In this article, we will discuss the 10 AI Stocks on Wall Street’s Radar.
On June 25, Mark Zandi, Moody’s Analytics Chief Economist, joined CNBC’s ‘Squawk on the Street’ to discuss the latest inflation data and whether AI is having an impact on inflation. Zandi talked about the current inflationary outlook and suggested that the recent peak of over 4% on the top-line inflation metric has likely passed as oil and gasoline prices have declined. However, he emphasized that the road back to the Fed’s 2% target will be a long and difficult process. He noted that even if economic trends follow the current script, the economy may still not reach the Fed’s target a year from now. He highlighted that persistent inflationary pressures remain, citing as an example Apple’s decision to raise prices on the iPhone, which reflects the high demand for chips, a component that impacts the costs of goods across the entire economy.
Addressing the role of AI, Zandi explained that AI is currently juicing up inflation. He pointed to the rising costs for chips, which are integrated into nearly all consumer products, as well as the increase in electricity prices, which can also be traced back to the energy demands of AI infrastructure. Because these pressures are not expected to dissipate soon, Zandi identified the AI boom as a key reason why inflation will remain above the Fed’s target for quite some time, even as it moderates.
When asked about the potential for AI-driven deflation resulting from productivity gains, Zandi noted that such improvements have yet to appear in the data. He pointed out that underlying productivity growth remains at approximately 2%, which is consistent with the average since World War II, making it difficult to currently connect the dots to any AI-driven improvements. While he expects productivity gains to materialize eventually, he anticipates the process will be slow. He argued that AI will not fully diffuse through the economy until new businesses are formed that are optimized for the technology, noting that legacy companies often struggle to successfully adopt and integrate AI. Ultimately, Zandi compared the diffusion of AI to the adoption of the internet in the 1990s and early 2000s, characterizing it as a long-term process that will likely unfold over the next decade.
Our Methodology
For this article, we selected AI stocks by going through news articles, stock analyses, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q1 2026.
Note: All data was sourced on June 29.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 AI Stocks on Wall Street’s Radar
10. Cerebras Systems Inc. (NASDAQ:CBRS)
Number of Hedge Fund Holders: N/A
Cerebras Systems Inc. (NASDAQ:CBRS) is one of the AI stocks on Wall Street’s radar. On June 24, Cerebras reported strong FQ1 2026 financial results, posting GAAP revenue of $193.4 million and core revenue of $191.3 million, a 92% increase year-over-year. The company recently completed the largest semiconductor IPO in history, raising $6.4 billion in gross proceeds. This follows significant capital influxes, including a $1 billion Series H financing and a $1 billion loan from OpenAI earlier this year.
Strategic growth is driven by major new partnerships, most notably a multi-year deal with OpenAI valued at over $20 billion to deploy 750 megawatts of high-speed inference compute. Additionally, Cerebras launched a partnership with AWS to provide fast inference at scale, using a disaggregated strategy that pairs AWS’s Trainium 3 chips for prefill with Cerebras’ CS-3 systems for rapid decoding.
The company continues to advance its technology through the introduction of the Codex-Spark model and trials for models like Kimi K2.6 and Gemma 4, which show record-breaking token generation speeds. Cerebras Systems Inc. (NASDAQ:CBRS) now projects full-year 2026 core revenue to reach between $855 million and $865 million, representing a 69% year-over-year increase at the midpoint.
Cerebras Systems Inc. (NASDAQ:CBRS) designs and manufactures wafer-scale processors and AI supercomputers engineered to accelerate both training and inference workloads for AI applications across enterprise and research environments.
9. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
Number of Hedge Fund Holders: 33
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is one of the AI stocks on Wall Street’s radar. On June 22, Check Point announced the integration of OpenAI’s frontier cyber capabilities into its security products through the exclusive OpenAI Daybreak Cyber Partner Program. This partnership marks a shift from internal model use to embedding advanced AI directly into the defensive tools and workflows that enterprise customers use daily.
The initiative aims to counter the evolving threat landscape where bad actors use AI to scale and refine their attacks. By incorporating these models, Check Point intends to enhance threat prevention and speed up remediation, treating the quality of AI models as a critical factor in enterprise security rather than just a technical feature.
