While the United States of America and China continue to compete the AI arms race, US President Donald Trump has suggested that he may allow Nvidia to sell a scaled-down version of its next-generation advanced GPU chip in China. The move will allow China to secure more advanced computing power from the country, which is also a win for Nvidia.
“Jensen (Huang, Nvidia CEO) also has the new chip, the Blackwell. A somewhat enhanced-in-a-negative-way Blackwell. In other words, take 30% to 50% off of it,” Trump
“I think he’s coming to see me again about that, but that will be an unenhanced version of the big one,” he added.
Only recently, the Trump administration confirmed an unprecedented deal with Nvidia and AMD to sell some advanced chips in China in exchange for 15% of revenues. The move has been dreaded by many who wish to keep Beijing generations behind U.S. AI technology.
“Even with scaled-down versions of flagship Nvidia (chips), China could spend and buy enough of them to build world-leading, frontier-scale AI supercomputers,” said Saif Khan, former director of Technology and National Security at the White House National Security Council under former President Joe Biden, who heavily restricted U.S. AI chip exports abroad. “This could directly lead to China leapfrogging America in AI capabilities.”
There has also been news that Nvidia is preparing a new chip for China, a variant of the AI Blackwell chip, but at a significantly lower cost.
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.
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10. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 17
BigBear.ai Holdings, Inc. (NYSE:BBAI) ) is one of the 10 Trending AI Stocks on Wall Street. On August 12, Cantor Fitzgerald analyst Jonathan Ruykhaver raised the price target on the stock to $6.00 (from $5.00) while maintaining an Overweight rating.
Even though BigBear.ai is facing “near-term execution issues,” the rating affirmation is a reflection of “secular tailwinds and improved financial flexibility” for the company. According to the firm, second-quarter results have been underwhelming, with top-line miss largely attributed to federal program disruptions related to the U.S. Army’s efforts to consolidate its data architecture.
“BigBear.ai delivered an underwhelming 2Q25, with revenues declining 18.4% to $32.5 million, and falling short of FactSet consensus estimates. The top-line miss was largely driven by federal program disruptions related to the U.S. Army’s efforts to consolidate its data architecture. However, the quarter demonstrated solid progress on key initiatives, including core product development and balance sheet improvements. The ending backlog of $380 million represents a 42.9% y/y increase. The firm also lowered its full-year 2025 revenue guidance to a range of $125 million to $140 million and withdrew its prior Adjusted EBITDA guidance, which had projected a negative single-digit million range.”
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.
9. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
C3.ai, Inc. (NYSE:AI) is one of the 10 Trending AI Stocks on Wall Street. On August 12, Northland analyst Mike Latimore downgraded the stock from Outperform to Market Perform with a price target of $17.00.
The rating downgrade comes after the company announced preliminary revenue and subscription estimates that came in lower than the firm’s forecasts.
The miss comes “at a time of strong enterprise AI demand”, the analysts noted. Theey also told investors that it is downgrading the stock until the company gets closer to profitable growth.
“C3.ai announced preliminary results that not only missed our revenue estimates, but also came in lower than our subscription estimates, which are supposed to be relatively visible on a quarterly basis. The miss happens at a time of strong enterprise AI demand. The company announced a reorganization too. Cash is healthy at $712 million. Downgrading to Market Perform.”
C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.
