Top AI Stocks to Consider Following Wells Fargo's Upgrade

The landscape of artificial intelligence investments is rapidly evolving. With Wells Fargo boosting its outlook, investors are keen to identify the best AI stocks to add to their portfolios. Here, we highlight five standout options, based on their growth potential and hedge fund interest.

Our Approach

In curating this list, we analyzed AI stocks with an average upside potential of at least 30%. Utilizing data from Finviz and tracking hedge fund holdings, we ranked these stocks according to their projected price appreciation as of November 12, 2026.

5. Alibaba (NYSE:BABA)

Average Upside Potential: 84%
Hedge Fund Holders: 97

Recently, Mizuho analyst Wei Fang revised his target for Alibaba from $195 to $200 while maintaining an Outperform rating before the company’s next earnings report.

Alibaba operates several online shopping platforms, and its cloud services arm is expected to tap into the AI wave. The Qwen AI models enhance their cloud offerings, contributing to a notable 45% increase in external cloud revenue during the last quarter, with 35% of that revenue stemming from AI products.

However, this growth raises concerns, as adjusted EBITA dropped 30% due to rising costs associated with AI infrastructure. Alibaba will release its quarterly earnings on November 18, and analysts predict earnings per share of $1.65.

4. Marvell Technology (NASDAQ:MRVL)

Average Upside Potential: 87%
Hedge Fund Holders: 96

BofA analyst Vivek Arya has recently downgraded Marvell, reducing his price target significantly following the company’s announcement to acquire Lumentum in an all-stock transaction.

Marvell, known for its chip technology that supports data movement in AI data centers, faces mixed responses from analysts. While UBS upholds a Buy rating, skepticism about the integration with Lumentum reflects concerns over potential risks that could arise from the deal.

3. Oracle (NYSE:ORCL)

Average Upside Potential: 90%
Hedge Fund Holders: 119

After a recent investor day, Oracle received an upgrade from Stephens, raising its target from $185 to $213. The company anticipates positive free cash flow in fiscal 2028 and has set a financing plan that limits risk exposure.

Oracle is increasingly focusing on AI, offering computing capacities that allow customers to develop extensive models. The heavy dependence on OpenAI for a significant portion of its order backlog has raised questions about future revenue stability.

2. Sandisk (NASDAQ:SNDK)

Average Upside Potential: 121%
Hedge Fund Holders: 128

Wells Fargo's analyst Aaron Rakers adjusted his Sandisk target down after the company reported its latest quarterly results. Sandisk, which specializes in NAND flash chips, has been benefiting from heightened demand in AI data centers.

Despite impressive revenue of $11 billion with significant margins, concerns linger about the sustainability of rising prices in the flash memory market.

1. SoundHound AI (NASDAQ:SOUN)

Average Upside Potential: 186%
Hedge Fund Holders: 20

Cantor Fitzgerald analyst Thomas Blakey has moderated his price target for SoundHound following recent earnings, despite the company reporting a stellar 48% increase in revenue.

The firm offers advanced voice AI technology, positioning itself to serve various industries. As the company streamlines its operations, investors will be keen to monitor developments in profit margins and revenue quality.

In conclusion, the AI sector shows promising investment opportunities, with several stocks exhibiting robust growth potential despite facing mixed market signals. If you're on the lookout for undervalued AI investments, consider additional insights from our detailed report on the leading AI stocks to watch.