The AI Investing Pulse

October 9th, 2025

In this Week’s Edition:

1. Analysis - October’s top AI stock picks: Goldman Sachs, Motley Fool and Zacks

2. Stock Ideas - These small AI stocks could be the real winners

3. News - AI bubble, Cisco moment like the Dotcom crash

4. Startups - 4 startups to watch in AI-driven cybersecurity

5. Trends - The 8 biggest AI agent trends for 2026 everyone must be ready for

6. Other News - Best AI tools for tracking stock

7. Videos - Tom Lee: A new 10-year bull market is starting

October’s Top AI Stock Picks: Goldman Sachs, Motley Fool and Zacks

It’s that time of the month when we revisit the latest top AI stock picks from leading analysts, and put them through the lens of our AIIP Methodology.

For October, we draw on insights from The Motley Fool, Zacks, and Goldman Sachs Asset Management, applying AIIP’s objective criteria to identify which highlighted companies currently qualify for our AIIP Rankings, Fundamental, Momentum, Watchlist, or No Signal, as of 9 October.

Goldman Sachs’ Layered Approach to AI Leadership

Goldman Sachs Asset Management’s Brook Dane mapped his top AI picks across three layers of the ecosystem, Infrastructure, Data & Security, and Applications, capturing value across the full AI stack.

Nvidia (NVDA)
Still the infrastructure cornerstone, capturing roughly 70% of global AI spending through its GPU dominance. Data centre growth is expected to exceed 30% next year.
AIIP Ranking: Fundamental

TSMC (TSM)
A crucial semiconductor manufacturer underpinning the compute infrastructure for AI workloads. Its technological lead keeps it at the heart of AI’s hardware expansion.
AIIP Ranking: Fundamental

Zscaler (ZS)
A cybersecurity leader enabling secure cloud and AI deployment across enterprises. Its zero-trust architecture positions it as a key data protection layer within the AI stack.
AIIP Ranking: Fundamental

Snowflake (SNOW)
Helps enterprises organise, clean, and structure data for AI training and analytics — a foundational step in the AI lifecycle. Strong market interest drives its recent performance.
AIIP Ranking: Momentum

Samsara (IOT)
Delivers AI-powered telematics and IoT analytics for fleet and asset management, enhancing operational efficiency through real-time insights.
AIIP Ranking: Fundamental

HubSpot (HUBS)
A marketing and CRM platform embedding generative AI features and automations, developed in partnership with OpenAI. Widely adopted among SMEs and enterprise clients.
AIIP Ranking: Fundamental

Oracle (ORCL)
A profit-focused hyperscaler integrating AI across its cloud infrastructure and enterprise software offerings, strengthening its position in the competitive enterprise AI landscape.
AIIP Ranking: Fundamental

Varonis Systems (VRNS)
Provides AI-based data protection and compliance solutions. Despite its strategic relevance, limited adoption and profitability keep it below the AIIP threshold.
AIIP Ranking: No Signal

💡 AIIP View
Goldman’s selections lean heavily toward Fundamental strength, spanning infrastructure, cybersecurity, and enterprise software. Nvidia $NVDA ( ▲ 2.2% ) and TSMC $TSM ( ▲ 3.57% ) are both edging close to Watchlist status, supported by improving market momentum alongside already exceptional fundamentals. Zscaler, Oracle, and Samsara remain high-quality names within their segments, while Snowflake leads on Momentum with impressive price strength but softer fundamentals.

The Motley Fool’s AI Infrastructure Favourites

The Motley Fool’s October picks focus on companies building and enabling the AI economy, with several overlaps to Goldman Sachs’ selections, as Nvidia, TSMC, Alphabet, and Marvell Technology continue to lead as key infrastructure players.

Nvidia (NVDA)
The Fool’s top AI pick and the leading beneficiary of the global AI investment surge. Nvidia projects global data centre capital expenditure could expand from $600 billion in 2024 to as much as $4 trillion by 2030, driving multi-year demand for its GPUs.
AIIP Ranking: Fundamental

TSMC (TSM)
The world’s leading chip foundry and the main manufacturer for Nvidia and its peers. Its exposure to high-performance AI chip production makes it a core enabler of the AI hardware ecosystem.
AIIP Ranking: Fundamental

Alphabet (GOOGL)
A major AI spender using Google Cloud to provide compute power to enterprise clients while advancing its Gemini AI model and AI-driven search capabilities. Alphabet continues to monetise AI through multiple product verticals.
AIIP Ranking: Fundamental

Marvell Technology (MRVL)
A fast-growing semiconductor company specialising in custom AI chips and Ethernet connectivity for data centres, now 75% of its business. Rapid adoption of its AI-related components supports sustained growth.
AIIP Ranking: Fundamental

MercadoLibre (MELI)
The Latin American leader in e-commerce and fintech. While not a core AI name, its digital infrastructure positions it for potential AI-driven efficiencies in logistics and finance.
AIIP Ranking: No Signal

The Trade Desk (TTD)
A digital advertising platform currently migrating clients to its new AI-powered system. Despite a strong long-term position in programmatic ads, near-term volatility keeps it below AIIP thresholds.
AIIP Ranking: No Signal

💡 AIIP View
The infrastructure layer continues to dominate. Nvidia, TSMC, Alphabet, and Marvell all display strong fundamentals but moderate short-term price strength. MercadoLibre and The Trade Desk remain below AIIP thresholds, underscoring uneven participation across growth sectors.

