Chinese AI startup DeepSeek continues to draw attention in the tech world. Only recently has a senior US official alleged that DeepSeek is aiding China’s military and intelligence operations. According to a Reuters report, the firm sought to use Southeast Asian shell companies to access high-end semiconductors, which cannot be shipped to China under U.S. rules.
These conclusions have, in turn, led the US to firmly believe that DeepSeek may have overstated its abilities and relied heavily on US technology.
“We understand that DeepSeek has willingly provided and will likely continue to provide support to China’s military and intelligence operations. This effort goes above and beyond open-source access to DeepSeek’s AI models.”
-A senior State Department official told Reuters in an interview.
DeepSeek has also been alleged to have shared user information and statistics with Beijing’s surveillance apparatus. The official also stated how the AI startup may have access to “large volumes” of U.S. firm Nvidia’s H100 chips. Since 2022, these chips have been under U.S. export restrictions to keep China from advancing its military capabilities or leaping ahead in the AI race.
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. 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 Right Now. One of the biggest analyst calls on Tuesday, June 24, was for Snowflake stock. Morgan Stanley upgraded the cloud software maker to “Overweight” from “Equal Weight” and increased its price target by $62 to $262, a 22% upside from Monday’s close.
The rating change seems justified since the stock has outperformed the broader market in 2025. Moreover, the analysts said in a research note how Snowflake has become a “better executing and faster innovating company” under its new CEO, Sridhar Ramaswamy.
“After several years of sharply decelerating growth and mounting investor concerns on its positioning for AI/ML, Snowflake’s secular growth prospects have improved under the leadership of CEO Sridhar Ramaswamy… While it is still early in AI/ML and in the application market, infusing AI-based innovation in the core coupled with a rising priority for customers to modernize their data infrastructure as a necessary step to execute on their AI initiatives has resulted into a stabilization in the core data warehousing business.”
-Analyst Sanjit Singh
Singh further stated how AI will boost growth in the core data warehousing business, with market expansion into both data engineering and AI offering a compound annual growth rate of at least 20% through 2030. Other catalysts paving the way for gains include new customer growth and an improving AI portfolio.
“We have identified large customers with potential six-figure AI workloads on Snowflake, proving out the product-market fit and making us more confident that Snowflake can hit reported targets of ~$100 million AI run rate by year end, setting up this part of the business to contribute meaningfully in FY27 and beyond.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 23, Analyst Ben Reitzes from Melius Research upgraded shares of AI stock to “Buy” and raised his price target by $65 to $175. Reitzes believes AMD stock can surge 36.5%.
“Many things have changed for the better since the beginning of the year. If we are right, the stock has a lot more to go, despite missing the initial move off the bottom.”
The firm has cited growing opportunities tied to graphics processing units for 2026 to 2028, pointing to “a sustainable surge in inferencing,” which analysts believe has been much bigger of a business than initially expected.
AMD’s platform appears to be increasingly attractive for hyperscalers and sovereigns.
“We have increased conviction that investors will gain more confidence in GPU momentum over the next year, which means we could be just in the middle of a historic run in the stock.”
The firm anticipates continued growth in AMD’s artificial intelligence-related business segments, projecting that its EPS may “top $8 within 2 years.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
8. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 23, Barclays analyst Dan Levy reiterated an “Equal Weight” rating on the stock with a $275.00 price target. The firm quoted Tesla’s robotaxi service debut held in Austin to be “rather uneventful with no major issues.”
“Tesla’s Robotaxi launch in Austin, Texas was rather uneventful with no major issues, and in our opinion largely inline with expectations. Tesla ran a small driverless fleet in a geofenced area, with access only given to a limited number of users.
Yet zooming out, we believe the launch is a matter of perspective. Bulls will point to yesterday’s event as the start of a new era for Tesla, one which bulls and believers have been awaiting for a long time. They see the tech working well with a clear path of scaling, and point to Tesla now generating revenue on driverless rides as a critical milestone. Bulls will point to yesterday’s event as just the beginning of an exciting path of growth.
We appreciate this view, and believe this further reinforces that Robotaxi/AV remains front and center for the stock…with fundamentals seemingly pushed to the side for now (albeit we believe fundamentals don’t matter until they matter). But we believe the much better question ahead is on the path of scaling, which we believe will be long, and we caution against over optimism.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
7. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 111
Adobe Inc. (NASDAQ:ADBE) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 23, Citizens JMP analyst Patrick Walravens reiterated a “Market Perform” rating on the stock without a price target.
“We maintain our Market Perform rating on Adobe Systems, Inc. after privately held competitor Canva announced its intent to acquire MagicBrief, “an AI-powered ad platform,” and after the stock has fallen 15% year to date versus an increase of 1% for the Russell 3000.
MagicBrief is an AI-powered platform that “makes it easier for marketers to unlock, understand, and respond to the content strategies, formats, and messages that perform best.” Industry sources have commented that the acquisition is “interesting because Canva’s challenge is to not make the product bloated with features,” with Canva’s success relying on its ability to “‘Canva-ize’ it and make it easy for anyone to pick it up and go.”
The firm believes that Adobe is fairly valued, as it currently trades at CY26E EV/FCF and EV/revenue multiples of 16x and 6.3x, respectively.
Some key risks facing the company include failure to innovate, issues relating to the development and use of artificial intelligence, and failing to realize the anticipated benefits of its acquisitions.
6. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 145
Uber Technologies, Inc. (NYSE:UBER) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 23, Citizens JMP analyst Andrew Boone reiterated a “Market Perform” rating on the stock based on limited near-term impact from Waymo’s independent expansion.
Analysts are incrementally positive on Uber shares despite a significant slowdown in growth in San Francisco, and mileage growth falling behind supply growth. This slowdown reflects deteriorating quarter-over-quarter utilization of Waymo vehicles.
Despite the challenges in utilization, what makes the firm positive on the shares is its estimate that Waymo One currently maintains positive unit-level gross profit margins of approximately 18%.
It is also expected that Waymo will continue to launch its Waymo One service in new markets independently instead of partnering with Uber. This, the firm believes, will help it to enhance its direct-to-consumer relationships, that was a success in endeavours such as Uber Eats and advertising.
5. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 24, HSBC upgraded the stock to “Buy” from hold with a price target of $400, up from $240. The firm said it is bullish on ASIC, the company’s customer-integrated circuit chips. The stock is an attractive buying opportunity despite its rally this year.
The firm noted how it was previously less bullish on the stock as it was waiting for better visibility into the Application-Specific Integrated Circuit customer pipeline and because of concerns about Apple (AAPL) share loss in the wireless segment.
However, the tables have turned, and the firm is now positive on the stock. This is because it believes the company’s ASIC revenues will significantly beat market expectations from better ASIC project visibility as well as pricing power. The firm further noted how it believes Broadcom’s ASIC revenue potential for FY26-FY27 is still undervalued due to increasing hyperscaler AI server capex allocation toward ASIC projects.
“However, we turn positive on Broadcom as we now believe its ASIC [application-specific integrated Circuit] revenues will significantly beat market expectations from better ASIC project visibility as well as ASP pricing power.”
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 24, Bank of America Securities analyst Wamsi Mohan maintained a “Buy” rating on the stock with a $235.00 price target. Mohan’s rating affirmation comes from Apple’s potential strategic moves in the artificial intelligence space.
In particular, there is a possibility of a deal with Perplexity AI, a company recognized for its advanced AI search and answering capabilities. The deal, if finalized, could enhance Apple’s AI offerings, which are currently under significant investor scrutiny.
According to Mohan, the Perplexity deal could help improve Siri and reduce reliance on Google as a default search engine, positioning Apple as a leader in AI at the edge, and also pavethe way for new product and market opportunities.
“Perplexity AI could address some of key issues including quick access to a voice assistant (better than Siri) and could be a hedge to the risk of having Google as a default search engine”.
The acquisition or partnership with Perplexity AI could provide Apple with access to top-tier AI talent and expertise. This could in turn, allow for product synergies that could be monetized through hardware and services.
The firm did note risks such as integration challenges and impacts on existing partnerships. However, positive developments in AI initiatives are anticipated to boost Apple’s stock performance.
Apple is a technology company known for its consumer electronics, particularly the iPhones and MacBooks.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Trending AI Stocks on Wall Street Right Now. One of the biggest analyst calls on Monday, June 23, was for Nvidia Corporation. Redburn reiterated the stock as “Buy,” stating that said company remains extremely well positioned ahead of its next earnings report on August 27.
“Nvidia reports July quarter earnings on 27 August, which should confirm rising networking attach rates, a smooth transition to Blackwell Ultra B300s and sustained further improvement in AI model capability and therefore AI capex investment.”
In other news, Nvidia stock was edging down in Monday’s premarket amid geopolitical and trade tensions. While big tech companies may be continuing to invest in artificial intelligence, benefiting stocks such as Nvidia, they may not rally any further until there is some clarity regarding the conflict in the Middle East and tariff negotiations.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 24, Citi reiterated the stock as “Buy” and raised its price target on the stock to $803 per share from $690. According to the firm, big-name internet stocks such as Meta are a solid pick for investors despite search traffic declines and the rise of artificial-intelligence-powered competitors.
“On META (Top Pick, TP to $803), checks highlight greater conversion rates on continued engagement strength.”
The rating follows a series of meetings and panels related to the online-advertising ecosystem at the Cannes Lions Festival last week.
“While the broader macro continues to be challenged and yes, advertisers remain cautious, our conversations with marketers, brands, agencies, and platforms at Cannes suggests budgets are not being cut. We emerge from Cannes incrementally positive on the broader online advertising environment.”
The firm highlighted how this is good news for Meta, having announced a series of ad products at the festival. The analysts particularly pointed to the introduction of ads on WhatsApp as well as the extended testing of Business AI agents across ad formats, amongst others.
“A consistent theme across our meetings as it relates to META was that it was among the best platform to target specific audiences/users, find the variations to drive conversions, and the platform doing so across formats,” Citi’s team said.
Meta Platforms, Inc. (NASDAQ:META) is a global technology company.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Trending AI Stocks on Wall Street Right Now. On June 23, Truist Securities analyst Joel P. Fishbein Jr reiterated a Buy rating on the stock with a $600.00 price target. According to the firm, Microsoft has been making significant moves to maintain its early lead in the enterprise AI race.
The company is a key beneficiary of AI adoption, particularly backed by its partnership with OpenAI.
Fishbein believes that the company’s advantage lies in both its infrastructure layer in the Azure cloud computing business and the application layer with its Copilots. As such, Microsoft may pursue several initiatives that will help it succeed in the AI space in both the near and long term.
As these initiatives translate into financial gains, they will undoubtedly push Microsoft shares higher.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks Getting Wall Street’s Attention and 10 AI Stocks in the Spotlight.
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