As the global race toward artificial intelligence intensifies, another country pushing forward is United Kingdom. A report from CNBC has confirmed that Nvidia and OpenAI are in discussions about backing a major investment in the country to boost its artificial intelligence infrastructure.
The deal, expected to support data center development, may ultimately be worth billions of dollars. Sources have revealed that the companies are still working through various processes at the moment with Nvidia and cloud computing firm Nscale, but an investment agreement hasn’t been finalized yet.
Previously, Jensen Huang noted that U.K. is an “incredible place to invest” and that his multitrillion-dollar chipmaker would boost investment in the country.
“The U.K. is in a Goldilocks circumstance,” noted Huang at the time in a panel discussion with British Prime Minister Keir Starmer.
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.
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. Freshworks Inc. (NASDAQ:FRSH)
Number of Hedge Fund Holders: 35
Freshworks Inc. (NASDAQ:FRSH) is one of the 10 Trending AI Stocks on Wall Street. On September 12, Cantor Fitzgerald analyst Matthew VanVliet reiterated an Overweight rating on the stock with a $20.00 price target. The rating affirmation follows the company’s investors day in San Francisco.
The company has laid out a three-year growth plan projecting $1.3b of ARR in 2028, accelerating revenue growth from 2026-2028, and achieving the rule of 45.
The market is skeptical about Freshworks reaching these targets due to AI-related disruptions, but analysts have come away positive about the company’s ability to sustain 20%+ annual growth over the next three years.
“We attended FRSH’s Investor Day in SF. Mgmt provided a three-year growth framework, which calls for $1.3b of ARR in 2028, accelerating revenue growth from 2026-2028, and hitting a Rule of 45. While we think the market remains skeptical of FRSH’s ability to hit these growth targets, given AI disruption-related fears, we came away from the event reassured in EX’s ability to drive 20%+ growth over the next three years. This embedded skepticism presents an attractive entry point for the stock, in our opinion, with shares trading at just 3x and 15x our 2026 revenue and FCF estimates. With the building blocks for durable ~mid-teens growth and strong margin and FCF improvements, we reiterate our Overweight rating and $20 PT, which implies 5x and 23x our 2026 revenue and FCF estimates.”
Freshworks Inc. is a software development company that provides software-as-a-service products.
9. F5 Inc. (NASDAQ:FFIV)
Number of Hedge Fund Holders: 37
F5 Inc. (NASDAQ:FFIV) is one of the 10 Trending AI Stocks on Wall Street. On September 11, Raymond James analyst Simon Leopold reiterated a Market Perform rating on the stock.
The firm reiterated its rating, viewing the acquisition of CalypsoAI as a positive development that adds to the company’s suite of advanced security solutions.
“We see the acquisition as a positive that enhances F5’s leading suite of advanced security solutions. CalypsoAI is consistent with the theme of F5’s most recent acquisitions which have all been security focused (acquired Mantis Networks in August, Insight Engines in June, and LeakSignal in March). The transaction value is relatively modest compared to some of its acquisitions (Shape Security for ~$1.02B and NGINX for $670M), and F5 has sufficient cash flow to complete the deal while continuing to buy back stock. Although the acquisition is expected to be immaterial to revenue and operating results, we believe it enhances F5’s security platform and makes it incrementally attractive to the growing number of organizations that are now implementing their GenAI and LLM initiatives.”
F5 Inc. is a multi-cloud application delivery and security solutions provider that provides networking, unified, app management, and security solutions.
8. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 74
Eaton Corporation plc (NYSE:ETN) is one of the 10 Trending AI Stocks on Wall Street. On September 12, BNP Paribas Exane analyst Andrew Buscaglia reiterated an Outperform rating on the stock with a $413.00 price target.
According to the analysts, Oracle’s remarkable backlog demonstrates how big the AI-driven growth opportunity is. A similar surge is anticipated for Eaton in its order backlog as customers spend more on equipment needed to power AI data centers.
“We view Oracle’s backlog, supported by multi-year contracts, as a leading indicator of demand for ETN, and believe it implies a sustained opportunity through 2030 as AI data centers are installed and powered in perpetuity. ETN has underperformed ytd (up ~9% vs S&P 500 up 12%), but we expect valuation to begin to reflect order growth potential in coming quarters. We reiterate our Outperform. Given Oracle’s inflection, we revisited our model and conclude our DC revenue CAGR of >20% through 2030 is achievable. Our Bull Case (35%) is strengthened, while our Bear Case (~11%) seems more unlikely. ETN trades at a P/E of 26x, just a slight premium to peers at 24.5x, although we expect the multiple to re-rate higher as AI-workload DC orders accelerate and backlog inflects.”
