A recent Financial Times report has revealed that China’s internet regulator has commanded top technology firms to halt purchases of Nvidia’s artificial intelligence chips and cancel any existing orders. The move comes as part of its push to reduce reliance on U.S. technology and alleviate security concerns.
U.S. administrations have been consistently extending efforts to restrict China’s access to advanced chips. This has in turn prompted Beijing to urge domestic firms to boost the country’s semiconductor industry and use internally designed chips.
According to the report, the fresh ban is stronger than the earlier guidance from regulators focusing on the H20, the previous version of Nvidia’s China-tailored AI chip.
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 Q2 2025.
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10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Citizens JMP upgraded the stock to “Outperform” from Market Perform.
The firm believes that investors are not aware enough of how the firm generates its revenue. This is why the stock is misunderstood.
Moreover, analyst Greg Miller sees accelerating hyperscale outsourcing in the GPU-as-a-Service (GPUaaS) market. He pointed to Oracle’s $450 million record RPO and Microsoft’s reported $17 billion contract with Nebius as an indication of this trend.
“We are upgrading shares of CoreWeave to Market Outperform from Market Perform and establishing a price target of $180, which represents multiples of ~6.0x and 22.0x on estimated 2027 revenue and operating profit, respectively, well below Oracle’s whose success is largely driven from an identical source.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
Bloom Energy Corporation (NYSE:BE) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Morgan Stanley analyst David Arcaro increased his price target on the stock to $85 from $44 while maintaining an Overweight rating.
The rating affirmation is driven by the growing potential in the AI data center power market. In the research note, analysts have highlighted Bloom’s recent agreement to supply fuel cells to Oracle’s AI data centers.
Oracle’s significant bookings reflect the surge in demand for computing capacity, which is turn intensifying power supply needs.
“Bloom has an attractive partner in Oracle, and the company is among the only players able to increase its manufacturing quickly.”
-David Arcaro, analyst at Morgan Stanley
According to Arcaro, Bloom is now “favorably positioned for success in powering AI data centers” among extremely strong data center power demand. Moreover, tightening power supply means longer delays for grids and alternative approaches but Bloom stands out owing to its flexible manufacturing.
The fuel cell company boasts the potential to double capacity within six months and ship products on a short turnaround.
The analyst pointed out that the potential power shortfall exceeds 40 GW in the coming years, outstripping Bloom’s current 1 GW annual capacity. This signals immense opportunity for growth. Overall, Arcaro believes that Bloom has the potential to become “a much bigger player in the power landscape.”
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 48
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Bernstein SocGen Group initiated coverage on the stock at Market Perform with a price target of $46.00.
According to the firm, the company has been “one of the stand-out growth stories,” boasting impressive revenue growth over the last twelve months.
At the same time, it pointed out concerns related to decelerating growth and aggressive guidance from the company. There are also “cash conversion challenges” making the business “more expensive than it looks” despite growth.
The firm has cited “execution challenges and valuation concerns” for both HP Enterprise and Super Micro Computer.
Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing worldwide.
7. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 54
Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Bernstein initiated the stock as “Outperform” stating the stock is best positioned for growth.
Apple, Dell, and HP Enterprise were all in focus on Tuesday as Bernstein noted that artificial intelligence should provide long-term benefits to the sector.
“Although near-term concerns of an AI-bubble persist, we see significant upside in the long-term for IT hardware,” analysts at the firm wrote. “While there is a huge range of outcomes, we land at $1.3T for enterprise inference in the 2030 base case (67% 25-30E CAGR). We see model improvement as the key leading indicator, and caution hyperscale capex may be a lagging indicator. In addition to being positive on the long-term outlook, we believe the early-signs look healthy in the near-term, and net out positive on the theme.”
Particularly for Dell, the firm noted that Dell is likely a long-term beneficiary from AI. AI servers should drive “significant” earnings and free cash flow growth.
