10 Trending AI Stocks on Wall Street

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The US has recently reversed its ban that restricted Nvidia from exporting its H20 chips to China, paving the way for China to move forward in the realm of artificial intelligence. However, China is now aiming to develop its own ecosystem in order to reduce its reliance on foreign technology.

As reported by Reuters, China’s artificial intelligence companies have announced two new industry alliances, coinciding with the three-day World Artificial Intelligence Conference in Shanghai. Several new products were also showcased at the conference, including an AI computing system from Huawei, as well as consumer-friendly products such as digital AI glasses.

The purpose of the “Model-Chip Ecosystem Innovation Alliance” is to integrate Chinese developers of large language models (LLMs) and AI chip manufacturers.

“This is an innovative ecosystem that connects the complete technology chain from chips to models to infrastructure.”

-Zhao Lidong, CEO of Enflame, one of the participating chipmakers.

Meanwhile, the second alliance, which is the Shanghai General Chamber of Commerce AI Committee, aims to “promote the deep integration of AI technology and industrial transformation.”

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.

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 Trending AI Stocks on Wall Street

Phone with stocks chart

10. Pegasystems Inc. (NASDAQ:PEGA)

Number of Hedge Fund Holders: 34

Pegasystems Inc. (NASDAQ:PEGA) is one of the 10 Trending AI Stocks on Wall Street. On July 24, Barclays raised the firm’s price target on the stock to $58 from $50 and kept an “Equal Weight” rating on the shares.

The firm described Pega’s recent quarter as “another quarter of above-consensus growth.” Pega reported a remarkable revenue growth of 12.5% and maintained a strong gross margin of 75.5%, marking the second consecutive quarter of above-consensus performance.

The firm quoted that Q2 was “almost better compared to Q1 when looking at the quality of the beat.” Moreover, it believes that it is getting clear that the genAI Blueprint offering is “starting to work well as a demand generation tool.” Nevertheless, the rating is kept at Equal Weight as the firm looks more into the ultimate total addressable market and also at Appian’s lawsuit.

Pegasystems Inc. (NASDAQ:PEGA) develops, markets, licenses, hosts, and supports enterprise software.

9. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 45

Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the 10 Trending AI Stocks on Wall Street.  On July 23, Deutsche Bank analyst Matt Niknam raised the firm’s price target on the stock to $26 from $21 and kept a “Buy” rating on the shares.

The firm is positive on the stock following the Juniper deal, reflecting on the anticipated benefits. According to Niknam, the stock’s current valuation offers a promising risk/reward balance for investors.

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.

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