U.S. chipmaker Nvidia helped China’s DeepSeek improve artificial intelligence models that were later used by the Chinese military, said chairman of a U.S. House of Representatives committee in a letter seen by Reuters.
Chinese AI startup DeepSeek wreaked havoc in the tech world after unveiling a cheaper and more efficient AI model, known as the R1 reasoning model. The introduction of this Chinese counterpart shook the Western world amid fears that China would catch up with the US in artificial intelligence despite restrictions.
Writing to U.S. Commerce Secretary Howard Lutnick, Representative John Moolenaar, a Michigan Republican who leads the House Select Committee on China, said committee-obtained Nvidia documents showed the breakthrough came after extensive technical assistance from Nvidia.
“According to NVIDIA records, NVIDIA technology development personnel helped DeepSeek achieve major training efficiency gains through an ‘optimized co-design of algorithms, frameworks, and hardware,’ with internal reporting boasting that ‘DeepSeek-V3 requires only 2.788M H800 GPU hours for its full training’ – less than what U.S. developers typically require for frontier-scale models.”
-Moolenaar wrote in the letter.
These documents include Nvidia activities from 2024, when there was no public indication that DeepSeek’s technology was being used by China’s military.
“Nvidia treated DeepSeek accordingly – as a legitimate commercial partner deserving of standard technical support,” Moolenaar wrote.
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 Q3 2025.
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11. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 22
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the 11 Buzzing AI Stocks on Wall Street. On January 28, the company announced the expansion of its relationship with leading burger chain Five Guys, broadening the deployment of its AI-powered ordering agents. The extension follows SoundHound’s AI technology having already processed over one million customer interactions at Five Guys locations.
Five Guys offer an AI-powered ordering experience across hundreds of locations, with its goal to serve customers the way they expect to be served. AI technology can do this as it improves both customer service and operational efficiency.
Through SoundHound’s voice AI technology, the burger chain is able to answer 100% of incoming orders – even during peak hours. This helps eliminate missed order, and ensure guests can place an order quickly and accurately.
The technology is designed to comprehend natural speech patterns and can process menu orders, answer questions about specials and promotions, and deliver any information needed about store hours, parking, and even allergens.
“Five Guys is a forward-thinking partner that continues to raise the bar on what the ordering experience can be,” said James Hom, Chief Product Officer at SoundHound AI. “We’re proud to support their restaurants with solutions that enhance both the guest experience and day-to-day operations for staff.”
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 62
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 11 Buzzing AI Stocks on Wall Street. On January 28, HSBC analyst Abhishek Shukla lowered the price target on the stock to $41.00 (from $44.00) while maintaining a Reduce rating. The firm believes that CoreWeave’s ongoing funding needs and high cost of capital may impact long-term productivity.
The firm has increased its interest cost estimates for CoreWeave due to a 250 basis points widening in the company’s credit default spread (CDS) spreads by the third quarter of 2025. This implies that the company will need to pay more than 10% yield for raising fresh debts. In 3Q25, CoreWeave was able to raise fresh debt at about 9% effective interest rate for the company, an assumption which the firm no longer views as sustainable.
HSBC noted that while the company’s January 2026 $2 billion equity from Nvidia and its December issuance of 1.75% convertible notes may help put a lid on near-term interest costs, CRWV still likely faces a liquidity shortfall of USD 8.9 billion in 2026e.
As a result, the firm believes that the company will likely need to borrow more funds at current higher yields, in turn increasing its effective cost of debt.
“Consensus continues to assume that the effective interest rate on debt for CoreWeave will dip to 7.7% in 2029e from 9.9% in 3Q25. We lower our 2027-30e non GAAP EPS estimates by 12-33% (on a very low base) due to higher interest expense. 2026e non-GAAP EPS, however, rises to USD0.15 (from negative USD0.06) on lower debt. Our 2027-30e non-GAAP EPS estimates remain 58-92% below consensus.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 64
Bloom Energy Corporation (NYSE:BE) is one of the 11 Buzzing AI Stocks on Wall Street. On January 28, Barclays initiated coverage on the stock with an Equal Weight rating and a price target of $153. The firm is optimistic on Bloom Energy’s fundamentals but sees growth priced in at current levels.