Zacks’ Energy Angle: Powering the AI Data Centre Boom

Zacks turned its focus to the energy infrastructure fuelling AI growth, highlighting companies meeting the massive electricity demand of AI data centres.

Talen Energy (TLN) 
An independent power producer with nuclear and natural gas assets, supplying energy to Amazon’s AI data centres. Its expansion into gas generation will increase capacity by 50% and boost free cash flow by over 40% by 2026.
AIIP Ranking: Momentum

Constellation Energy (CEG)
The largest U.S. nuclear operator with long-term power contracts with Microsoft and Meta. Expanding into natural gas and geothermal through the Calpine acquisition, though its current fundamentals and momentum remain muted.
AIIP Ranking: No Signal

💡 AIIP View
Following last week’s focus on the growing role of energy in AI, Talen Energy again stands out as the clear momentum leader in the sector, while Constellation remains strategically aligned but continues to underperform on current AIIP metrics. The energy segment is rapidly emerging as a vital pillar of AI infrastructure investment, bridging the gap between data demand and sustainable power supply.

Final Take: A Market in Balance

Across all three sources, a clear pattern emerges, AI infrastructure remains the foundation of market leadership, while software and energy enablers rise in importance.

Notably, none of the featured stocks qualified for the AIIP’s Watchlist ranking (premium service) in October, a sign that while several companies show either strong fundamentals or short-term momentum, few currently meet the balanced growth and momentum profile required to enter Watchlist status.

With markets close to key resistance levels, the current rally in AI names may be due for a breather. There is also a growing debate around a possible “AI bubble”. Whether this proves to be a short pause or the start of a broader reset, the long-term direction of AI remains clear: steady integration into every layer of the economy.

PREMIUM - If you would like to Download our AI Stock Weekly Watchlist - Click here

_{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

These small AI stocks could be the real winners – The Motley Fool
Smaller AI firms are presenting significant investment opportunities despite the focus on major tech companies. Their innovative, niche solutions in sectors like healthcare and finance often outperform broader offerings, making them compelling prospects.

AMD or Intel: analysts pick the superior AI chip stock after recent major partnerships – TipRanks
Analysts discuss competition between AMD and Intel as both form partnerships to strengthen their AI chip capabilities, with mixed opinions on which company offers the stronger investment opportunity amid shifting market dynamics.

AI Stocks & ETFs News

AI bubble, Cisco moment like the Dotcom crash – Fortune
Analysts warn that the current AI stock rally may echo the dot-com bubble, with Nvidia’s ecosystem investments creating potential systemic risks in the tech sector.

Artificial intelligence stocks review – Investor’s Business Daily
A review of AI stocks highlighting market trends, company performances, investment strategies, and future outlook, indicating strong growth potential across various sectors.

Gartner says Agentic AI supply exceeds demand; market correction looms – BizWire
Gartner reports that Agentic AI supply currently surpasses demand, signalling a potential market correction as pricing and development adjust to real-world adoption levels.

AI Startups

4 startups to watch in AI-driven cybersecurity – IBTimes
Startups including Hunters.ai, BioCatch, SentinelOne, and Cybereason are using AI to enhance threat detection and response, reflecting the shift toward automated security solutions.

EvenUp raises $150 million Series E at $2 billion valuation – Fortune
EvenUp secures $150 million in Series E funding, reaching a $2 billion valuation, as AI advancements reshape the personal injury law sector.

Europe’s AI startups in retail – Startups Magazine
Europe’s AI startups are increasingly targeting the retail market, driven by strong growth, major investments, and a wave of billion-dollar success stories.

AI Trends

The 8 biggest AI agent trends for 2026 everyone must be ready for – Forbes
Eight major AI agent trends for 2026 include autonomous systems, hybrid intelligence, explainable AI, and ethical regulations shaping the future of artificial intelligence.

Autonomous AI hacking and the future of cybersecurity – CSO Online
Autonomous AI systems pose growing cybersecurity risks through rapid, stealthy attacks, demanding equally advanced AI-driven defences and responsible governance.

Other

Best AI tools for tracking stock – eWeek
Here is a rundown of the best stocks monitoring tools.

How new AI and security partnerships at Microsoft (MSFT) are reshaping cloud security – Simply Wall St
Microsoft is transforming cloud security through AI and partnerships such as Accenture, modernising operations and strengthening resilience against AI-powered threats.

Videos

🎬 Tom Lee: A new 10-year bull market is starting

🎬 JPMorgan CEO Dimon on growth of AI, jobs, and government shutdown

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}