In May, the US and the UAE struck a landmark deal, announcing plans to build one of the largest data centre hubs in Abu Dhabi with U.S. technology. However, a Reuters report has deemed the agreement to be far from concluded. Citing several sources, the report states there are “persistent concerns around security,” which is why the deal hasn’t been finalized yet.
Funded by G42, an Emirati tech firm behind the development of its artificial intelligence industry, the planned 10-square-mile (26-sq-km) site 5GW will be known as “Stargate UAE” and is set to go online in 2026. However, sources briefed on the project have revealed that U.S. officials are yet to determine the security conditions for exporting the advanced chips or how the agreement between the states will be enforced.
Officials are particularly concerned about the UAE’s close relationship with China. They noted that these concerns have been raised during both the Biden administration and Trump’s first term, particularly focusing on the reliability of the Gulf state as a strategic partner.
While it isn’t clear if new concerns have emerged regarding this issue, the unresolved status of the old ones is enough to prevent the deal from being finalized. There is also the possibility of US technology reaching Washington’s competitors regardless of the UAE’s good or bad intentions.
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. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks on Wall Street’s Radar. On June 10, DA Davidson analyst Gil Luria reiterated an “Underperform” rating on CoreWeave, Inc. (NASDAQ:CRWV) with a $36.00 price target. The firm stated that CoreWeave had disclosed a pro forma contract financing structure example to analysts yesterday to indicate that shareholders will get some returns during the duration of the contracts being signed.
However, it believes that the disclosure, even if accepted at face value, “very clearly illustrates the exact opposite point.” Luria highlighted how there is no upfront equity and no returns to current equity holders during the contract.
While the company assumes a 15% equity, the analyst also stated that CoreWeave does not have equity capital to invest and is instead relying on other forms of non-project debt. Such a step would require an additional $590 million, which would result in “literally wiping out any cash they are claiming to generate for shareholders.”
The firm also believes that the illustrative interest rate indicates that all of the company’s previous deals are likely unprofitable. Moreover, while AI enthusiasm may likely fuel expansion, it would require the company to raise more than $10 billion in equity capital at the current share price so that it can justify the next two years of projects. This seems as the only significant upside risk to DA’s analysis.
9. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 40
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 10 AI Stocks on Wall Street’s Radar. On Tuesday, June 10th, Super Micro Computer, Inc. (NASDAQ:SMCI) and Ericsson (NASDAQ: ERIC) announced their intent to enter into a strategic collaboration that aims to accelerate Edge AI deployment.
The two parties signed a Memorandum of Understanding to explore the integration of Ericsson Enterprise Wireless Solutions’ industry-leading 5G connectivity with Supermicro’s industry-leading Edge AI platforms, creating a commercial bundle that will deliver advanced Edge AI capabilities and simplify procurement and deployment.
The need for such a collaboration rose out of demand for Edge AI solutions deploying pre-trained AI models, generative AI, and agentic AI to the network edge, outside the data center, for local processing. Since many of these AI applications require low-latency response times, combining Supermicro’s and Ericsson’s technology will help businesses deploy integrated Edge AI infrastructure together rapidly with wireless connectivity.
Some specific industry applications include retail, smart factory and industrial automation, traffic safety, and healthcare management.
“Supermicro delivers cutting-edge solutions that allow enterprises to harness the power of AI at the edge. Our compute platforms combined with Ericsson’s 5G technology will allow enterprises and public sector organizations to extend the reach of their AI applications where wired technologies are not a viable option, such as smart intersections, industrial manufacturing, and remote infrastructure.”
-Mory Lin, Vice President, IoT/Embedded & Edge Computing, Supermicro.
8. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks on Wall Street’s Radar. On June 10, Palantir Technologies Inc. (NASDAQ:PLTR) announced that it has entered into a multi-year partnership with Fedrigoni, an Italian manufacturer of specialty papers for packaging and other applications. The partnership will allow Fedrigoni to leverage Palantir’s advanced AI capabilities and innovative solutions to accelerate its digital and operational transformation.
Palantir’s innovative solutions and cutting-edge AI technology will not only be limited to Fedrigni’s stock optimization and demand forecasting, but will expand to support its entire digital transformation objectives. This will allow the paper manufacturer to improve its responsiveness to market dynamics and its ability to anticipate and meet customer demands.
