According to a White House official and a person familiar with the initiatives, US President Donald Trump will be announcing $70 billion in artificial intelligence and energy investments in Pennsylvania on Tuesday.
According to the report, Trump will be revealing the details of the initiatives at an event near Pittsburgh. Republican Senator David McCormick will join Trump at the event, who is hosting the first Pennsylvania Energy and Innovation Summit at Carnegie Mellon University.
These investments will be coming from several industries, including new data centers and power grid upgrades, as per reports from the White House Official. It will also include AI training programs and apprenticeships, the official added.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q1 2025.
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10. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 18
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Piper Sandler analyst James Fish downgraded the stock from Overweight to “Neutral” with a price target of $12. The firm said it sees a tough setup for the AI company, particularly for the second half of 2025.
“We are downgrading shares of SoundHound from OW to Neutral but reiterating our $12 price target.”
The firm noted that, although there is long-term potential for SoundHound, some deals may be pushed into 2026 for the company. The company is currently facing a challenge in trying to achieve profitability while also investing in its Amelia product line. The firm has highlighted how achieving both effectively can be a challenge for the company, while Amelia’s success can lead to higher earn-outs and dilution.
The firm is particularly concerned about how pressure on second-half estimates may negatively impact SoundHound’s valuation multiple. Currently, it exceeds 20 times the calendar year 2026 estimates. Piper Sandler is constructive on the company’s long-term opportunities regardless of the downgrade but also acknowledges that execution in the second half of 2025 “could create a squeeze on shares.”
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
9. Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Fund Holders: 51
Nebius Group N.V. (NASDAQ:NBIS) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Goldman Sachs initiated coverage on the stock with a “Buy” rating and a $68 price target. The firm believes Nebius is a leading provider of AI infrastructure and that the AI cloud company is well-positioned.
Nebius Group, with a market capitalization of roughly $10.5 billion, is a dominant player in the AI Neocloud market. The company is a direct beneficiary of the rising demand for generative AI and customized GPU infrastructure.
“We initiate on Nebius (NBIS), a leading player in the AI Neocloud market (a niche AI GPU infrastructure rental market), with a Buy rating and a 12-month price target of $68 implying 45% upside”
The initiation note by the firm has highlighted Nebius’ key advantages, notably a full-stack software offering, cost efficiencies, and the tendency to operate at scale. These advantages are helping Nebius serve clients that require access to AI compute without having to invest in their own hardware.
Analyst Alex Duval views a favorable risk/reward skew for investors. He estimates a 4:1 upside-to-downside ratio between bull and bear scenarios.
Overall, the firm asserts that Nebius is attractively priced compared to peers, particularly given its role as a pure-play in AI compute infrastructure.
Nebius Group N.V. (NASDAQ:NBIS) is an AI infrastructure firm that builds full-stack infrastructure to enable the growth of the global AI industry, including large-scale GPU clusters, cloud platforms, and tools and services for developers.
8. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Morgan Stanley downgraded the stock to Equal-weight from Overweight and raised the price target on the stock to $495 from $490.
Analysts led by Keith Weiss said that they were “stepping to the sidelines given full valuation after ~50% run and rising growth expectations,” highlighting limited upside potential for the stock.
The firm believes that even though acceleration expected in the second half seems to be well-priced into shares, Crowdstrike still offers a compelling story. The company remains a market leader in cybersecurity, poised to benefit from the increasing platform consolidation anticipated industry-wide. The rise of artificial intelligence is likely to boost this growth.
The analysts stated that the second quarter “print is unlikely to be a thesis-changing event given clear investor focus on 2H, and we continue to have limited visibility into Customer Commitment Package (CCP) renewals and Falcon Flex contract impacts on revenue recognition and margins.”
