“Is there a possibility of a proliferation problem in AI? Absolutely,” said Google’s former CEO Eric Schmidt. Speaking during a fireside chat at the Sifted Summit, a CNBC report reveals that Schmidt said the risks of AI proliferation “absolutely” exists and that people can learn to do a lot of bad things with it.
“There’s evidence that you can take models, closed or open, and you can hack them to remove their guardrails. So in the course of their training, they learn a lot of things. A bad example would be they learn how to kill someone.” Schmidt said.
“All of the major companies make it impossible for those models to answer that question. Good decision. Everyone does this. They do it well, and they do it for the right reasons. There’s evidence that they can be reverse-engineered, and there are many other examples of that nature.”
According to Schmidt, there isn’t a decent “non-proliferation regime” to restrain the dangers of AI yet.
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. Penguin Solutions, Inc. (NASDAQ:PENG)
Number of Hedge Fund Holders: 25
Penguin Solutions, Inc. (NASDAQ:PENG) is one of the 10 Trending AI Stocks on Wall Street. On October 8, Citizens reiterated its Market Outperform rating on the stock with a $26.00 price target. The rating affirmation follows the company’s fiscal fourth-quarter and full-year 2025 results.
The company reported revenue of $337.9 million for the fourth quarter, slightly below the consensus estimate of $342.5 million. In particular, its Integrated Memory segment demonstrated strong performance, generating revenue of $138.3 million.
This revenue represents an increase of 44% year-over-year, outperforming consensus expectations of $124.1 million which had estimated 29% growth.
The company’s non-GAAP earnings per share were $0.43, exceeding the consensus estimate of $0.38. This is despite the slight revenue miss in the quarter.
Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI and HPC computing company engaged in the design and development of enterprise solutions worldwide.
9. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 29
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 Trending AI Stocks on Wall Street. On October 8, Evercore ISI analyst Amit Daryanani reiterated an Outperform rating on the stock with a $175.00 price target.
The firm is bullish on the stock, calling its profitability model strong based on its durable contracts, Nvidia’s backing, and long-term GPU demand.
“We think it is worth revisiting the topic of unit economics for CRWV, especially given investor concerns surrounding profitability/business model following yesterday’s Information article discussing the (low) profitability of ORCL’s GPU cloud business. Despite the capex intensity/debt financing required to deploy GPU clouds, we view CRWV’s model as durable, risk-managed, and profitable at scale even when taking high levels of depreciation expenses into account. Key considerations: 1) Multi-year Take-or-Pay/Noncancelable Contracts: CRWV sees an average 4-year duration for customer contracts (have been trending more toward 5 or more for more recent deals). 2) Built-to-Suit, Not On Spec: CRWV’s capacity is built not on spec and only developed once customer contracts are signed; the company typically receives prepayments equating to ~15–25% of TCV to fund initial capex requirements (GPUs, DC capacity). 98% of revenue is from reserved capacity. 3) NVDA MSA Provides Margin of Safety: In the event that CRWV does have unutilized capacity, NVDA is obligated to purchase the residual unsold capacity through April 2032. 4) Potential for Useful Lives > 6 Years: Management has pointed to several anecdotes/proof points that provide them with confidence they can continue to monetize GPUs well past their useful lives (Volta GPUs still in use, multi-year Hopper contracts continue to be signed, customers comfortable with signing 5–6 year Grace Blackwell contracts). Our analysis of a hypothetical ~$3.2B TCV 4-year GB200 contract resulting in ~$1B of capex, suggests that once deployed, CRWV should be able to return 40–50% incremental EBIT margins (potential for upside in EBIT margins beyond year-6 once hardware is fully depreciated) and ~70% incremental EBITDA margin. With the differences between incremental margins in our analysis and CRWV’s current mid-teens margin profile is more attributed to accelerated investments to support growth, revenue timing, and lower scale (currently). Net/net: We continue to hold a positive view on CRWV fundamentals. Maintain OP/$175 Target.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
8. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 54
Dell Technologies Inc. (NYSE:DELL) is one of the 10 Trending AI Stocks on Wall Street. On October 7, Raymond James analyst Simon Leopold reiterated an Outperform rating on the stock with a $152.00 price target. The rating affirmation follows Dell’s securities’ analyst meeting in New York.
