According to a report from the Financial Times, China is stepping up the enforcement of its chips import controls, including Nvidia’s artificial intelligence processors.
Teams of custom officers have been assigned to major ports across the country to perform strict checks on semiconductor equipment. These checks strive to ensure that local companies stop ordering China-specific chips after regulators advised them not to order anymore.
Beijing is actively striving to push local AI chipmakers and reduce its dependency on America technology, thereby strengthening its own position in the AI arms race.
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 Q2 2025.
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10. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 73
Autodesk, Inc. (NASDAQ:ADSK) is one of the 10 AI Stocks on the Market’s Radar. On October 8, Piper Sandler analyst Clarke Jeffries reiterated an Overweight rating on the stock with a $373.00 price target.
Analysts at the firm highlighted Vertical AI progress and new monetization model as key drivers for the stock. The firm further noted that the investments made in operationizing generative AI is “very close to bearing fruit”.
“Neural CAD (& more) Shows the Promise of Autodesk’s Investment in Vertical AI; Announcements & upcoming features previewed at Autodesk University this year demonstrate the substantive progress Autodesk is making in developing Vertical AI for AEC, Manufacturing & Media. The investment made in operationalizing generative AI is very close to bearing fruit & we believe there is line of sight to material product change in an industry that has been largely “land locked” as seat-based, desktop tools for 40 years. AutoConstrain in Manufacturing & Neural CAD (AI foundation models focused on CAD objects) look to be prime examples of how the company is pushing step-function improvements to customer’s workflows. Additionally, the business model is evolving with forthcoming pricing changes to Autodesk Platform Services (APS, formerly Forge) to carve out new monetization opportunities based on consumption & cloud compute as generative technologies start to expand. While profitability & efficiency have dominated the ADSK narrative, we believe the product evolution here should not be overlooked.”
Autodesk, Inc. (NASDAQ:ADSK), a multinational software corporation, leverages generative AI technology to drive innovation across the design, construction, manufacturing, and entertainment industries.
9. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks on the Market’s Radar. On October 8, UBS analyst Timothy Arcuri raised the price target on the stock to $225.00 (from $195.00) while maintaining a Buy rating.
The firm quoted stronger high-bandwidth memory (HBM) demand projections behind the rating affirmation. UBS increased its HBM industry demand forecast to 17.1 billion gigabytes for 2025 and 27.2 billion gigabytes for 2026. This is up from previous estimates of 16.9 billion and 26.1 billion gigabytes, respectively. It also anticipates HBM demand to grow an estimated 35% year-over-year in 2027.
“On the back of recent announcements across the compute space and our latest CoWoS supply checks, we have more confidence that HBM demand will expand significantly again in C2027. For the near-term, we now see HBM industry demand of 17.1B Gb/27.2B Gb in C25/C26 up from prior 16.9B Gb/26.1B Gb. This is being driven by: (1) the inclusion of OAI – effectively, ~700k units with HBM3E 12-Hi starting in C26, and (2) higher NVDA (Rubin) unit volumes into next year (+400k to 7.4MM vs 7.0MM prior). Most importantly, we now believe HBM industry demand could grow another ~35% Y/Y in C27. This is a great backdrop for the sector and we still model MU to gain some modest share beyond C2H:25 levels, but this will be likely capped by some capacity constraints (we don’t see wafers from new Idaho fab ramping significantly until 2H:27). Net-net, we reiterate our long-held view that the cycle will prove more durable this time as HBM “crowds out” the traditional memory market (most, if not all, of the capacity addition across the industry through C2027 will go to HBM), still allowing suppliers to allocate bits to higher value markets. On modestly higher estimates, we refresh our SOTP valuation framework, and raise PT to $225.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
8. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 10 AI Stocks on the Market’s Radar. On October 10, UBS raised its price target on the stock to $310.00 from $285.00 while maintaining a Buy rating. The rating affirmation follows analyst attendance at two recent industry New York City events: a Snowflake customer event and a conference held by emerging competitor ClickHouse.
Analysts noted how a few things stood out from the Snowflake event, of which the only negative was a view that “Snowflake (the core DW as well as Cortex) are “expensive”, although that doesn’t seem to be weighing too heavily on demand”.
Another observation they made was how several checks have revealed that the data management market has hovered around two main winners—Databricks and Snowflake—which marks a transition from the competitive narrative that dominated the previous narrative of 2023/2024.
The firm further pinpointed that artificial intelligence is a demand driver for Snowflake, although the direct revenue impact is tough to quantify.
Takeaways from the ClickHouse event were that the company presents a “high-performance solution for latency-sensitive workloads, these represent just a small portion of broader data analytics use cases, such that the threat to Snowflake is limited/manageable in our view”.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
7. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 103
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks on the Market’s Radar. On October 8, Bernstein raised the firm’s price target on the stock to $170 from $147 and kept an “Outperform” rating on the shares.
The firm has seen Datadog rally after a mid-summer pullback, which isn’t a surprise as multiple signals imply that the second half of the year may experience a nice acceleration in base revenue ex-AI.
Investors are now less worried about Datadog losing business to OpenAI anytime soon- which makes the overall outlook positive.
“Strong H2 cloud consumption trends; Over the last few weeks we watched Datadog (and broader cloud-linked consumption software) rally after a mid-summer pullback. In many ways we are not surprised, as multiple signals suggest H2 might actually see nice acceleration in base revenue ex-AI. Add to that market sentiment that the worst case OpenAI churn scenario seems unlikely in the near term (consistent with our earlier calls) and there are reasons to turn optimistic. Based on our web metric analysis we increase our ex-AI component of growth for H2 and FY26–27 (AI component only tweaked slightly). Using a 50/50 “rule of 40”-based multiples regression (~15x Price to NTM revenue up from ~14x), and our DCF (11% WACC, 3% terminal growth) we raise our PT to $170 and maintain an 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. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 AI Stocks on the Market’s Radar. On October 7, Piper Sandler analyst Harsh Kumar raised the firm’s price target on the stock to $240 from $190 and kept an Overweight rating on the shares.
