The International Monetary Fund has raised its 2026 global growth forecast, noting that the world economy has proven to be more resilient than expected as businesses and economies adapt to easing tariffs and a continued AI investment boom supports activity and asset markets.
In its latest World Economic Outlook update, the IMF forecast global GDP growth at 3.3% in 2026, a 0.2 percentage point increase from its October estimate. It maintained the same pace for 2027 due to sustained capital spending on AI infrastructure and easing trade frictions.
“We find that global growth remains quite resilient…So, in a sense, the global economy is shaking off the trade and tariff disruptions of 2025 and is coming out ahead of what we were expecting before it all started.”
-IMF chief economist Pierre-Olivier Gourinchas told reporters, as reported in Reuters.
Economies have been adjusting to higher US tariffs through supply chain re-routing, new trade agreements, and China’s shift of exports toward non-US markets. The fund has lifted its US growth forecast for 2026 to 2.4%, citing massive investment in AI infrastructure, such as data centers, powerful AI chips, and power.
At the same time, Gourinchas noted that the AI boom poses risks for heightened inflation if it continues at the pace it is today. However, if expectations that AI-driven productivity gains and profits are not realized, it may trigger a correction in high market valuations, which could impact demand.
While AI is among the risks that are tilted to the downside, the IMF said that it also represents significant upside for the global economy, provided there is a surge in investment and productivity gains are realized.
“As a result, global growth may be lifted by as much as 0.3 percentage points in 2026 and between 0.1 and 0.8 percentage points per year in the medium-term, depending on the speed of adoption and improvements in AI readiness globally.”
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10. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 56
Microchip Technology Incorporated (NASDAQ:MCHP) is one of the 10 AI Stocks Making Waves on Wall Street. On January 15, Piper Sandler analyst Harsh Kumar raised the price target on the stock to $85.00 (from $80.00) while maintaining an Overweight rating. The analyst sees upside for Microchip, driven by multiple growth levers, and identifies it as its “top mid-cap pick.”
Kumar believes calendar 2026 is shaping up to be very positive for MHCP, particularly with the company witnessing strengthening order momentum over the past two months.
This recovery appears to be broad-based but primarily driven by the industrial sector, with automotive now stabilizing as well. The firm noted that it has heard of similar constructive commentary from other companies as well, particularly ON and ADI.
It also highlighted potential revenue catalysts, particularly the expectation that Microchip will benefit from new AI data center parts and components. This could begin in the September 2026 quarter, which may lead to “oversized revenue growth relative to the industry.”
Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions. It delivers solutions across the industrial, automotive, consumer, aerospace and defense, communications and computing markets.
9. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 57
Astera Labs, Inc. (NASDAQ:ALAB) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage of the stock with an Outperform rating and a price target of $225. The analyst sees robust retimer growth and Scorpio-P switch ramp for ALAB, which they believe should support near-term strength.
Astera Labs has underperformed in recent months amid concerns over next-generation scale-up networking standards and the potential for Google TPU progress affecting Astera’s key customers, Nvidia and Amazon.
Nevertheless, near term fundamentals remain strong on the back of core retimer growth and Scorpio-P switch ramps. The Scorpio-X scale-up switch remains on track for a 2026 ramp, which is a major multi-year opportunity even with lower Amazon Trainium volumes.
“Longer term, we see room for multiple scale-up standards and won’t rule out ALAB participating in Ethernet/ESU. We believe premium valuation is justified given 40% growth, $10–15B SAM, and 70%+ gross margins. Initiate at Outperform.”
Astera Labs, Inc. (NASDAQ:ALAB) is engaged in the design, manufacture, and sale of semiconductor-based connectivity solutions for cloud and AI infrastructure.
8. Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Holders: 65
Nebius Group N.V. (NASDAQ:NBIS) is one of the 10 AI Stocks Making Waves on Wall Street. On January 15, Morgan Stanley analyst Josh Baer initiated coverage on the stock with an “Equalweight” rating and a price target of $126. The analyst highlights AI infrastructure scale-up potential for NBS, urging investors to focus on long-term metrics for valuation instead of near-term earnings.