“We see Dell (O) as well positioned to drive significant EPS and FCF growth from AI servers…”
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
6. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 74
Western Digital Corporation (NASDAQ:WDC) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Bernstein SocGen Group initiated coverage on the stock with a Market Perform rating and a price target of $96.00.
The research firm has cited WDC’s inexpensive valuation both in absolute terms and relative to competitor Seagate Technology (STX). It believes that the company will benefit from cyclical strength in hard disk drives (HDDs).
The firm has also warned that WDC may be faced with market share and margin pressure as it pushes to keep up in Heat-Assisted Magnetic Recording (HAMR) technology.
Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Morgan Stanley reiterated the stock as “Overweight” and said it’s sticking with Tesla.
“Tesla is by far the smallest market cap of the Mag 7 (ex TSLA ‘Mag 6’ have an average market cap of $3.2tn), but arguably has the largest addressable markets – particularly in the emerging field of physical AI”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Bernstein initiated the stock as “Outperform” stating that it’s bullish on the stock. The firm has a $290 price target on the stock.
According to the firm, Apple is “the gateway to the Intelligence Revolution,” and it is well positioned to benefit from artificial intelligence advancements.
It noted how the recent Google remedies decision have eliminated an overhang for Apple and also paved way for the company to leverage Gemini’s AI technology.
“We are positive on Apple to continue to drive strong EPS growth from its expansion of its user base and share buybacks but note significant risks ahead, notably in AI and in new devices. That said, one of the key risks – the Google DOJ remedies – has reached a resolution favorable to Apple, eliminating an overhang and potentially clearing a path for partnerships in AI.”
Apple is a technology company known for its consumer electronics, software, and services.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Making Headlines This Week. Bernstein reiterated the stock as “Outperform” on September 16, stating that it still sees more upside for Nvidia.
The firm holds a $225 price target on the stock.
“The datacenter opportunity is enormous, and still early, with material upside still possible.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Making Headlines This Week. On September 16, Morgan Stanley reiterated the stock as “Overweight” stating that its shares remain “attractive.”
The firm noted that Microsoft’s 10% dividend increase has reinforced its strong earnings and return profile. It lifted its quarterly dividend by eight cents to $0.91 per share, or $3.64 annualized, thereby lifting the yield to 0.7% from 0.6%.
This move “supports a durable strong teens+ total return profile at MSFT,” it said.
“Combined with teens EPS growth, this supports a durable strong teens+ total return profile at MSFT, framing an attractive risk/reward. Remain OW.”
The firm also said that the raise was “in line with prior 5-year average at ~10%,” aligning with Microsoft’s track record of annual increases between 8% and 11% over the past decade.
Microsoft’s substantial buyback capacity was also highlighted, revealing that “over $55 billion [remains] in current share repurchase authorization suggesting buybacks to continue.”
The company held more than $90 billion in cash and short-term investments as of June 30, 2025. Moreover, it anticipates generating more than $70 billion in free cash flow in fiscal 2026.
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: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Making Headlines This Week. On September 15, TD Cowen analyst John Blackledge reiterated a Buy rating on the stock with a $255.00 price target driven by strong growth potential in the company’s cloud computing division.
According to Blackledge, Amazon Web Services (AWS), Amazon’s cloud platform, holds a strong position in the GenAI market. A survey of North American IT decision-makers has revealed that a major portion of firms are already hosting their GenAI solutions on AWS.
Moreover, there are expectations for increased spending on GenAI services in the coming years. GenAI cloud spending growth is set to fuel AWS revenue growth, driving a projected CAGR of 20% from 2025 to 2030.
Moreover, a sum-of-the-parts analysis by the firm has revealed that AWS could be worth $1.2 trillion by 2026, supporting Amazon’s decision to boost capex for generative AI buildout.
The survey has also revealed that 85% of respondents aim to use generative AI tools by 2026, with 75% already implementing them.
Amazon.com Inc. (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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