Last week, US President Donald Trump said that the U.S. is close to a trade deal with China. He also said that he would meet Xi Jinping before the end of the year if an agreement is struck.
“He asked for a meeting, and I’ll end up having a meeting before the end of the year most likely, if we make a deal. If we don’t make a deal, I’m not going to have a meeting,” Trump told CNBC in an interview.
Now that a possible meeting is impending, The Financial Times has reported that China wants the United States to ease export controls on chips critical for artificial intelligence as part of the trade deal.
The FT said China is concerned because the U.S. HBM controls are hampering the ability of Chinese companies to develop their own AI chips. The HBM chips help them perform data-intensive AI tasks quickly. Moreover, even though they are helping hinder China’s AI and defence development, they are an important revenue driver for American chipmakers.
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.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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10. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
C3.ai, Inc. (NYSE:AI) is one of the 10 AI Stocks Making Waves on Wall Street. On August 11, Wedbush analyst Daniel Ives lowered the price target on the stock to $23.00 (from $35.00) while maintaining an Outperform rating.
“This was a brutal quarter and if C3 cannot turn this around darker days could be ahead. For now we maintain our OUTPERFORM giving the company a few quarters to reverse this negative sales trend with Siebel now out of the sales picture. We are lowering our price target to $23 from $35 reflecting this massive sales miss.”
C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.
9. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Making Waves on Wall Street. On August 11, JPMorgan analyst Mark Murphy raised the price target on the stock to $135.00 (from $66.00) while maintaining an Overweight rating. The analyst is optimistic on the cloud computing stock ahead of its quarterly results Tuesday after the bell.
Murphy is “cautiously optimistic” on the long-term prospects of the company, particularly after it secured a five-year deal with OpenAI for artificial intelligence data centers at $11.9 billion.
“Our sense is that CoreWeave’s opportunities are going to get bigger and lumpier, likely to the surprise of investors, though we are not making a specific call on the upcoming Q2 results as it is likely a futile exercise to speculate on the closing of specific deals and investors should in fact expect extreme lumpiness in CoreWeave’s pattern of large bookings.”
Even though the company’s long-term AI ramp is “clear” and “intact,” the timing between large bookings and buildouts remain an overhang on a quarterly basis which have the potential to create “ongoing extreme volatility in CRWV shares.”
Nevertheless, the firm is optimistic that CoreWeave will yield growth in the long run.
“Although timing and lumpiness still give us pause and create extreme volatility, we are positive on the potential for continued momentum in CoreWeave’s business pipeline, and our field work suggests long-range potential for binary-outcome transactions which are very difficult to handicap and, if successful, can drive a very surprising magnitude of outsized growth and outsized debt financing with short-term cash burn.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
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