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.
8. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 AI Stocks on Wall Street’s Radar. On July 17, Macquarie analyst Steve Koenig initiated coverage on the stock with a “Neutral” rating and a price target of $465. According to the firm, Crowdstrike’s product strategy can continue driving sales momentum and product differentiation.
However, the analysts told investors in a research note that the company’s valuation looks “rich on a variety of metrics” at current share levels.
In particular, the firm highlighted that CrowdStrike is trading at a 58% premium to their estimated “Rule of X” enterprise value to next-twelve-months revenue multiple.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 80
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 AI Stocks on Wall Street’s Radar. On July 17, Deutsche Bank analyst Robert Sanders lowered the price target on the stock to EUR700.00 (from EUR750.00) while maintaining a “Buy” rating. The price target reduction follows ASML narrowing its 2025 sales growth forecast to 15%. It now expects sales to grow roughly 32.50 billion euros ($37.71 billion).
The firm is particularly concerned about ASML’s lowered extreme ultraviolet (EUV) unit shipment forecast for 2025. The forecast was reduced from “below 50” low NA shipments to just 42 units, which suggests execution issues at key customers, Intel and Samsung.
It noted how Intel has bought a fleet of EUV equipment for its 18A technology ramp. However, it seems to be experiencing difficulties, particularly for external customers. For Samsung, the firm’s analysis reveals that the company kept on investing despite the DRAM market being down. As a result, there is an excess of High-Bandwidth Memory (HBM) capacity, but it’s still waiting on Nvidia for approval.
ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.
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 July 17, Barclays reiterated the stock as “Equal Weight with a $275 price target. The firm said it is “confused” ahead of Tesla earnings next week.
Barclays is of the view that Tesla could outperform despite having weak fundamentals, particularly the company’s autonomous vehicle narrative.
“The set-up for Tesla into 2Q EPS is confusing – similar to 1Q. However, net net we see potential for the stock to outperform. On the one hand, Tesla faces questions on increasingly weaker fundamentals. While we expect 2Q auto margin ex credits to be improved q/q, it will likely remain depressed vs prior years. And amid a soft 1H on 2025 volume, Tesla now is on track for a meaningful volume decline in 2025 (we forecast down 10%). The fundamental set-up is a sharp contrast to the elevated hopes from late 2024: whereas ’25 consensus EPS was over $3.20 into the beginning of the year, it is now down to $1.84. It’s certainly possible that a weak gross margin or broader soft commentary on fundamentals could be a splash of cold water on the stock. Yet at the same time, the earnings call also presents an opportunity for Tesla’s robotaxi/AV narrative to shine, which has been front and center of Tesla stock’s strength. We could see Elon Musk potentially discussing fleet growth targets or expansion plans. Lastly, Tesla’s forthcoming low-cost model seemingly missed its target for 1H25 start-ofproduction. With Tesla likely to focus on a 3Q pre-buy in advance of the Sep 30 expiration of the US EV tax credit, we believe it may delay the launch of the low-cost model to 4Q, which could be perceived negatively.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
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. On July 17, JPMorgan reiterated the stock as “Overweight” and raised its price target on Apple to $250 per share from $230.
“We rate shares of Apple Overweight from the combination of AI and age of installed base led volume replacement cycle while Services continues to demonstrate robust growth delivering acceleration in earnings growth.”
In other news, Bloomberg reported that after Meta poached one of Apple’s top artificial intelligence executives with a $200 million package, it has hired two of his subordinates too.
Apple’s Mark Lee and Tom Gunter will now be joining the newly formed Superintelligence Labs team at Meta.
Meta has been spending heavily to keep up in the AI race, particularly to keep up with advancements from tech giants such as OpenAI and Google.
Apple is a technology company known for its consumer electronics, particularly the iPhones and MacBooks.
4. 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 July 17, KeyBanc analyst Justin Patterson raised the price target on the stock to $215.00 (from $195.00) while maintaining an Overweight rating.
According to the firm, Search, YouTube, and Cloud are going to lead to a solid Q2 for Alphabet, with revenue of $94.6 billion.
The firm also anticipates positive commentary on AI Mode, Waymo, and expense efficiencies. It also expects to see the company highlighting the value of its platform approach to artificial intelligence.
Keybanc increased its earnings per share estimates for the stock to $9.88 for 2025 and $10.56 for 2026. This represents increases of 1% and 2% respectively. It also introduced a 2027 EPS estimate of $12.25, all above Street consensus.
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 Wall Street’s Radar. On July 17, KeyBanc analyst Justin Patterson raised the firm’s price target on the stock to $800 from $655 and kept an “Overweight” rating on the shares.
Owing to strong revenue momentum, Keybanc has raised its 2025 and 2026 revenue and EPS. However, it is also aware that there may be increased spending on artificial intelligence in terms of both capital expenses and operating costs. The firm doesn’t think this is going to be a problem as long as Meta can explain how its AI investments are paying off.
“We expect 2Q revenue comes in at $45.3B, and expect 3Q revenue guidance for $45B-$47.5B (we are modeling $46.5B). While we have raised our 2025E and 2026E revenue and EPS to reflect revenue momentum, we are mindful that there are upward biases to capex and opex from AI investments and are thus slightly below consensus. We do not necessarily view this as an issue for the stock, provided management articulates where it is seeing AI returns. Finally, we introduced 2027E revenue and EPS of $244.0B and $32.01, respectively, and raised our PT to $800 (25x 2027E P/E) as we roll forward to 2027E valuations.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks on Wall Street’s Radar. On July 17, TD Cowen reiterated the stock as “Buy” and raised its price target on the stock to $580 per share from $540.
The rating affirmation is backed by Microsoft’s position as a “clear beneficiary in the AI cycle.”
According to the firm’s analysis, there are strong performance checks for the Azure Cloud platform and expectations that previous capacity constraints will begin to ease.
TD Cowen’s new “bottoms-up” financial model has given them confidence that Azure growth will trend “well above” current Wall Street expectations in the coming quarters.
“MSFT reports 4Q on 7/30. While shares are hitting all-time highs, we think the story continues to grow increasingly attractive w/ MSFT positioned as a clear beneficiary in the AI cycle.”
“Azure checks were strong, we’re expecting capacity constraints to be easing, and our new bottoms-up model gives us confidence in Azure growth trending well above Street in the qtrs ahead. Reiterate Buy. PT to $580.”
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 Wall Street’s Radar. On July 17, Bernstein raised price targets and estimates for several internet stocks. These stocks have rallied strongly entering Q2, but the outlook remains uncertain.
“Internet stocks have rebounded sharply along with the broader market,” Bernstein said, noting that “the group feels more own-able into earnings” owing to modest GMV acceleration and cautious guidance from management teams.
The firm noted that the rebound for these stocks may be fragile
“With multiples back up to (or above) January levels, it’s a tougher question of ‘what next’ coming out of earnings.”
However, Q3 “could offer some semblance of normalcy.”
Particularly for Amazon, the firm reiterated the stock as “Outperform,” stating that it is a top idea at the firm.
“In the near term, AWS is back in focus, and we expect to see top-line acceleration driven by improving performance in core and modest AI-related benefits as GPU supply constraints eased intra quarter.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $248 implies an 11% upside, however, the Street-high target of $300 implies an upside of 34%.
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.
READ NEXT: 10 AI Stocks Getting Wall Street’s Attention and 10 Must-Watch AI Stocks on Wall Street.
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