Stargate, a multi-billion dollar effort by OpenAI, Oracle, and SoftBank, has sharply reined in its near-term plans, reports The Wall Street Journal. According to the report, the AI infrastructure project has now set a more modest goal of setting up a data center by the end of the year, most likely in Ohio.
SoftBank and OpenAI, the two jointly leading the joint venture, have been taking time deciding the terms of the partnership, including where to build the sites. However, the companies have told Reuters they were moving “with urgency on site assessments”. Moreover, they have also been advancing projects in multiple states.
While the $500 billion Stargate initiative has struggled to get off the ground, the modest goal of setting up a small data center by the end of the year seems more achievable.
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10. 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 on Analysts’ Radar Right Now. On July 21, BofA Securities analyst Wamsi Mohan reiterated a Buy rating and $320.00 price target on the stock.
The firm sees a “tough near-term setup given YTD outperformance but structural LT tailwinds.” They believe Red Hat (RHT) will grow faster, while foreign exchange tailwinds may also be present. However, there may be weaknesses in IBM’s consultancy business similar to peers.
“IBM reports F2Q25 earnings on July 23rd, and we believe investors expect an acceleration in RHT, potential FX tailwinds, and for Consulting to be weak (similar to peers). While the tactical setup is a bit challenging given decelerating trends in parts of the business, we reiterate our Buy rating as we continue to view IBM as a defensive investment with improving revenue growth, which in turn can drive higher cash flows that could be re-invested for more M&A. We expect IBM to largely maintain its overall guide for the year but with slightly lower Transaction processing (TP) and slightly better RHT.”
Investors likely to focus on organic growth trends:
While RHT would accelerate slightly and remains an important part of the bull case on IBM, we expect TP to modestly decelerate and overall software growth (ex-Hashicorp contribution of ~$200mn) to decelerate on an organic cc basis from 9% in 1Q to 6% in 2Q and model modest acceleration into 3Q.
While bears could argue such a deceleration would continue into the future, we view the TP deceleration as not structural and expect IBM to benefit from share gains in RHT from VMware. We expect 2Q25 reported growth of 4.7%, cc growth of 2.3%, organic cc growth of 1% and organic cc less Infrastructure (Mainframe+, Power -) contribution of 0.7%. We view growth in 2Q as not indicative of the trajectory for the rest of the year especially with TP and RHT reacceleration.”
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.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 AI Stocks on Analysts’ Radar Right Now. On July 18, Stifel analyst Tore Svanberg reiterated a “Buy” rating on the stock with an $80.00 price target.
“Our 12-month target price of $80 is based on a 7.6x CY26E EV/Sales multiple. Risks to our target price include (1) management’s ability to implement strategy and successfully integrate multiple acquisitions; (2) the company’s ability to gain traction/ maintain momentum in the data center, 5G infrastructure and automotive markets; (3) competition with larger, more established rivals in certain segments, and (4) general risks associated with the overall semiconductor markets, including industry cyclicality, rapid technology shifts, and the potential for disruptions from exogenous factors such as macroeconomic, geopolitical/trade, pandemic, supply chain, and other challenges.”
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 AI Stocks on Analysts’ Radar Right Now. On July 21, Bernstein SocGen Group analyst Stacy Rasgon raised the price target on the stock to $140.00 (from $95.00) while maintaining a “Hold” rating. Despite the hold rating, Rasgon has highlighted several positive catalysts working in favour of the stock.
In particular, the analyst noted that the lifted ban on AI chip sales to China, upcoming MI350 product launch, and gaming recovery have been good for the company. This is why Rasgon updated his estimates for AMD earnings, which includes Q2 adjusted EPS of 49 cents on revenue of $7.52 billion, as compared to a prior estimate of 47 cents and $7.4 billion.
The analyst also updated Q3 estimates, projecting $8.43 billion in revenue and $1.20 in earnings per share. He also updated his full-year 2025 estimate to $ $32.0 billion in revenue and $3.89 earnings per share.
Regardless, the firm still remains cautious due to high valuation and expected risk of client channel flush and tariff pull-forward reversal.
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks on Analysts’ Radar Right Now. On July 21, Cantor Fitzgerald analyst Andres Sheppard reiterated an “Overweight” rating on the stock with a $355.00 price target. The firm is positive on the stock, particularly owing to its potential in the autonomous vehicle market.
“Overall, we continue see Tesla’s Robotaxi segment as a software-as-a-service, high-margin model, and we expect TSLA to have the ability to rapidly scale following commercialization. We continue to believe that TSLA will capture a significant share of the autonomous driving and ride-sharing industries.”
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. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 10 AI Stocks on Analysts’ Radar Right Now. On July 21, Cantor Fitzgerald analyst Thomas Blakey reiterated an Overweight rating on the stock with a $1,200.00 price target. The rating affirmation comes ahead of the company’s earnings report on July 23rd, 2025, after markets close.
