A Wall Street Journal report on Friday said that Nvidia’s plan to invest up to $100 billion in OpenAI to help it train and run its latest artificial-intelligence models has been delayed. However, Nvidia Chief Executive Officer Jensen Huang has confirmed that the company will be participating in OpenAI’s latest funding round, describing it as potentially “the largest investment we’ve ever made.”
“We will invest a great deal of money,” Huang told reporters while visiting Taipei on Saturday. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.”
While Huang didn’t mention the exact amount the company might contribute but, did mention that the investment will be “huge.”
“Let Sam announce how much he’s going to raise — it’s for him to decide,” Huang said, adding that Altman is in the process of closing the round. “But we will definitely participate in the next round of financing because it’s such a good investment.”
Addressing the previous report that said Nvidia has stalled this OpenAI investment, Huang said, “That’s nonsense.” Nvidia has also announced plans to invest an additional $2 billion in CoreWeave Inc., a cloud computing provider and key customer.
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 Q3 2025.
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10. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 21
C3.ai, Inc. (NYSE:AI) is one of the 10 AI Stocks Making Waves on Wall Street. On January 30, BofA Securities analyst Brad Sills lowered the price target on the stock to $10.00 (from $14.00) while maintaining an “Underperform” rating. The firm sees weak growth visibility, peer discount, and limited upside until a clearer defensibility and growth path emerges.
BofA expressed concerns about C3.ai’s ability to maintain competitive differentiation in the AI category which is being attacked from all angles. The AI applications market is becoming increasingly crowded, which is shaking the company’s ability to sustain differentiation. Moreover, it believes that only time will tell whether C3.ai will become a significant share gainer in the AI space.
There is, however, another hurdle, which is that the company’s revenue growth and free cash flow profile may be negative for several more years. Until these metrics improve and C3.ai value proposition becomes long-term defensible, its shares will likely underperform its infrastructure software peers.
“Our $10 PO (was $14) is based on 2.7x (was 3.3x) EV/FY26E revenue, a discount to peers at 5.7x. We revise our multiple and estimates to reflect our updated view on growth potential, risks and peer multiple compression.”
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. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 34
SAP SE (NYSE:SAP) is one of the 10 AI Stocks Making Waves on Wall Street. On January 30, Citizens analyst Patrick Walravens downgraded the stock from Market Outperform to Market Perform after CRB slowed to lowest rate in 9 quarters. Macro-driven uncertainties further pushed the firm to take a step back from its bullish view.
The rating downgrade follows the company’s disappointing fourth-quarter results. SAP reported “disappointing top-line results” with non-IFRS earnings per share of €1.62, exceeding consensus estimates of €1.51, and operating profit of €2.83 billion, higher than the expected €2.75 billion.
Even though it beat bottom-line expectations, its total revenue of €9.68 billion fell short of the €9.75 billion consensus. Meanwhile, cloud revenue reached €5.61 billion, missing the anticipated €5.64 billion.
Citizens noted that the most important has been current cloud backlog (CRB) growth, which slowed to 25% in constant currency, missing expectations and marking the slowest growth rate in nine quarters.
SAP said the significant slowdown was due to a deal mix weighted to “larger transformations, many of which include longer ramp periods or flexible structuring,” and “mounting geopolitical tensions [which] have led to many customers putting even more emphasis on exploring Sovereign SaaS options.”
All of this has left the stock “down ~15% on Thursday and down ~18% year to date, versus an increase of ~2% for the Russell 3000 and ~2% for the S&P 500.”
SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions.
8. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 66
International Business Machines Corporation (NYSE:IBM) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, Stifel analyst David Grossman raised the price target on the stock to $340 from $325 while maintaining a Buy rating. IBM remains top large-cap defensive pick, with analysts highlighting its FCF beat, robust software growth, and 2026 PTI guide.
IBM’s fourth-quarter 2025 were in-line or slightly above consensus expectations, with 7% organic revenue growth and 15% earnings per share growth. The firm noted that adjusting for the planned inclusion of Confluent, anticipated to close in mid-2026, the company’s 2026 revenue/margin guidance was largely inline with software growth and assumed to accelerate as year progresses.