The company reported how Dell’s AI-activity has exceeded forecasts and prompted the management to increase its sales and earnings growth targets. Even though EPS and revenue outlooks have improved, modest margins may cap valuation gains as compared to peers.
“Dell held its securities’ analyst meeting today in New York to discuss key market trends and growth drivers, while also updating its long-term targets. AI-activity has far exceeded the forecasts that Dell previously provided at its last meeting in 2023, and this trend is the primary factor driving revised higher outlook for sales and earnings growth. We believe Dell’s long-term EPS growth outlook for 15%-plus, nearly double sales growth, is good news, but investors consider the modest gross and operating margins as a basis for applying a lower stock multiple than IT/networking peers. The ISG growth target increased, while the CSG outlook remains unchanged, resulting in a total long-term revenue growth outlook which improved to 7–9% from 3–4%. Shares were initially trading up ~3% intraday, counter to the sell-on-the-news that we have observed following other tech analyst meetings, but the market has faded with Dell up 1% at the time of this writing.”
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
7. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 73
Autodesk, Inc. (NASDAQ:ADSK) is one of the 10 Trending AI Stocks on Wall Street. On October 8, Mizuho reiterated an Outperform rating on the stock with a price target of $375.00. The rating affirmation follows the company’s fiscal year 2026 Investor Day in San Francisco.
According to the firm, Autodesk management continues to maintain its expectations for operating margins to reach 41% in fiscal year 2029 on a reported basis. This is in line with its guidance provided during its third-quarter fiscal 2026 earnings call.
The company’s presentation particularly focused on connected cloud and data platform, which are designed to unlock generative AI-driven design capabilities and pave way for new monetization opportunities.
It further noted how an absence of specific revenue growth targets “will likely disappoint some investors,” but mentioned how executives did voice their optimism regarding growth opportunities and profitability improvements.
Overall, Mizuho remains optimistic about Autodesk’s AI-first design strategy as a key driver for future expansion.
Autodesk, Inc. (NASDAQ:ADSK), a multinational software corporation, leverages generative AI technology to drive innovation across the design, construction, manufacturing, and entertainment industries.
6. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 78
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 Trending AI Stocks on Wall Street. On October 9, Bernstein raised the firm’s price target on the stock to $935 from $743 and kept a Market Perform rating on the shares. The firm cited an improved 2026 outlook behind the rating affirmation.
ASML rallied over 50% in the past two months, driven by several positive industry developments. From Samsung restarting its Taylor fab, to TSMC accelerating U.S. capacity buildout, and expectations of an HBM and DRAM upcycle, this rally was well justified.
Bernstein anticipates ASML to guide for growth in 2026. An increased EUV (extreme ultraviolet lithography) demand coming from the DRAM sector is quite likely. The firm also has an upbeat outlook regarding DUV (deep ultraviolet) equipment sales to China.
It sees ASML’s China revenue falling 16% in 2026 instead of 23%, anticipating stronger demand due to China’s push for chip production and advanced fab expansion. The leading-edge buildout will likely begin in 2025 and potentially accelerate in 2026.
ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.
5. 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 October 8, HSBC analyst Frank Lee downgraded the stock from Hold to Reduce and raised its price target to $24.00 (from $21.25).
The firm believes that Intel’s rally since August is largely because of short-term investment deals and not because its performance has improved in the long run.
The company’s turnaround is dependent on fixing its foundry operations. However, it continues to face execution failures.
“A TSMC technology deal – which we think is the only one that matters – is unlikely despite potential for future investments,” analysts at HSBC noted.
The company has recently announced three major deals that drove a significant stock re-rating”
“1. SoftBank investing USD 2 billion;
- The U.S. administration investing USD 11.1 billion for a 9.9% equity stake; and
- NVIDIA investing USD 5 billion for an approximately 4% stake.
Although these deals were executed at a discount to market price, Intel’s stock has risen 55% since the first announcement in August. We expect additional deal announcements that could drive further short-term re-rating. However, we maintain that Intel’s own fabrication (fab) execution remains the key to achieving a sustainable turnaround.
Given this, we believe the recent re-rating is overdone and are downgrading Intel to Reduce from Hold.”
Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer products and technologies, delivering data storage, computer, networking, and communications platforms.
4. 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 October 8, Seaport Global Securities analyst Angie Storozynski upgraded the stock to “Buy” from Neutral.
