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.
8. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one the 10 Trending AI Stocks on Wall Street. On August 12, the company announced a multi-year expansion of their partnership with SOMPO Holdings, Inc. through its Japanese joint venture Palantir Technologies Japan KK. SOMPO has been using Palantir’s foundry since 2020, supporting care of patients, reporting care to the government, and raising the urgent need of patients.
Recently, SOMPO has begun using the foundry to enhance its claims process end to end. Palantir’s AI technology is being used to evaluate risk and make recommendations during the underwriting process, leading to an expected annual improvement in financial results of $10 million.
The multi-year expansion of this partnership between Palantir and SOMPO marks the second expansion of the agreement following a $50 million expansion in 2023.
“Over 8,000 people at SOMPO actively use Palantir in Japan while AI agents are used to automatically evaluate risk and make recommendations resulting in enhanced and automated underwriting decisions. We are honored to be working with SOMPO and look forward to our long-term partnership.”
-Kevin Kawasaki, Global Head of Business Development at Palantir Technologies.
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
7. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 Trending AI Stocks on Wall Street. On August 12, Piper Sandler analyst Rob Owens upgraded the stock from Neutral to “Overweight” with a price target of $225.00 (from $200.00).
According to the firm, Palo Alto’s early “platformization” success should reaccelerate bookings growth and prove to be durable as Xsiam traction grows. The company’s free cash flow leverage should be more consistent moving forward with annual payments.
Meanwhile, the Cyberark (CYBR) acquisition adds a high-quality asset to company’s portfolio. Piper sees a favorable share setup from here.
“We are upgrading shares to Overweight with a $225 PT. Our more favorable view is predicated on 1) early platformization success that has helped reaccelerate bookings and should prove durable as XSIAM traction grows (noting channel feedback surrounding platformization has inflected to begin CY’25), 2) more consistent FCF leverage moving forward with annual payments / PAN-FS turning to a tailwind after posing pressure over last two years, 3) the acquisition of CYBR, which simultaneously adds a very high quality asset to PANW’s portfolio while filling its largest gap. Altogether, this should help PANW achieve a low-teens CAGR and improved FCF margins, creating a favorable setup from here.”
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
6. Talen Energy Corporation (NASDAQ:TLN)
Number of Hedge Fund Investors: 80
Talen Energy Corporation (NASDAQ:TLN) is one of the 10 Trending AI Stocks on Wall Street. On August 11, Raymond James analyst J.R. Weston raised the price target on the stock to $405.00 (from $399.00) while maintaining an Outperform rating.
The price target raise follows Talen’s “compelling mix of stability and upside” with its 10,700 MW portfolio. The portfolio is led by the revamped Susquehanna nuclear facility deal, which is now providing nuclear energy to AWS through 2042.
The firm noted that Talen has predictable revenue streams owing to its long-term contracts, strong capacity auction results, recent RMRs, and downside support through nuclear PTCs.
“With ~80% baseload generation, TLN benefits from increasing visibility around the revenue composition of its business – long-term PPAs, strong capacity auction results, recent RMRs, downside support via nuclear PTCs, etc. Moreover, the recent ~$3.8 bllion acquisition of ~2.9 GW of efficient PJM CCGTs (Moxie Freedom in Pennsylvania and Guernsey in Ohio) further enhances scale, with pro forma 2026 adj. EBITDA projected above $1.8 billion (RJ well above those levels) and immediate FCF/share accretion of 40% (and ramping after 2026 maintenance). Further, in a market rewarding acquirers (and with tax support for generation M&A deals) – and especially now that Talen’s story and equity currency benefit from the recent AWS deal and strategic CCGT addition – TLN’s M&A potential, either as a target or buyer, adds torque to this play. We maintain our Outperform rating.”
Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company.
5. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 83
Constellation Energy Corporation (NASDAQ:CEG) is one of the 10 Trending AI Stocks on Wall Street. On August 11, BMO Capital analyst James Thalacker raised the price target on the stock to $375.00 (from $350.00) while maintaining an Outperform rating.
