US President Donald Trump announced a 25% tariff on Wednesday on select artificial intelligence chips, according to a report from Reuters. These tariffs on AI chips, including Nvidia’s H200 AI processor and AMD’s MI325X, have been issued under a new national security order released by the White House.
The proclamation stems from a nine-month investigation under Section 232 of the Trade Expansion Act of 1962. It is applicable on advanced semiconductors meeting certain performance benchmarks and devices containing them for import duties.
The move comes as part of a broader push to boost US chip production and reduce reliance on overseas manufacturers such as Taiwan.
“The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains,” the proclamation said, highlighting how the reliance was a “significant economic and national security risk.”
In a fact sheet, The White House noted that the tariffs will be narrowly focused and won’t apply to chips and derivative devices imported for U.S. data centers.
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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12. Penguin Solutions, Inc. (NASDAQ:PENG)
Number of Hedge Fund Holders: 29
Penguin Solutions, Inc. (NASDAQ:PENG) is one of the 12 Hot AI Stocks to Keep on Your Radar. On January 13, Citizens analyst Rustam Kanga reiterated a Market Outperform rating on the stock with a $26.00 price target.
The rating affirmation follows firm’s meeting with company executives at the 2026 Consumer Electronics Show (CES) in Las Vegas. Firm analyst met with Penguin Solutions CEO Mark Adams and CFO Nate Olmstead at the Bellagio hotel during the technology industry event. The meeting focused on Penguin Solution’s enterprise and sovereign AI opportunities.
The firm highlighted how PENG stock has declined an estimated 0.9% year-to-date, underperforming the Russell 3000 index. Despite the recent underperformance, the firm anticipates PENG to outperform the broader market. The firm’s price target is a reflection of PENG stock’s valuation, with a particular focus on its exposure to artificial intelligence.
Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI and HPC computing company engaged in the design and development of enterprise solutions worldwide.
11. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 42
HP Inc. (NYSE:HPQ) is one of the 12 Hot AI Stocks to Keep on Your Radar. On January 13, Goldman Sachs analyst Katherine Murphy assumed coverage on the stock with a Sell rating and a price target of $21.00. Firm analysts see secular PC margin pressures on HPQ, expecting downside to 2026/2027 estimates despite robust shareholder returns.
The analyst told investors in a research note how following a stronger-than-expected FY25 and potential demand impacts from higher pricing, it seems that consensus expectations for Personal Systems growth in FY26 may be too high.
The firm continues to like HPQ’s sector-leading shareholder returns profile, believing HPQ is the most exposed to secular pressures on PC margins and demand.
“While we continue to like HPQ’s sector-leading shareholder returns profile (target 100% of FCF returned to shareholders) and believe the company will be able to defend its strong market share positions in PCs and Print, HPQ is the most exposed name in our coverage to secular pressures on PC margins and demand, and as such, we see downside to consensus sales and earnings estimates in F2026/27.”
HP Inc. (NYSE:HPQ) is a technology company that specializes in personal computing and printing solutions.
