In the latest turn of events, China has revealed that it will roll out its homegrown “next generation” soon. The claim has been made by Chinese artificial intelligence startup DeepSeek, the very startup that shook the tech world with its efficient and cheap AI model known as the R1.
DeepSeek reportedly made the comment under a post on its official WeChat account, revealing that the“UE8M0 FP8” precision format of its newly released model V3.1 is personalized for the next-generation domestically built chips soon to be launched.
The FP8, or 8-bit floating point, is a data processing format that can enhance the computational efficiency for training and inference of large deep learning models. DeepSeek’s efforts comes amid China’s push towards self-sufficiency and Washington’s advanced semiconductor export restrictions.
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. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 46
Fortinet, Inc. (NASDAQ:FTNT) is one of the 10 Trending AI Stocks on Wall Street. On August 20, the company announced that Tepper Sports & Entertainment (TSE) has deployed Fortinet’s Unified SASE and other Security Fabric solutions across its facilities to fortify cybersecurity, simplify operations, and enable secure access for all its users. TSE owns and operates the NFL’s Carolina Panthers, MLS’s Charlotte FC, and the Bank of America Stadium.
TSE has selected Fortinet as it wanted a security solution that is easy to manage and came without vendor complexity. Indeed, Fortinet is offering reliable protection and optimized performance across the entire TSE network, including critical facilities, key technology investments, and staff.
The deployment includes Fortinet Unified SASE, including FortiSASE for seamless secure access, Fortinet SecOps, including FortiAnalyzer to power faster, smarter operations, FortiGuard AI-powered Security Services, and Fortinet Secure Networking for AI-powered threat protection and automation-driven network management.
“Organizations like Tepper Sports & Entertainment are modernizing their infrastructure to meet rising security demands without adding operational overhead. By leveraging Fortinet Unified SASE and FortiGuard AI-powered Security Services, TSE can protect users and data everywhere, from stadiums to remote locations, while simplifying management for a lean IT team. That’s the power of an integrated, AI-driven cybersecurity platform.”
-Jaime Romero, Executive Vice President, Marketing at Fortinet.
Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.
9. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 76
Workday, Inc. (NASDAQ:WDAY) is one of the 10 Trending AI Stocks on Wall Street. On August 22, RBC Capital analyst Rishi Jaluria reiterated an Outperform rating on the stock with a $340.00 price target following the company’s modest Q2 beat.
Even though the company reported a modest beat, it only reiterated subscription revenue guidance (excluding Paradox), which led to shares falling down after hours.
Nevertheless, the firm is encouraged by early artificial intelligence adoption tends and the momentum with partner network.
“Modest Top-line Beat; Mixed Guide; Workday reported a modest Q2 beat but only reiterated subscription revenue guidance (ex-Paradox), leading shares down ~4% after-hours. Q1 outperformance was roughly in-line w/ recent trends and largely driven by modest subscription revenue outperformance. cRPO topped street estimates for the third consecutive quarter, showing signs of stabilization. Management walked up FY26 operating margin guidance by 50 bps, calling for 310 bps YoY expansion. Finally, we remain encouraged by early AI adoption trends and momentum with the partner network.”
Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.
8. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 76
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Trending AI Stocks on Wall Street. On August 21, Susquehanna reiterated the stock as “Positive,” stating that it is bullish heading into Marvell Technology earnings on Aug. 28.
“Overall, we expect continued momentum for Inphi as the AI demand environment remains robust. Generally positive checks for the traditional business are perhaps an additional tailwind. Reiterating Positive and $90 PT.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $22 implies a 10.55% upside; however, the Street-high target of $28 implies an upside of 13.84%.
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
7. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 82
Intel Corporation (NASDAQ:INTC) is one of the 10 Trending AI Stocks on Wall Street. On August 21, Morgan Stanley reiterated the stock as “Equal Weight” stating that it is cautiously optimistic on Intel’s turnaround plan.
“We continue to take CEO Lip Bu Tan at his word — this will be a challenging turnaround with no quick fix, while the stock mostly reacts to quick fix narratives.”