Eaton Corporation plc (NYSE:ETN) is a global power management company offering electrical, aerospace, vehicle, and eMobility solutions.
7. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 81
Arista Networks Inc (NYSE:ANET) is one of the 10 Trending AI Stocks on Wall Street. On September 12, Goldman Sachs analyst Hendi Susanto raised the price target on the stock to $175.00 (from $155.00) while maintaining a Buy rating. The price target follows the company’s analyst day held on September 11 in Santa Clara, California.
The analyst day highlighted a new long-term financial model with 20% revenue growth expected in 2026 and a mid-teens CAGR from 2026-29. Discussing this, the firm said that it is confident about Arista’s market position as a best-of-breed networking vendor, reinforced by its EOS software which offers superior performance, efficiency, and reliability.
“We attended ANET’s 2025 analyst day on Thursday, September 11th in Santa Clara, California where the company updated its financial framework (2026 outlook, new-long term financial model) and elaborated on key strategic initiatives including investments in its campus portfolio and go-to-market, as well as data center initiatives including bluebox and scale up Ethernet. We are encouraged by ANET’s above-consensus guidance for 20% revenue growth in 2026 and expectations to grow at a mid-teens% 2026-29 CAGR, particularly given both (a) ANET’s demonstrated history of raising its guidance over time, and (b) its strengthened market position as a best-of-breed networking vendor, underpinned by its proprietary EOS which can offer customers greater network performance through simpler management, improved efficiency, and improved reliability. Although ANET’s EBIT margin outlook for 2026E and 2029E are below consensus, we believe this reflects the company’s historical conservatism, particularly given that ANET should realize operating leverage from its strong topline growth despite likely investments in growth initiatives. Ultimately, we gain conviction that Arista is a key beneficiary of AI infrastructure spending and should see tailwinds from (1) the growing adoption of Ethernet in scale-out backend by hyperscalers and AI clouds; (2) the emerging use of Ethernet in scale-up (starting in 2027); and (3) the diversification of compute to custom ASIC and a broader portfolio of merchant silicon. Customer testimonials (which were first announced at our conference earlier this week and included OpenAI, Anthropic, and AMD), as well as a willingness to offer bluebox solutions are further evidence of the company’s strong competitive position and its importance in the AI ecosystem.”
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.
6. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 104
Adobe Inc. (NASDAQ:ADBE) is one of the 10 Trending AI Stocks on Wall Street. On September 12, Goldman Sachs analyst Kash Rangan reiterated a Buy rating on the stock with a $570.00 price target.
Adobe shares rose after hours on strong revenue, margin, and cash flow results coupled with modest revenue guidance. While investors have been questioning the durability of double-digit growth for Adobe, analysts believe that AI is a key driver that can invigorate Digital Media ARR.
They noted that AI-first ARR has already surpassed Adobe’s $250M target for F4Q25, ahead of schedule. If this pace of growth sustains, AI could stabilize and even speed up growth in 2026. In turn, new revenue streams may also be created which will allow Adobe to sell premium products.
Overall, artificial intelligence is becoming a major driver of Adobe’s long-term growth.
“The stock is indicated +3% AH with outperformance across DM Revenue (+2%), DX Revenue (+1%), OpM (+80bps), and FCFM (+40bps), coupled with a modest upward revision to F25E DM Revenue growth guidance from 10% to 11%. While investors have questioned the durability of Adobe’s double-digit growth, we see an encouraging path forward: if AI can enable an inflection in DM ARR growth, the growth engine for the overall business should remain intact. Early proof points of AI momentum leave us constructive. Specifically, AI-first ARR has already surpassed Adobe’s $250M target initially set for F4Q25, giving us conviction that the company can exceed its 11.3% F25E DM ARR growth guidance. Should this momentum extend into F26E, AI has the potential not only to stabilize DM ARR growth but also to rejuvenate it – turning around the current deceleration trajectory into modest reacceleration. Moreover, compounding AI momentum should unlock incremental consumption-based revenue streams that are additive to topline growth, while also enabling upsell momentum into higher-priced SKUs (i.e., CC Pro) and cross-sell opportunities across the broader product portfolio. All in, we believe AI is positioning Adobe to realize an inflection in the overall business and compounding growth longer-term. We see the upcoming conference Adobe MAX and Investor Meeting (10/28) as a potential catalyst, awaiting to garner greater clarity on both AI and the company’s broader long-term framework.”
Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.
