The AI Investing Pulse

November 6th, 2025

In this Week’s Edition:

1. Analysis - November's Top AI Stock Picks

2. Stock Ideas - Is Rocket Lab stock the next Nvidia?

3. News - Here’s what Wall Street analysts are saying about Palantir’s earnings

4. Startups - Tala Health raises $100m to transform patient-centric healthcare

5. Trends - The future of AI-powered portfolio management

6. Other News - How AI voice agents are quietly taking over Hollywood

7. Video - Morgan Stanley says AI trade is here to stay

November's Top AI Stock Picks

In a week marked by sharp declines in US equities, investor nerves have centred on the soaring valuations of high-growth technology stocks, particularly those linked to AI. Yet, November remains historically one of the strongest months for the S&P 500, suggesting selective opportunities may exist for investors who combine discipline with data-driven selection.

This roundup consolidates insights from leading analysts and financial publications, summarising how top AI-linked stocks are performing both fundamentally and in market momentum. We also rank each company using the AI Investing Pulse (AIIP) methodology.

Top Picks from The Motley Fool (Patrick Sanders)

Patrick Sanders from The Motley Fool highlighted several AI powerhouses in his November coverage, companies that form the structural backbone of AI innovation and infrastructure.

Palantir Technologies Inc. $PLTR ( ▼ 1.49% )  

Sanders highlights Palantir for its growing presence in operational AI, particularly following a partnership with Nvidia to develop an integrated AI technology stack. This collaboration strengthens Palantir’s positioning in both enterprise and defence applications, extending its commercial reach while deepening government integrations.

Palantir continues to split opinion. Supporters view its rapid adoption across sectors, from healthcare to national security, as evidence of scalable growth, while critics cite its premium valuation as a risk in a cooling market.
AIIP Ranking: Fundamental Score 100 | RS 98 | Ranking: Watchlist

Alphabet Inc. $GOOG ( ▲ 2.41% )

Sanders, supported by Morgan Stanley’s Julian Emanuel, highlighted Alphabet’s exceptional Q3 results, achieving its first-ever $100 billion revenue quarter. This milestone reflects accelerating AI integration across Google Cloud, Search, and YouTube, alongside the rollout of AI Overviews and Gemini.

Alphabet’s ability to monetise AI through its core products sets it apart from many peers, and its in-house chip capabilities further enhance profitability. Analysts see Alphabet as one of the most financially resilient AI plays in the market.
AIIP Ranking: Fundamental Score 92 | RS 72 | Ranking: Fundamental

Taiwan Semiconductor Manufacturing Co. $TSM ( ▼ 0.14% )  

TSM remains one of the most strategically essential companies in global technology supply chains. As the world’s leading semiconductor foundry, it produces the advanced chips powering AI workloads across Nvidia, Apple, and AMD.

Sanders noted that TSM’s US expansion, including its new Arizona facilities, mitigates geopolitical risk while boosting production capacity. This positions TSM as a cornerstone of AI’s hardware ecosystem, vital, stable, and globally indispensable.
AIIP Ranking: Fundamental Score 100 | RS 70 | Ranking: Fundamental

ASML Holding N.V. $ASML ( ▲ 1.32% )  

ASML retains a global monopoly on extreme ultraviolet (EUV) lithography technology, a process critical for manufacturing advanced AI chips. Patrick Sanders underscored ASML’s unique position as a “choke point” in the semiconductor supply chain.

However, slowing equipment demand and export controls have weighed on short-term sentiment. Analysts continue to view ASML as a strategic long-term play.
AIIP Ranking: Fundamental Score 59 | RS 68 | Ranking: No Signal

Comparative Picks & Price Target Updates

Analysts from Goldman Sachs, Mizuho, and Morgan Stanley issued fresh updates on key AI names, reflecting a balance between optimism and growing valuation caution.

NVIDIA Corporation $NVDA ( ▼ 1.75% )  

James Schneider of Goldman Sachs reaffirmed his Buy rating, calling Nvidia the “MVP of the 2025 stock market” and raising his price target to $240. Nvidia’s GPUs remain indispensable across AI data centres, cloud infrastructure, and enterprise applications.

Despite unmatched fundamentals, sentiment briefly cooled after Michael Burry disclosed a $187 million bearish position, signalling concerns over valuation excess. Still, Nvidia’s fundamentals remain pristine under AIIP, the gold standard for both growth and profitability.
AIIP Ranking: Fundamental Score 100 | RS 66 | Ranking: Fundamental

Amazon Inc. $AMZN ( ▲ 0.35% )  

Lloyd Walmsley of Mizuho raised Amazon’s price target to $315, citing growing confidence after strong Q3 results and a pivotal $38 billion AWS–OpenAI partnership. The deal grants OpenAI access to massive Nvidia GPU clusters hosted on AWS, cementing Amazon’s infrastructure leadership.

Amazon continues to lead in both cloud and e-commerce, with AI integration spanning logistics, advertising, and generative applications. Analysts view it as a diversified, long-term AI compounder.
AIIP Ranking: Fundamental Score 92 | RS 54 | Ranking: Fundamental

BigBear.ai Holdings, Inc. $BBAI ( ▲ 6.98% )  

Sirisha Bhogaraju drew attention to BigBear.ai’s extraordinary volatility, rising over 70% in a month despite ongoing concerns about valuation and contract uncertainty.