Intel is going to be facing several challenges for a turnaround. However, the desire of a quick solution doesn’t align with the reality of Intel’s challenges.
For instance, while Intel’s microprocessor roadmap demands significant improvement, its foundry strategy has drawn skepticism from analyst Joseph Moore, who highlighted that the company has struggled with this approach over multiple decades.
Moreover, foundry customers have been assessing the limitations of Intel’s products, particularly those built on the Intel 4 node. Since older nodes like Intel 7 and Intel 10 are sold out, which are considered better value, Intel faces challenges in its current offerings.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $22 implies a 10.55% upside; however, the Street-high target of $28 implies an upside of 13.84%.
Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.
6. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 10 Trending AI Stocks on Wall Street. BofA Securities analyst Brad Sills upgraded the stock from Neutral to Buy with a price target of $240.00 (from $220.00). The firm has upgraded the stock based on improving demand trends and long-term growth prospects in AI and data services.
BofA cited several data sources that have pointed to momentum in Snowflake’s data warehouse and emerging Cortex AI and Snowpark developer businesses.
“We upgrade Snowflake to Buy from Neutral, and raise our estimates, and PO to $240 (53x CY26FCF/1.9x growth adj, from $220, 48x/1.7x), given three distinct proprietary data sources which point to momentum in Snowflake’s data warehouse and emerging Cortex AI and Snowpark developer businesses. While the stock has had a good run (+47% y/y), the shares are trading at a reasonable 1.5x CY26E FCF multiple adjusted for growth versus the large cap peer group at 1.6x.”
The firm anticipates Q2 product revenue of about $1.06 billion driven by stronger web activity trends. Channel checks further point to an improving backdrop, with customers progressively turning to Snowflake as a critical part of the AI technology stack.
Snowflake does face competition and risks stemming from its consumption-based revenue model, but the growing $155 billion addressable AI software market highlights a key opportunity for the company.
“While we believe that Q2 earnings (8/27) will be a catalyst for the stock given multiple positive data points outlined below, our call is for outperformance over the long term given incremental traction with products addressing a significant larger addressable AI market for software of $155bn.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
5. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 103
Datadog, Inc. (NASDAQ:DDOG) is one of the 10 Trending AI Stocks on Wall Street. On August 20, the company announced that it is now ‘In Process’ for GovRAMP High Authorization, a rigorous, government-mandated security compliance framework for cloud services used by governments.
The designation will allow Datadog for Government to work toward authorization to support mission-critical workloads and sensitive data in regulated environments. This will allow state, local and education (SLED) IT teams, as well as their vendor partners, to speed up digital transformation with increased confidence and security.
“This status reflects our continued investment in helping the public sector strengthen operational resilience and improve cost-efficiency. Observability is foundational to delivering secure, high-performing digital services. With Datadog for Government now ‘In Process’ for GovRAMP High, we’re enabling agencies to gain end-to-end visibility, reduce downtime and make smarter use of their IT resources.”
– Ryan Gault, Regional Director, SLED East at Datadog.
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
4. 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 August 21, Goldman Sachs reiterated the stock as “Neutral” stating that it is cautious on Tesla’s robotaxi launch.
“For Tesla specifically, we think it is a positive that Tesla has begun robotaxi operations which puts it on the path to addressing a large market (we estimate that the U.S. robotaxi market will be $7 bn in 2030…)”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $329 implies a 2.39% upside; however, the Street-high target of $500 implies an upside of 48.34%.
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
3. 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 August 20, Citizens JMP analyst Patrick Walravens reiterated a Market Outperform rating on the stock with a $315.00 price target.
The firm came away bullish on Oracle after collecting several positive data points from previous employees, CEOs, etc.
One of the previous employees cite Oracle doing “very well” with meaningful case studies leveraging their platforms well. A GPU reseller believes that Oracle has really found its place in the AI world, while another employee believes that Oracle has the potential to be the next trillion-dollar company.
