According to Adam Thierer, a senior fellow at the center-right think tank R Street Institute, Trump’s tariffs could prove to be a massive gift for China, even helping it catch up in the AI race.
“It’s going to be very hard for the U.S. to win the so-called AI Cold War if America’s trade policies are simultaneously tanking global markets, discouraging technological investments, and potentially undermining traditional alliances with key allies.”
Trump’s policies are disrupting supply chains and causing volatility in global markets, which may lead US allies to turn to China to meet their technological needs.
“Suddenly, in the wake of this trade fiasco, we see EU officials saying, ‘Let’s get on the phone with China and talk. Huawei has this telecommunications hardware system they want to sell, and there’s also these AI models that are free of charge.”
READ ALSO: 10 AI Stocks on the Move and 10 AI Stocks to Watch Amid Market Volatility.
With all the tensions caused by the US tariffs, China’s President Xi Jinping has recently called for stronger ties with Vietnam on trade and supply chains as he attended the signing of dozens of cooperation agreements between the two nations. While Beijing faces 145% U.S. duties, Vietnam has been negotiating a reduction of U.S. tariffs of 46% that would otherwise apply in July after a global moratorium expires, Reuters reported.
“The two sides should strengthen cooperation in production and supply chains,” Xi
The President has also urged increased trade and stronger ties with Hanoi on artificial intelligence and the green economy.
Discussing the meetings, U.S. President Donald Trump said that the two countries’ discussions were focused on harming the United States. However, he said that he did not blame them for holding such talks.
“I don’t blame China; I don’t blame Vietnam. That’s a lovely meeting. Meeting like, trying to figure out, ‘how do we screw the United States of America?'”
-Trump told reporters at the White House.
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 Q4 2024.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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10. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 11
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses. On April 14, DA Davidson lowered the firm’s price target on the stock to $10 from $13 and kept a “Buy” rating on the shares. The price target revision is part of a broader research note revising estimates within the firm’s coverage of the Software group.
The following day, April 15th, the company also achieved market leadership recognition for its generative AI-enabled AIOps platform, Autonomics, in the 2025 ISG Buyers Guide for AIOps.
“The reliability offered by SoundHound AI is evident in its capabilities to support critical business functions without interruption. By prioritizing high availability, they empower enterprises to seamlessly integrate AIOps into their operations, fostering resilience in an ever-evolving environment.”
-Jeff Orr, Research Director, IT & Technologies, ISG Software Research.
9. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions. On April 15, SteelDome and Supermicro entered into a collaboration to deliver next-generation virtualization and storage solutions optimized for hyperconverged and artificial intelligence (AI) workloads. Supermicro’s industry-leading hardware will integrate with SteelDome’s advanced virtualization and software-defined storage (SDS) technologies to offer enterprises and edge data centers a comprehensive, ready-to-deploy platform. This will enable them to achieve workload flexibility, data migration, and improved data resilience for modern IT needs.
“At Supermicro, we are committed to delivering first-to-market innovation for enterprise, cloud, AI, and 5G Telco/Edge IT infrastructure. Our collaboration with SteelDome exemplifies our dedication to offering new and innovative solutions for companies delivering virtualized IT infrastructure utilizing our advanced storage platforms.”
-Lawrence Lam, VP of AI and Storage Technology at Supermicro.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. On April 15, the company announced that its key processor chips would soon be made at TSMC’s new production site in Arizona. This will mark the first time that its products will be manufactured in the United States.
“Our new fifth-generation EPYC is doing very well, so we’re ready to start production.”
-AMD Chief Executive Lisa Su told reporters in Taipei.
Besides AMD, Apple and Nvidia have said that some of their chips are being produced at TSMC’s Arizona plant.
“We want to have a very resilient supply chain, so Taiwan continues to be a very important part of that supply chain, but the United States is also going to be important and we’re expanding our work there, including our work with TSMC and other key supply chain partners.”
