The Dow Jones Industrial Average closed at a record high on Tuesday driven by optimism that the longest US government shutdown may end soon.
“Expectations are that the shutdown is over. … People will get back to work, economic data will be released once again and uncertainty will be behind us,” said CFRA Chief Investment Strategist Sam Stovall.
While the broader market rose, the artificial intelligence trade has recently been under immense pressure due to growing valuation concerns.
CoreWeave shares fell 15% after the company’s guidance disappointed investors, impacting the artificial intelligence trade. Meanwhile, AI chipmaker Nvidia also pulled back an estimated 3% after SoftBank sold its entire stake in it for more than $5 billion.
The sale has fueled investor anxiety about overheated valuations in the sector. It’s not just that AI stocks are becoming expensive, but market experts are also skpetical about a possible bubble forming, pressuring AI stocks.
“These tech companies, they’re cash flow machines. They’re terrific companies, but the starting point does matter, and given where they’re valued today, it doesn’t take much – a little bit of negative news – for the sentiment to turn just a little bit and you get an unwind that is more favorable to value equities.”
-Bill Fitzpatrick, portfolio manager at Logan Capital Management, told CNBC.
Other prominent names in the sector, such as Micron Technology, Oracle, and Palantir Technologies, fell in tandem with CoreWeave and Nvidia.
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.
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10. Kodiak AI, Inc. (NASDAQ:KDK)
Number of Hedge Fund Holders: –
Kodiak AI, Inc. (NASDAQ: KDK) is one of the 10 Trending AI Stocks on Wall Street. On November 10, TD Cowen initiated the stock as “Buy” with a $14 price target. The firm believes that the autonomous vehicle tech company is well positioned.
“We initiate coverage of Kodiak AI with a Buy rating and $14 price target.”
The firm cited a positive stance on the AV Trucking vertical and Kodiak’s unique exposure to global Industrial and off-road markets behind the rating initiation.
According to the firm, these markets have the potential to alone scale Kodiak to breakeven while diversifying revenue and also increasing the stock’s catalyst potential.
On the Street, Kodiak AI, Inc. (NASDAQ:KDK) sports a consensus Strong Buy rating and an average price target of $14.38. The average price target implies an upside of roughly 81% from current levels.
Kodiak AI develops autonomous vehicle technology and related services.
9. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 20
BigBear.ai Holdings, Inc. (NYSE:BBAI) ) is one of the 10 Trending AI Stocks on Wall Street. On November 11, Cantor Fitzgerald raised its price target on the stock to $7.00 from $6.00 while maintaining an “Overweight” rating. The firm has cited secular tailwinds and expanding AI investments behind the increased price target.
Cantor noted how BBAI has delivered a solid 3Q25, with “revenue declining 20.1% year over year to $33.1 million, yet exceeding FactSet consensus estimates.”
The revenue contraction has been largely due to federal program disruptions and government shutdown issues, the firm noted.
BBAI has also announced an agreement to acquire AskSage, which is an AI platform that helps safely deploy and manage AI models in highly regulated sectors.
“We reiterate our Overweight rating on BigBear.ai and raise our 12-month price target to $7.00 from $6.00 based on long-term secular tailwinds and expanding AI investments. BigBear.ai delivered a solid 3Q25, with revenue declining 20.1% year over year to $33.1 million, yet exceeding FactSet consensus estimates. The top-line contraction was primarily driven by federal program disruptions tied to lower volume on certain Army contracts and shutdown headwinds. Additionally, the company announced an agreement to acquire Ask Sage, an AI platform that enables secure deployment and distribution of AI models in highly regulated sectors, for $250 million.”
BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides decision intelligence solutions for national security, digital identity, supply chain and logistics, enterprise operations, and manned-unmanned teaming in autonomous systems.
8. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 33
Baidu, Inc. (NASDAQ:BIDU) is one of the 10 Trending AI Stocks on Wall Street. On November 7, Deutsche Bank upgraded the stock to “Buy” from Hold with a price target of $160, up from $90. The firm believes that the China tech company is well positioned for artificial intelligence.
“Baidu has established a set of leading AI businesses spanning cloud computing, robotaxis, intelligent search, and AI chips.”
According to analysts, Baidu AI Cloud is growing rapidly and Apollo Go has also become a global leader in robotaxi platforms. They also believe that AI is driving the next phase of Baidu’s growth.
While Deutsche Bank’s price target for Baidu, Inc. (NASDAQ:BIDU) suggests an upside of 21%, the stock’s average price target implies a 7% upside, from current levels. The stock sports a consensus Moderate Buy rating.
Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.
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