The Trump administration has recently revealed its AI action plan, a bundle of initiatives and policy recommendations designed to position the United States as a leader in technology.
“From this day forward, it’ll be a policy of the United States to do whatever it takes to lead the world in artificial intelligence.”
-Trump said Wednesday at an AI event.
According to the plan, there are going to be three pillars: accelerating innovation, building out AI infrastructure in the United States, and making American hardware and software the “standard” platform for AI innovations built around the world.
The 28-page plan published by the White House also stipulates that large language models procured by the federal government are “objective and free from top-down ideological bias.”
“It’s a global competition now to lead in artificial intelligence. AI is a revolutionary technology that’s going to have profound ramifications for both the economy and for national security, so it is just very important that America continue to be the dominant power in AI.”
– White House AI Czar David Sacks on a conference call with reporters.
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. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 45
Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the 10 AI Stocks Making Waves on Wall Street. On July 23, Goldman Sachs analyst Michael Ng reinstated coverage on the stock with a “Neutral” rating and a price target of $22. The rating follows HPE’s acquisition of Juniper Networks.
According to the firm, HPE’s now expanded portfolio has allowed it to sustain its position as second-best in enterprise/campus networking while becoming a stronger competitor in the data center segment.
Even though the firm maintains a positive outlook toward the company’s networking business, it maintains a Neutral stance on the stock due to ongoing challenges in the Server and Hybrid Cloud divisions.
The bank anticipates HPE’s earnings per share at $1.80 for fiscal 2025, $2.23 for fiscal 2026, and $2.42 for fiscal 2027.
Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 57
International Business Machines Corporation (NYSE:IBM) is one of the 10 AI Stocks Making Waves on Wall Street. On July 24, Bank of America reiterated the stock as “Buy” and lowered the firm’s price target on IBM (IBM) to $310 from $320 following a “mixed quarter.”
The bank said that IBM is well-positioned for growth following its most recent financial report. The company reported adjusted earnings per share of $2.80 for the quarter, beating the LSEG estimate of $2.64. Meanwhile, revenue came in at $16.98 billion, ahead of the expected $16.59 billion.
“IBM reported a mixed quarter, where organic software deceleration was offset by strong contribution from better-than-expected Infrastructure results and higher M & A contribution.”
The firm believes that post earnings, IBM has turned into a show me story on software in the second half of the year, but that the firm remains bullish on the overall company trajectory. The analysts further stated that they believe estimates will move higher this year and next year, “with increasing contribution from high-margin software.”
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.
8. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 80
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 AI Stocks Making Waves on Wall Street. On July 24, New Street Research upgraded the stock to “Buy” with a €790 price target driven by ASML’s strong positioning for 2026 and the potential to outpace peers in the semiconductor capital equipment space.
According to New Street, consensus estimates of 2% growth for next year are “conservative.” They believe that there is “room for ASML to outperform, driven by high leading-edge exposure.”
The company stands to benefit from “higher growth in leading-edge WFE spending and limited risk of share loss in China,” the firm noted, which would eventually result in growth in the “upper end of its peer group.”
The firm further cited that normal order intake in quarter 3 would allow ASML to ease concerns around growth for 2026. The stock is currently below both its historical averages and peers, but there is limited risk of further de-rating.
Moreover, while it remains unclear how much spending will be done on wafer fab equipment, a broader pullback can be expected next year.
ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.
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 July 24, Morgan Stanley reiterated the stock as “Overweight” with a $410 price target. Morgan Stanley says Tesla remains a top pick following the company’s earnings report on Wednesday. The electric vehicle maker reported a top and bottom line miss on second-quarter results, with automotive revenue falling 16% year-on-year to $16.7 billion.
While Analyst Adam Jonas is a well-known Tesla bull, he has lowered his fiscal year 2025 earnings per share expectations by 14% as opposed to prior forecasts. Lower deliveries and higher operating expenses have caused this change.
“2Q numbers were a slight beat with FCF near break-even. Tesla is crossing the chasm to autonomy while absorbing slower volume, EV incentive elimination, tariffs and investing in new initiatives that may not make margins for years. Our OW rating and $410 price target are underpinned by our belief that Tesla’s capabilities in key areas of physical AI … offer growth and margin opportunities that greatly exceed those of the traditional EV business, which is under pressure,” he added. “we struggle to think of any other company as well positioned as Tesla in terms of data, robotics, energy, AI, manufacturing and supporting infrastructure”
-Jonas said in a note about Tesla’s results.