-Su.
7. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 120
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. On April 15, Bank of America Securities analyst Ross Fowler reiterated a “Buy” rating on the stock. In early March, the firm had upgraded the stock to “Buy” from Neutral with a price target of $152, down from $164. Vistra Corp has been recently facing declines due to a lack of datacenter news. However, the analysts remain positive toward the stock based on its base business of baseload generation and competitive retail. It believes that Vistra is poised to benefit from tightening markets, increasing demand, and retail growth.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. On April 15, Evercore ISI reiterated the stock as “Outperform,” with a price target of $250. The firm stated that it’s standing by the stock in the face of Apple tariff headwinds.
“Apple looks positioned to deliver upside to Mar-qtr but focus will be on Jun-qtr guide and how they incorporate the impact of tariffs. There are a lot of moving parts on the tariff calculations, but currently imports from China are subject to a 20% tariff – though there is concern that we get a sector tariff that impacts electronics imported from China over the next few months.”
The analyst, Amit Daryanani, noted how Apple has been transporting iPhones using multiple Boeing 747 aircraft, demonstrating its major logistical undertaking for inventory management amid tariff tensions. Regardless, the firm remains confident in its rating and price target.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications. On April 15, Morgan Stanley named TSM as a catalyst-driven idea and said it is sticking with TSM ahead of its analyst meeting on April 17.
“We expect the company’s comments on: 1) semiconductor tariff, 2) AI demand sustainability, and 3) the possibility of an Intel JV to result in stock volatility.”
The firm expects TSM to maintain its 2025 revenue growth forecast at mid-20% year-over-year with a capital expenditure of $40 billion.
“AI demand remains healthy, and TSMC will still double its CoWoS capacity in 2025, according to the company.”
-Morgan Stanley analysts led by Charlie Chan said in a note.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On April 15, one of the most notable analyst calls on Wall Street was for Nvidia Corporation. Redburn Atlantic Equities initiated the stock as “Buy,” stating that Nvidia is a top idea.
“A semiconductor slowdown, not a derailment, lies ahead. Our top picks when the dust settles are NVDA (B), ASMI (B), LRCX (B) and VAT (B). US policy is acting simultaneously to: a) change its terms of trade, b) reshore semiconductor production and c) win the AI ‘arms race’”.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
On April 15, Wedbush analyst Scott Devitt adjusted the price target for the stock from $220 to $190 while maintaining an “Outperform” rating. Several factors have led to the price target revision, such as macroeconomic uncertainties, potential tariff impacts, and declining consumer confidence.
In other recent news, Reuters reported that Alphabet’s Google has partnered with PJM Interconnection, the largest electrical grid operator in North America. This partnership aims to roll out artificial intelligence technologies that will help gain new power supplies connected faster.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On April 15, Bank of America reiterated the stock as “Buy” and lowered its price target on the stock to $480 per share from $510.
“There have been rumors that Microsoft is pulling back on capex. While Microsoft is likely shifting capex within geographies, the company remains building capacity for the long term.”
A day prior, UBS also lowered the firm’s price target on the stock to $480 from $510 and kept a “Buy” rating on the shares. The firm’s price target revision also came after Microsoft’s formal acknowledgement that it is slowing or pausing some data center projects. The firm’s evaluation reveals that the company’s adjustments are most likely not AI demand-related, and that the pausing activity isn’t a materially negative AI demand signal.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
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. On April 14, Citizens JMP lowered the firm’s price target on the stock to $240 from $285 and kept an “Outperform” rating on the shares. According to the firm, Amazon is well-positioned to navigate through the current uncertain macroeconomic environment. With Amazon set to launch over 3,200 satellites into orbit through Project Kuiper, the company must have at least half of its planned satellites in orbit by July 2026 or risk losing its Federal Communications Commission (FCC) clearance for the project. The project aims to enhance global internet connectivity around the world.
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 doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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