The price target raise follows the landmark deal between AMD and OpenAI, signifiying a 6-gigawatt agreement to power OpenAI’s AI infrastructure with AMD’s Instinct GPUs.
OpenAI will be receiving 160M warrants for the stock in exchange as specific milestones are achieved over the next five years. The firm anticipates AMD to begin shipment of Pensando’s UALink switches along with the MI500 chip in 2027.
“The initial agreement covers a broad range of content including GPUs, CPUs, DPUs and some licensing revenue from the Helios rack. AMD expects each GW deployed to drive high double-digit billions of annual revenue. We expect AMD to also start shipping Pensando’s UALink switches along with the MI500 chip in 2027. This agreement signals the potential for broad adoption of AMD’s Instinct accelerators across both OpenAI and its designated CSP partners. We believe this will likely lead to significant traction with other players down the line as well. We reiterate our OW rating and increase our PT to $240.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
5. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks on the Market’s Radar. On October 7, Mizuho analyst Siti Panigrahi reiterated an Outperform rating on the stock with a $350.00 price target. The firm noted how shares traded down after an article from “The Information” which called out weakness in AI margins.
However, the firm sees “minimal incremental information” in the article beyond issues that have already been discussed. It also noted how parts of the article actually support the view that Oracle’s profit margins will improve as the company scales.
“ORCL shares are trading lower intra-day (down ~6% vs. QQQ down ~60 bps) following an article from The Information (link) calling out weakness in AI margins. We see minimal incremental information in the article beyond surfacing key debates that we already addressed in our recent note (Addressing Key Investor Debates Ahead of AI World/Analyst Day on October 16). Moreover, we believe the below quotes are supportive of improving gross margins with scale and reinforce our 25% gross margin assumption. We view today’s weakness as a buying opportunity, and we remain bullish into ORCL’s AI World/Financial Analyst Day next week, which we view as a major catalyst where the company will clarify many of these debates.”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 AI Stocks on the Market’s Radar. On October 8, Bernstein SocGen Group analyst Stacy Rasgon reiterated an Outperform rating on the stock with a $400.00 price target.
According to the firm, Broadcom’s Q3 earnings were good. Semis and software both performed better than expected. Even though non-AI semis remain slow to recover, AI semis revenues were quite robust at $5.2B.
Moreover, insights from a virtual meeting with Broadcom’s CEO and CFO reveal that compute demand remains robust, while $90B 2030 target seems “easily achievable.”
“Takeaways from a (virtual) meeting with the CEO and CFO; Compute demand remains very strong, noting that hyperscalers/frontier LLM developers face exponentially growing need for compute and thus the recent deals between NVDA/AMD/OpenAI are not surprising. High confidence in achieving growth targets, with $90B 2030 target “easily” achievable just from AVGO’s currently four customers alone (and $120 plausible from them as well). In the near term, Hock reiterated his confidence in the timing of $10B in OpenAI revenue in 3Q26 and noted that additional orders from them are highly likely. AVGO (OP, $400 PT): A strong 2025 AI trajectory seems set to accelerate into 2026, bolstered by software, cash deployment, and superb margins & FCF.”
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks on the Market’s Radar. On October 8, TD Cowen analyst John Blackledge raised the price target on the stock to $280.00 (from $270.00) while maintaining a Buy rating.
According to the firm, its third-quarter digital advertising expert call held on October 2nd reflects that the company’s Search growth remains strong despite macro uncertainties. The firm also anticipates strong Cloud growth during the quarter.
TD Cowen’s third-quarter net revenue estimate of 14.6% year-over-year growth is 0.7% above consensus. Moreover, its operating income and earnings per share estimates (excluding the EC fine) are also above consensus, 4% and 6% respectively.
The firm will be keeping an eye on the company’s GenAI efforts, it said.
“We’ll look for updates on GOOG GenAI efforts, including ongoing AI Mode roll-out. We made minor tweaks to LT estimates (FY 25 estimates unchanged); PT to $280, maintain Buy.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks on the Market’s Radar. On October 10, UBS analyst Timothy Arcuri reiterated a Buy rating on the stock with a $205.00 price target. Analysts at the firm believe Taiwan export data to be largely in-line with Nvidia’s data center growth trends.
“The Taiwan Ministry of Finance released September export data overnight, including Automatic Data Processing Equipment (ADP). ADP ex laptops was $14.07B, -16.03% M/ M from August’s $16.80B, coming in well below seasonal (-2.5% M/ M) and marking it the second consecutive below-seasonal September after being up 29% M/M in August. Assuming October constitutes a “normal” 36% of total FQ3 (Oct Q), this would imply- $48B of exports- an increase of ~20% Q/Q (after already increasing 14% Q/Q in FQ2). This is about in-line with the ~22% Q/Q growth we model for NVDA data center revenue so while this data has decoupled with NVDA’s results in recent periods, we read the data thus far this Q overall in line.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks on the Market’s Radar. On October 10, TD Cowen reiterated its Buy rating on the stock with a price target of $875.00. The rating affirmation comes ahead of the company’s third-quarter 2025 earnings report, due October 29.
Analyst John Blackledge anticipates Meta to enjoy another successful quarter, demonstrating strong advertising growth throughout.
His preview particularly noted “Strong Ad Growth to Continue” for the company, highlighting the significance of its advertising platform on Meta’s revenue generation capabilities.
Nevertheless, costs are anticipated to increase in the second half of 2025, which means there will be potential pressure on profit margins despite the robust top-line performance.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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