According to a report from news platform Semafor, Abu Dhabi-backed technology group G42 is planning to diversify chip suppliers beyond Nvidia for its UAE-U.S. AI campus. The group is engaged in negotiations with major American technology firms such as Amazon, Microsoft, Meta, and xAI.
The report has also revealed that G42 is looking at chipmakers AMD, Cerebras Systems, and Qualcomm for supplying some of the computing capacity at the campus.
Announced during US President Donald Trump’s visit to Abu Dhabi in May, the 5-gigawatt (GW) UAE-US AI Campus is designed to support US hyperscalers in providing faster services to an estimated 2.9 billion people who live within 2,000 miles of the UAE.
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 Q2 2025.
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).
10. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 54
Dell Technologies Inc. (NYSE:DELL) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 29, UBS analyst David Vogt raised the price target on the stock to $155.00 (from $145.00) while maintaining a Buy rating.
In an investor note, the analysts said that Dell has reported a solid quarter but the shares will likely trade lower in the near-term due to mixed metrics. However, the firm is of the view that the company’s artificial intelligence order momentum remains strong enough to support the shares.
“Dell reported a solid qtr with revenue of $29.8B, 2% above our $29.1B est as AI Server rev of $8.2B drove the upside relative to our $7.0B est. As expected Dell’s CSG/PC business struggled, growing only ~1%, ~500 bps slower than HP while Storage declined ~3%, missing our est by ~6%, consistent with checks that indicated a muted backdrop, particularly in N. America. In addition, strong mix to AI server rev pressured GM to 18.7% vs our 19.2% est, offsetting a mix within Storage to more margin rich Dell IP. Therefore, the combo of slightly better revs and lower GMs drove EPS to $2.32 vs our $2.25 (guide of $2.25 +/- 10 cents). Looking forward, AI order commentary was bullish as Dell increased the FY26 AI rev tgt to $20B from > $15B, in-line with the investor bogey into earnings while traditional Dell end-mkts face discrete headwinds but should improve QoQ. That said, while the shares likely trade lower in the near-term given the mixed metrics, longer-term, AI order momentum remains strong enough to support the shares in our view.”
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
9. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 59
Elastic N.V. (NYSE:ESTC) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 29, DA Davidson analyst Lucky Schreiner assumed coverage on the stock a Neutral rating and a price target of $105.00 (from $75.00).
The firm highlighted how Elastic has reported impressive 1Q26 results with accelerating revenue growth. Moreover, its better-than-expected guidance allowed shares to soar after hours.
The firm also discussed how there is an increasing demand for Elastic’s AI Search functionality as AI and Agentic applications are developed. Meanwhile, security consolidation trends also “stood out” during the quarter.
“With this note, we are transitioning coverage of Elastic with a NEUTRAL rating and $105 price target. Elastic reported impressive 1Q26 results with accelerating revenue growth landing ahead of expectations and provided a better than expected guide sending shares higher after hours. Demand for Elastic’s AI Search functionality is increasing as AI and Agentic applications are created and security consolidation trends stood out in the quarter. Price increases did contribute to the outperformance, regardless, sales execution continues to improve as Elastic grows with larger enterprise customers.”
Elastic N.V. is a search AI company offering cloud-based solutions.
8. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 75
MongoDB, Inc. (NASDAQ:MDB) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 27, Macquarie analyst Steve Koenig raised the price target on the stock to $265.00 (from $230.00) while maintaining a Neutral rating.
The firm raised its earnings estimates for FY26-FY28 on the back of MongoDB’s encouraging 2Q results. It also highlighted how the database software company’s strategic shift in its go-to-market approach seems to be gaining traction.
Overall, the company’s overall long-term future depends on an AI-driven transformation of its market position.
“• We raise our FY26-28E earnings by 12-21% and target price to $265 from $230 following MDB’s encouraging 2Q results. • We think MDB’s go-to-market changes to focus on strategic accounts and win higher-quality workloads are gaining traction. • MDB’s long-term future likely depends on an AI-driven transformation of its market position, which isn’t yet driving revenue growth.”
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 76
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 29, Evercore ISI analyst Mark Lipacis lowered the price target on the stock to $122.00 (from $133.00) while maintaining an Outperform rating.
The rating update follows Marvell’s quarterly earnings report that met expectations and earnings per share guidance slightly above consensus for the October quarter.
Regardless, Marvell’s shares fell after hours because of its outlook for Custom AI revenue which the firm estimates will decline by 18% in the October quarter. This projection has surprised investors amid the strong Cloud CapEx environment.
“While MRVL posted a JulQ meet and an OctQ EPS outlook that is $0.01 above consensus, its stock traded down by 11% in aftermarket trading after providing an outlook for its Custom AI revs to decline QQ in the OctQ, we estimate by 18%. The 18% decline is disappointing against the backdrop of the strongest Cloud CapEx environment on record, however, we think it’s worth considering that 1) MRVL’s custom compute business is nascent with a concentrated customer base, which can be lumpy, and 2) we model that custom IA business to revert back to the trendline in the Jan-26Q. We believe that the company has about 20 custom design wins, which will ramp over the next 1-to-2 years, and the company reiterated its plan to grow its DC share to 20% of a $94bn TAM in CY28.”
The firm believes that the stock may fall flat in the near-term as investors wait out to see how the custom chip business is doing. However, a P/E ratio of 21 seems attractive for an AI chip company with “a number of irons in the AI fire”.
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
6. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 10 Must-Watch AI Stocks on Wall Street. On September 1, the company announced the general availability of Snowflake’s AI Data Cloud on Amazon Web Services (AWS) Africa (Cape Town) Region. The deployment of its AI Data Cloud will allow customers to leverage deeper data insights powered by AI to accelerate business innovation.
The deployment will also organizations to meet local data residency regulations such as POPIA which require sensitive data to remain in the country. Some customers in South Africa that have already begun using the AI Data Cloud include Carry1st, BluNova, and Mukuru.
Snowflake plans to host a launch event on September 3 at the The Old Biscuit Mill, Cape Town to celebrate its AI Data Cloud launch to the region.
“As we scale our operations at Carry1st, and work with our team across 20 different countries, it’s critical that we have the right technology to make data-driven decisions about the business and our customers. Through Snowflake’s easy, connected, and trusted platform we have been able to reduce infrastructure costs by up to 45%, improve data refresh rates by over 300%, and enable faster insights and enhanced customer interactions.”
– Ziyaad Kumandan, Lead Data Engineer at Carry1st.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
5. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 101
Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 Must-Watch AI Stocks on Wall Street. On September 1, Goldman Sachs analyst Ronald Keung raised the price target on the stock to $163.00 (from $147.00) while maintaining a Buy rating.
The firm said that Alibaba may lose more money than previously anticipated in its quick commerce business in the September quarter. However, they believe these losses will halve into the December quarter as the company shifts its focus to high quality users, reduce subsidies, and improve rider efficiency.
The firm revised its profit forecasts due to bigger quick commerce losses, which was partly offset by international ecommerce. It also lifted its SOTP-based 12-month target prices to US$163/HK$158 (from US$147/HK$142) on higher cloud valuation and lowered SOTP discount.
Moreover, it emphasized Alibaba’s renewed AI-driven story line, positioning itself as an AI + everyday consumption app as well as AI + Cloud hyperscaler.
“We revise our FY26E-FY28E adj. net profit by -9%~ to +2% on larger quick commerce loss, part offset by faster int’l eCommerce turnaround pace and lift our SOTP-based 12-month target prices to US$163/HK$158 (from US$147/HK$142) on higher cloud valuation and lowered SOTP discount to 15% (vs. prior 20%, given streamlined core businesses, now in-line with our transaction platforms SOTP assumptions), with Alibaba’s renewed AI-driven story-line around becoming an AI + everyday consumption app (Taobao + Amap) and AI + Cloud hyperscaler.”
Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally.
4. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 104
Adobe Inc. (NASDAQ:ADBE) is one of the 10 Must-Watch AI Stocks on Wall Street. On September 1, Rothschild Redburn analyst Omar Sheikh reiterated a Sell rating on the stock with a $280.00 price target.
The firm said that it spent the last few days testing the released preview of Google’s Nano Banana image editing model. Their takeaway is that it has the potential to seriously challenge Adobe Photoshop, impacting Adobe’s ability to gain new customers and raise prices.
Both Nano Banana and Runway’s Aleph have been leveraging generative AI for their tools, demonstrating the fast pace of improvement. Newer and more disruptive models could emerge within months, putting a question mark on Adobe’s competitive moat.