Stifel noted that the key surprise in the quarter was IBM’s $0.7bn, or 10%, 4Q25 FCF outperformance and 2026 FCF guidance also came in $0.7bn (4–5%) above consensus. It added that an unexpected Q4 rebalancing charge also explains some of the outperformance.
IBM shares rose after-market hours, a reflection of its FCF outperformance, robust software performance, and weakness leading into the report.
“IBM is now trading at ~35% premium to equal-weight S&P500, in-line with LTM trend. While we wouldn’t chase the stock, it remains our top large-cap defensive pick.”
International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.
7. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 72
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, BMO Capital analyst Keith Bachman lowered the price target on the stock to $170.00 (from $215.00) while maintaining an “Outperform” rating. The firm believes DDOG’s thesis is intact despite valuation compression and OpenAI migration risk.
According to the firm, Datadog is poised to have a solid December quarter. However, it does have some reservations regarding FY26 guide due to management’s normal conservatism and the risk that OpenAI may potentially migrate a portion of its work away from Datadog.
Analyst Keith Bachman presented several scenarios based on potential OpenAI migration patterns. However, it did not adjust its financial estimates stating that the timing and scope of any potential OpenAI migration remains unclear.
“Nevertheless, we are lowering our price target to $170 from $215 due to both software valuation compression and risk of OpenAI. We retain our Outperform rating.”
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
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 29, Bernstein SocGen Group analyst David Dai raised the price target on the stock to $1,911.00 (from $1,642.00) while maintaining an “Outperform” rating. The firm believes market irrationality serves as an attractive entry point amid a robust long-term outlook.
Even though ASML reported strong results, the stock declined 2% at the close, creating what the firm called a “buying opportunity” amid market irrationality. The Dutch company reported massive fourth-quarter 2025 net bookings of €13.2 billion, almost twice Street estimates.
Memory drove for 56% of bookings surge and logic making 44%. The company’s backlog increased by €7 billion quarter-over-quarter to €38.8 billion. Looking ahead, ASML provided guided revenue of €34-39 billion, with the high end significantly above the consensus estimate of €35 billion.
This guidance range depends on customer’s clean room availability, with EUV technology leading growth while DUV remains relatively flat. The firm noted that the second half of 2026 is going to be stronger than the first half, as customer’s ramp internal move rates and complete fab construction.
“2H26 is to be stronger vs. 1H (time needed to ramp internal move rates, the projected customer fab completion timing). Mgmt reaffirmed 2030 targets of €44–60B revenue, GM 56–60%. Margin guidance of 51–53% is a tad soft, due to product mix, partially offset by higher EUV units and installed base management.”
5. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 102
Snowflake Inc. (NYSE:SNOW) is one of the 10 AI Stocks Making Waves on Wall Street. On January 30, DA Davidson analyst Gil Luria reiterated a Buy rating on the stock with a $300.00 price target. The firm sees SNOW as a selective software buy and one of the few names that could break the doomsday perspective.
Even though the software sector is facing mounting pressure, DA Davidson holds a positive outlook on the stock. It noted that it doesn’t have a desire to “fight the holy war quite yet,” but it does think that some Software is worth buying.
It also noted that the Software complex may continue to face pressures during the rest of the guidance season. However, Luria does want to selectively buy companies that are potentially likely to break the doomsday narrative more easily.
“We will keep it simple and brief, since we are not actually adding material checks or analysis.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
4. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, Piper Sandler analyst Rob Owens reiterated an Overweight rating on the stock with a $200.00 price target. The firm has highlighted NOW as a market-leading AI innovator and CRM share gainer.
The rating affirmation follows ServiceNow’s fourth quarter results, which the firm noted was a strong close to FY25 as it builds further momentum with its Now Assist and CRM products. Piper Sandler noted the initial 2026 organic outlook came in slightly ahead of street expectations.
Despite this, shares traded lower after-hours considering organic growth guidance fell short of some investor expectations. Nevertheless, the firm noted that management still reiterated its organic growth targets.
The firm continues to highlight ServiceNow as a market-leading AI innovator and share gainer in CRM, which is why it has reiterated its Buy rating and $220 price target.