Palantir’s Managing Director for Palantir France and EMEA Executive, François Bohuon, expressed enthusiasm for the partnership:
“We are excited to collaborate with Fedrigoni on their digital transformation journey. This partnership highlights the transformative potential of AI in traditional industries, and we are honored to support Fedrigoni in achieving their strategic vision.”
“Our technology will empower them to unlock new efficiencies and drive growth. Fedrigoni’s forward-thinking approach to digital transformation aligns perfectly with our mission to empower organizations through data-driven insights. By leveraging AI, we are poised to deliver impactful results that will enable Fedrigoni to enhance its operational capabilities and achieve sustained success.”
– Guillaume Soule, EMEA Manufacturing AI Lead at Palantir.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 82
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 AI Stocks on Wall Street’s Radar. On June 9, the company reported that it has agreed to buy semiconductor company Alphawave IP Group Plc for an estimated $2.4 billion in cash, aiming to expand its technology and key assets for expanding into data centers.
The companies revealed in a Monday statement that the offer is equivalent to about 183 pence per share for Alphawave, a 96% premium to the company’s share price on March 31. This was the last trading day prior to the companies disclosing the deal discussion. While the deal is subject to regulatory and shareholder approval, it is anticipated to close in the first quarter of 2026.
“The acquisition of Alphawave Semi aims to further accelerate and provide key assets for Qualcomm’s expansion into data centers,” the company said.
While Qualcomm has made two alternative all-share offers for Alphawave following multiple deadline extensions from the UK takeover panel, Alphawave plans to unanimously recommend the cash offer to its shareholders. They deem it to be fair and reasonable.
“Under Tony’s leadership Alphawave Semi has developed leading high-speed wired connectivity and compute technologies that are complementary to our power-efficient CPU and NPU cores. Qualcomm’s advanced custom processors are a natural fit for data center workloads. The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high growth areas, including data center infrastructure.”
– Cristiano Amon, president and CEO of Qualcomm Incorporated.
QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT devices, licenses patents, and invests in emerging industries worldwide.
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks on Wall Street’s Radar. On June 10, Wells Fargo reiterated an “Underweight” rating on the stock with a $120 price target. The firm is sticking with its underweight rating, stating that the company’s Q2 deliveries are “on track for another poor quarter.”
“Most of TSLA May delivery results are now out. Once again, global deliveries are trending meaningfully weaker, with May trending 23% lower y/y and Q2 QTD trending 21% lower y/y. All three key regions are double-digit % lower, with EU the worst.”
North America, Europe, and China— Tesla’s key regions— have been experiencing double-digit percentage declines, the firm noted, further revealing that the “fundamentals of the core auto business continue to weaken.”
It further said that “order’ pricing on the website appears stable over the LTM,” but “aggressive financing promotions continue to act as price cuts.” This, coupled with lower leverage, is a risk to Q2 margins.
Attention is now being diverted to Austin Robotaxi deployment on June 12, which the firm doubts “the likely limited debut will be enough to overshadow the poor fundamentals.”
The firm also pointed toward China, Tesla’s second-largest market, which is “trending 22% lower QTD.” The firm asserted how the “competition in China is beginning to take its toll on TSLA’s business,” as local OEMs like BYD (SZ:002594) and Chery “continue to undercut TSLA on pricing.”
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks on Wall Street’s Radar. One of the most notable analyst calls on Tuesday, June 10th, was for Apple Inc. (NASDAQ:AAPL). Goldman Sachs reiterated the stock as “Buy” with a $253 price target. The tech giant hosted its annual developers’ conference on Monday, failing to introduce substantial artificial intelligence updates. Nevertheless, the firm said it’s sticking with the stock following its Worldwide Developers Conference reveal.
“AAPL traded down ~1% following the WWDC25 keynote (note: AAPL declined 2% last year after WWDC24), where the company announced design improvements and new features across its operating systems and first-party apps, but failed to demonstrate substantial progress in Apple Intelligence.”
The company has also confirmed that any enhancements to make Siri more personal are postponed till next year. This is very unlike last year’s conference, where Siri was a highlight and mentioned numerous times.
