The US has recently reversed a ban on Nvidia that restricted them from sending its export control-compliant chip known as the H20 to China. However, not everyone agrees with the decision. According to Democratic Representative Raja Krishnamoorthi, ranking member of the House of Representatives Select Committee on China, the decision would allow China to gain its most advanced technologies.
The decision “would not only hand our foreign adversaries our most advanced technologies, but is also dangerously inconsistent with this Administration’s previously-stated position on export controls for China.” Democratic Representative Raja Krishnamoorthi.
Republican John Moolenaar, chair of that committee, is also of the same opinion.
“The H20 is a powerful chip that, according to our bipartisan investigation, played a significant role in the rise of PRC AI companies like DeepSeek. It is crucial that the U.S. maintain its lead and keep advanced AI out of the hands of the CCP.”
Moolenaar wrote a letter to U.S. Commerce Secretary Howard Lutnick on Friday, warning that the chip exports could undermine the U.S.’ AI advantage and even help Chinese companies capture global AI model market share.
“The Commerce Department made the right call in banning the H20,” Moolenaar said in the letter, demanding more information. “We can’t let the (Chinese Communist Party) use American chips to train AI models that will power its military, censor its people, and undercut American innovation.”
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10. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 42
Arm Holdings plc (NASDAQ:ARM) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Wells Fargo reiterated the stock as “Overweight” and raised its price target on the stock to $175 per share from $145. The firm is confident about Arm’s potential to capitalize on the growing opportunities in the AI sector.
Even though the firm is optimistic about Arm’s role in the emerging AI opportunity, it also remains cautious into Q1 2026 EPS due to the recent outperformance. The firm remains focused on AI DC-driven 2026 royalty revenue upside.
According to recent data, Arm-based server CPU shipments grew 104% year-over-year in the first calendar quarter of 2025. Moreover, tariff uncertainty did lead to a lack of formal fiscal 2026 guidance, but Arm noted earlier that royalty revenue would grow in the high-teens to low-twenties percentage range year-over-year.
The firm is of the view that there could be a modest increase in the upcoming earnings report scheduled for July 3. It also anticipates Arm to maintain above-target annual contract value and licensing revenue growth an estimated 20% year-over-year. This will be backed by booming license demand tied to AI computing needs.
“While we remain positive on Arm’s LT positioning to benefit from emerging AI oppys & raise our PT to $175, we are cautious into F1Q26 EPS given recent outperf.”
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, William Blair analyst Louie DiPalma reiterated a “Market Perform” rating on the stock. The rating affirmation follows the U.S. Army having awarded a $100 million contract to the Anduril-Palantir team for the delivery of a Next-Generation Command and Control (NGC2) platform prototype.
The 11-month contract will require the involved companies to participate in one the highest priority projects of the US Army. William Blaire has estimated that $30 million of the total contract value will go to Palantir. It also noted that the contract has the potential to increase to more than $150 million in annual recurring revenue in the next three years.
The firm’s contract tracker reveals that Palantir was awarded $135 million in annual recurring revenue across nine different government contracts for the second quarter. Meanwhile, the NGC2 contract will be part of third-quarter bookings.
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
