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.
7. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 60
Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the 10 Trending AI Stocks on Wall Street. On November 10, Evercore ISI maintained its Outperform rating on the stock with a $28 price target.
The firm has also added HPE to its Tactial Outperform List, anticipating robust Jan-quarter guide, Juniper synergies, and AI compute margin lift to drive continued outperformance.
According to the firm, HPE’s integration of Juniper Networks will likely accelerate in the first half of the fiscal year. This will drive additional upside as the company reduces combined costs.
Evercore ISI also discussed HPE’s increased focus on AI compute profitability, with an estimated 50% of compute orders coming from enterprise and sovereign customers. The increased emphasis will likely streamline margin expansion, the firm noted.
Meanwhile, the networking segment is expected to benefit from ongoing campus refresh cycles and AI connectivity investments from enterprises.
“We believe HPE is well positioned to report an in-line Oct-qtr but we see room for modest upside on the Jan-qtr guide. High level, focus will remain on Juniper integration but given that management de-risked the FY26 outlook, we think HPE could guide the Janqtr above the Street revs/EPS estimates of $9.87B/$0.55. HPE reaffirmed its FY25 outlook and its FQ4 outlook of revs and EPS of $9.7B–10.1B and $0.56–60, though it prudently guided FY26 given Juniper integration and tougher y/y comps. We think the lower bar sets HPE up well to outperform expectations and string together another quarter of solid execution. In addition, we expect HPE to expedite early integration of Juniper (in H1) and this could help drive incremental upside as HPE sheds aggregate costs. We also think the higher emphasis on AI compute profitability will help streamline margin expansion, as HPE is placing higher scrutiny on AI compute deals and shifting more towards enterprise and sovereign deals; ~50% of compute orders are from these two customer categories. Networking should also benefit from the ongoing campus refresh, as Sep-qtr VARs and distributors pointed to solid networking growth from campus but also AI connectivity investments from enterprises. Networking remains the key profit driver of the newly combined business and HPE should benefit from a full quarter of Juniper contribution, as LQ only saw one month. Net/Net: We think HPE could guide the Jan-qtr above current street estimates, as we think expectations around the quarter and guide are low. In addition, a return to solid execution quarter-to-quarter should help improve investor confidence. Maintain our OP rating and $28 target.”
Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.
6. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 67
monday.com Ltd. (NASDAQ:MNDY) is one of the 10 Trending AI Stocks on Wall Street. On November 10, Oppenheimer maintained its Outperform rating on the stock but lowered its price target to $200 from $300. The firm remains cautiously positive on Oracle but has flagged near-term softness and longer sales transitions.
The firm noted how Monday.com has delivered mixed 3Q results, characterized by P&L upside and a bookings miss. Despite a revenue beat, the company did maintain its 2025 top-line guidance which reflects a softer revenue outlook compared to the previous quarter.
The soft bookings have been due to elongating sales cycles driven by upmarket sales transition and macro uncertainty. On the upside, Monday.com has achieved record large customer net additions and multi-product traction.
The firm has also expressed its concerns that the continued bookings softness may “feed the AI bear narrative on horizontal software companies,” raising risk to monday.com’s previously announced $1.8 billion revenue guidance for 2027.
“Monday.com delivered mixed 3Q results (P&L upside, bookings miss). Management maintained the 2025 top-line guidance, despite the 3Q revenue beat, which implies a softer revenue outlook versus the prior quarter. Elongating sales cycles from the upmarket sales transition and macro uncertainty is the soft bookings drivers. On a positive note, the business generated record large customer net-additions, multi-product traction, and management noted stabilizing search trends at the end of 3Q. Bottom line: This is two straight quarters of bookings softness for monday.com which may come as a surprise given the positive management tone at the mid-September Analyst Day. This trend will likely feed the AI bear narrative on horizontal software companies and raises risk to the $1.8B 2027 revenue guidance. Maintain Outperform, Lower PT to $200 from $300.”
monday.com Ltd. (NASDAQ:MNDY) develops software applications globally, offering a cloud-based Work OS for creating work management tools.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Trending AI Stocks on Wall Street. On November 10, William Blair reiterated the stock as “Market Perform,” stating that the stock is fairly valued at current levels.
“Tesla shareholders are taking a sigh of relief after Elon Musk’s new performance package was approved, securing him at the helm for the foreseeable future.”
Tesla has recently revealed that its shareholders voted in favor of CEO Elon Musk’s almost $1 trillion pay plan. The performance package is one of the most extensive compensation package ever awarded in any sector.