“We spent the last few days testing the recently released preview of Google’s Nano Banana image editing model. We believe it will disrupt Photoshop, one of Adobe’s most widely-used applications, adding to ongoing pressure on the company’s seat growth and pricing power. Nano Banana and Runway’s Aleph demonstrate the leap forward in the performance of genAI tools in recent months, and the pace of improvement is a key concern: image and video generation models with fully editable outputs look increasingly likely to emerge within months, which we argue will call into question the durability of Adobe’s moat. We reiterate our Sell rating.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 29, Piper Sandler analyst Alexander Potter reiterated an Overweight rating on the stock with a $400.00 price target. The rating affirmation followed the firm’s tour and meeting with the company’s investor relations team.
The firm noted how Tesla’s robo taxi service has expanded to more than 170 square miles, while Waymo service area is 90 square miles in the same city. The company’s Full Self-Driving version 14 is set to arrive in September/October, enabling Tesla owners to use software that is similar to robo-taxis in Austin.
Tariff costs may rise in the second half of the year, impacting cost of goods sold estimated at “a couple thousand” USD per unit. Meanwhile, U.S. tax credit changes will lead to a “pull-forward” in demand for Tesla and competitors during the third quarter.
The firm further estimated that by 2026, Tesla’s Optimus humanoid robot is likely to move and stage parts within Tesla facilities.
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Tesla will own robo-taxis, but licensing, specialty fleets and consumers will all contribute
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There are many ownership models for FSD-equipped cars; the final mix is hard to predict
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Tariff costs will rise in 2H; the impact on COGS/unit should be a “couple thousand” USD
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U.S. tax credit changes are driving a “pull-forward” in Q3, both for Tesla and for peers
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Any post-Q3 demand hangover may be mitigated by sales of Tesla’s lower-cost vehicle
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Tesla’s guiding principle: defend free cash flow and protect self-funding status
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By this time in 2026, Optimus should be moving/staging parts within Tesla’s facilities
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Optimus can work 18 hours (~2 human shifts); at that rate, a $100k cost would be justified
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Note: we are making minor estimate revisions to reflect updates after Q2 earnings
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 28, Craig-Hallum analyst Richard Shannon raised the price target on the stock to $245.00 (from $195.00) while maintaining a Buy rating.
Despite a stock dip post-earnings, Craig-Hallum cited robust AI demand trends for the AI chipmaker. The question, however, is whether this robust demand will sustain over the next few years.
According to the firm, agentic and reasoning systems may lead the robust demand trend to continue requiring much more compute needs than previous generations. However, the slowing pace of foundational models such as GPT-5 may result the trend to slow down.
The firm believes Nvidia remains well-positioned regardless.
“However, the strongest evidence is the capex spending plans by the four leading HSDCs, along with the position that the risk of underinvesting in AI is higher than overinvesting. Until this changes, we see a robust environment for NVDA in which to participate, which the company sees at $3-4T through decade’s end. We also see NVDA’s system-level offerings, particularly on the networking level (NVLink and NCCL are critical enablers), creating enormous performance differentiators that are unlikely to be approached any time soon. Thus, we maintain our positive view on medium-term Datacenter growth for NVDA at strong margins. With the stock trading in the low 30’s EV/EPS, and a view that earnings growth can continue at least in this range, we still think the stock should be owned. We maintain our Buy rating while increasing our price target to $245.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Must-Watch AI Stocks on Wall Street. On September 1, Amazon announced the launch of the AWS Asia Pacific (New Zealand) Region to “help serve the growing demand for cloud services across the country and empower organizations of all sizes to accelerate their digital transformation.”
Customers will be able to benefit from AWS’s secure, scalable, and reliable cloud infrastructure, enabling them to locally store data while meeting data residency requirements and reducing latency for end users.
Amazon has announced cloud computing infrastructure with three availability zones along with plans to invest more than NZ$7.5 billion to support data centers in New Zealand. As per Amazon estimates, the investment will add an estimated NZ$10.8 billion to New Zealand’s gross domestic product as well as support more than 1,000 full-time equivalent jobs annually.
Some of the current AWS customers in New Zealand include AMP New Zealand, Kiwibank, Ministry of Transport, New Zealand Post, TVNZ, University of Auckland, One New Zealand, Wellington City Council and Xero.
“The new AWS Region in New Zealand will help serve the growing demand for cloud services across the country and empower organizations of all sizes to accelerate their digital transformation.”
-Prasad Kalyanaraman, vice president of Infrastructure Services at AWS.
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
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 have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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