Chinese artificial intelligence startup DeepSeek, which wreaked havoc in the tech world when it launched the R1 model back in January, is reportedly delaying the release of its new model after failing to train it using Huawei’s chips. The delayed release reflects the limits in Beijing’s self-reliance push which seems to be hitting technological walls.
According to people familiar with the matter, authorities encouraged DeepSeek to adopt Huawei’s Ascend processor instead of Nvidia’s systems. However, DeepSeek faced persistent technical issues during its R2 training process using the said chips.
The delayed release of the R2 model reflects how Chinese chips still lag behind their US counterparts, at least for now.
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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 August 13, Citizens JMP analyst Greg Miller reiterated a Market Perform rating on the stock without a price target. The rating affirmation reflects CoreWeave’s stronger-than-expected results and positively revised outlook.
JMP has noted how CoreWeave encompasses a business model that enables cloud and hyperscale companies to manage capital expenditure increases while accelerating time to market for their services.
At the same time, it remains cautious about GPU-as-a-Service providers’ ability to steer through falling average selling prices and increasing customer churn against rising real estate costs.
“CoreWeave reported 2Q25 results that one would expect after such a high-profile IPO; stronger-than-consensus expectations with a positively revised outlook that clearly demonstrates the hyperscale company’s willingness to push balance sheet liabilities onto other companies in exchange for a high initial margin (over a 3-4-year term). While we continue to believe cloud/hyperscale companies will accelerate the push to use these companies to help manage capex increases and speed time to market, we remain cautious with regard to GPUaaS providers’ abilities to manage a declining ASP and increasing churn against the backdrop of an increasing real estate cost structure. We remain Market Perform rated on CoreWeave, as we wait for investors to gain a better understanding of the underlying KPIs.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Freshworks Inc. (NASDAQ:FRSH)
Number of Hedge Fund Holders: 41
Freshworks Inc. (NASDAQ:FRSH) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 11, Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on the stock with a $19.00 price target. The rating affirmation follows a webinar and investor meetings with the company’s CFO.
Oppenheimer hosted Freshworks CFO Tyler Sloat at its 28th Annual Technology, Internet, and Communications Conference on Monday. The conference included discussions about the company’s market opportunities, artificial intelligence momentum, and competitive positioning.
The firm recommends Freshworks to those investors who are looking for exposure to artificial intelligence.
“We hosted a well-attended webinar and investor meetings with Tyler Sloat, CFO of Freshworks, at our 28th Annual Technology, Internet, and Communications Conference earlier today. Management’s tone was upbeat as the discussion centered on the company’s large and underpenetrated TAM, AI business momentum, growth opportunities and competitive moat in the AI era, its go-to-market strategy with improving efficiency, move into adjacent workflow markets, multi-products adoption, product led growth momentum, stabilization in the CX business, technology updates, and productivity trends. Following the webinar, we remain positive on Freshworks’ business momentum and AI monetization trajectory. Bottom Line: We recommend FRSH for investors looking for exposure to AI, the services modernization and customer/IT engagement themes at a discount valuation versus peers.”
Freshworks Inc. is a software development company that provides software-as-a-service products.
8. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 13, Susquehanna analyst Mehdi Hosseini raised the firm’s price target on the stock to $120 from $105 and kept a Neutral rating on the shares. The rating affirmation comes ahead of its July quarter results.
Susquehanna anticipates Dell to report in-line July quarter results with October quarter guidance that misses consensus estimates.
In an investor note, the analysts noted how the company is facing several headwinds. These headwinds include notebook shipment trends tracking below seasonal norms and pressure on artificial intelligence server revenue.
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
7. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 13, Deutsche Bank upgraded the stock to “Buy” from hold and raised its price target on the stock to $220 per share from $200.
The firm believes that investor concerns over the CyberArk acquisition are overblown and that PANW is set for robust quarterly results.
“We upgrade shares of Palo Alto Networks to a Buy rating and raise our DCF-derived TP to $220 given our thoughts on the health of the business, quality of its leadership, and forward prospects for the announced acquisition of CyberArk.”
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
6. 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 August 13, UBS analyst Karl Keirstead lowered the price target on the stock to $250.00 (from $265.00) while maintaining a Buy rating.
The rating affirmation comes ahead of UBS analyst Karl Keirstead who consulted with nine partners and customers to assess Snowflake’s recent demand trends and second-half outlook.
“Ahead of Snowflake’s 2Q/Jul print on Wed Aug 27th, we caught up with 9 partners and customers to assess how demand tracked over the last few months and get a pulse check on the likely 2H outlook. Bottom line, most customers are still prioritizing investments in their data foundations and in data analytics, a rising tide that is boosting Snowflake as well as Databricks, Palantir, the hyperscalers and even Salesforce’s Data Cloud. We maintain our view that the 12x/46x CY26E revs/FCF multiples don’t seem unreasonable if Snowflake’s growth is trending towards 30%, the data investment cycle has duration and margins are biased up.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
5. 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 August 13, Wells Fargo expressed optimism about the stock stating that it is confident in MU’s “ability to achieve / sustain its low / mid-20% HBM market share target in 2H25”.
The firm considers Micron’s HBM4E logic die customization to be a key differentiator, creating a “very different business model” where key customers would work with only one or two HBM suppliers on custom solutions.
