10 AI Stocks Analysts Are Betting On

Core Viewpoint - The artificial intelligence (AI) trade remains strong in the US equity markets, with analysts maintaining a positive outlook despite concerns over potential market bubbles and stretched valuations [1][3]. Group 1: Market Sentiment and Analyst Perspectives - UBS's Kiran Ganesh emphasizes that the narrative around AI remains intact, even with recent market pullbacks [1]. - Goldman Sachs CEO David Solomon warns of a potential 10%-20% drawdown in the equity market, reflecting souring investor sentiments [3]. - Analysts like Tom Hancock from GMO U.S. Quality ETF suggest that investors should take advantage of volatility in AI stocks, indicating a bullish stance despite bubble concerns [4]. Group 2: AI Stocks and Their Potential - Amazon.com Inc. (NASDAQ:AMZN) is highlighted as a key AI stock with a 30.36% upside potential and 335 hedge fund holders. A partnership with HCLTech aims to modernize financial services through AI and cloud capabilities [9][10]. - Advanced Micro Devices, Inc. (NASDAQ:AMD) is noted for its 32.37% upside potential and 113 hedge fund holders. The company is involved in a joint venture in Saudi Arabia to enhance AI infrastructure, targeting 1 GW of capacity by 2030 [14][15][16]. - AMD's CEO Lisa Su projects a 35% annual growth across its business and 60% growth in data center operations, driven by the AI wave [19][20]. Group 3: Financial Performance and Projections - Amazon's strong business fundamentals and disciplined growth strategy are cited as key factors for its long-term value creation, with analysts maintaining Buy ratings and price targets [11][12]. - AMD has signed a multiyear deal with OpenAI, expected to generate billions in annual revenue, reinforcing its position in the competitive AI chip market [18].