In this article, we will take a look at 10 AI Stocks on Wall Street’s Radar: Datadog, Microsoft, and More
Is this the ‘beginning of the end’ of the artificial intelligence trade? That’s the big question as famed “Big Short” trader Michael Burry continues to question whether the massive sums of money poured into AI will ever pay off.
“The proximate cause of today’s rally is big spending announced out of Korea,” Burry wrote on his Substack. “Well, I see that as the beginning of the end.”
Burry has been a critic of the growing AI trade momentum, insisting that investors are getting ahead of themselves in bidding up the prices of some of the industry’s biggest companies. Consequently, the famed short seller has already initiated a short trade on an ETF that tracks a semiconductor index.
Burry’s warnings come on the heels of Goldman Sachs CEO David Solomon reiterating that investors have shifted decisively into greed mode. According to the executive, there is ample capital available as markets are poised to tap into the unprecedented fundraising wave for giant AI firms.
“There’s plenty of liquidity in the system if the world continues to remain as optimistic,” Solomon said. “We are definitely in a moment where there’s more greed than there is fear.”
Solomon expects OpenAI and Anthropic to follow SpaceX into the public markets at trillion-dollar valuations, further reinforcing investors’ appetite for AI investment plays. Likewise, Alphabet’s performance following its $80 billion equity raise is enough proof that the market remains receptive to AI.
Our Methodology
To compile a list of the 10 AI stocks on Wall Street’s radar, we selected AI stocks by going through news articles, stock analyses, and press releases. These stocks are also popular among hedge funds in Q1 2026. The stocks are ranked in ascending order by their hedge fund holdings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
AI Stocks on Wall Street’s Radar
10. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 33
SAP SE (NYSE:SAP) is one of the AI stocks on Wall Street’s radar. On July 2, Bloomberg reported SAP SE (NYSE:SAP) plans to cut back on hiring and travel as it seeks to save costs. The push is part of an effort to redirect resources toward developing artificial intelligence technologies and to fend off new competitors.
Chief Executive Officer Christian Klein is increasingly reorganizing the company around AI while taking personal oversight of its management. Consequently, SAP SE plans to focus new hiring solely on core artificial intelligence roles that are crucial to the company’s long-term success. The company is to pause all internal travel unrelated to AI development as it also pursues new ways to cut spending with suppliers.
SAP SE (NYSE:SAP) is making significant investments in products and AI capabilities in response to artificial intelligence reshaping the industry’s future. The company is also eyeing strategic acquisitions in data and AI to further strengthen its position. The company was allegedly in talks to acquire industrial AI and data company Cognite.
SAP SE (NYSE:SAP) provides enterprise application and business solutions.
9. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 80
Snowflake Inc. (NYSE:SNOW) is one of the AI stocks on Wall Street’s radar. On July 2, Snowflake Inc. (NYSE:SNOW) achieved a significant milestone in its development across Europe with the opening of a new French headquarters in central Paris.
The new office is to support the company’s continued growth in France and to equip customers to maximize business outcomes and value from AI and data investments. The opening of the French headquarters comes as the country’s data and AI ecosystem continues to gain momentum.
Additionally, it will further strengthen Snowflake’s support for the French innovation ecosystem through initiatives such as Snowflake Ventures. The company has already invested in two French AI companies, Mistral AI and Dust. The investments underline the company’s commitment to the French technology ecosystem as a global hub for AI innovation.
It has also expanded its footprint into other highly regulated sectors, including financial services. As it approaches its 9th year in the country, the company continues to support the growing adoption of data and AI initiatives.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
8. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 80
Datadog, Inc. (NASDAQ:DDOG) is one of the AI stocks on Wall Street’s radar. On July 6, Bernstein SoC Gen raised the price target for Datadog (NASDAQ:DDOG) stock to $226 from $180. However, the research firm downgraded the stock to Market Perform from Outperform.
The downgrade comes amid concerns that the company could face tough earnings comparisons starting in the third quarter. A major point of concern is the slowing demand signals across both enterprises and some AI Labs. Non-AI revenue is expected to slow down, which accounts for about 85% of revenue. Bernstein believes it is expected to peak in the third quarter, followed by a potential 100-basis-point decline in the fourth quarter.
Bernstein SoC Gen is also wary that Datadog could experience a 500-basis-point decline in growth rate in the fourth quarter to about 29%. It would be a significant decline, given the investor consensus growth estimate of 30% to 40%.
Datadog, Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications in the United States and internationally.
7. ASML Holding NV (NASDAQ:ASML)
Number of Hedge Fund Holders: 133
ASML Holding NV (NASDAQ: ASML) is one of the AI stocks on Wall Street’s radar. On July 2, Jefferies reiterated a Buy rating on ASML Holding NV (NASDAQ:ASML) and raised the price target to €1,560 from €1,260. The new price target is based on an FY27 price-to-earnings ratio of 36 times and an enterprise-value-to-EBITDA of 28 times.
The upgrades came amid expectations that the company is well positioned to benefit as the analog up cycle gains momentum. The hike also comes on the heels of the European semiconductor sector rising by 69% in the second quarter. Analog stocks continued to outperform the broader semiconductor capital equipment names.
Jefferies expects the company to deliver second-quarter revenue of €8.79 billion and a gross margin of 52% in line with the consensus estimate and company guidance. The research firm also expects ASML’s full-year revenue to be raised to between €38 billion and €42 billion up from the previous estimate of between €36 billion and €40 billion.
ASML Holding NV (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.
6. Micron Technology Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 154
Micron Technology Inc. (NASDAQ:MU) is one of the AI stocks on Wall Street’s radar. On July 4, Bloomberg reported that Micron has broken ground on the expansion of a factory in Western Japan. The $9.3 billion investment is part of the company’s push to expand capacity for advanced memory chip production.
Japan’s Ministry of Economy, Trade, and Industry has already allocated up to ¥500 billion to cover construction costs. The expansion will help Micron increase power and transmission efficiency in chips for AI services and self-driving cars. The funds will also support research and development.
The company plans to build a facility in Hiroshima to capitalize on the growing demand for high-bandwidth memory, which is crucial to artificial intelligence processors. Shipments from the facility are expected to start in the summer of 2028. Micron is also building two leading-edge fabs in Boise, Idaho, to increase DRAM production in the US.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
While we acknowledge the potential of MU 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 MU and that has 100x upside potential, check out our report about the cheapest AI stock.
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