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.
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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.
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 40
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 10 AI Stocks Making Waves on Wall Street. On August 11, the company announced that it has expanded its NVIDIA Blackwell system portfolio with new direct liquid-cooled and air-cooled configurations aimed for AI data center deployments.
These new systems are intended for the most demanding large-scale AI training and cloud-scale inference workloads, making it easier to set up, manage, and maintain air and liquid cooled setups.
The first system, known as the 4U direct liquid-cooled system, features the NVIDIA HGX B200 processors that provides up to 40% data center power savings compared to air cooling. Meanwhile, the 8U front input/output air-cooled system offers enhanced memory configuration flexibility, support for up to 8TB capacity, and maintenance of cold aisle serviceability for data center operations.
According to the company, the new systems will be compatible with the upcoming NVIDIA HGX B300 platforms. The designs offer easy front I/O access, simplified cabling, improved thermal efficiency and compute density, and reduced operational expenses (OPEX).
“Supermicro’s DLC-2 enabled NVIDIA HGX B200 system leads our portfolio to achieve greater power savings and faster time to online for AI Factory deployments,” said Charles Liang, CEO and president, Supermicro. “Our Building Block architecture enables us to quickly deliver solutions exactly as our customers request. Supermicro’s extensive portfolio now can offer precisely optimized NVIDIA Blackwell solutions to a diverse range of AI infrastructure environments, whether deploying into an air- or liquid-cooled facility.”
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. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 42
Arm Holdings plc (NASDAQ:ARM) is one of the 10 AI Stocks Making Waves on Wall Street. On August 11, Seaport Global Securities analyst Jay Goldberg initiates coverage on the stock with a Buy rating and a price target of $150.00.
The firm believes Arm has revitalized itself after keeping out of the spotlight for years. The company has a big presence in the data center market and is now expanding into automotive.
“Historically, Arm was highly reliant on the mobile phone market. Mobile is still important, but the company has diversified widely beyond that. It now has considerable penetration in the data center. The company claims that 50% of data center servers now have some form of IP in them. This includes CPUs, AI head nodes, networking and other chips. This is up from 0% less than 10 years ago. We expect their penetration to grow both deeper (more substantial content) and wider (more deployments in coming years). The company also has considerable design traction in automotive, albeit on the very long time frames associated with that industry. Overall, the company has roughly tripled its addressable market. The company has revamped the entry-level for its products. Three years ago, the company introduced a number of changes to its licensing terms which allowed smaller companies and start-ups to more readily access Arm IP. This has shored up the bottom end of the market which had been gradually shifting to ‘open source’ RISC V. Finally, Arm is attempting to move up the value chain by providing more complete designs for chips. This could be a strong way to increase value capture, but comes at the risk of infringing on the business of some of its licensees. Arm has been very vague about its ultimate ambitions in this space. There is some room here for the company to navigate this prospect, but as of now, its course remains unclear to us.”
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products.
6. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI Stocks Making Waves on Wall Street. On August 11, Citi analyst Asiya Merchant raised the firm’s price target the stock to $160 from $135 and kept a Buy rating on the shares.
The rating affirmation comes ahead of Dell’s earnings report. According to the firm, supply chain commentary indicates that enterprise hardware spending is tracking modestly. This is better than expected outside of print and consumer computers.
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
5. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 73
Twilio Inc. (NYSE:TWLO) is one of the 10 AI Stocks Making Waves on Wall Street. On August 8, Stifel analyst J. Parker Lane reiterated a Hold rating on the stock with a $110.00 price target. The hold rating comes despite Twilio achieving its third consecutive quarter of double-digit revenue growth.
“Twilio reported its third consecutive quarter of double-digit revenue growth and fifth consecutive of acceleration while providing what we view as a strong top-line guide for 3Q and the full year.”
Profit margins were under pressure were under pressure as the lower-GM Messaging business made up more of the company sales, dragging down the company’s overall gross margin. Verizon’s increased A2P messaging rate also impacted margins in the quarter and guide, resulting in $6 million in incremental pass-through to the company’s reported revenue.
Nevertheless, Stifel noted that Twilio continues to benefit from agentic AI tailwinds. These AI customers rely heavily on Voice which is why they are profitable and reap high gross margins.
“As such, the full-year op income guide was only maintained, leading to after-hour weakness. Finally, the company continues to benefit from agentic AI tailwinds, noting “many” AI customers are spending at a seven-figure run-rate, while also noting these AI startups carry far higher gross margins (80% blended GM for top 10) considering their reliance on Voice. We maintain our Hold rating and $110 target price on TWLO shares.”
Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company.
4. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 83
Constellation Energy Corporation (NASDAQ:CEG) is one of the 10 AI Stocks Making Waves on Wall Street. On August 8, KeyBanc analyst Sophie Karp raised the price target on the stock to $359.00 (from $337.00) while maintaining an Overweight rating.
The firm noted how Constellation reported its second-quarter results slightly ahead of consensus expectations, reiterating both its 2025 and long-term guidance. However, shares were down amid no deals announcement.
“Shares were slightly down (-0.4% vs. UTY +1.0%) as the Company did not announce a deal, but we expect one to be announced by yearend as the Company highlighted two, with one specifically in the late stages.”
Keybanc is optimistic about upcoming deals considering how Constellation remains well-positioned to capitalize on the expanding data economy and its “intrinsically appreciating generation fleet.” Recent PJM results and the company’s long-term power purchase agreement with Meta supports this thesis. The company also talked about other near-term catalysts.
“Other NT catalysts include FERC resolution with resulting regulatory clarity and the closing of the Calpine deal. That said, we believe the scarcity value of CEG’s assets will continue to put upward pressure on shares as more deals are announced and expect buybacks to provide support for the share price. Reiterate OW rating, raise PT to $359.”
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.
3. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 84
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Making Waves on Wall Street. On August 8, Bernstein SocGen Group analyst Peter Weed raised the price target on the stock to $147.00 (from $145.00) while maintaining an Outperform rating.
According to the firm, Datadog’s Q2 on first blush was a blowout, with the beat reflecting another outperformance by their Born-in-AI cohort.
“Datadog’s Q2’25 on first blush was a blowout, with the largest $ beat vs. midpoint guide ever, even besting the frothy Q4’21 earnings at the height of COVID cloud consumption mania. Even on a % basis it was the largest beat since 2022. And management didn’t stop there, passing through more than 2x to the FY guide (their largest midpoint raise ever). This beat reflected another outperformance by their Born-in-AI cohort, which grew to 11% of revenue (vs. 8% in Q1) and drove +10% point tailwinds to growth (vs. 6% in Q1)… but it is exactly this source of out-performance that we believe led to the stock down for the day”.
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Making Waves on Wall Street. On August 8, Melius analyst Ben Reitzes raised the price target on the stock to $260.00 (from $240.00) while maintaining a Buy rating.
The firm is optimistic about the upcoming iPhone product cycles. It also believes that Siri AI concerns are overblown.
“Apple’s stock has reacted nicely to tariff news, but we see focus starting to move toward new products and systematic increases in value for iPhones that drives growth for the next 3+ years. We raise our FY26 EPS estimate 12 cents due to higher gross margins and modestly raise FY27 EPS. Our target adjusts to $260, and we think concerns about the Siri delay are overblown since Apple isn’t losing share. Reiterate Buy.”
Melius is optimistic that a new iPhone product cycle starting in September will likely improve product mix. This will in turn boost growth in high single digits during some quarters.
“We are optimistic that our iPhone estimates can be conservative based on new product cycles that include an “iPhone Air” this September, a foldable model in FY26 and the iPhone 20 line-up in late FY27 (20th year anniversary models). Luckily for Apple, its iPhone base doesn’t seem to care about the Siri/AI delays, and we see no evidence of real switching.”
With more iPhone catalysts, expensive models such as foldables will likely help increase total revenue.
“The iPhone has more catalysts in 2026 with the introduction of a foldable model that should be priced around $2,000 and then the iPhone 20 (“20th anniversary”) cycle in 2027. As foldables “mix in” there can be big revenue growth even on flat units.”
Apple is a technology company known for its consumer electronics, software, and services.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Making Waves on Wall Street. On August 11, Wells Fargo analyst Aaron Rakers raised the price target on NVIDIA (NASDAQ: NVDA) to $220.00 (from $185.00) while maintaining a Overweight rating.
The firm believes that the stock is poised for gains ahead. It also stated that it believes that renewed China sales and strong global demand could help push Nvidia higher.
Nvidia and AMD have reached an agreement with the US government that will allow them to resume selling certain artificial intelligence chips in China. In exchange, they will give the government 15% of the revenue from those sales.
The analyst believes that this new arrangement could help Nvidia recover the full $8 billion in quarterly revenue, expecting the recovery to be complete by the company’s fiscal fourth quarter in January 2026. Demand from China may grow even further after that point.
The analyst also noted how recent trade data supports a stronger outlook for the sector, reflecting higher demand for servers and related technology used in artificial intelligence.
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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