Check Point Software Technologies Ltd. (NASDAQ:CHKP) and OpenAI are taking a disciplined, gradual approach to this rollout, focusing on carefully controlled defensive applications. The collaboration also involves defining industry standards for the responsible use of frontier AI in cybersecurity, ensuring that robust safety controls and abuse-prevention measures are maintained as the technology is deployed.
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is a technology company that specializes in IT security. The company offers multilevel security for cloud, network, mobile, endpoints, and IoT, alongside technical support, professional services, and product certification or training.
8. SentinelOne Inc. (NYSE:S)
Number of Hedge Fund Holders: 37
SentinelOne Inc. (NYSE:S) is one of the AI stocks on Wall Street’s radar. On June 17, SentinelOne announced an upcoming integration between its Prompt Security offering and Amazon Bedrock AgentCore. This collaboration aims to provide enterprises with robust, runtime security guardrails for AI agents deployed on the AWS platform, ensuring consistent protection across complex agentic workflows.
The integration functions by feeding SentinelOne Inc.’s (NYSE:S) detection signals (such as prompt injection, PII exposure, and data leakage prevention) directly into the Amazon Bedrock AgentCore policy engine. By evaluating agent traffic at the gateway, the system enables deterministic enforcement of security policies outside of the agent’s reasoning loop, allowing for automated allow-or-deny decisions on every action.
This partnership is designed to give organizations the confidence to scale agentic AI by extending existing security controls to new AI-driven processes. Expected to be available later this year, the integration will allow customers to utilize their existing Prompt Security licenses to automatically secure all agent-to-tool, agent-to-LLM, and agent-to-agent communications.
SentinelOne Inc. (NYSE:S) provides AI-powered cybersecurity solutions designed to protect endpoints, cloud environments, and enterprise networks.
7. Digital Realty Trust Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 46
Digital Realty Trust Inc. (NYSE:DLR) is one of the AI stocks on Wall Street’s radar. On June 17, Digital Realty launched ServiceFabric Model Context Protocol/MCP, a new programmable layer designed to make physical data center infrastructure “AI-native.” By using the company’s AI Private Exchange/AIPx architecture, this protocol allows enterprise AI environments to manage power density, cooling, and data placement across more than 800 global data centers.
The new service acts as a programmable interface, enabling AI systems and agents to securely interact with infrastructure, applications, and enterprise services. It provides capabilities for intent-based provisioning, real-time network telemetry, and automated security controls. By integrating with tools like Slack and Datadog, it aims to streamline the deployment and management of AI workloads at scale.
Designed to be open and vendor-neutral, ServiceFabric MCP supports diverse AI models and hybrid environments, allowing enterprises to connect across public clouds and third-party facilities. Digital Realty is positioning this platform as a foundational element of its broader strategy to support the next wave of enterprise AI, focusing on the rigorous requirements of production workloads.
Digital Realty Trust Inc. (NYSE:DLR) is a real estate investment trust that owns and operates data centers across the world. It offers colocation and interconnectivity services. The company’s infrastructure powers the internet, cloud computing, and AI systems.
6. Baidu Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 50
Baidu Inc. (NASDAQ:BIDU) is one of the AI stocks on Wall Street’s radar. On June 28, Reuters reported that Kunlunxin, the semiconductor unit of Baidu, is reportedly targeting a $50 billion valuation for its upcoming Hong Kong IPO. This figure represents a 17-fold increase since its funding round just six months ago, when it was valued at approximately $3 billion. The rapid surge highlights intense market frenzy surrounding AI hardware as domestic chipmakers capitalize on China’s push for homegrown technology and supply chain constraints.
Founded in 2011, Kunlunxin has emerged as a key contender against Nvidia and other domestic rivals, currently benefiting from surging demand and US export controls. Despite being smaller than competitors like Huawei or Alibaba’s chip division, it has secured major clients including Tencent, while ByteDance has reportedly considered using its chips. Citi analysts project the company’s revenue to triple to 14 billion yuan by 2027.
Amid concerns about market hubris and potential investment bubbles, the Bank for International Settlements has warned that the current AI capital expenditure boom could eventually lead to a significant investment bust.
Baidu Inc. (NASDAQ:BIDU) provides internet search, online entertainment, and online marketing services, including search-based, feed-based, and other services. It is headquartered in Beijing, China, and has transformed itself into a full-stack AI player.
While we acknowledge the potential of BIDU to grow, 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 BIDU and that has 100x upside potential, check out our report about the cheapest AI stock.
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