power AI workloads. In a significant development, the company announced the acquisition of ZT Systems, which can help enhance its capabilities in offering AI infrastructure solutions to hyperscale customers. The acquisition is expected to strengthen Advanced Micro Devices, Inc. (NASDAQ:AMD)’s position in the dynamic AI market and potentially result in increased market share and revenue growth.
Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to make progress in the AI and data center markets, placing itself as a strong competitor to well-established players. Its MI300 product line, which consists of high-performance GPU accelerators for AI workloads, was successful. The company, in Q3 2024, demonstrated optimism about its Instinct MI300X AI accelerators (that compete with Nvidia’s venerable H100). It revealed that the part can fuel $5 billion in revenues during Advanced Micro Devices, Inc. (NASDAQ:AMD)’s 2024 fiscal year.
The AI chip market aims to see exponential growth over the next few years, courtesy of elevated demand for AI applications throughout sectors, such as cloud computing, autonomous vehicles, and edge devices. By significant investments in AI-specific products, like the MI300 series, and acquiring companies such as ZT Systems, Advanced Micro Devices, Inc. (NASDAQ:AMD) has been developing a comprehensive AI ecosystem. Cantor Fitzgerald gave an “Overweight” rating and issued a $180.00 price target on shares of the company on 30th October.
3) MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 49
Average Upside Potential: 62.1%
MongoDB, Inc. (NASDAQ:MDB) provides a strong, flexible, and scalable database platform supporting AI and machine learning applications. The company’s robust technical capabilities make it well-placed for AI-powered applications, providing advantages in handling the diverse data types needed for AI workloads. With companies increasingly adopting AI technologies, MongoDB, Inc. (NASDAQ:MDB) is expected to benefit from this trend. Furthermore, the ongoing pivot towards cloud-based database solutions is expected to further support the company’s strengths with its Atlas service.
MongoDB, Inc. (NASDAQ:MDB)’s strong position in the ever-evolving DBaaS market, with Atlas demonstrating strong growth, reflects that the company is well-positioned to capitalize on the continued shift to cloud-based database solutions. The company’s database architecture provides a competitive edge for AI applications, placing it for strong growth with the expansion of AI technology. Even though SQL databases tend to excel in web 2.0 apps, they are not able to handle the varied data types utilized in AI, including source data and vector data, together with real-time operational data. MongoDB, Inc. (NASDAQ:MDB)’s ability to efficiently store and process this data, coupled with its low-latency performance, means that it is an ideal solution for AI developers.
ClearBridge Investments, an investment management company, released its Q1 2024 investor letter. Here is what the fund said:
“During the first quarter, we initiated a new position in MongoDB, Inc. (NASDAQ:MDB), in the IT sector. The company offers a leading modern database platform that handles all data types and is geared toward modern Internet applications, which constitute the bulk of new workloads. Database is one of the largest and fastest-growing software segments, and we believe it is early innings in the company’s ability to penetrate this market. MongoDB is actively expanding its potential market by adding ancillary capabilities like vector search for AI applications, streaming and real-time data analytics. The company reached non-GAAP profitability in 2022, and we see significant room for improved margins as revenue scales.”
2) Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Fund Holders: N/A
Average Upside Potential: 108.0%
Nebius Group N.V. (NASDAQ:NBIS) is a technology company that builds full-stack infrastructure to service the global AI industry. BWS Financial analyst, Hamed Khorsand, provided a “Buy” rating because of several factors, including the strategic positioning of the company in the AI sector. The firm gave a price target of $51. Nebius Group N.V. (NASDAQ:NBIS)’s unique ownership of AI-related architecture and hardware, coupled with assets such as Nebius AI, Avride robotaxi service, and Toloka AI places it well to seek support from burgeoning demand for AI solutions.
Furthermore, Hamed Khorsand highlighted the infrastructure investment efforts by Nebius Group N.V. (NASDAQ:NBIS) involving robust capex targeted at expanding operational capacity in the US and Europe. The analyst believes that the expected growth in ARR can result in positive adjusted EBITDA by 2025, fueling the valuation of the company’s stock. In another significant development, Nebius Group N.V. (NASDAQ:NBIS) announced that it entered into definitive agreements for a US$700 million private placement financing from a select group of institutional and accredited investors, which include participation from Accel, NVIDIA, and certain accounts managed by Orbis Investments.
The financing strengthens Nebius Group N.V. (NASDAQ:NBIS)’s previous plans to further build out its full-stack AI infrastructure – which includes large-scale GPU clusters, cloud platforms, and tools and services for developers – for AI pioneers. Nvidia’s investment in the company is expected to propel Nebius Group N.V. (NASDAQ:NBIS) growth. The company expects to deliver an ARR by year-end 2025 of between US$750 million – US$1.0 billion.
1) Zeta Global Holdings Corp. (NYSE:ZETA)
Number of Hedge Fund Holders: 31
Average Upside Potential: 139.1%
Zeta Global Holdings Corp. (NYSE:ZETA) operates an AI-driven marketing technology company. The company’s platform uses AI and data analytics to aid businesses optimize customer acquisition, engagement, and retention. Its data-driven approach and AI capabilities have placed it well to capitalize on the ever-evolving demand for personalized marketing solutions. While Zeta Global Holdings Corp. (NYSE:ZETA) operates in a competitive market, it has differentiated itself via its comprehensive data assets and AI-driven solutions.
The company’s AI capabilities have contributed to healthy growth throughout its product lines. With Zeta Global Holdings Corp. (NYSE:ZETA) continuing to innovate and expand its AI offerings, it is expected to result in further improvements in customer adoption, revenue growth, and operational efficiency. The improved scalability of AI-powered solutions can result in margin expansion as the company grows.
Zeta Global Holdings Corp. (NYSE:ZETA)’s growth prospects are promising. It focuses on expanding its presence in high-growth markets such as e-commerce, healthcare, and financial services while making deployments in AI to enhance its marketing effectiveness. Furthermore, international expansion and successful integration of acquisitions are expected to provide significant upside potential. Carillon Tower Advisers, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Zeta Global Holdings Corp. (NYSE:ZETA) is a marketing automation software vendor focused on customer data. The company has seen a healthy growth rate while posting solid margins and cash flow. This past quarter, investors appreciated acceleration in growth driven by Zeta’s artificial intelligence-based modules leading to increased spending on the company’s platform. Furthermore, Zeta’s exposure to political ad spending during a major election is raising expectations regarding growth in the second half of the year.”
While we acknowledge the potential of ZETA 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 ZETA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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