The firm quoted rising cash flows among thermal independent power producers (IPPs) and the company’s pending acquisition of Calpine behind the stock upgrade. It noted how thermal IPP cash flows are on the rise “thanks to higher power and capacity prices, lower interest rates and no cash taxes.”
It also anticipates more DC power deal announcements, supplementary M&A and positive earnings revisions for thermal IPPs before the end of 2025.
“The Calpine merger should close within the next 30 days, we assume, and given our updated estimates for CEG + Calpine and CEG’s relative underperformance vs. its IPP peers over the last 12 months, we would want to be long CEG into its refreshed earnings update, especially if it were to coincide with another DC deal. The Calpine merger won’t qualify for bonus depreciation under the OBBB, but maintenance and growth capex (nuclear restart plus uprate) of both companies together with nuclear fuel purchases should be enough to largely shield CEG’s growing EBITDA from cash taxes. Based on our updated estimates proforma Calpine, CEG trades at 10.3x 2027 EV/EBITDA and a 7.7% 2027 FCF yield. The multiples are still rich vs. those of VST, CEG’s closest peer, but for a good reason given CEG’s size and its nuclear/gas earnings mix. We’re watching regulatory reforms of CA’s resource adequacy market, given highly elevated RA prices in Northern CA, but our model already reflects more moderate RA prices beyond 2027/2028.”
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.
3. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 10 Trending AI Stocks on Wall Street. On October 9, Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on the stock with a $1,150.00 price target.
Conversations with a large ServiceNow partner has shed light on current business conditions and trends affecting the company’s fundamentals through year-end and into 2026, leading to the firm’s assessment.
According to the firm, the partner experienced strong business activity and pipeline momentum in the third quarter. This is a reflection of robust operational performance for ServiceNow.
It did acknowledge how ServiceNow’s customer relationship management (CRM) traction remains slow against Salesforce, but noted how the former building momentum by migrating logic, workflows, and AI automation onto its platform.
Oppenheimer also observed that even though robust artificial intelligence demand is starting to slow down, the company continues to maintain strong AI positioning and pricing. It further concluded that it is “well positioned for durable growth” as a leading enterprise integration engine.
ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.
2. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the 10 Trending AI Stocks on Wall Street. On October 9, Stifel lowered the firm’s price target on the stock to $300 from $325 and kept a Buy rating on the shares. The price target downgrade comes ahead of Dreamforce, Salesforce flagship annual conference about to take place in San Francisco.
According to the analyst, shares have “failed to gain any momentum” as investors are waiting to see stronger revenue growth and clear signs of AI monetization.
As for the Dreamforce event, the firm believes that constructive commentary at the event can help to bring greater clarity to Salesforce’s AI positioning and set the course for second half earnings.
“Dreamforce will take place in San Francisco next week against a backdrop of AI disruption fears across the software group. Shares have failed to gain any momentum YTD, as investors continue to look for signs of top-line improvement and meaningful AI monetization, and we see the event as an opportunity for Salesforce to showcase Agentforce traction in its 1st year post-launch, demonstrate ‘real-life’ customer use-cases that can be delivered across the customer base, introduce new Agentforce solutions, and outline future plans for its Data Cloud offering post-INFA acquisition. While it’s difficult to see sentiment turning on a dime, we believe constructive commentary on these topics can help bring greater clarity to the company’s AI positioning and set the stage for 2H earnings. The company will host an investor event during the course of the conference as well. We maintain our Buy rating but are trimming our target price to $300.”
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
1. 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 October 9, BMO Capital raised the firm’s price target on the stock to $294 from $225 and kept an Outperform rating on the shares. Expert checks reveal how Alphabet’s AI leadership is translating into core Search and Google cloud Export strength.
The company benefits from product launches and AI integrations, enhancing incremental user value. BMO is analyzing the Ad Tech Remedies trial outcomes as a key. However, it is firm on the view that a structural breakup is unlikely.
“AI Leadership Supports Upside to Search and GCP Estimates; GOOGL’s AI leadership continues to translate into strength in core Search and GCP per expert checks, as GOOGL benefits from ongoing AI integrations and product launches, driving incremental user value. We raise 3Q25E/4Q25E Gross Revenue 1.2%/1.5%, respectively. We continue to monitor the Ad Tech Remedies trial outcomes as a key, although we maintain our view that a structural break-up is unlikely. Reiterate Outperform and Top-Pick.”’
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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