The company’s AI analytics for national security and logistics make it a niche yet speculative player. While its fundamentals lag, its RS score of 96 shows exceptional short-term market interest, categorising it firmly as a momentum-driven stock.
AIIP Ranking: Fundamental Score 26 | RS 96 | Ranking: Momentum

Datadog Inc. ($DDOG)

Julian Emanuel (Morgan Stanley) identified Datadog as a reliable software growth story, forecasting 19% annual earnings growth through 2028. Datadog has consistently beaten earnings expectations and continues to benefit from efficiency gains in cloud monitoring and analytics.

With its ability to balance innovation and cost control, Datadog remains one of the more fundamentally sound mid-cap AI software names in the market.
AIIP Ranking: Fundamental Score 71 | RS 56 | Ranking: Fundamental

Market Movers & Sceptics

While analysts express optimism about AI’s long-term potential, several market leaders warn that valuations may be running ahead of fundamentals.

Ted Pick (Morgan Stanley) and David Solomon (Goldman Sachs) both cautioned that AI valuations could face short-term pressure, urging investors to remain selective amid “frothy” sentiment.

Michael Burry (Scion Asset Management)’s $187 million short position against Nvidia drew headlines, while Jon Withaar (Pictet Asset Management) called the sell-off “positioning-driven.” Matthew Haupt (Wilson Asset Management) viewed the pullback as prudent profit-taking ahead of potential policy risk.

Final Take

This week’s expanded analysis highlights the growing gap between AI infrastructure leaders and high-volatility momentum names.

• Nvidia, TSM, and Alphabet continue to anchor the market with strong fundamentals and durable growth.

• Palantir remains the standout performer, the only stock currently on the AIIP Watchlist, combining top-tier fundamentals with exceptional momentum.

• Alphabet and TSM are close contenders, reflecting near-perfect fundamentals and stable RS scores that could soon qualify them for Watchlist inclusion.

Analysts across The Motley Fool, Goldman Sachs, Mizuho, and Morgan Stanley emphasise that while AI remains the defining growth narrative of the decade, investor success now depends on a careful blend of valuation discipline and strategic exposure to innovation.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

^{About AIIP - The AIIP Index tracks 173 AI-focused public companies across the full AI stack, serving as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP 173 AI stocks. Ranking Status is based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

Is Rocket Lab stock the next Nvidia? – The Motley Fool

The best ETF for AI infrastructure investors – The Motley Fool

AI STOCKS & ETFs NEWS

Here’s what Wall Street analysts are saying about Palantir’s earnings – Investopedia
Wall Street analysts praised Palantir’s Q3 2025 performance for robust revenue growth and improved margins, though noted scaling challenges in its commercial segment.

Barclays upgrades Aixtron stock to overweight on AI growth potential – Investing.com
Barclays upgraded Aixtron to “overweight” with a target price of €20, citing strong semiconductor demand driven by AI technology and a positive revenue outlook.

Global markets face AI selloff on 5 November 2025 – Reuters
Global markets saw a sharp selloff over AI-related fears, as investor sentiment turned amid concerns around rapid tech disruption and regulatory uncertainty.

AI STARTUPS

Tala Health raises $100m to transform patient-centric healthcare with AI – Tech Funding News
Tala Health raised $100 million led by Sofreh Capital to expand AI-driven healthcare accessibility, streamlining referrals and virtual access to improve patient outcomes.

GitLaw launches AI agent to make legal documents free for businesses, raises $3m pre-seed – PR Newswire
GitLaw unveiled an AI platform offering free legal templates for businesses, simplifying contract creation and compliance. The $3 million funding will scale product development and user access.

AI TRENDS

The future of AI-powered portfolio management – Dev.to
AI is redefining portfolio management through automated insights, risk control, and data-driven decision-making, enhancing performance for investors and institutions alike.

Inside the future: 7 AI trends defining 2026 – Medium
Seven trends shaping 2026 include agentic AI, synthetic content, physical integration, data sovereignty, efficiency gains, federated learning, and human-AI collaboration.

AI business transformation – Vendasta
AI is reshaping SMB operations through automation, personalised customer engagement, and integrated analytics, resulting in improved efficiency and revenue growth.

OTHER

How AI voice agents are quietly taking over Hollywood and other industries – International Business Times
AI voice agents are transforming entertainment and production workflows, changing how films and digital content are developed and consumed globally.

82% of enterprise leaders now use generative AI weekly, Wharton study finds – Voice of Alexandria
A multi-year Wharton study reports that 82% of business leaders now use generative AI weekly, marking a mainstream shift and increasing investment plans despite workforce upskilling concerns.

VIDEO

Morgan Stanley says AI trade is here to stay – Yahoo Finance

^{Disclaimer
This content is provided for informational and educational purposes only and does not constitute investment advice, personal recommendations, or an invitation or inducement to engage in any investment activity.
AI Investing Pulse (AIIP) is a publisher of financial research and commentary and is not authorised or registered as an investment adviser, portfolio manager, or securities dealer with any regulatory authority in the United Kingdom (FCA), United States (SEC or any state regulator), or Canada (any provincial securities commission or CIRO).
The information presented is derived from publicly available sources believed to be reliable but should not be solely relied upon for making investment decisions. Always consult a qualified, regulated financial professional before acting on any information. Past performance is not a guide to future results.}

^{About AIIP Index: The AIIP Index tracks 173 AI-focused public companies across the full AI stack and serves as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence) and track the last 7 calendar days for weekly performance. The AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP universe. Ranking status is based on score combinations:
Fundamental = Total Score ≥ 70 and RS < 80, Momentum = RS ≥ 80 and Total Score < 70, Watchlist = Total Score ≥ 70 and RS ≥ 80.}