U.S. President Donald Trump announced Monday that the United States will allow Nvidia’s H200 processors to be exported to China. H200s, the second most-powerful AI chips by Nvidia, is now cleared for export amid the ongoing AI arms race between the two countries. Meanwhile, the highly sought-after Blackwell chips and next-generation Rubin chips will not be a part of the deal.
“I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security. President Xi responded positively!”
-US President Donald Trump.
According to Trump, the U.S. Commerce Department is finalizing details of the arrangement and that the same approach would also be applicable to other AI chip firms such as Advanced Micro Devices and Intel.
The US will be paid 25% on such sales, higher than the 15% proposed in August.
“We will protect National Security, create American Jobs, and keep America’s lead in AI,” Trump wrote on Truth Social. “NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal.”
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.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 63
Cloudflare, Inc. (NYSE:NET) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Citizens maintained its “Market Outperform” rating on the stock with a $270.00 price target.
The firm is positive on the stock, citing Google’s data visibility edge via Cloudfare as an infrastructure advantage in the broader AI ecosystem.
Highlighting CEO Matt Prince’s comments, the firm noted how Google “currently sees 3.2 times more pages on the internet than OpenAI, 4.6 times more than Microsoft (MSFT, NC), and 4.8 times more than Anthropic or Meta does per a Wired interview.”
Even though data needs to scale logarithmically to benefit pre-training of AI models, i.e. training benefits scale gradually, Google’s web visibility represents a substantial advantage through its existing infrastructure.
The company boasts a built-in-advantage due to this existing infrastructure for training models compared to newer challengers.
“While data needs to scale logarithmically to benefit pre-training, it highlights an additional advantage Google has with its existing infrastructure compared to other builders of frontier models.”
Cloudflare, Inc. (NYSE:NET) is a cloud services provider that powers AI workloads through its Workers AI platform.
11. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 77
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Benchmark downgraded the stock from Buy to “Hold” following insights from a recent Silicon Valley bus tour. The firm said it is quite concerned about Marvell’s loss of Amazon’s Trainium chip.
“Following two days of extensive industry meetings during our recent Silicon Valley bus tour, we are downgrading our rating on Marvell from Buy to “Hold”, as we now have a high degree of conviction that the company has lost both Amazon’s Trainium3 and 4 designs to its Taiwanese competitor, Alchip.”
The firm believes that this conviction is the main factor in the company’s projected slowdown to only 20% XPU growth in CY26.
The downgrade is likely to be “controversial,” noted the firm, particularly because Marvell has noted that it would not have an “air pocket” in revenue from Amazon.
“While we believe the company is being forthright in its guidance for increasing annual Amazon revenue, we believe this commitment is driven by expected continued Trainium2 volumes and a Kuiper low-earth orbit engagement and not the successful transition to Trainium3 designs that many on the sell-side have concluded. As Amazon’s recently announced Trainium3 is only the air-cooled version for customer evaluation, with its liquid cooled variant not expected until at least mid-next year, we expect 2026 Trainium2 volumes to continue to support Marvell’s near-term forecasts.”
The firm advises investors to lock-in short term gains before the stock experiences a pull-back.
“Accordingly, with Marvell’s shares performing exceptionally well following its earnings report, we recommend investors take near-term profits on an overly optimistic misread of the company’s recent signals toward Amazon stability.”
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
