Days after the United States unveiled a plan to promote dominance in artificial intelligence technology, China proposed a global framework for AI governance. Chinese Premier Li Qiang revealed China’s vision for future AI oversight at the World AI Conference (WAIC), one of the biggest AI events of the world.
“Overall, global AI governance is still fragmented. Countries have great differences, particularly in terms of areas such as regulatory concepts, institutional rules. We should strengthen coordination to form a global AI governance framework that has broad consensus as soon as possible.”
-Li Qiang
Qiang hinted at the ongoing trade tensions between the two powerful countries, suggesting how restrictions from the other party are leading to a shortage in China.
“Key resources and capabilities are concentrated in a few countries and a few enterprises. If we engage in technological monopoly, controls and restrictions, AI will become an exclusive game for a small number of countries and enterprises.”
With both countries competing neck and neck to dominate the AI arms race, trade negotiations may soon conclude.
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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A financial trader actively managing a portfolio of stocks on a high-definition LED touchscreen.
10. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 62
Fortinet, Inc. (NASDAQ:FTNT) is one of the 10 AI Stocks in the Spotlight Today. On July 28, Wells Fargo analyst Andrew Nowinski raised the firm’s price target on the stock to $110 from $95 and kept an “Equal Weight” rating on the shares. The rating affirmation comes ahead of the company’s quarterly results.
According to checks conducted by the firm, Fortinet has had modest upside to product revenue and billings. Regardless, the firm is cautious on the overall FY25 outlook as there is a chance that subscription services growth may decelerate.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $110 implies a 5% upside; however, the Street-high target of $135 implies an upside of 28.7%.
Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.
9. 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 28, Citizens JMP analyst Trevor Walsh reiterated a Market Outperform rating and $500.00 price target on the stock. Crowdstrike maintains a strong hold in the endpoint protection domain, which in turn plays a dominant role in artificial intelligence security.
Walsh particularly talked about feedback from a product security leader who has deep confidence in CrowdStrike’s capabilities. The product security leader told Walsh that he has already got Crowdstrike on the endpoint, which is why they aren’t too worried about access or controls for AI at the user level.
“CrowdStrike (CRWD, MO, $500 PT) — where on the topic of securing AI, a product security leader told us, “I’ve already got CrowdStrike on the endpoint, so I’m not too worried about access or controls for AI at the user level.”
The customer feedback is a testament to the company’s effectiveness in the AI-security domain at the endpoint level. It also pinpoints a growing focus point in the cybersecurity industry.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 82
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 AI Stocks in the Spotlight Today. On July 28, Bernstein SocGen Group analyst Stacy Rasgon reiterated an “Outperform” rating on the stock with a $185.00 price target.
The firm believes that QCOM is “heavily out of favor” due to general smartphone market weakness, tariff concerns, and near-term earnings challenges related to Apple rolloffs.
“Qualcomm remains heavily out of favor amid general distaste of smartphones, tariff concerns, near-term muted numbers (AAPL rolloff etc). And we get it, with concerns over (similar to other markets) tariff-related pullfoward, AAPL declines about to kick off muting earnings growth over the next several years, a likely general lack of near-term visibly from management especially with 232 tariffs coming soon (likely sometime in the next few weeks so we shall see how they guide with them on the way) and a general lack of catalysts for now. And yet, we still believe there is value to be had under the surface, with an objectively strong product portfolio and an adjacency story that looks increasing real (with option value to boot) that should become more and more obvious as AAPL winds out of the numbers over time. Perhaps there is no rush to get involved (yet) but valuation reflects this with the stock at a >40% discount to the S&P and a 50% discount to the SOX); ex-AAPL we believe the company could grow earnings double-digits (for which you are paying only ~15-16x); Catalyst or not, it seems a worthwhile name to keep on your back burner at least. Outperform, $185 PT.”
QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.
7. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 84
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks in the Spotlight Today. On July 28, Stifel analyst Brad Reback reiterated a “Hold” rating on the stock with a $135.00 price target.
The firm expects Datadog to deliver a stronger-than-expected quarter due to accelerating usage by OpenAI. According to the firm, OpenAI’s usage has the potential to drive 9-10% of revenue. In the previous quarter, this growth was at 6%.
In turn, this accelerating usage will push Datadog’s overall growth into the high-20% range. While the firm is hopeful that OpenAI will renew its contract in the second half of the year, it also anticipates that the deal will likely come with additional price discounting and workload churn.
Moreover, a lot of work from OpenAI is currently being outsourced to Datadog. Stifel believes that this setup may change soon and that OpenAI will eventually bring most of the work in-house. Keeping this in mind, Stifel believes that an earlier transition away from OpenAI would help investors focus on Datadog’s main business.
Based on current valuations, Stifel is cautious on the stock and noted that a more aggressive approach could be adopted in the case that there is potential acceleration in core growth in Q4 2025 or the first half of 2026, in turn followed by improving margins.
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
6. 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 28, Tesla announced that it had signed a $16.5 billion deal to source chips from Samsung Electronics. While the move may boost Samsung’s unprofitable contract business, several sources believe that it is unlikely to help Tesla sell more EVs or roll out robotaxis more quickly.
According to Tesla CEO Elon Musk, Samsung’s new chip factory in Taylor, Texas, would be making Tesla’s next-generation AI6 chip for its upcoming cars.
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate.”
-Elon Musk
This could be a big deal for Samsung, which has lost major clients like Google in recent years to competitors due to workflow issues and low production yields.
“Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,” Musk continued in the post. “This is a critical point, as I will walk the line personally to accelerate the pace of progress.”
While Samsung already produces the AI4 and has been working with Tesla for several years, South Korea’s tech giant had lost the AI5 deal to TSMC.
The recent deal is said to amount to an estimated $16.5 billion.
“The $16.5B number is just the bare minimum. Actual output is likely to be several times higher.”
-Musk
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
5. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 10 AI Stocks in the Spotlight Today. On July 28, Cantor Fitzgerald analyst Thomas Blakey reiterated an “Overweight” rating on the stock with a $1,200.00 price target. The rating affirmation follows ServiceNow’s robust Q2 2025 performance.
The company reported better-than-expected second-quarter results and also raised its guidance for both third quarter and the full year. It has demonstrated significant momentum in its AI offerings.
In particular, its Pro Plus business grew 50% quarter-over-quarter, and Control Tower reached full-year expectations within its first 60 days on the market. The company also managed to secure a $20 million annual contract value Now Assist deal during the second quarter.
“ServiceNow reported an impressive 2Q25 in a volatile software tape, with beat-and-raises across the board. Success in larger deals and expansions continues, with deals over $20M ACV growing 30% y/y, and adjacent market efforts in CRM and Data (Fabric, Raptor DB) continue to show promise with numerous positive data points (more below).
AI Control Tower already exceeded NNACV expectations for the full year 60 days since the product was released and Now Assist closed its largest deal to date with over $20M in ACV. We view ServiceNow as one of the best-positioned software businesses to execute on the massive AI opportunity ahead across a UI, agent, and data perspective.
With this view we reiterate our OW rating and maintain our $1,200 PT, implying 16x CY26 EV/Revenue, a slight premium to its one-year average supported by the company’s pole position in AI supported by 2Q25 momentum.”
4. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 111
GE Vernova Inc. (NYSE:GEV) is one of the 10 AI Stocks in the Spotlight Today. On July 28, Guggenheim downgraded GE Vernova (GEV) to “Neutral” from Buy and removed the firm’s previous $600 price target. The firm cited the belief that the stock’s valuation “fully reflects even the substantially above-consensus estimates” the firm is now publishing.
“Valuation is still admittedly attractive if investors are willing to focus on 2029 and beyond, but considering the wait required to get to that outcome, we no longer find GEV attractive from a risk/return standpoint.”
The company reported better-than-expected results for the second quarter and raised full-year guidance. Sales of aeroderivative turbines, used in data centers, increased during the quarter. Moreover, backlog growth suggests potential for production may keep expanding beyond 2028.
However, a formal announcement on capacity expansion is unlikely before late 2026, noted another firm Mizuho.
GE Vernova Inc. (NYSE:GEV) is a global energy company and a soaring AI stock driven by the demand for energy to power artificial intelligence technology.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks in the Spotlight Today. On July 28, JPMorgan analyst Samik Chatterjee reiterated an “Overweight” rating on the stock as Apple faces potential business impacts from the ongoing Google antitrust case.
According to the firm, Apple receives an estimated $28B globally each year from Alphabet for Google traffic acquisition costs. Out of this, $12.5B is for paying for the traffic generated from US customers.
The firm has assessed the consequences for Apple from the remedies yet to be announced for the Department of Justice versus Google case relative to Google’s monopoly in search. It believes that the worst-case scenario for Apple is that Google is prohibited from making distribution payments.
This is going to be the worst case for Apple as it would stop the $12.5B that Apple receives from Google for US traffic. The said scenario would therefore result in a 10% earnings hit.
However, under Google’s proposed remedies, the firm sees only “modest changes at best by largely maintaining the current status quo.” It also believes that there may be an “opportunity for a potential middle ground,” therefore keeping an Overweight rating.
Apple is a technology company known for its consumer electronics, software, and services.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks in the Spotlight Today. On July 28, JMP Securities reiterated its Market Outperform rating on the stock with a $225.00 price target. The rating affirmation follows Google’s launch of Web Guide, an experiment by Search Labs that leverages AI to intelligently organize the search results page.
According to the firm, Web Guide is likely the next iteration of Google search, following previous experiments like AI Overviews and AI Mode. The firm anticipates it to be an evolution of Google’s efforts to improve the links section in search results.
The firm further noted how Google has been cautious with its adoption of the AI Mode, reflecting on how the company has been balancing search monetization with engagement. This may be because AI Mode likely monetizes at a lower rate in comparison to traditional search.
Moreover, while Google is likely to have strong near-term results driven by its superior commercial search capabilities compared to ChatGPT, there may be some challenges, such as the antitrust trial penalties and improving e-commerce experiences from competitors.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks in the Spotlight Today. On July 28, the company announced the launch of a new “Copilot Mode” for its Edge browser. The Copilot Mode leverages artificial intelligence to improve the browsing experience for its users, helping carry out tasks, organize browsing, and even compare results across tabs without the need to switch between.
According to Microsoft, the new feature will enable users to see a page with a single input box combining chat, search, and web navigation features. Moreover, Copilot will also support voice navigation for browsing in Edge.
While not available at the moment, users will also be able to permit Copilot to access additional browser context, such as user history and credentials, to take more actions shortly.
It will also be able to access browsing content when enabled, or even provide visual cues to allow users to know when it is active in the background. It will be available at no cost across Copilot markets in Windows and Mac PCs for a limited time.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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