According to a Bank of America Securities (BofA) report, AI has the potential to drive $1 trillion of spending by 2030.
“We lay out path towards ~$1tn in global data center market by CY30, of which $800bn+ could be dedicated towards generative AI compute, networking, and storage infrastructure”
The firm said in a recent report that artificial intelligence could boost the AI data center market to $823 billion by 2030, up from $256 billion in 2025.
“We expect every major country/region to invest in creating its independent ‘sovereign’ AI factory, trained in local language, culture, generating high-tech employment, and serving critical healthcare, defense, industrial, financial and cyber needs.”
-Analyst Vivek Arya wrote.
The analyst further stated how an estimated $650 billion of that market is poised to go to AI chips alone, up from $201 billion in 2025. Arya noted that Nvidia is destined to be a “key beneficiary,” considering it is “still far ahead” of new entrants in the sector.
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. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 52
GitLab Inc. (NASDAQ:GTLB) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Bank of America Securities analyst Koji Ikeda maintained a “Buy” rating on the stock and set a price target of $72.00. Ikeda’s Buy rating reflects GitLab’s strategic positioning and growth potential.
The stock has been gaining attention, particularly due to the integration of AI capabilities throughout its DevSecOps workflows. This is especially true with version 18.0, which includes Duo features in Premium and Ultimate tier subscriptions. These changes could help the company monetize by reaching more users. The enhancements are anticipated to boost GitLab’s revenue growth trajectory, with GitLab poised to be a long-term leader in the $53 billion DevSecOps market.
Moreover, the company’s focus on its AI agentic offering, especially the Duo Agent Platform, is expected to enhance developer productivity by automating a substantial portion of development workflows. GitLab also focuses on security and compliance, making it a suitable choice for enterprises that seek comprehensive solutions.
Furthermore, more companies are hiring software developers once again, which supports the demand for GitLab’s seat-based pricing model. All of these factors reinforce the firm’s Buy rating and the price objective of $72.
GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle in the US, Europe, and the Asia Pacific.
9. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 75
Arista Networks Inc (NYSE:ANET) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Evercore ISI analyst Amit Daryanani reiterated an “Outperform” rating on the stock with a $110.00 price target. The firm considers Meta’s two-layer scheduled fabric architecture for back-end networks to be a significant opportunity for Arista.
It is expected that both Meta and Oracle will increase deployment of the Arista-centric two-layer approach in the second half of this year, utilizing Broadcom’s Jericho and Ramon chipsets instead of Tomahawk.
According to the firm, Arista accounts for an estimated 30% of spend in the three-layer architecture versus 100% in the two-layer approach. It is further expected that Arista will secure about 30% of back-end cloud networking spend, driving “outsized growth in CY25 and beyond.”
CY25 guidance updates, OCP announcements from Meta, and Meta revenue percentage disclosure anticipated during fourth-quarter earnings are three catalysts identified by the firm for Arista.
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.
8. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, D.A. Davidson initiated the stock as “Buy”. The firm believes that the company is “best-of-breed.”
“We are initiating coverage of NOW with a BUY rating and a $1,150 price target. ServiceNow has been a market leading business automation provider for over two decades now.”
ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Goldman Sachs analyst Mark Delaney maintained a ‘Neutral’ rating on Tesla and reiterated a 12-month price target of $285. The firm has raised concerns about the near-term prospects of the company’s newly launched robotaxi service, suggesting that investors may have gotten ahead of themselves.
Tesla launched robotaxi operations on Sunday, June 22, making its service available for a group of early-access individuals in Austin, Texas. In response, investors drove the stock price more than 8% the following day.
Delaney has cautioned against this optimism, stating that even though the commercial launch paves the way for success in the autonomous vehicle market, near-term scaling may take longer than anticipated.
“The use of an Austin-specific tech stack, a Tesla employee being present in the vehicle (albeit on the passenger side), and the navigation/lane issue reported in the first day of use suggests scaling will be slow in the near-term in our view. We also believe this suggests that it will be some time before consumers can use [Full Self-Driving] on their personal vehicles in a wide operating area.”
The analyst also mentioned how “some degree of [autonomous vehicles] related profit was already in the stock.” Tesla’s valuation also boosted in Monday’s rally against rival Waymo, which the firm believes is already ahead of Tesla in terms of robotaxi operations.
“With the move higher on 6/23/25, Tesla added > $90 bn to its market cap or roughly double Waymo’s reported valuation of > $45 bn as of October 2024 per Bloomberg.”
6. 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 June 25, Argus reiterated the stock as “Buy.” The firm said it is sticking with the stock.
“The active installed base of Apple devices keeps setting new records, and Apple’s perpetually refreshed roster of highly desirable products provides a unique advantage over industry rivals.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $235 implies a 17.5% upside; however, the Street-high target of $275 implies an upside of 38%.
Apple is a technology company known for its consumer electronics, particularly the iPhones and MacBooks.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Goldman Sachs raised its price target for Taiwan Semiconductor Manufacturing Co to NT$1,210 from NT$1,145, maintaining its “Buy” rating, and placing it on its Conviction Buy list.
