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.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 91
Intel Corporation (NASDAQ:INTC) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Stifel analyst Ruben Roy raised the price target on the stock to $24.50 (from $21.00) while maintaining a Hold rating. The raised price target comes ahead of Intel’s earnings report due on Thursday. According to the firm, the earnings report will represent Lip Bu Tan’s second earnings call and his full-quarter results as the CEO.
Stifel is of the view that investors will largely be focused on longer-term commentary regarding 18A production, 14A ramp, and portfolio restructuring efforts. This includes divestiture of non-core functions and investments in AI-centric hardware and software offerings.
Intel’s results are anticipated to align with consensus estimates, which are an estimated $12.0 billion in revenue, 36.2% adjusted gross margin, and $0.01 adjusted earnings per share.
While the firm is optimistic about the second half of 2026 and the first half of 2027, believing it to be the “window of material inflection,” it is only if things go as planned. The firm therefore maintains a hold rating until it sees catalysts materializing.
Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Bank of America reiterated the stock as “Neutral” while raising its price target for the shares to $341 from $305. The firm noted that it sees a challenging setup for Tesla shares, but also cited a stronger cash position and revised valuation metrics for the company.
Bank of America is of the view that Q2 results are “likely to be challenged due to tariffs and disappointing deliveries.”
“Tesla 2Q earnings results are likely to be challenged due to tariffs and disappointing deliveries. Although Tesla produces all its vehicles in the US and it manufactures vehicle with a high proportion of content made in North America, the exposure to tariff is not insignificant.”
The firm anticipates mixed outcomes in the later part of the year.
“3Q25 may benefit from demand pull forward in the US while 4Q25 may be challenged due to the phase out of IRA incentives.”
A positive factor working in favor of Tesla is that its autonomous driving push continues to advance with the rollout of its robotaxi service launch in Austin, Texas.
“This gives us more confidence on the promise to deliver unsupervised FSD by the end of 2025,”
However, it did caution that the launch holds “immaterial financial ramifications in the immediate term.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Morgan Stanley reiterated the stock as “Overweight,” noting that it’s sticking with Apple shares ahead of a solid quarter.
The firm believes that strong iPhone, iPad, Mac sales, and favorable FX will lead Apple toward a robust quarter, and that its guidance will likely align with expectations. However, for the sentiment to improve, clarity on tariffs, the Alphabet ruling, and AI strategy is still required.
Investors shouldn’t be hoping for any meaningful updates in terms of artificial intelligence in the quarter. The firm is of the view that investors don’t appreciate Apple’s AI efforts, particularly because it is in continuous comparison with Google, Meta, and Amazon’s work.
“Our estimates are moving higher, but we still need key overhangs to dissipate before getting more structurally bullish.”
Apple is a technology company known for its consumer electronics, software, and services.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Morgan Stanley reiterated the stock as “Overweight” and reaffirmed the stock as a top idea.
“US AI companies NVIDIA , AMD, and Broadcom are likely to receive licenses to ship to China at levels consistent with the prior threshold. We would keep near-term expectations in check, as outlined below, but it’s a significant positive for 2026 for all AI stocks, including our Top Pick NVDA.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $180 implies a 4.7% upside, however, the Street-high target of $250 implies an upside of 45%.
In other news, Nvidia has told its Chinese customers that it has limited supplies of H20 chips, days after the news that the ban on Nvidia from sending its export control-compliant chip known as the H20 to China was reversed.
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Evercore ISI reiterated an Outperform rating on the stock with a price target of $205.00. The rating affirmation comes ahead of the company’s second-quarter earnings report, due July 23.
According to the research firm, Alphabet is poised to deliver a “modest beat” for the second quarter of 2025. The firm’s advertising channel checks throughout the quarter have been incrementally positive, with overall budgets increasing despite April fluctuations due to tariff headlines and early Easter shift.
The firm further highlighted that Street expectations of a 28% year-over-year Cloud growth are reasonable, though there is a risk that tight GPU supply may create quarterly volatility until new capacity is available in late 2025.
Street’s forecast of 32.8% operating margin is also seen as fair, particularly based on product mix and owing to management’s expectations for depreciation to grow faster through fiscal year 2025.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Morgan Stanley analyst Brian Nowak raised the price target on the stock to $750.00 (from $650.00) while keeping an “Overweight” rating. The rating affirmation comes as the firm increased its estimates across the internet space, reflecting on a favorable macro environment and lower China tariffs.
The firm also updated its valuation methodologies to mid-year 2026. It believes that revenue growth will pick up at Meta. In particular, it believes that the company’s core growth algorithm of continuously improving GPU-enabled machine learning will drive higher engagement and monetization.
Morgan Stanley is of the view that two factors will be playing a critical role for Meta’s performance in the second half of 2025. First, the company needs to give the market the confidence that it can achieve at least $30 of 2026 earnings per share. Second, its next-generation Llama models should flaunt potential reasoning capabilities.
Meta’s earnings are scheduled for July 30th, and investors will be watching closely. Morgan Stanley has also emphasized how further generative AI productization is important as it will help investors realize the return on investment capital from Meta’s recent hiring activities and capital expenditure investments.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Barclays analyst Raimo Lenschow raised the firm’s price target on the stock to $550 from $494 and kept an “Overweight” rating on the shares.
The rating affirmation follows a positive outlook on software earnings as Microsoft heads into second quarter results. It believes the setup for on-cycle reporting software names is positive. April did have some levels of uncertainty, but May channel checks and those of June have been much stronger, as noted by the analysts.
Consequently, the firm anticipates solid Q2 prints and a chance for an increase in guidance.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Analysts Are Tracking Closely. On July 21, Baird analyst Colin Sebastian maintained an “Outperform” on the stock and raised the price target from $220.00 to a new target of $244.00.
The rating affirmation follows the firm updating its model. It now believes “Amazon Space Platform” is another big long-term bet for the company.
In other news, Wells Fargo reiterated Amazon, Alphabet, and Expedia as “Equal Weight,” optimistic that all three stocks are the “best tactical longs” ahead of earnings.
“See investors positioned much more aggressively in the SMidCaps and higher beta names, in stark contrast to last quarter where ‘defense’ was the mantra. Expect high volatility given positioning. See AMZN , GOOG and EXPE as best tactical longs.”
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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