According to the U.S. Justice Department, two Chinese nationals in California were recently arrested and charged with illegally shipping tens of millions of dollars’ worth of AI chips to China.
The Justice department cited an affidavit filed with the complaint, claiming that the Chinese nationals exported the advanced Nvidia chips and similar technology to China during the period of October 2022 through July 2025. They did so without obtaining the required licenses from the U.S. Commerce Department.
The arrested have been identified as Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte. The two founded an El Monte-based company, ALX Solutions, in 2022. This was shortly after the U.S. imposed export controls on technology to China and began to require licenses for chips exports.
Reports claim that ALX Solutions bought over 200 Nvidia H100 chips from Super Micro Computer, stating that the customers were in Singapore and Japan. However, a U.S. export control officer in Singapore could not verify that the chips arrived in the country. The company named did not exist at the listed location either.
Appearing in the U.S. District Court in Los Angeles late on Monday, Geng, was released on $250,000 bond. Yang has a detention hearing on August 12.
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10. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, the company announced a native integration between CrowdStrike Falcon® Shield SaaS security and the OpenAI ChatGPT Enterprise Compliance API to provide visibility and governance for AI agents.
The integration will expand support to more than 175 SaaS applications. Crowdstrike announced that its Falcon Shield now discovers GPTs and Codex agents created in OpenAI’s ChatGPT Enterprise, thereby helping organizations enhance the governance of AI agent identities and also the human identities behind them.
The security agent tool can map each agent to its human creator in order to identify risky behavior and enforce policy when needed. Coupled with Falcon® Identity Protection, CrowdStrike is offering unified visibility and protection across every human and non-human identity so that organizations can better oversee AI agents.
“AI agents are emerging as superhuman identities, with the ability to access systems, trigger workflows, and operate at machine speed. As these agents multiply across SaaS environments, they’re reshaping the enterprise attack surface, and are only as secure as the human identities behind them. Falcon Shield and Falcon Identity Protection help secure this new layer of identity to prevent exploitation.”
-Elia Zaitsev, chief technology officer, CrowdStrike.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
9. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, the company announced the launch of Cortex Cloud Application Security Posture Management (ASPM), a prevention-first application security module intended to block security issues before applications reach production environments.
The security module will allow security leaders and developers to fix security risks before cloud and AI applications have been deployed. This will be 10 times faster, more efficient, and also cost effective.
Moreover, Cortex Cloud ASPM includes an open AppSec partner ecosystem which will allow organizations to integrate data from their preferred third-party code scanners into a centralized platform for extensive visibility. The system will help identify security risks during the development phase rather than after.
The security module will integrate with Palo Alto’s existing Cortex Cloud platform, which combines cloud native application protection platform capabilities with cloud detection and response capabilities for real-time cloud security.
“As AI-generated code compresses application development from months to hours, security must evolve to protect the speed of innovation. Equipped with an industry-leading CNAPP, best-in-class CDR and now prevention-first ASPM, Cortex Cloud delivers the most comprehensive approach to cloud security and automatically stops risks before they reach production with end-to-end visibility across the entire application lifecycle.”
-Sarit Tager, VP of Product Management, Palo Alto Networks
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
8. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, Piper Sandler analyst Brent Bracelin raised the price target on the stock to $182.00 (from $170.00) while maintaining an “Overweight” rating.
The rating affirmation follows Palantir’s earnings beat and full-year guidance hike due to the artificial intelligence boom. The firm stated how robust Q2 demand and US commercial have been backing the immediate-term bull case scenario on the stock.
“Robust Q2 demand across both government and U.S. commercial were supportive of the intermediate-term bull-case scenario on PLTR (30-35%+ CAGR), punctuated by the biggest absolute dollar beat ever ($68M above mid-point guide) with top-line growth accelerating for the 8th straight quarter to 48% (vs. 39% prior).”
It also highlighted the 10-year $10B Army Deal which builds up the case for further government share gains.
“The 10-year $10B Army Deal strengthens the case for further government share gains within the large $1T+ Defense TAM while 93% y/y growth (vs. 71% prior) in U.S. commercial reinforces an untapped AI platform opportunity for large enterprise customers.”
Even though Palantir carries a rich valuation premium and remains a high-risk investment, the firm believes that its one-of-a-kind growth plus margin model places it into a unique category of one that warrants a premium.
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
7. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 84
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, DA Davidson analyst Gil Luria raised the price target on the stock to $160.00 (from $125.00) while maintaining a “Buy” rating. The rating affirmation is based on the firm’s strong observability demand.
According to the research firm, proprietary developer datasets demonstrate significant growth in usage and strong quarterly demand for Datadog’s services.
Checks further reveal how observability has become a “two-horse race,” and that Datadog is clearly positioned as one of the market leaders.
“We provide our updated thoughts on DDOG based on analysis from our proprietary developer datasets which showed significant growth in usage suggesting a strong quarter in terms of demand. Checks with the DEN and key industry players emphasized Observability as a two-horse race with Datadog clearly one of the winners. Overall, we continue to look past the narrative around OpenAI and view the company as well positioned for growth and a benefactor in the rotation from AI hardware to AI software infrastructure. Reiterate BUY rating. PT to $160 from $125.”
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
6. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 97
Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, BofA Securities analyst Kash Rangan raised the price target on the stock to $295.00 (from $220.00) while maintaining a “Neutral” rating.
The firm’s rating affirmation is backed by greater-than anticipated capital expenditure guidance and accelerating momentum in the artificial intelligence cycle. The firm believes Oracle is a key beneficiary of the ongoing AI cycle.