While the package may seem attractive, Musk can receive the full payout only if Tesla achieves extraordinary performance levels. This includes an $8 trillion market cap within a decade. The plan is structured into 12 trenches, and each tranche unlocks only when two conditions are met simultaneously.
As per a Reuters report, Musk can still score tens of billions of dollars without meeting most of the targets laid out for him by the board. The pay plan also does not put any limit on Musk’s political activity, and there isn’t a minimum amount of time that Musk must spend working at Tesla.
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
4. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the 10 Trending AI Stocks on Wall Street. On November 10, Erste Group downgraded the stock rating from Buy to hold, flagging rising liabilities and declining ROA amid heavy cloud investments. The firm anticipates margin and FCF growth to soften ahead.
While Oracle is expanding its cloud offerings with new cloud data centers and achieving significant growth in the area, the traditional software business has witnessed a slight decline.
According to the firm, high investments will likely have an impact on the growth in free cash flow, and operating margin is also likely to fall slightly over the next few years due to the high level of investment.
“The Group is expanding its cloud offerings with new cloud data centers and is achieving significant growth in this area. Conversely, the traditional software business recorded a slight decline. Due to the high level of investment, non-current liabilities have risen sharply and the return on assets is declining. We expect the growth in free cash flow to be impacted by the very high investments and that the operating margin will also fall slightly over the next few years.”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 10 Trending AI Stocks on Wall Street. On November 10, Jefferies reiterated the stock as “Hold,” stating that its checks show Apple’s iPhone volume has likely peaked.
“iPhone has been super strong in China driven entirely by 17, and due mostly to pricing.”
Meanwhile, J.P. Morgan analyst Samik Chatterjee has maintained a bullish stance on the stock, giving a Buy rating on November 6. The firm is optimistic about Apple particularly due to the strong demand for its iPhone 17 series.
The firm noted how elevated lead times for the Base model reflect solid consumer interest and will likely drive significant year-over-year revenue growth for iPhones in the upcoming fiscal quarter.
Meanwhile, moderated lead times for the Pro and Pro Max models suggest a balance between supply and demand. With consistent demand across various regions, including the US, China, and Europe, Apple boasts a strong market position and growth potential, reinforcing the Buy rating.
Apple is a technology company known for its consumer electronics, software, and services.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Trending AI Stocks on Wall Street. On November 10, Citi reiterated the stock as “Buy” and raised its price target to $220 per share from $210. The firm has also opened a positive catalyst watch on the stock ahead of its third-quarter earnings announcement on November 19.
“We open an Upside 30-day ST View on NVDA shares on ‘beat and raise’ results. Maintain Buy.”
The firm is confident that Nvidia will outperform expectations in the upcoming earnings.
“We revise our Oct-Q estimates by +11% following stronger-than-expected AI investments showcased by NVDA’s announcement of already reaching 6M units of Blackwell.”
Analyst Atif Malik has revised his forecast for the 2028 data center semis total addressable market, now seeing it reach $654 billion, or 16% higher than his prior expectation of $563 billion.
“We expect ‘beat and raise’ Oct-Q results on 11/19. We model Oct-Q sales of $57B above Street ~$55B and expect Jan-Q guide of $62B vs Street ~$61B. We believe stock’s current P/E of 28x looks attractive vs AI peers’ AVGO/AMD 38x/37x respectively.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 Trending AI Stocks on Wall Street. On November 10, Erste Group downgraded the stock to “Hold” from buy driven by higher AI capex and reduced buybacks, limiting valuation despite strong fundamentals.
According to the firm, there may be a significant acceleration in 2026 spending to support Meta’s AI ambitions and growth in capital expenditure will also be “significantly higher” in 2026 than in 2025.
The firm sees limited upside potential at the current valuation level due to the need for a high level of investment for infrastructure capacity, including computing and cloud costs.
“For 2026, the company anticipates a significant acceleration in spending to support its AI ambitions. Growth in capital expenditure is expected to be significantly higher in 2026 than in 2025. The main reasons for this increase are the need for infrastructure capacity, including computing and cloud costs. Asset turnover (the ratio of revenue to assets) is expected to fall further. Share buy-backs have also recently decreased significantly. This trend will continue due to the high level of investment required. We therefore see limited upside potential at the current valuation level. Hold.”
Meta Platforms has been expanding its advertising capabilities and also invests heavily in artificial intelligence and the metaverse.
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
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