In particular, its solid-oxide fuel cells have emerged as an attractive alternative for on-site generation. Barclays noted how the demand for BE’s solid oxide fuel cell (SOFC) technology is anticipated to accelerate in the next couple of years.
With time to power now a top priority, BE has shown how it can bring on power faster than anyone. This has been demonstrated by its commitment to Oracle to do so within 90 days.
Moreover, costs and average selling prices continue to fall, which is narrowing the capex gap between Bloom’s SOFC technology and other alternatives such as gas engines and gas turbines. In addition, the technology continues to gain traction through contracts with large players, including American Electric Power’s decision to exercise its 900MW option.
Barclays also highlighted the transition to 800 Volt Direct Current (VDC), where BE’s OFC is well-positioned due to its native Direct Current power generation. However, the firm noted how all of this is reflected in the current valuation.
“However, this is reflected in the current valuation, in our view, which implies that BE should approach 5 GW of deliveries by the end of the decade, or roughly its 2025 volumes.”
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 82
Intel Corporation (NASDAQ:INTC) is one of the 11 Buzzing AI Stocks on Wall Street. On January 28, Tigress Financial Partners analyst Ivan Feinseth raised the price target on the stock to $66.00 while maintaining a “Buy” rating. The firm sees AI Data Center tailwinds, 18A execution, and AI PC refresh driving a multi-year reacceleration.
“We reiterate our Buy rating and increase our 12-month target price to $66 as AI Data Center
tailwinds, 18A execution, and AI PC refresh further advance INTC’s turnaround into an
increasingly compelling multi-year upside story, and the recent pullback creates a significant
buying opportunity.”
Tigress Financial noted how Intel’s Q4 2025 results have demonstrated that the company is gaining real traction, supported by factors including AI Data Center momentum, 18A progress, and strong cash generation. Accelerating AI Compute, Foundry, and U.S. policy tailwinds have been deemed as part of “an increasingly compelling multi-year upside story.”
The firm also highlighted several growth drivers for Intel, including scaling AI compute capabilities, monetizing 18A/14A manufacturing, and expansion of the company’s role as a foundry and ecosystem partner.
Tigress noted how Intel continues to leverage its “robust balance sheet and free cash flow to deliver shareholder value through disciplined capital allocation.”
Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells advanced semiconductors, computer products, and technologies, delivering data storage, computer, networking, and communications platforms.
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 82
ASML Holding N.V. (NASDAQ:ASML) is one of the 11 Buzzing AI Stocks on Wall Street. On January 28, TD Cowen raised its price target on the stock to EUR1,500 from EUR1,000.00 while maintaining a “Buy” rating. The firm is positive on the robust EUV momentum for ASML, pointing to robust bookings and no bottlenecks in capacity expansion.
TD Cowen noted how ASML has reported robust results, booking, and guide. Bookings came in at 13.2 billion euros ($15.8 billion) in the fourth quarter of 2025, topping analyst expectations of 6.32 billion euros. 2026 sales guidance was also ahead of estimates as AI demand continues to support the chip giant’s business.
Highlighting ASML’s performance, the firm noted how there was a lot of discussion around capacity, with ASML’s CY26 outlook ranging from +4% to +19%, tied to immersion capacity and customers’ ability to receive equipment.
The firm said that management believes they are not the bottleneck to their customers’ capacity expansion plans this year.
“ASML reported solid results, bookings & guide. While there was a lot of discussion on capacity (the wide range in CY26 outlook, +4% to +19%, tied to immersion capacity & customers’ ability to receive), mgmt believes they are not the bottleneck to their customers’ capacity expansion plans this year. We model 12% rev growth this year (EUV +29% Y/Y) & 9% Y/Y in 2027 (EUV +18% Y/Y). PT to €1500.”
6. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 89
Applied Materials, Inc. (NASDAQ:AMAT) is one of the 11 Buzzing AI Stocks on Wall Street. On January 27, Mizuho analyst Vijay Rakesh upgraded the stock from Neutral to Outperform with a price target of $370.00. The firm sees robust global WFE tailwinds for AMAT.