“It is clear that demand for AI infrastructure is ramping,” the firm noted, pointing toward the recent guidance from Microsoft and Meta.
“We view these as demand signals into a large addressable market for AI infrastructure,” highlighting Oracle’s OCI platform to be a a key beneficiary of growing demand for third-party AI infrastructure.
“We are entering the next wave of adoption, which is likely to benefit key AI infrastructure vendors, including Oracle.”
The firm cited recent developments as demand signals.
“Several developments have unfolded over the course of the Q2 earnings cycle that point to a ramping capex cycle for AI. Microsoft guided to Q1FY26 capex of $30 billion+, well ahead of our prior estimate for $23.5 billion, citing healthy backlog for cloud migration deals pulled along by AI driven initiatives. Meta guided FY CapEx to $69bn (versus Justin Post’s estimate for $67bn) to ramp its data center footprint and AI infrastructure buildout. We view these as demand signals into a large addressable market for AI infrastructure.”
Nevertheless, the firm has reiterated its Neutral rating due to limited visibility into how much the AI infrastructure opportunity will boost revenue.
“The bull/bear debate on the stock centers on how material the AI infrastructure opportunity is for Oracle and the magnitude of upside to topline growth targets,” they wrote, citing a “nascent stage of the AI infrastructure build.”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, UBS analyst David Vogt reiterated a Neutral rating and $220.00 price target on the stock. The rating reiteration is based on App Store growth of around 13% in July, or about 12% on a currency-neutral basis.
“Our analysis of Sensor Tower data indicates global App Store rev rose ~12% on a currency neutral basis, ~170 bps faster than the month of June. While July’s FXN growth is a slight acceleration from the June-25 quarter’s ~10.4% growth, we note that it is roughly in-line with the run rate growth of ~12% over the past two years. On a reported basis, App Store grew ~13%, ~70 bps faster than June, but on a ~140 bps easier comp. Going forward, App Store faces comps of ~12.4% and ~12.7% in August and September, respectively, limiting upside from App Store in the Sept-25 quarter in our view.”
Apple is a technology company known for its consumer electronics, software, and services.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, Reuters reported that authorities have detained three people in Taiwan for allegedly stealing technology trade secrets from Taiwan Semiconductor Manufacturing Co.
The individuals were detained late last month after TSMC reported findings from an internal investigation which had shown that former and current employees had illegally obtained information from them.
According to the prosecutor’s office, another two people have been released on bail, while one more has been released.
Meanwhile,the three individuals detained include one former employee and two current staff members.
TSMC announced that it has launched legal proceedings and taken disciplinary action against employees who are involved in potential trade secret leaks. The incident has come to light during routine monitoring through the company’s “comprehensive and robust monitoring mechanisms.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 4, BofA Securities analyst Vivek Arya reiterated a Buy rating on the stock with a ‘$220.00 price target. The rating affirmation comes ahead of Nvidia’s earnings print on August 27th.
The firm cited projections of Nvidia’s second-quarter sales, attributing the growth to the continued ramp of Blackwell and robust cloud spend.
“Maintain Buy ahead of Aug-27 FQ2 (Jul) earnings call. Stock has had a strong run YTD so some near-term volatility is to be expected. Specifically, we see: 1) FQ2 sales beat: $47bn vs. $45.8bn consensus and $45bn guide on continued ramp of Blackwell, robust cloud spend (more below); 2) FQ3 raise: mid-teens QoQ growth to $54bn vs. $52.5bn cons as Blackwell Ultra volume ramp adds on top, with potential to reach $57-60bn if H20 shipment officially resumes;”
BofA cited several factors behind its projections for a healthy beat/raise. It does, however, note that H20 sales may face security probes by Chinese regulators and face the risk of becoming uncompetitive due to local competition. Nvidia may also need continuous license updates to ship products abd maintain performance lead.
“Overall, we see healthy beat/raise driven by a continuation of strong Blackwell/Ultra ramp, rising and diversifying AI capex (Google, Meta, Oracle, xAI, etc.), expanding pipeline and margins, as well as potential H20 resumption in F2H ($5-10bn increment).”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, providing high-performance GPUs and platforms that power data centers, autonomous vehicles, robotics, and cloud services.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, Reuters reported that Google has announced that it has signed agreements with two U.S. electric utilities to curb AI data center power consumption during times of surging demand on the grid.
Artificial Intelligence demands huge amounts of power, which is why utilities throughout the country have been flooded with requests to meet the energy demands of Big Tech’s AI data centers.
The increase in demand for power is not only leading to supply concenrs, but also raising worries about rising prices for everyday homes and business and potential blackouts.
As a result, Google is now in agreement with Indiana Michigan Power and Tennessee Power Authority. The agreements involves scaling back power use at the technology giant’s data centers when called upon by the electric utilities to free up space on the grid.
The agreement marks the first formal agreement of its kind by Google to temporarily cut down its machine learning workloads.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, Loop Capital analyst Alan Gould raised the price target on the stock to $980.00 (from $888.00) while maintaining a Buy rating.
According to the research firm, Meta’s “meaningful revenue growth acceleration and strong outlook” has been the biggest positive surprise among mega-cap earnings reports so far. The firm considers Meta to be the biggest non-hardware beneficiary of artificial intelligence.
“Most press reports position Meta’s recent hiring spree and capex expansion as an effort to “catch up”, but business results reinforce our view that the company is the largest non-hardware beneficiary. Acceleration in both user engagement and monetization is being driven by AI investment against what appears to be a very long runway.”
Several long-term opportunities were also identified for Meta, including business AIs, personal AI assistants, wearables, and open-source models. These, the firm believes, are each “very meaningful” for the company’s future.
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
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