“We remain confident in MU’s ability to achieve / sustain its low / mid-20% HBM market share target in 2H25. We would re-highlight MU’s on HBM4E logic die customization as driving a very different business model; believing that key customers would likely work w/ only 1 or 2 HBM suppliers on these custom solutions. HBM4E looks to be a 2027+ story. MU also pointed out its favorable position of utilizing its very mature 1b DRAM process node w/ HBM4, while others (Samsung) are moving to a 1c process.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
4. 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 August 13, Mizuho analyst Vijay Rakesh raised the price target on the stock to $205.00 (from $183.00) while maintaining an Outperform rating.
The rating affirmation comes as Hyperscaler capex continues to tick higher, while China adds another tailwind.
“We are raising our SepQ rev/EPS estimates from $8.71B/$1.14 to $8.80B/$1.15 (cons. $8.71B/$1.17), F25E from $33.2B/$4.00 to $33.4B/$4.02 (cons. $33.1B/$3.96), F26E from $39.3B/$6.01 to $39.9B/$6.09 (cons. $40.1B/$6.03), F27E from $45.1B/$7.39 to $46.5B/$7.62 (cons. $47.0B/$7.59). F25/26/27E Instinct GPU revs from $8.51B/$11.5B/$13.2B to $8.57B/$11.7B/$13/6B (cons. $7.91B/$9.42B/$10.2B). Reiterate AMD at Outperform and raise PT to $205 (prior: $183), 33.7x (prior: 30.5x) as we see AMD benefiting from MI308 ramps in China, while MI355 provides opportunity for upside with MSFT expected to see strong F26E capex.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) is one of the 10 Must-Watch AI Stocks on Wall Street. Stifel analyst Parker Lane lowered the price target on the stock to $325.00 (from $375.00) while maintaining a Buy rating.
The firm believes that Salesforce would have to show improved quarter-over-quarter performance in core and a solid uptick in Data plus AI contributions from the $1 billion level seen last quarter for driving multiple appreciation.
“We spoke with four partners following Salesforce’s F2Q to get an updated look at business trends. Trends at the agencies were consistent to modestly better Q/Q, driven by minor macro improvements and steady DC/Agentforce traction. Against a tough narrative/sentiment backdrop for the software group (see here), we believe Salesforce will have to show better q/q performance in core and a solid uptick in Data + AI contributions from the $1bn level last quarter to drive multiple appreciation. We remain believers in the company’s long-term positioning and growth opportunity around AI, and look to Dreamforce as an opportunity for management to expand on its vision, provide updates on the pricing/ packaging actions it put in place this year, and offer measures of success for Agentforce following one year in market. We maintain our Buy rating on CRM shares but trim our target price to $325 on multiple compression.”
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 August 13, Mizuho analyst Vijay Rakesh raised the price target on the stock to $205.00 (from $192.00) while maintaining an Outperform rating.
The rating affirmation comes as Mizuho increased its estimates in the global AI server group to reflect major ramps from leading hyperscalers. Rubin is particularly considered a tailwind into the second half of 2026.
Mizuho raised its AI server outlook due to strong sales from Taiwan manufacturers. Additional growth drivers that teh firm has discussed include near-term ramps at xAI, Crowdstrike, and Oracle Cloud Infrastructure, along with Microsoft leading hyperscaler deployments.
“We are raising our AI Server outlook with 1) strong May-July Taiwan AI Server ODM revenue from Wistron up 59% q/q, with Wiwynn/Foxconn up 23% q/q, positive for JulQ NVDA and DELL (key ODM Wistron partner), 2) Significant near-term ramps at xAI, CRWV, and OCI, while MSFT leading hyperscaler ramps as we recently noted (Link), 3) strong GB200/300 ramps in OctQ/JanQ (positive DELL, MU with HBM and CRDO) position NVDA for upside, 4) China granted licenses could drive 300-500K+/yr of GPUs for AMD/NVDA in C26E. We are raising our Server/GPU estimates with Rubin tailwind into 2H26E.”
The firm reiterated its rating and raised its price target.
“Reiterate NVDA at Outperform and raise PT to $205 (prior: $192), 34.4x our F27E EPS (prior: 32.4x), within its 5Y range of 13-38x as we see Blackwell demand remaining strong, China shipments providing upside, and Rubin set to ramp in 2H26E.”
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. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 13, Cantor Fitzgerald analyst Deepak Mathivanan reiterated a Neutral rating on the stock with a $201.00 price target. The rating affirmation comes amid reports of an unsolicited acquisition bid from Perplexity for its Chrome browser.
The firm believes that a Chrome divestiture could lead to “material value destruction” for Alphabet both financially and operationally.
“Press sources reported that Perplexity has submitted an unsolicited bid to acquire Chrome browser from GOOGL for $34.5B… Although GOOGL doesn’t monetize Chrome directly, the value of the asset to GOOGL is very significant… Assuming Chrome as a standalone entity hypothetically captures 25% of current monetization, we believe Chrome could be generating $10-11B in EBIT and potentially valued near $140B at 15x PE. The bigger takeaway is that Chrome divestiture could lead to material value destruction for GOOGL both financially and operationally… The investment community continues to wait for the remedy ruling from Judge Mehta in the US vs. GOOGL Antitrust trial. Among the remedies proposed by the DOJ, we continue to believe that Chrome divestiture is likely to be the most disruptive for GOOGL in the medium to long term but also the least likely to be included in the ruling.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
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