Being the number 2 WFE supplier, Mizuho sees AMAT benefiting from accelerating US/Taiwan/JP Capex. It expects global WFE spending to grow 13% year-over-year in 2026 and 12% in 2027, a notable acceleration from its prior forecasts.
Mizuho anticipates higher capital spending from Taiwan Semiconductor Manufacturing from 2026 to 2028, forecasting TSMC’s 2026 capex rising about 32% year on year to $54 billion and increasing further in 2027.
The firm also highlighted better-than-expected tool spending guidance from Intel and stronger demand tied to high-bandwidth memory, representing an estimated 30% of revenue. These trends are likely to support demand for AMAT’s advanced platforms used in leading-edge manufacturing
“…with Foundry/Logic ~65% of AMAT’s revenues, HIGHER CAPEX from TSMC (2330.TW), covered by Kevin Wang, Buy, TWD2,200PT with 2026–28E capex “significantly higher” than 2023–25, INTC tool capex better in 2026E, and DRAM with HBM upside at ~30% of Revs”
Mizuho further added how China is becoming less of a headwind as ex-China WFE revenues, which are around 70%, are accelerating faster.
“With SIGNIFICANT global WFE tailwinds and upside from TSMC/INTC capex spend expectations, we are UPGRADING AMAT to Outperform and take our PT to $370.”
Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.
5. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the 11 Buzzing AI Stocks on Wall Street. On January 27, JPMorgan analyst Mark Murphy reiterated an Overweight rating on the stock with a $215.00 price target. The rating affirmation follows discussions with nine partners in the ServiceNow ecosystem.
According to the firm’s channel checks, the company has been operating against a mixed operating backdrop, marked by an improving forward-looking outlook but softer recent activity particularly within the US federal segment.
Partner expectations for ServiceNow’s growth potential have moderated slightly, with several partners now modeling organic growth in the high-teens rather than sustained 20% levels.
Out of the partners surveyed, half of them reported no pausing or deferring of ServiceNow projects due to tariff/trade war situations or federal cutbacks. Mission-critical renewals, AI upgrades, and cost-reduction initiatives were still moving forward. Meanwhile, five partners reported a better business tone in the fourth quarter compared to four in the previous survey.
Predominantly, these partners pushed back on concerns that AI could lead ServiceNow customers to scale back their usage, with one partner noting that no evidence of customers reducing or abandoning deployments.
In turn, AI seems to be driving more expansion and monetization rather than displacement of existing SaaS footprints. The firm further added how ServiceNow’s cost-savings messaging is resonating with customers in the challenging environment, reinforcing its positive outlook on the stock.
ServiceNow, Inc. (NYSE:NOW) provides a platform that integrates workflows, data, and AI to coordinate how work flows across large organizations.
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 119
Salesforce, Inc. (NYSE:CRM) is one of the 11 Buzzing AI Stocks on Wall Street. On January 27, Citizens analyst Patrick Walravens reiterated a Market Outperform rating on the stock with a $405.00 price target. The firm cited strong performance of the company’s AI-powered Agentforce behind the rating affirmation.
“While Salesforce’s quarter ends on January 31st and we continue our due diligence process, we view Salesforce as an attractive opportunity for capital appreciation here for several reasons.”
Citizens noted how Agentforce continues to gain traction, with the business crossing $500 million in ARR in Q3 and increasing a whopping 330% year-over-year.
While Agentforce has been driving Salesforce’s robust execution, an even more important factor that the firm has noted is seeing existing Agentforce customers coming back to “fill the tank”, which is a reflection of customer consumption.
The firm also highlighted Salesforce’s ability to deliver Rule of 40-plus performance, which is supported by steady revenue growth and robust non-GAAP operating margins. The firm’s own checks reflect robust demand and pipeline with more enterprise use cases like Olive the AI Sous Chef for Williams Sonoma and like Pepsi.