“We have collected eight positive data points on Oracle. First, the CEO of a private software company and previous Oracle employee commented, “As a company they are doing very well… human capital when I was there, we were the largest revenue stream of apps and I think that’s continued forward. I see a number of good case studies that are meaningful, that are leveraging their platforms well. All very operational.” Second, when we asked a Fortune 50 company if their spend on Oracle would be up, down, or flat, they commented up because “we are always buying more.” Third, the CEO of a cloud computing company commented, “the demand is definitely there… this year, the constraint is data center capacity. Two years ago, it was chips.” Fourth, a GPU reseller commented, “Oracle… really has found its niche in this AI world… they are setting up some really sophisticated environments where one could argue they have the best GPU clusters in the world now that can be a debate but they are in the conversation.” Fifth, at the Equinix analyst day on June 25, CEO Adaire Fox-Martin commented, “I don’t think we have a demand issue. It’s more a supply issue in terms of the capacity that’s available to us today to serve all of our customers as that would wish and want to be served… Nevertheless, it has been very clear to us that over the past period of time, the short period of time, two or so years, the customers ask of us what has changed. It’s changed in terms of density, and it’s also changed in terms of megawatt size and scale.” Sixth, a separate CEO of a private software company and previous Oracle employee commented, “They could be the next trillion-dollar company, it’s only a matter of time.” Seventh, an employee from a Neocloud company who had a prior relationship with Oracle commented, “Oracle’s amazing… they have built their cloud service that’s only for this 2.0 era and they aren’t worried about the 1.0 era that tangles AWS and Azure in this web.” Eighth, we note the company was granted a $30B award from OpenAI as a part of the Stargate project on June 30.”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 Trending AI Stocks on Wall Street. On August 22, Alphabet’s Google announced a new, comprehensive ‘Gemini for Government’ offering in partnership with the General Services Administration (GSA) and in support of the next phase of the GSA’s OneGov Strategy and President Trump’s AI Action Plan.
Under the partnership, Google will be offering its Gemini artificial intelligence tools to US federal agencies practically free. “Gemini for Government,” a suite of AI and cloud computing services, will accelerate technology adoption across the US government.
“Gemini for Government gives federal agencies access to our full stack approach to AI innovation. So they can deliver on their important missions.”
-Google chief executive Sundar Pichai.
AI tools that are being provided to the government include generation of video, images, or ideas as well as digital “agents” that can perform complex tasks. US agencies will have to pay less than a dollar for the AI tools, the report noted.
“Federal agencies can now significantly transform their operations by using the tools in Gemini for Government.”
-GSA acting administrator Michael Rigas.
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 August 20, Cantor Fitzgerald analyst Deepak Mathivanan reiterated an Overweight rating on the stock with a $920.00 price target. The rating affirmation highlights growth in Meta’s Reels feature across its platforms.
Based on a recent filing by META for its defense in the FTC Antitrust case, Reels as a percentage of total time spent on “FB and IG has increased by 25-pts and 35-pts, respectively, between 2023-25E.”
Moreover, the daily time spent per daily active user on Reels has grown estimatedly threefold on Facebook and fourfold on Instagram. This has contributed majorly to overall engagement increases across Meta’s platforms.
Meanwhile, under or unmonetized surfaces faced the sharpest decline, helping Meta attain healthy impression growth for its advertising business.
“3) Under- or unmonetized surfaces, such as profile views, groups, photos, etc., saw the sharpest decline in time spent (both on % and # basis) – which likely helped META achieve healthy impression growth. In FY22, FB feed monetized at the highest rate on a per-minute basis, ahead of IG Stories and IG Feed, and ~5x that of Reels (Exhibit 5). 5) Lastly, based on recent commentary from META on monetization, we estimate that Reels (FB and IG) likely represents ~45% of US ad revenues in FY25E.”
The disclosures are a testament to META’s successful efforts over the last three years, with trends anticipated to continue as the company integrates advanced AI models “further into its surfaces.”
“These disclosures point to META’s successful efforts over the last three years to increase engagement on commercial surfaces, in addition to driving monetization higher. As META integrates advanced AI models with reasoning capabilities further into its surfaces, we see plenty of runway for these trends to continue. META remains our favorite megacap stock.”
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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