Despite these disappointments, analysts at Goldman Sachs believe that Apple is still a leader in consumer devices, with new features aimed at improving the user experience. These features include a new user interface named “Liquid Glass,” AI-driven capabilities, enhanced Visual Intelligence, and several quality-of-life features.
Looking ahead, the firm anticipates an upcoming improvement in the iPhone replacement cycle, which aligns with the introduction of new iPhone models in the years 2025, 2026, and 2027.
“We are Buy-rated on AAPL as we believe that the market’s focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability & visibility.”
Apple Inc. (NASDAQ:AAPL) is a technology company known for its consumer electronics, particularly the iPhones and MacBooks.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 10 AI Stocks on Wall Street’s Radar. On June 10, the company reported its May revenue, which surged 40% year-over-year to NT$320.5 billion ($10.7 billion) as demand remained high for its AI chips. The contract chipmaker, which supplies to tech giants such as Apple and Nvidia, had its revenue up 39.6% from a year earlier but down 8% from April’s figure.
According to TSMC’s CEO C.C. Wei, April softening was seasonal, and the company is ramping advanced nodes to ease bottlenecks. Its capacity expansions in Arizona and Taiwan are progressing according to plan. Moreover, new EUV tools and packaging lines are launching to boost throughput for the latest H100 and next-gen Gaudi GPUs.
Back in March, Wei joined President Donald Trump in announcing his intent to invest $100 billion in U.S.-based chip-manufacturing facilities. He acknowledged TSMC’s projection of “full-year 2025 revenue to increase by close to mid-20s percent in U.S. dollar terms” in the company’s first-quarter earnings call in April.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks on Wall Street’s Radar. One of the most notable analyst calls on Tuesday, June 10, was for NVIDIA Corporation (NASDAQ:NVDA). Bank of America reiterated the stock as “Buy,” stating that data center demand trends remain robust for Nvidia.
“Developing AI infrastructure leveraging local datasets and workforces is a rapidly growing global phenomenon and we expect it to contribute $50bn+ annually or 10%+ of long-term AI addressable market.”
In other latest news, Nvidia Corporation and Hewlett-Packard Enterprise said on Tuesday that they are partnering with the Leibniz Supercomputing Centre to build a new supercomputer using Nvidia’s next-generation chips.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks on Wall Street’s Radar. On June 10, Reuters reported that OpenAI is planning to add Alphabet Inc. (NASDAQ:GOOGL)’s Google cloud service to meet its growing needs for computing capacity. Despite being competitors in the artificial intelligence space, the collaboration is a surprising highlight of the strategic need for companies to pool in resources to accelerate AI adoption.
According to the sources, the deal was under discussion for a few months and was finalized in May. The massive demand for computing to train and deploy AI models is significantly reshaping competitive dynamics, highlighting OpenAI’s latest efforts to diversify its compute sources beyond Microsoft.
Google’s cloud unit will now supply additional computing capacity to OpenAI’s existing infrastructure for training and running its AI models, a major win for the company.
Discussing the aforementioned deal, Scotiabank analysts have deemed the development to be “somewhat surprising”, pointing toward growth opportunities for Google’s Cloud unit and also expressing caution regarding competition from ChatGPT.
“The deal … underscores the fact that the two are willing to overlook heavy competition between them to meet the massive computing demands. Ultimately, we view this as a big win for Google’s cloud unit, but … there are continued worries that ChatGPT is becoming an incrementally larger threat to Google’s search dominance.”
-Scotiabank Analysts
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks on Wall Street’s Radar. On June 10, Bloomberg News reported that the company’s CEO Mark Zuckerberg is setting up a team of experts to achieve what is known as “artificial general intelligence” (AGI), or machines that can match or surpass human capabilities.
Citing sources, the report has revealed that the new AI team is being set up with a reported investment of over $10 billion in Scale AI. It further reported how Scale AI founder Alexandr Wang is expected to join the group after a deal is done.
Reportedly, Zuckerberg is planning to personally recruit around 50 people, including a new head of AI research for the AGI team. The decision is being made after looking at the performance and reception of Meta’s latest large language model, Llama 4, the report stated.
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 12 AI Stocks on Latest News and Ratings and 10 AI Stocks on Wall Street’s Radar.
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