According to White House National economic adviser Kevin Hassett, US President Donald Trump and his team have decided to let the H20 AI chips go in order for the US to maintain its edge in chips manufacturing.
“President Trump and his team decided to let the NVIDIA chips go” to maintain America’s technological edge in AI chips.
-Hassett told Fox News Channel’s “The Story with Martha MacCallum.
Two weeks earlier, chip maker Nvidia announced that it was filing applications with the US government to resume sales to China of its export-restricted H20 chips. It said that the government had assured that it would soon get the licenses.
Nvidia had specifically made the H20 chips for China following the US export restrictions. Even though these chips lack some of the computing power that other versions have being sold elsewhere, they are the best that Nvidia can legally offer to China.
“One of the risks that you have to take seriously is that if China’s not buying chips from us, then they’re innovating, making their own chips. And the one thing we don’t want is for them to jump ahead in the race for chips.”
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 Must-Watch AI Stocks on Wall Street. On July 29, Deutsche Bank reiterated the stock as “Hold,” stating that it is sticking with its hold rating ahead of earnings in mid-August.
“We anticipate another solid topline beat when CoreWeave reports results on August 12th as the company continues to scale its cloud business at an unprecedented rate.”
In other news, D.A. Davidson analyst Gil Luria maintained a Sell rating on CoreWeave, Inc.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $112 implies a 8.9% upside; however, the Street-high target of $185 implies an upside of 79%.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 57
International Business Machines Corporation (NYSE:IBM) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, Bank of America reiterated the stock as “Buy” with a $310 price target.
The firm said shares of IBM have more room to run. Mohan is optimistic about the stock, stating how the company is transitioning toward higher-margin software. This, in turn, is expected to bring strong growth in free cash flow. There has been some volatility in transaction processing revenue tied to IBM’s mainframe base, but despite of this, future prospects look promising.
IBM has also introduced several new technologies, particularly the z17 mainframe and AI acceleration through Spyre cards. These are expected to boost transaction processing growth. Meanwhile, the strong shipment of MIPS is anticipated to drive potential revenue upside.
These positive developments, favorable valuation, and anticipated re-acceleration in transaction processing growth have all led to the buy rating for the firm.
“We view IBM as a defensive investment given its high exposure to recurring sales, cost cutting levers, solid balance sheet, potential share gains, and relatively stable margins.”
International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.
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