Global tech stocks rallied on Thursday following AI chipmaker Nvidia’s earnings report which helped cool down fears of an overheating AI bubble, at least for now. The stellar results from Nvidia signal that demand for artificial intelligence hardware remains strong, even as analysts continue to warn about stretched valuations.
Meanwhile, CEO Jensen Huang has rejected the premise that markets are in a bubble, clarifying that he sees something different instead.
“There’s been a lot of talk about an AI bubble,” said Huang. “From our vantage point, we see something very different. As a reminder, Nvidia is unlike any other accelerator. We excel at every phase of AI from pre-training to post-training to inference.”
According to Huang, areas like data processing are now moving to GPUs because they need the AI. This is why they’re switching from old setups to Nvidia chips. Moreover, AI isn’t only being integrated in current applications, but it also holds the the potential to create entirely new ones.
Finally, Jensen argued that with agentic AI coming in, even more computing power will be required. All of this goes against the premise that there may be a bubble burst.
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. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 33
Baidu, Inc. (NASDAQ:BIDU) is one of the 10 AI Stocks Making Moves on Wall Street. On November 19, Benchmark analyst Fawne Jiang raised the firm’s price target on the stock to $158 from $115 and kept a “Buy” rating on the shares. The firm believes that strong AI momentum is helping Baidu offset a weak ad recovery.
The firm noted how Baidu’s Q3 results show diverging trends. Its main search ad business is weak, and it remains unclear when it will recover considering that the company is testing more AI features and also facing competition.
On the other hand, AI initiatives are gaining ground and account for more than 40% of core revenue under the company’s new disclosure framework. These initiatives are helping drive growth across Cloud, AI applications, and AI-native marketing services.
The firm believes that several factors support a higher valuation for Baidu.
“Management is committed to scaling AI, supported by a competitive technology stack and rising structural adoption. With greater transparency, faster AI adoption, and optionality from asset value recognition, we believe a sum-of-the-parts approach is appropriate and raise our price target to $158, reflecting our SoTP valuation.”
Benchmark further stated how search recovery remains concerning, but Baidu’s AI momentum, strong execution, and potential for proactive capital returns will help drive further upside.
“Search recovery remains a near-term concern, as it drives the majority of NT earnings, but we view upside as likely from AI momentum, execution of strategic milestones, and potential for proactive capital returns to better deploy Baidu’s large net cash balance.”
Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.
9. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 54
Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI Stocks Making Moves on Wall Street. On November 17, Morgan Stanley cut ratings on major technology hardware makers, including Dell. The firm double-downgraded Dell to “underweight” from “overweight,” and cut its price target to $110 from $144.
“Dell Technologies (UW): AI server mix + component cost inflation to pressure margins and valuation, double downgrading to Underweight (from OW) with a new $110 PT. In May 2023 we upgraded DELL to OW (from EW) and in September 2023 we elevated DELL to our Top IT Hardware Pick, with a belief that the market was under-appreciating DELL’s Gen AI opportunity and path towards accelerating shareholder returns. Since the March 2023 bottom, the stock has re-rated ~7x and outperformed by ~200 points.”
The firm now believes that that Dell is “one of the hardest hit stocks from rising memory costs, stating that margin pressure from AI server mix and rising memory costs are driving a sharp reset in outlook.
Over the past six months, spot prices for NAND flash and dynamic random-access memory products have risen by as much as 50% and 300%. Since Dell has a mix of products, it is going to be most exposed to the higher prices, the firm said.
“DELL is one of the hardest hit stocks from rising memory costs in our OEM universe, and we are reducing our FY27 gross/operating margins by ~150–220bps and EPS by ~12% to reflect AI server strength and headwinds from rising memory costs.”
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide
