According to investment firm UBS, high-bandwidth memory, or HBM, is on the cusp of a breakthrough year in 2026. Since artificial intelligence requires immense computing power, it is continuing to reshape the memory landscape.

“Our channel checks continue to indicate that SK Hynix Inc will likely secure a largely stable market share in the HBM market in 2026 around 50% of total bits.”

The firm highlighted that Hynix will maintain its strong position in the market in next-generation memory despite competition. This is despite the noise that Nvidia is in talks with suppliers and the pressure on prices as Samsung moves closer to getting its HBM3E memory approved.

However, the bigger picture, which is more important, is that Nvidia and Hynix will continue to have a strong relationship. Hynix may also continue to stay as the main supplier of HBM memory as new deals from Google, Microsoft, and AWS emerge. While competition is increasing, it may not hurt Hynix in the near term.

This robust demand for HBM has artificial intelligence written all over it. Big tech companies, Nvidia’s customers, and even tier-2 and tier-3 GPU buyers, need more memory for A. This is particularly as H20 chips export resumes to China.

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 July 17, HSBC initiated the stock as “Reduce” with a $32 per share price target. The firm said it sees too many negative catalysts and that Coreweave could be in big trouble in the near future.

According to analyst Abhishek Shukla, Coreweave’s revenue comes from only few customers that also use their own software. This has been diluting its “value proposition”

“CoreWeave’s key customers, namely Microsoft, Open AI, and Nvidia, do not use CoreWeave’s software services, according to SemiAnalysis,” the analyst said. “We believe this diminishes the competitive advantage and customer lock-in CoreWeave gets from its unique offering. In 1Q25, 72% of CoreWeave’s revenue came from Microsoft. Microsoft and Open AI together account for the vast majority of the company’s backlog.”

Shukla pointed out that the stock is overvalued. Coreweave is also suffering from higher borrowing costs, low asset turnover and anticipated high capital expenditure costs due to the short shelf life of graphic processing units.

“Assuming that GPUs will need to be replaced after 6-7 years of use, the result would be high capex simply to maintain steady-state revenue beyond 2030e,” the analyst said. “The continued high capex requirement well beyond the high-growth phase of the company is one of the key reasons behind our low [discounted cash flow] valuation of CoreWeave.”

The firm also warned that Coreweave’s liquidity looks “stretched.”

“Contrary to consensus for a steep decrease, we expect CRWV’ s blended average interest rate to remain elevated. As it diversifies into customers with lower credit ratings than Microsoft (impacts borrowing cost) and we believe Open AI has not extended a material cash advance despite committing to USD15bn-plus of offtake, CoreWeave’s liquidity looks stretched.”

CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.

9. 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 on Wall Street’s Radar. On July 17, JPMorgan added HPE to its focus list, stating that shares of Hewlett Packard Enterprise have more room to run. The stock was rated “Overweight” from a Not Rated designation, with a December 2026 price target of $30 on the stock.

The rating follows HPE’s completion of the Juniper acquisition.

“We are moving to an OW rating on HPE following the completion of the JNPR acquisition, which enhances its position and firmly establishes it as one of the largest Networking companies, with one of the broadest portfolios encompassing switches, wireless access points, routers, and more.”

According to analysts led by Samik Chatterjee, the increasing mix of higher margin networking revenues coupled with several cost synergies will allow HPE to achieve earnings of at least $2.70 by fiscal 2027. This points to substantial upside ahead for the shares.

However, recent concerns regarding execution may lead investors to stay cautious regarding the higher earnings multiple. They would likely wait and watch for critical milestones on integration before they get comfortable.

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.