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
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 July 23, Monness, Crespi, Hardt & Co. reiterated the stock as “Buy” with a $245 price target. Monness said that Apple remains well-positioned ahead of earnings on July 31.
“In our view, Apple is innovating with industry-leading products supported by a powerful digital grid and embarking on a gen AI journey with Apple Intelligence; however, regulatory headwinds persist, the implications of this trade war are unclear, geopolitical risks continue, and the macro treacherous.”
Apple is a technology company known for its consumer electronics, software, and services.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Making Waves on Wall Street. On July 23, Rothschild & Co Redburn’s Timm Schulze‑Melander raised his price target on the stock to $192 from $173, maintaining a “Buy” outlook.
The firm said that earnings visibility is improving. Moreover, AI models’ performance has improved roughly 5% per quarter since May 2023. This has, in turn, incited “huge spending” on Nvidia data‑center compute.
“Nvidia is back to playing offense and recent sovereign investment deals improve earnings visibility. We raise our FY26-28 estimates between 1% and 5% and raise our price target to $192 from $178.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, providing high-performance GPUs and platforms that power data centers, autonomous vehicles, robotics, and cloud services.
4. 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 July 24, Morgan Stanley reiterated the stock as “Overweight” and raised its price target to $210 per share from $205 following Alphabet’s latest earnings report on Wednesday.
Analyst Brian Nowak is optimistic about Google’s accelerating cloud revenue growth and its updated AI-based engagement metrics.
“Search, YouTube and Google Cloud all accelerated as GenAI-enabled innovation is driving faster growth,” he wrote in a Thursday note to clients. “Our EPS ests are largely unchanged (revenue higher offset by higher D & A/investment) but we remain OW as this accelerated pace of innovation sets up GOOGL for more durable multi-year growth.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
3. 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 July 23, Benchmark analyst Mark Zgutowicz raised the firm’s price target on the stock to $800 from $640 and kept a “Buy” rating on the shares.
Discussing the Q2 results and guidance due on July 30, the firm said that it anticipates “stable top-line” results on the back of steady ecommerce trends and sustained US and Canada ad pricing leverage. The firm said that Meta has witnessed acceleration in these markets for the past two consecutive quarters, and believes that revenue per advertiser will increase from Advantage+ attribution enhancements implemented in May.
The analysts further stated that Zuckerberg’s recent pledge of “hundreds of billions of dollars” in AI infrastructure, coupled with its AI research hire,s will “certainly be topical on its 2Q earnings call.”
As such, it anticipates the company’s 2025 capex guidance to be maintained while opex guidance to be “tightened a bit higher.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Making Waves on Wall Street. On July 23, UBS analyst Karl Keirstead adjusted the price target for the stock from $500 to $600 while maintaining a “Buy” recommendation. The rating affirmation comes ahead of Microsoft’s upcoming fiscal fourth-quarter report due next week.
According to the firm, there are two factors driving company shares on the earnings reports, namely Azure growth and earnings revisions, which look positive. Microsoft enterprise customers seem satisfied as opposed to earlier in the year.
It believes Azure cloud service growth has the potential to exceed the high end of Microsoft’s guidance range of 35%. Meanwhile, recent headcount reductions may positively impact the fiscal year 2026 margin outlook.
The firm believes that investors expect around constant currency Azure growth of 36% for the June quarter, with guidance pointing to a slowdown to 34% in the September quarter. The growth target seems achievable due to improving sentiment from enterprise customers and partners as compared to the February-April period.
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 July 23, Bank of America reiterated the stock as “Buy” and raised its price target on the stock to $265 per share from $248.
Post raised his estimates for strong second-quarter retail data and Anthropic AI growth. He said his estimates for the quarter remain above the Street due to strong e-commerce data, longer Prime Day sales, and currency tailwinds. Looking into the second half of the year, Post anticipates strong AI demand and Amazon Web Services capacity growth as key factors driving the stock.
“Amazon’s YTD commentary on AWS capacity constraints, plus recent competitor Cloud revenue acceleration has likely elevated Street focus on AWS,” Post wrote in a Wednesday note to clients. “We think 2Q Retail is setting up for a solid quarter, plus a strong 1Q for AWS backlog and accelerating quarterly AWS capex spending should drive accelerating 2H AWS growth.” “We think the most important commentary on the call will be 2H outlook for AWS growth (if provided), investors could become impatient on returns for ramping quarterly AWS capex spend given competitor acceleration,”
Looking ahead, the analyst stated that he believes that this year’s longer Prime Day event and consumer resilience may lead to a strong third-quarter outlook. Tariff uncertainty remains a key risk, however.
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
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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