“Tracking Ahead on Now Assist – NOW reported.”
ServiceNow, Inc. (NYSE:NOW) provides a platform that integrates workflows, data, and AI to coordinate how work flows across large organizations.
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 120
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, Mizuho analyst Vijay Rakesh raised the price target on the stock to $540.00 (from $530.00) while maintaining an “Outperform” rating. The firm sees Tesla as a leader in physical AI despite near-term EV demand headwinds.
Mizuho’s rating follows Tesla’s fourth-quarter earnings, where it reported revenues of $25 billion and earnings per share of $0.50, in line with consensus estimates of $25.1 billion in revenue and $0.45 EPS.
The firm noted how Tesla is slowly pivoting to AI, Software, and Robotaxi as growth of EV demand slows in 2026.
“Slow EV Demand in 2026E (we estimate EV sales up ~5% y/y) as TSLA Focuses on Gradually Pivoting to AI, Software (investing $2B in xAI +ve NVDA, DELL), and Robotaxi.”
The company’s automotive gross margin excluding credits improved to 17.9%, up 250 basis points quarter-over-quarter. This improvement, the firm noted, was driven by better mix and pricing.
Mizuho further added how Tesla has reiterated its timeline for launching its cybercab in the first half of 2026, while noting that Full Self-Driving (FSD) v14 revenues grew quarter-over-quarter.
Looking ahead, the company guided fiscal 2026 capex to $20 billion, up from roughly $9 billion in fiscal 2025. This is as it plans to double GPU capacity in the first half of 2026, expand factories, and target AI5 production in 2027.
Overall, the firm sees Tesla as well-positioned leading physical AI.
“4) AI investment – F26E Capex guided $20B (vs. F25 ~$9B) Doubling GPU capacity in 1H26E, expanding six factories, and AI5 prod. in 2027E. Maintain Outperform, Adjust Ests and PT to $540 (prior $530) as we see TSLA well-positioned leading physical AI with Cybercab/FSD traction, humanoid longer term, offset by near-term demand headwinds.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Making Waves on Wall Street. On January 30, JPMorgan analyst Samik Chatterjee raised the price target on the stock to $325 while reiterating an “Overweight” rating. The firm is confident on the stock as it sees AAPL’s results as reassuring for investors.
According to the firm, Apple’s latest financial results should help “calm investor nerves” about memory-related impacts on gross margins and concerns regarding a Services slowdown. This is despite the magnitude of iPhone revenue upsides, which is “noteworthy” itself.
JP Morgan also highlighted Apple delivering “record Product gross margins” in the December quarter, with the March quarter also anticipated to show record product gross margins.
This, the firm believes, should help investors be reassured regarding the materiality of the impact that investors have been concerned about related to rising memory costs.
“Record Product gross margins in the Dec-Q and an implied Mar-Q record Product gross margin should help reassure investors around the materiality of the impact that investors have been concerned about in relation to rising memory costs, even though management acknowledged slightly higher impact in Mar-Q than the Dec-Q.”
Apple is a technology company known for its consumer electronics, software, and services.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, Evercore ISI analyst Mark Mahaney raised the price target on the stock to $900.00 (from $875.00) while reiterating an “Outperform” rating. The firm’s rating affirmation follows META’s beat and raise quarter, with analysts noting AI-driven revenue inflection and momentum heading into 2026.
“We reiterate our Outperform rating on META and raise our PT from $875 to $900 (25% upside), based on 25X our ’27 EPS of $36, in the wake of Beat & Raise Q4 EPS results.”
Evercore ISI highlighted how META has issued an aggressive fiscal year 2026 capital expenditure guidance, anticipating capex growth of an estimated $55 billion and total expenditure growth of 40%.
The firm, however, noted that the after-market rally was particularly driven by stronger-than-expected Q4 revenue results, stronger-than-expected Q1 revenue outlook, and Meta’s implied $50 billion step-up in 2026 revenue. All of this is an implication that META is at an AI-driven revenue inflection point.
The firm further noted how Meta’s management asserted that it seeks to be an AI leader, and that the company’s fourth quarter results and 2026 outlook support management’s assertion that Meta seeks to be an AI leader.
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
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