According to the firm, it had viewed ServiceNow’s shares positively earlier this week based on favorable checks. However, the shares may be subject to short selling activity following the recent outperformance. The firm believes that this is likely to be a short-term move instead of a reflection of valuation concerns.
Upcoming earnings report is anticipated to serve ServiceNow positively, reflecting mitigated risks in the federal sector. Moreover, the company’s “Now Assist starter packs” is likely to drive more Pro Plus upgrades and adoption, which will drive positive momentum for the company.
ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks on Analysts’ Radar Right Now. On July 18, HSBC maintained a “Hold” rating on the stock with a $220 price target. The firm has quoted a “5% regulatory discount” and warning that tariff and legal uncertainties may limit near-term upside.
HBSC analysts claim that Apple’s AI efforts for driving hardware upgrades through artificial intelligence have been falling short. Therefore, it needs a more compelling AI experience to revive AI sales.
“The iPhone still represents about half of Apple’s sales,” HSBC wrote. But “initial hopes that AI would accelerate the renewal cycle have been short-lived.”
According to the bank, Apple Intelligence has “so far failed to trigger significant improvement in user experience.”
A delayed AI-powered Siri implies users may be delaying iPhone upgrades, which is why the company is relying on hardware upgrades to boost demand.
“Better specs with iPhone 17 in September should entertain the demand, in-line with what has been seen with the iPhone 16.”
Tariffs are also a major concern for the company. The firm believes that the company “cannot re-localise production fast enough to avoid U.S. tariff hikes.”
Apple is a technology company known for its consumer electronics, software, and services.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks on Analysts’ Radar Right Now. On July 21, Wolfe Research analyst Shweta Khajuria reiterated an “Outperform” rating on the stock with a $190.00 price target. The rating affirmation comes ahead of Alphabet’s second-quarter earnings report scheduled for Tuesday, July 22nd.
The firm noted that even though it’s going to “skew long into the print,” there may not be enough investor focus as it would be diverted to the upcoming Search ruling anticipated in August.
The firm highlighted how Alphabet shares have outperformed the S&P 500 by 1 percentage point since the last earnings release, driven by a “friendly setup,” improving advertising environment, and its AI narrative for Gemini models.
Wolfe Research noted that it will be all ears for Alphabet’s updates on the AI mode and AI overview monetization during the earnings call. Any metric disclosures may move beyond clicks growth and come during Q3 call or later.
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 on Analysts’ Radar Right Now. On July 18, Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating on the stock with a $750.00 price target. The firm believes that artificial intelligence is benefiting every aspect of the company’s core advertising business.
“Stocks often do not work when going through an investment cycle but AI benefits every aspect of Meta’s core advertising business. AI makes Meta’s content more engaging, creating more ad impressions, and making its ads more relevant, increasing click-through rates and conversions. To that end, we believe more compute and access to better models can help to sustain revenue growth and we moderately increase our growth estimates for Meta. While we are incrementally cautious on Meta given this investment cycle, we maintain our Market Outperform rating and unchanged price target of $750 based on `~26x 2026E GAAP EPS OF $28.56. With Meta under earning given its investments in Facebook Reality Labs and XR/VR, its best in-class advertising platform that continues to improve with AI, and optionally with Meta AI glasses, we justify Meta’s premium P/E valuation relative to Google and the market overall.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks on Analysts’ Radar Right Now. On July 21, RBC Capital analyst Rishi Jaluria reiterated an “Outperform” rating on the stock with a $525.00 price target. The firm’s channel checks reveal “healthy cloud” conditions and “phased Copilot rollouts” across Microsoft’s enterprise customer base.
The channel checks included system integrators, cloud consulting firms, and also large enterprise-focused resellers with visibility into Azure deployments and AI adoption efforts, all of which described the overall tone as “constructive.”
Moreover, Azure’s core workloads are staying steady while AI-related interest continues to build. In particular, Microsoft Copilot is being mentioned more frequently in expansion and renewal conversations regardless of customers remaining in pilot or department-level usage phases.
The firm has also highlighted how commercial structures are evolving, with partners signing shorter contracts and even mid-contract adjustments tied to AI rollout timing. However, issues regarding internal readiness are limiting broader adoption.
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 on Analysts’ Radar Right Now. On July 18, Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating on the stock with a $285.00 price target. The firm remains focused on AWS and advertising growth due to their higher margin profiles.
“While we acknowledge Prime day growth was slower than we expected, we are most focused on AWS and advertising growth given their higher margin profiles. This as we continue to believe logistics gains remain early as robotics continues to automate more warehouse processes. Net/net, we believe Amazon’s free cash flow margins remain early as we look through Prime Day weakness and reiterate our Market Outperform rating. Our $285 price target is based on ~16x 2026E EBITDA of $191B (25% margin), while we note this equates to 39x GAAP EPS of $7.34. Amazon last closed at $223.88, which it implies it trades for 12.4x our 2026E EBITDA and 30.5x our 2026E GAAP EPS. We justify our premium valuation multiple and price target given Amazon’s significant moat across logistics, which enables a growing advertising business, and scale with AWS.”
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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