Overall, the firm is optimistic about Crowdstrike’s long-term growth potential. However, they are currently moving to the sidelines, waiting for better entry points to build positions.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
7. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 75
Arista Networks Inc (NYSE:ANET) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Citi analyst Atif Malik reiterated a Buy rating on the stock with a $123.00 price target. The firm is optimistic that Arista shares will outperform over the next three months due to possible upward revisions to its second-half and full-year outlook once it reports June-quarter results on Aug. 5.
“We are opening a positive catalyst watch on Arista as we believe shares will outperform with positive revisions to the company’s 2H outlook. Arista is expected to provide Sep-Q guidance and an updated FY25 outlook… we anticipate an increase to the company’s outlook for 17% topline growth Y/Y to drive upward revisions to 2H consensus for 15% topline growth Y/Y.”
Based on the company’s strength in the front end and improving trends in data center switching, the firm has raised its full-year 2025 revenue forecast for the company to $8.6 billion.
“We remain constructive on hyperscale data center capex and see upside to 2H/FY25 as ANET benefits from an expanding Ethernet switching TAM.”
The firm’s revenue projections for the June quarter are in line with guidance and consensus, with analysts noting that “management guided to a specific point for sales instead of the typical range, to reflect their confidence.”
“As we shift from defense (1H) to offense (2H), ANET is our top-ranked stock.”
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.
6. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Citi analyst Jason Bazinet reiterated a “Buy” rating on the stock with a $600.00 price target. The firm said that AppLovin remains its top pick heading into earnings, which is why it has reiterated its rating and price target.
The firm expects AppLovin’s results to hit the high end of its guidance ranges.
“AppLovin reports 2Q25 results after the market closes on Wednesday, August 6th. We expect 2Q25 results to fall at the high end of the company’s revenue and Adj. EBITDA guidance range.
We believe investors will focus on:
1) eCommerce advertising initiative;
2) launch timing of self-serve tools (we expect 4Q25);
3) implications of changes to app store fees on mobile ad spend;
4) capital allocation; and
5) updates to the competitive landscape following Unity Vector launch.
Heading into results, $APP remains our top pick. We reiterate our Buy rating and ~$600 target price.”
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.
5. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 97
Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Evercore ISI analyst Kirk Materne raised the price target on the stock to $270.00 (from $215.00) while maintaining an “Outperform” rating.
The firm has declared Oracle to be the “fourth global hyperscaler” based on recent events, particularly its recent deal that could help it achieve $30B in cloud computing revenue by fiscal 2028. The other three hyperscalers include Amazon Web Services, Google Cloud, and Microsoft Azure.
“While Oracle’s massive AI deal is front and center right now in terms of its impact on FY28 growth, we think the longer-term bull case is broader. First, OCI is gaining share in the multihundred billion-dollar hyperscaler market, with notable strengths in sovereign and AI workloads. Second, the applications business continues to grow at a solid double-digit pace, with potential upside as headwinds from Data Cloud and Cerner ease. Third, Oracle’s large base of database maintenance customers is starting to migrate to the cloud.”
– Evercore analysts, led by Kirk Materne, in an investor note.
“It’s been quite a run for Oracle shares over the past month. The company’s FY26 outlook came in more upbeat than expected, and the recent filing spotlighting a $30 billion annual contract helps solidify Oracle’s spot as the ‘fourth’ global hyperscaler. Given the growing importance of OCI as a part of the broader revenue reacceleration narrative, in this note we break OCI into three segments: ‘core OCI’, AI OCI, and DBaaS – and assign what we think are reasonable revenue growth and gross margin estimates to each. In our base case, we model core OCI growing at a 49% CAGR through FY29, DBaaS at 37%, and AI services at 104%, with FY29 gross margins of roughly 65%, 75%, and 30%, respectively. While this mix shift puts downward pressure on gross and operating margins at a company level, in our ‘base case’ scenario (which doesn’t fully reflect the giant cloud deal) we still forecast operating income growing at a 13% CAGR through FY29, with annualized EPS growth of 11%. This also assumes some additional interest expense given the rising capex. If OCI skews more toward AI, which seems increasingly likely given the recent filing and underpins our bull case (see page 9), we’d expect a bigger drag on margins and FCF but higher revenue and EPS than our base case. For EVR-ISI clients, we’ve built a “choose your own adventure” (CYOA) model so that you can plug in your own growth and margin estimates and see how it flows through the income statement.”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks in the Spotlight Today. On July 14, UBS reiterated the stock as “Sell,” stating that the stock remains overvalued heading into its second-quarter results.