5. 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 September 10, Melius analyst Ben Reitzes raised the price target on the stock to $370.00 (from $270.00) while maintaining a Buy rating.
The firm anticipates accelerating long-term revenue growth for Oracle, largely driven by a surge in AI inferencing capabilities. It also expanded Oracle’s valuation multiple to reflect higher growth.
At the same time, analysts have noted that free cash flow has turned negative and will likely hurt for a while due to heavy capex.
“Bottom Line: We raise our target and reiterate our Buy rating for ORCL 37% to $370 from $270 reflecting accelerating revenue growth long-term, helped by a surge in inferencing. We also expand our multiple 4 turns to reflect the higher growth. This growth comes at a price as Oracle’s free cash flow has gone negative and should be hurting for a while to fund the growth – but it doesn’t seem to be an issue for now. Capex commentary bodes very well for our other Buy-rated names – Nvidia, Broadcom, AMD and especially Arista Networks, who all have exposure to Oracle and Stargate, and the inferencing boom. AI Cloud trends overall should benefit Microsoft (Buy), Google (Hold) and CoreWeave (Hold).”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
4. 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 September 10, TD Cowen analyst Krish Sankar reiterated a Buy rating and $275.00 price target on the stock following Apple’s iPhone 17 launch event.
According to the analyst, core iPhone updates were expected but there were pleasant surprises as well. These include a new N1 WiFi/BT chip across the 17 lineup, new 17 Pro chassis design to handle AI workloads, and blended ASP increase due to higher storage pricing.
Moreover, they believe that the new hypertension-focused health features in the Watch Series 11 and live AI translation for the AirPods Pro may spur consumer interest in the upcoming holiday season.
“The iPhone 17 launch event was largely in line with the new Air model (5.6mm thin, Cseries 5G modem). Unexpected announcements included new N1 WiFi/BT chip for all 17 models, and triple 48MP cameras and vapor chamber cooling for Pro models. 17 pricing also suggests blended ASP up 3-4% on higher GB storage. New AirPods Pro 3 live AI translations and health features could spur upgrade interest.
New features for the iPhone 17 were largely in line with expectations as the new 17 Air features an AAPL designed 5G modem and very thin form factor, the A19 Pro chip remains on TSM’s 3nm process, and AI performance improvements appear evolutionary. Still, we were neatly surprised by the new N1 WiFi/BT chip featured across the 17 lineup, new 17 Pro chassis design that can handle higher thermal limits for AI workloads, and pricing that represents a 3-4% blended ASP increase. New hypertension-focused health features in the Watch Series 11 and live AI translation for the AirPods Pro 3 could drive consumer interest in the upcoming holiday season.”
Apple is a technology company known for its consumer electronics, software, and services.
3. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Trending AI Stocks on Wall Street. On September 11, Citi analysts raised their price target on the stock to $175 from $150 and reiterated their “Buy” rating.
The rating affirmation comes after an increase in demand for dynamic random-access memory (DRAM) chips and the company’s artificial intelligence exposure.
The analysts noted that they believe that the “continued memory upturn is being driven by limited production and better than expected demand, particularly from the data center end market.”
Micron’s fiscal fourth quarter earnings report is scheduled for September 23. The firm anticipates adjusted earnings per share of $2.62 and revenue of $11.20 billion, in line with overall analysts’ estimates.
However, guidance is projected to be above expectations driven by higher DRAM and NAND sales and pricing.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
2. 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 September 15, Wedbush reiterated the stock as “Outperform” stating that Tesla CEO Elon Musk is a “wartime CEO.”
According to analyst Dan Ives, the company is in a prime position to emerge as a clear leader in the autonomous market opportunity, and that robotaxis are set to scale to 30 to 35 cities in the U.S. over the next year.
Ives and his team have deemed the new pay package for Elon Musk as crucial, and that Musk, being CEO, is the most important asset to Tesla (TSLA).
“We believe Tesla and Musk are heading into a very important chapter of their growth story as the AI Revolution takes hold and the Robotaxi opportunity is now a reality on the doorstep.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Trending AI Stocks on Wall Street. On September 10, Morgan Stanley analyst Brian Nowak reiterated an Overweight rating on the stock with a $300.00 price target. According to the analysts, Amazon’s push into the fresh grocery market will unlock sustained faster growth.
“We see AMZN’s push into the ~$600bn fresh grocery market unlocking durably faster growth (every 1% share capture is ~120bp upside to US GMV). With the logistics network built, higher fresh merch margins and min $25 baskets, we detail why fresh will also likely be profitable and EBIT dollar upside.”
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 AI Stocks on Wall Street’s Radar
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