Nebius is well-positioned to benefit from the build-out of AI infrastructure, said Baer, noting its potential to bring significant capacity online and scale rapidly. While the company holds significant value through its AI compute business, its broader software platform, diversified customer base, non-core assets with valuable equity and stakes, and exposure to new AI infrastructure demand are also seen as long-term value drivers.
In the near term, however, financial performance will remain pressured due to heavy capital expenditure and rising depreciation. Free cash flow is also expected to stay deeply negative given the substantial capital expenditure required to deliver 2.5 GW of AI infrastructure by the end of 2026.
There has also been some skepticism regarding Nebius Group’s $7-9 billion annual recurring revenue target for Q4 2026. Analysts have described it as “optimistic” and questioned what the company would need to do to outperform expectations, particularly as EBIT is likely to remain pressured in the coming years due to increasing depreciation.
Nebius Group N.V. (NASDAQ:NBIS), headquartered in Amsterdam, develops and operates AI cloud infrastructure designed for training and inference of advanced machine learning models.
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 76
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage on the stock with an “Outperform” rating and a price target of $105. The analyst sees multiple growth drivers for Marvell and an undervalued entry point.
According to Pajjuri, the key debate surrounding the stock is whether management’s outlook for more than 20% data center growth in fiscal 2027, and over 40% growth in fiscal 2028, is achievable.
Marvell appears to have robust orders for the AWS Trainium3 chip program, while the recent Celestial acquisition and warrant agreement suggest that the company is likely to remain a key ASIC supplier for Trainium4.
Analysts further noted how Microsoft’s ASIC seems to be on track, adding that the management’s revenue target of less than $1 billion by fiscal 2028 looks conservative. Beyond custom silicon, MRVL’s optical business also holds a strong foothold, while scale-up networking and custom SmartNICs represent underappreciated growth opportunities.
“Valuation is at a 25% discount to peers, which we think makes risk/reward attractive. Initiate at Outperform.”
Marvell Technology, Inc. (NASDAQ:MRVL) develops and manufactures semiconductors, with a heavy focus on data centers.
6. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 82
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage on the stock with an Outperform rating and a price target of $1,550. The analyst sees multiple secular and cyclical growth drivers across ASML’s memory and logic businesses.
According to the firm, ASML outperformed the SOX index in 2025 due to improving wafer fab equipment spending and secular extreme ultraviolet (EUV) lithography growth. These stronger WFE and EUV trends are likely to sustain in 2026/2027, particularly fueled by robust GenAI demand.
An extremely tight DRAM supply, increasing EUV intensity, and Samsung’s potential rebound in HBM4 are also “meaningful catalysts.”
Discussing the logic segment, analysts noted that GenAI accelerators are adopting more advanced nodes and foundry competition is re-emerging. China-related risks are largely priced in, and ASML’s services business is likely to continue growing at a double-digit pace.
“Valuation premium over US peers has compressed, which we think makes risk/reward attractive. Initiate at Outperform.”
ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.
5. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 82
Intel Corporation (NASDAQ:INTC) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage of the stock with a “Sector Perform” rating and a price target of $50. Firm analysts see strategic progress for Intel, but are awaiting proof of execution on gross margins and foundry progress before adopting a more constructive stance.
The analysts praised Intel’s management for doing a commendable job right-sizing the business. The company has also strengthened its balance sheet and entered into a strategic agreement with AI chipmaker Nvidia.
The analysts further noted how PC/Server demand looks healthy for the company, and that its product competitiveness is also improving. Despite these positives, they have also cautioned about higher memory prices and supply constraints.
The analysts cautioned that these prices and constraints could impact Intel’s near-term revenue and margin performance. They also noted how the company lacks a compelling Data Center Artificial Intelligence narrative.
Gross margin upside and foundry progress are critical to sustained outperformance for Intel, and analysts are awaiting progress in these areas.
“We believe gross margin upside and Foundry progress are key for continued outperformance. Both are dependent on manufacturing yields where our visibility is limited. We initiate at Sector Perform as we await evidence of meaningful progress in these areas.”
Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells advanced semiconductors, computer products, and technologies, delivering data storage, computer, networking, and communications platforms.
4. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage of the stock with an Outperform rating and a price target of $425. The firm sees a $50+ peak EPS potential for MU, coupled with a higher multiple justified by HBM mix.
In its update, RBC noted how the key debate for Micron centers on the duration of the current Memory upcycle. Memory markets have been experiencing extreme tightness due to surging GenAI demand and improved supply discipline, igniting discussions about long-term agreements (LTAs).
While investors may remain skeptical about these LTAs in commodity memory markets, limited clean room capacity and structural supply constraints may extend the upcycle into 2027.
Analyst Pajjuri further highlighted Micron’s robust roadmap, noting that High Bandwidth Memory (HBM) content is growing at a rate that exceeds 50%. Particularly, the HBM4 transition represents a material tailwind for the company.
The firm believes a higher peak valuation multiple is justified for Micron.
“We see $50+ peak earnings potential and believe a higher peak multiple is appropriate due to non-commodity HBM mix. Initiate at Outperform.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage on the stock with a Sector Perform rating and a price target of $370. He flagged margin and valuation concerns for AVGO, but also sees upside potential in artificial intelligence.
Analyst Srini Pajjuri pointed out three key debates surrounding the stock: gross margin impact from artificial intelligence growth, sustainability of Anthropic’s ramp-ups, and the magnitude and timing of potential OpenAI opportunities.
He noted that he sees upside potential to 2026 estimates stemming from robust demand at Google/Meta. Moreover, Anthropic’s TPU racks are anticipated to be a major driver in the second half of 2026, even though the racks come with lower margins, and the sustainability of Anthropic’s demand beyond the first half of 2027 also remains unclear.
Due to Broadcom’s multiple commitments, the firm is also taking a conservative view on OpenAI contribution in 2027.
“Valuation is at ~25% premium to NVDA, which we think makes risk/reward less compelling. Initiate at Sector Perform.”
Broadcom is a technology company uniquely positioned for the AI revolution, thanks to its custom chip offerings and networking assets.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage on the stock with an “Outperform” rating and a price target of $240. He sees robust AI demand for Nvidia, a backlog exceeding $500 billion, and ecosystem dominance.
The analyst said key investor debates around Nvidia center around the sustainability of AI infrastructure spending and rising competition. They anticipate cloud capital expenditure to remain elevated over the next 12-18 months, particularly among the Big 4, well-capitalized, hyperscalers.
This outlook is further supported by Nvidia’s $500+ billion backlog, accelerating inferencing demand, and enterprise AI adoption. Any slowdown is anticipated to be gradual, with sovereign projects and China demand seen to provide offsets.
While competition exists, Nvidia’s leadership and ecosystem dominance have led analysts to be less concerned.
“We are not overly concerned about competition given NVDA’s full-stack performance leadership and ecosystem dominance. B/S strength is an added advantage and valuation looks compelling at ~20% discount to both Semi peers/Mag7. Initiate at Outperform.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Making Waves on Wall Street. On January 15, Bernstein SocGen Group analyst Nikhil Devnani reiterated an “Outperform” rating on the stock with a $300.00 price target. The analyst sees 2026 as the strongest bull case story ever since the pandemic, citing a palatable entry point for AMZN.
In particular, the two performance indicators seen for Amazon are AWS revenue growth and retail margins, with both appearing to accelerate this year. Analysts at Bernstein SocGen believe AWS growth will “correlate closely as capacity is brought online” and also “re-establish AWS as a market leader/winner in an AI-fueled expanding hyperscaler TAM.”
Discussing retail, Devnani noted how fears of AI disruption are likely overdone, as this year’s AI shopping assistants product launches are not too dissimilar from where Google stood at the start of last year.
The tech giant, Devnani said, is poised to deliver material gross margin expansion through the year.
“Amazon is one of the best positioned companies to deliver material gross margin expansion as we go through the year led by fulfillment and logistics-focused robotics. Tighter cost controls on discretionary initiatives, headcount efficiencies, and capitalization of Project Leo (Kuiper) should all contribute to retail margins expansion.”
Amazon.com, Inc. (NASDAQ:AMZN) is a global e-commerce and cloud computing giant.
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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