This is despite expectations that there would be a sector-wide beat on production, and currency gains are offering near-term support for auto stocks.
“We expect 2Q25 results to largely beat expectations on better production and FX.”
Regardless, the firm is cautious despite earnings momentum. “There has been a ~20% re-rating, on average,” since March, UBS noted, warning that “core issues that existed pre-tariff mostly remain.”
Specifically for Tesla, the firm said that there is regulatory risk and policy uncertainty.
“We see real risk to regulatory credit revenue for both TSLA and RIVN as well as demand with removal of EV credits.”
The firm stated that underlying valuation concerns still exist even though the third quarter “could have a last gasp and pulled forward demand.”
CEO commentary and sentiments may drive near-term volatility.
“We believe TSLA remains fundamentally overvalued, but the price reaction will depend on Musk’s call comments.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
3. 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 in the Spotlight Today. On July 14, Morgan Stanley added a catalyst driven idea on Taiwan Semiconductor. The firm said it’s bullish on the semis stock heading into earnings and urges investors to buy. It is optimistic that the chipmaker will raise its full-year revenue guidance, backed by strong AI demand.
The firm highlighted in its Sunday note how TSMC’s preliminary second-quarter revenue of NT$933 billion beat both company guidance and the firm’s own estimate.
The “likelihood of full-year revenue raise is now higher,” it said, noting how 27% year-on-year revenue growth in 2025 also appears “quite achievable.”
Even though PC and smartphone demand isn’t very strong, it is expected to have steady utilization rates.
“Some 3nm PC CPU order cuts were quickly replaced by crypto mining demand,” analysts led by Charlie Chan said.
This reflects how customers are placing orders before a planned wafer price hike in 2026.
In the wake of new semiconductor tariffs, TSMC is well-positioned due to its growing US investment footprint.
“We maintain our view that TSMC’s commitment to the US$165bn investment in the U.S. fab should increase its chances of receiving an exemption.”
Overall, the company is a top pick for Morgan Stanley, driven by sustainable AI semiconductor demand, expected margin expansion, and its advanced foundry services.
“We expect TSMC’s share price to rise if it raises full-year revenue guidance. We suggest accumulating ahead of the July 17 print given low expectations.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks in the Spotlight Today. On July 14, KeyBanc reiterated the stock as “Overweight”. The firm said it’s bullish on Nvidia’s Blackwell chip.
“The continued ramp of Blackwell and the initial ramp of Blackwell Ultra with higher ASPs [average selling price] should support continued upward estimate revisions.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $175 implies a 6% upside, however, the Street-high target of $250 implies an upside of 52%.
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.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Citizens JMP analyst Andrew Boone reiterated a “Market Outperform” rating on the stock with a $750.00 price target. Citing a SemiAnalysis report that discusses Meta’s challenges with its Llama AI model, the firm concluded that Meta’s shortcomings in artificial intelligence are mainly coming from its architectural decisions.
Particularly, it talked about Meta’s use of chunked attention versus sliding window attention and expert choice routing instead of token choice routing. Another factor causing challenges for Meta is its data quality issues. For instance, the company doesn’t train on YouTube data, and there are also concerns about how it tests its models.
Even though Meta is facing all these challenges, the SemAnalysis report expressed optimism that Meta will fill in the AI gaps that it has currently, particularly as it increases its GPU capacity and continues to build a robust AI team.
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.
READ NEXT: 10 AI Stocks Getting Wall Street’s Attention and 10 Must-Watch AI Stocks on Wall Street.
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