The firm’s price target raise reflects easing concerns related to large AI-chip order cuts and expanding demand for the company’s advanced CoWoS packaging beyond artificial-intelligence workloads.
The firm increased its earnings forecasts by 2%-6% for 2025-27 after boosting projected wafer revenue from 3-nanometre and 5-nanometre production, anticipating TSMC’s dollar revenue to grow an estimated 29% next year and 17% in 2026.
The firm believes that due to an improved supply-chain coordination between TSMC and server builders, it is rather unlikely that there are any further reductions in AI processor orders. It also highlighted that more smartphone, server, and networking customers are now adopting CoWoS – a chip-on-wafer packaging technique. The CoWoS allows multiple chips to be combined inside a single module, helping diversify demand.
4. 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 June 25, Nvidia stock hit a record high to reclaim the title of being the “world’s most valuable company”. On that note, Loop Capital has deemed that the chipmaker is set to ride a “Golden Wave” of artificial intelligence.
The firm lifted its price target for the stock to $250 from $175, while maintaining its “Buy” rating.
“Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand.”
-Loop Capital analyst Ananda Baruah.
In a research note, the analyst told investors how their work on the supply chain suggests that hyperscale and AI factory Gen AI and AI accelerator compute spending “alone” could accelerate to about $2T by 2028 using current compute economics.
While Loop understands that this implies a $6T market cap for Nvidia, it contends that “the math just works” as the market enters the next “golden wave” of Gen AI.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Google’s DeepMind announced the launch of AlphaGenome: an AI model that helps scientists better understand DNA, the hereditary material in all organisms. The new artificial intelligence tool by Google is designed to predict how genetic variations in human DNA impact biological processes that regulate genes.
This AI model is capable of analyzing up to 1 million DNA base pairs and predicting thousands of molecular properties related to regulatory activity. It can also assess the effects of genetic variants by comparing predictions between mutated and unmutated sequences.
The company is making AlphaGenome available in preview via their AlphaGenome API for non-commercial research, and also plans to release the model in the future. The predictive capabilities offered by AlphaGenome will help more accurately predict genetic disruptions, guide the design of synthetic DNA with specific regulatory function, and also accelerate our understanding of the genome.
“AlphaGenome will be a powerful tool for the field. Determining the relevance of different non-coding variants can be extremely challenging, particularly to do at scale. This tool will provide a crucial piece of the puzzle, allowing us to make better connections to understand diseases like cancer.”
-Professor Marc Mansour, University College London
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of 10 AI Stocks Making Waves on Wall Street. One of the biggest analyst calls on Wednesday, June 25, was for Microsoft Corporation. Wells Fargo maintained its Overweight rating on the stock and raised the price target to $585 from $565. The firm focused on the company’s ‘AI Ambitions’, noting that it is ‘still early days.’
“We still see a bright future ahead for Microsoft, driven by continued growth prospects in huge categories of IT spend, ability to further monetize strong positioning in multiple end markets, and a financial profile that continues to exhibit durable margin expansion. We acknowledge shares are trading near historical highs, but think this is justified given its early AI lead and strong incumbent position in a tight market, esp. favorable in the current environment.”
-Wells Fargo analyst Michael Turrin.
According to Turrin, Microsoft’s AI business has the potential to reach $100 billion in revenue by fiscal 2029. The company has already scaled its AI business to $13 billion in annual recurring revenue in less than three years, which is it its “fastest product ramp ever,” despite significant capacity constraints.
The firm anticipated that the business nears $20B exiting fiscal year/June 2025 and accelerate further as constraints ease/capacity comes online.
It also expects a growing emphasis on Copilot, Microsoft’s AI assistant, looking ahead. Turrin believes that the application may reach critical mass by next year and bring in $12 billion in annual recurring revenue over time.
“Across the Microsoft 365 Commercial Cloud business we assume a total addressable population of 430M users between all user tiers. From this, we note that MSFT would only need to achieve ~10% adoption rate to reach the $10B annualized revenue run-rate mark, which also assumes an average ~20% discount.”
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Amazon-owned Ring announced that it is rolling out AI-generated summaries of footage captured by its doorbells and cameras in order to alert users of unusual or suspicious activities around their homes.
The tool will leverage artificial intelligence to generate text summaries of motion activity captured by Ring doorbells and cameras. These will then be displayed as phone notifications.
According to the company, Ring will only provide meaningful notifications like “A person is walking up the steps with a black dog,” or “Two people are peering into a white car in the driveway.”
In essence, these notifications will only be generated to describe the main subject triggering the alert. They will be “intentionally concise,” such that users can discern between what’s urgent and what’s not.
The new feature has begun rolling out in beta from Wednesday to Ring premium subscribers in the U.S. and Canada.
“We are just starting to scratch the surface of AI. I feel like we are back to the very early days of Ring again — I see unlimited potential for new experiences we can invent for our neighbors.”
– Jamie Siminoff, Ring’s founder and now Amazon’s VP of home security.
READ NEXT: 10 AI Stocks Getting Wall Street’s Attention and 10 AI Stocks in the Spotlight.
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