These use cases are demonstrating massive efficiencies, in the 25-30% range. The firm further added that it likes the current management setup.
“We like the current management lineup, with Mr. Benioff’s leadership, CRO Miguel Milano’s excitement, and a higher level of operational discipline from Chief Operating and Financial Officer Robin Washington.”
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 11 Buzzing AI Stocks on Wall Street. On January 28, Stifel analyst Mark Kelley reiterated a Buy rating on the stock with a $785.00 price target. The firm highlighted Meta’s robust core performance and outlook, but flagged elevated spending as a key item to watch.
Meta’s revenues rose 24% year-over-year to $59.9 billion, topping Street expectations of $58.5 billion. Meanwhile, it delivered operating income of $24.7 billion with a 41.3% margin, in comparison to consensus estimates of $23.9 billion and a 40.9% margin.
The tech giant posted GAAP earnings per share of $8.88, exceeding Street expectations of $8.21. Moreover, Family Daily Active People reached 3.58 billion, representing a 7% year-over-year growth and aligning with analyst projections. Global ad impressions increased 18% year-over-year, ahead of consensus estimates of 12%. However, average price per ad grew 6%, below the anticipated 10%.
Looking ahead, management guided revenue between $53.5-56.5 billion, which represents 26-34% year-over-year growth and assumes a 4% foreign exchange tailwind, surpassing the consensus estimate of $51.4 billion.
Meta also projected 2026 total expenses in the range of $162-169 billion, which is a 38-44% year-over-year increase and is above consensus of $150 billion. Meanwhile, capital expenditures are anticipated to reach $115-135 billion, which is higher than analyst expectations of $111 billion.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the 11 Buzzing AI Stocks on Wall Street. On January 29, Goldman Sachs analyst Gabriela Borges lowered the price target on the stock to $600.00 (from $655.00) while maintaining a Buy rating. The price target adjustment follows Microsoft’s second-quarter earnings report.
Microsoft reported revenues of $81 billion, representing 17% year-over-year growth and topping analyst expectations by 1%. Its non-GAAP earnings per share reached $4.41, up 23% year-over-year and 5% above consensus estimates.
The company reported Azure Cloud growth of 38% in constant currency, modestly ahead of Street’s estimate of 37%. It guided third-quarter Azure growth to a range of 37-38%, compared with analyst expectations of 36%.
The firm noted that the stock’s after-hours dip was due to higher-than-expected capital expenditures of $37.5 billion, which exceeded analyst projections by 9% when including financial leases-without a commensurate uplift in Azure growth.
Overall, the firm is a buy on MSFT stock despite these concerns, arguing that Microsoft’s prioritization of compute capital expenditures for first-party applications like Copilot and internal R&D over short-term Azure revenue will ultimately reinforce its AI strategy and deliver better returns over the medium term.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 11 Buzzing AI Stocks on Wall Street. On January 27, BofA Securities analyst Justin Post lowered the price target on the stock to $286.00 (from $303.00) while maintaining a “Buy” rating. The price target cut comes ahead of the company’s February 5 earnings report.
BofA expects Amazon to report fourth-quarter revenue of $213 billion and operating income of $26.0 billion, ahead of the Street consensus of $211 billion and $24.6 billion, respectively. It believes investor expectations are around $212.5 billion for revenue and $26.0 billion for operating income.
The firm anticipates 22% year-over-year growth for Amazon Web Services (AWS), topping the Street’s 21% estimate and accelerating from 20% in the third quarter. This improvement is driven by increased capacity driving incremental sales, noting how recent management commentary indicated demand still outstrips capacity, which it views as supportive for pricing.
In North American retail, it anticipates results slightly ahead of Street projections, which currently calls for growth to decelerate 1 percentage point to 10% year-over-year. Analysis of aggregated debit and credit points to steady online spending trends.
BofA sees potential upside to Street estimates in North American, where margins are expected to expand by an estimated 50 basis points year-over-year. This expansion is driven by factors such as solid advertising trends, lower fuel costs, and ongoing inbound process improvements. It also added how first-quarter margins should benefit from layoffs implemented in the fourth quarter.
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
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