The rating affirmation follows Constellation’s Q2 earnings beat, where the management also reaffirmed its full-year 2025 adjusted operating earnings range outlook largely in-line with the consensus estimate.
“Higher Sustainable FCFbG Looking Better With CPN Close and OBBBA Tailwinds; CEG reported 2Q25 EPS of $1.91, above both our own/consensus expectations of $1.80/$1.85. Management reaffirmed full-year 2025 adjusted operating earnings range of $8.90-9.60/share ($9.25 midpoint), which is largely consistent with the $9.38 consensus estimate. Management continues to anticipate standalone Constellation adjusted operating earnings growth of 13%+ on base earnings through 2030 (2024 base of $5.50/share). “
Based on the closing of the Calpine transaction in Q4 which was driven by rising electricity demand from AI and electrification; and the benefits to cash flow from the provisions in the OBBBA, the firm sees a “materially higher” free cash flow outlook as well.
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.
4. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) is one of the 10 Trending AI Stocks on Wall Street. On August 11, Deutsche Bank reaffirmed the stock as Buy. The firm remains optimistic on Snowflake due to its anticipations of strong results when the company reports later this month.
It predicts a 3%–4% beat on product revenue in fiscal Q2, with year-over-year growth accelerating for the first time in several years.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $235 implies a 21.7% upside; however, the Street-high target of $440 implies an upside of 127.9%.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
3. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Trending AI Stocks on Wall Street. On August 12, JPMorgan reiterated the stock as “Overweight,” stating that it is sticking with Micron following its preannouncement on Monday and raised its price target to $185 per share from $165.
“Overall, the team believes they are well positioned for FY26 and CY26. With solid cost execution and improving supply/demand fundamentals, we anticipate continued improvement in gross margin (GM) and earnings power in 2025 and into 2026. We are increasing our estimates and increasing our PT from $165 to $185. We maintain our OW rating.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
2. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 102
Vistra Corp. (NYSE:VST) is one of the 10 Trending AI Stocks on Wall Street. On August 12, BofA Securities analyst Ross Fowler raised the price target on the stock to $220.00 (from $214.00) while maintaining a Buy rating.
The rating affirmation comes with higher EBITDA forecasts and a price target raise that reflects updated power and capacity price assumptions, as well as the inclusion of a DCF for a potential Comanche Peak 20-year long-term PPA in valuation.
“We reiterate our Buy rating on Vistra Corp (VST) and update EPS as we MtM power prices and reflect a $329.17/MW-day capacity price through our forecast period. This leads to FY’25/FY’26/FY’27 EBITDA of $5,791/$7,062/$7,396 vs. $5,791/$7,007/$7,397 mn. We increase our PO to $220 from $214 as we adjust our EBITDA estimates and update our valuation methodology. We now include a DCF of a potential Comanche Peak 20-year long-term PPA a $90/MWh price for half the plant (1.2 GWs).”
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 Trending AI Stocks on Wall Street. On August 11, BofA Securities analyst Justin Post reiterated a Buy rating on the stock with a $217.00 price target.
According to the investment bank, chrome divestiture, Google’s traffic acquisition cost (TAC) payments for default placement, and search data sharing requirements are three key aspects of the DoJ’s remedy requests that could impact Google.
“We highlight potential remedies scenarios around three key aspects of the DoJ’s remedy requests: 1) Chrome divestiture, 2) Google’s payments of TAC for default placement, and 3) Search data sharing requirements. Structural remedies, including Chrome divestiture would be more disruptive to Alphabet; though rare in US precedent, such a move would reduce synergies and scale advantages across Google’s ecosystem. For behavioral remedies, based on our client conversations we think the Street expects elimination of exclusive search deals and required implementation of some choice screens. The biggest concern for Google is potentially mandated changes in the US TAC agreements (we estimate $17.5bn to Apple in US in 2026), which could reduce Google’s search query share and incentivize mobile OEMs to pursue partnerships with AI competitors. Finally, new data sharing requirements could dilute Google’s data advantage, undermining the company’s differentiated ad stack and intensifying search competition.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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