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.
8. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, Rebellions Inc., a South Korean AI semiconductor company, announced that it is collaborating with Marvell Technology for developing custom AI systems for AI initiatives across Asia-Pacific and the Middle East.
Under the partnership, Rebellions will be able to design customer-specific AI accelerators by using Marvell’s custom platforms. These platforms include advanced packaging, high-speed SerDes and die-to-die interconnects. Marvell and Rebellions will be using this collaboration to develop integrated rack solutions for AI inference applications.
Keeping the changing AI infrastructure in perspective, global hyperscalers, sovereign-backed initiatives, and even regional cloud providers are transitioning to domain-specific systems built around custom ASICs.
In line with this trend, Rebellions aims to design customer-specific AI accelerators using Marvell’s custom platforms to deliver tightly integrated, end-to-end rack solution optimized for high-performance, energy-efficient AI inference at scale.
“AI infrastructure is undergoing a fundamental shift—organizations are no longer settling for one-size-fits-all solutions. By collaborating with Marvell, we’re combining deep expertise in AI chip design with cutting-edge silicon integration to deliver custom AI infrastructure designed to meet the real-world needs of sovereign entities.”
-,Sunghyun Park, CEO of Rebellions.
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
7. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, Snowflake Ventures and Capital One Ventures announced an investment in Hightouch, a prominent data and AI agent platform for marketers. This new funding underscores the significant role of agentic AI in revolutionizing marketing technology.
Back in 2024, Hightouch introduced an agentic AI product for lifecycle marketing called AI Decisioning. Several enterprises have since adopted the product, enabling them to boost learning, accelerate campaign velocity, and also deliver incremental engagement and sales.
The capital and support coming in from both Snowflake Ventures and Capital One Ventures will help Hightouch’s ongoing research and development endeavors related to how AI agents can transform marketing workflows.
Hightouch also plans on expanding its suite of agents to cover additional marketing use cases so that marketers can transition to speedy, data-driven campaign execution.
According to Hightouch, its customers have also been leveraging Snowflake’s AI Data Cloud and LLM capabilities, like Snowflake Cortex AI, through the Hightouch Composable CDP. Moreover, many have also begun activating AI Decisioning on top of this foundation. Both Hightouch and Snowflake are committed to provide their customers with modern, composable, AI-driven solutions.
“Hightouch is pushing the boundaries of what’s possible with AI in marketing for our joint customers. By building directly on top of Snowflake’s unified platform for data and AI, Hightouch enables marketers to execute faster, with less complexity and more control. We’re excited to support their continued growth and innovation in the AI Data Cloud.”
-Adam Kaufman, Vice President, Global Head of Industry Go to Market, Snowflake.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
6. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, the company announced the launch of three new data center SSDs built with Micron G9 NAND. The new products include the world’s first PCIe Gen6 NVMe™ SSD, high capacity for an E3.S SSD and the lowest latency mainstream Gen5 SSD for AI data centers.
According to Micron, these new products are highly powerful, energy and space efficient, and tested with major ecosystem partners to streamline qualification and ensure integration.
“With the industry’s first PCIe Gen6 SSD, industry-leading capacities and the lowest latency mainstream SSD—all powered by our first-to-market G9 NAND—Micron is not just setting the pace; we are redefining the frontier of data center innovation. This launch cements our leadership in data center SSDs and signals a new era of performance, density and efficiency for our customers.”
-Jeremy Werner, senior vice president and general manager of Micron’s Core Data Center Business Unit.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, BofA Securities raised its price target on the stock to $200.00 from $175.00 while maintaining a “Buy” rating. The rating affirmation comes ahead of AMD’s earnings report due on August 5th.
According to the firm, China AI shipments will potentially resume in the second half of 2025, adding $0.7-$1 billion to 2025 AI GPU revenue and $1.5-$2 billion to 2026 (calendar years).
“AMD reports Tuesday, August 5 after market close. Read-throughs point to: 1) potential (yet unconfirmed) China AI shipment resumption in 2H, adding ~$0.7–$1 billion to CY25 AI GPU sales and ~$1.5–$2 billion to CY26; 2) stronger than expected pricing for its current-gen MI355X ($20K+ vs. $17K consensus); 3) continued strong demand for AI/GPU driven by rising cloud capex; 4) easier 2H PC unit comps, given AMD’s recent PC strength was mostly average selling price (ASP)-driven rather than unit-based; 5) AMD’s 2H PC outlook is already well below seasonal by 1300bps/1400bps in Q3/Q4; and 6) healthy enterprise demand (e.g., HPE/TXN).
Overall, we expect upside to Q2/Q3 results and guidance at $7.5 billion+/$8.5 billion+ in sales (vs. consensus $7.4 billion/$8.3 billion) and CY25 sales/EPS toward $33 billion+/$4.10+ (vs. consensus $32.2 billion/$4.01). Longer-term, we expect AMD to exceed 30% of the overall CPU market by CY26, up from just under 20% in CY23, and potentially reach 4–5% of the AI GPU market. Intel’s prioritization of profitability and manufacturing uncertainty offers greater opportunity for AMD to gain CPU share. We reiterate our Buy rating and raise our price objective to $200 from $175, now based on 36x CY26E P/E (from 31x), reflecting a stronger AI CPU/GPU environment, but still within the historical 13x–39x range.”
-Vivek Arya
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, RBC Capital raised the firm’s price target on the stock to $325 from $319 and kept an “Outperform” rating on the shares. According to the analysts, Tesla’s valuation has the potential to exceed current levels provided it achieves its goals.
“Should Tesla be successful on all of its goals, its valuation could far exceed even current levels. The Austin robotaxi launch has been better than many feared and the company is looking to expand in more cities,” Narayan said in a Monday note to clients, adding that “regulatory hurdles remain, however … we expect the end of IRA credits and high levels of used EV inventory to pressure the auto business for the next several quarters.”
The Austin robotaxi launch was better than feared, there are regulatory hurdles that are still present. Moreover, IRA credits and high levels of used EV inventory is bound to put pressure on the auto business for the next several quarters.
The analyst is optimistic about Tesla’s robotaxi expansion, even though he doesn’t believe that the company’s goal is realistic. He’s also betting on the company’s humanoid robots efforts.
“Management maintained its goal to reach 1M units per year in less than 5 years. The prototype of its Optimus 3 will be ready by the end of this year and SOP still start next year. Our model only assumes this business will be used for manufacturing jobs. The reality is should these be used for home/retail purposes, the potential upside could be far greater than any other Tesla business.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, Barclays said it remains cautious on Apple, maintaining its “Underweight” rating. The analyst highlighted factors such as limited traction on artificial intelligence and risks around tariffs, China, and regulation.
The firm said that it anticipates “a slight June-Q beat led by better FX, iPhone and Mac upside,” helped by tariff-related pull-in. It isn’t very optimistic on the stock due to a lack of progress.
“We still see no major progress on AI for AAPL.”
Particularly discussing Apple’s innovations at the annual developer conference, the firm said that the conference “underwhelmed with the AI feature announcements, viewing them as more evolutionary than revolutionary.”
It further added that “The reception of Apple Intelligence has also been disappointing.”
The firm believes Apple’s long-term AI strategy remains muddy and that its light weight approach to AI may or may not be enough to drive an upgrade cycle or growth.
Barclays also talked about tariffs, stating that “2H GM remains a wildcard with lack of clarity on tariffs and mitigation efforts.”
Apple is a technology company known for its consumer electronics, software, and services.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, Reuters reported that Nvidia has placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week driven by Chinese demand. The increased demand has led the U.S. firm to change its mind about just relying on its existing stockpile.
The Trump administration recently reversed its ban on exporting H20 chips to China. Nvidia had developed the H20 particularly for the Chinese market after U.S. imposed export restrictions on its other AI chipsets. The H20 has less computing power as Nvidia’s H100 or its new Blackwell series sold in markets outside China.
Sources reveal that the new orders would add to the current 600,000 to 700,000 H20 chips that Nvidia has currently. According to U.S. research firm SemiAnalysis, Nvidia sold 1 million H20 chips in 2024.
While Nvidia still needs to obtain export licenses from the U.S. government to ship said H20 chips, it has been assured by authorities that it would get them soon.
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, providing high-performance GPUs and platforms that power data centers, autonomous vehicles, robotics, and cloud services.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Must-Watch AI Stocks on Wall Street. On July 29, Goldman Sachs reiterated the stock as “Buy” and said that it is bullish heading into earnings on Wednesday.
“Microsoft is well-positioned to capitalize on this shift with a more capital efficient and higher margin recurring revenue model, just as it did during the on-prem to cloud transition.”
In other news, Bernstein SocGen Group analyst Mark Moerdler reiterated an Outperform rating on the stock with a $540.00 price target.
“After a great Q3 what does Microsoft do for an encore? Microsoft is scheduled to report 4FQ25 after the market closes on July 30th. Q3 was a surprisingly strong quarter (Link) with solid results and a big Azure beat. While investors sentiment improved questions continue as to Azure growth, CAPEX, the OpenAI partnership and overall fundamentals. We have written this preview to help investors prepare for the earnings as Q4 should continue to validate Azure growth and slowing CAPEX and potential stronger FX tailwind.
The focus will not only be on the quarter but also Q1 and FY26 guide. FX could be more of a tailwind than expected as seen negatively in SAP’s 2Q results. At a high-level we believe the street will focus, beyond the reported numbers on: 1) The AI revenue run rate exiting Q4 and color on likely on the run rate going forward; 2) Azure and CAPEX; 3) additional commentary on the OpenAI partnership and 4)high-level guidance for FY26.”
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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