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.
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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.
10. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 88
Adobe Inc. (NASDAQ:ADBE) is one of the 12 Trending AI Stocks on Wall Street. On December 9, Stifel reduced its price target on the stock to $450.00 from $480.00 while maintaining a “Buy” rating. The price target cut comes ahead of the company’s fiscal fourth-quarter 2025 results, scheduled for release on December 10.
The firm noted that even though Adobe has been strengthening its presence in generative AI over the past year, particuarly through its MAX event in October, a key overhang is the likelihood that AI will disrupt creative departments.
This will lead to creators becoming more efficient and shrink the number of addressable seats over time. By positioning itself as the “Switzerland” in the market and a central generative AI hub, the firm sees a clearer path for Adobe to benefit from widespread AI adoption in creation.
That said, the catalysts to turn sentiment around remain “foggy,” but it believes that we are in the early days of a “critical and successful AI-induced strategy pivot at Adobe.”
Meanwhile, TD Cowen analyst J. Derrick Wood reiterated a Hold rating on the stock on December 8 with a $420.00 price target. While Adobe’s valuation looks attractive, AI competition and slowing growth into 2026 has tempered the firm’s optimism.
Mixed signals have led the firm to maintain a hold rating until there is more clarity on AI’s impact on Adobe’s business model.
“See constructive setup on stable checks and low valuation; ADBE reports 4Q on 12/10. Partner survey fairly consistent w/ last qtr & includes outlook for modest growth deceleration in ’26, in-line w/ Street. AI product demand ramping but landscape increasingly competitive. 3rd party credit card data showed +4% Y/Y growth vs. +5% last qtr. Expecting marginal beat & in-line guide & at ~14x EV/CY26E FCF we think shares are poised for a bounce. Maintain Hold.”
Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.
9. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Micron Technology, Inc. (NASDAQ:MU) is one of the 12 Trending AI Stocks on Wall Street. On December 8, UBS reiterated a “Buy” rating on the stock with a $275.00 price target. The rating affirmation comes ahead of the company’s upcoming earnings report on December 16th, with analysts noting robust AI-driven tailwinds for the stock.
Analyst Timothy Arcuri sees a favorable setup for Micron heading into the print, which is why it leaves its estimates unchanged from previous in-quarter updates “which remain well ahead of MU’s NovQ guidance and Street?.”
Micron did surprise investors as it did not positively preannounce F1Q (Nov), but conversations with the management indicate that MU is trying to move away from these “explicit preannouncements.”
Previously, Mizuho noted how DRAM prices are spiking, and demand for NAND high-bandwidth memory (HBM) is accelerating because AI companies are buying heavily to support their AI functionality.
UBS has also predicted an earnings beat based on this “tightening supply” of DRAM prices leading to “DDR gross margin surpassing HBM for the first time in early C2026.” This is even as Micron faces what the firm believes will be a slightly slower ramp in HBM revenue driven by capacity limitations.
“All things considered, we reiterate our long-held view that this cycle will prove structurally more durable as HBM ‘crowds out’ the traditional memory market as most, if not all, of the capacity addition across the industry through C2027 will likely go to HBM. On unchanged estimates, our PT stays at $275 and we maintain our Buy rating.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
8. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 110
AppLovin Corporation (NASDAQ:APP) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Piper Sandler reiterated its “Overweight” rating on the stock with an $800.00 price target.
Firm analysts came away upbeat after an investor meeting with company leadership, citing solid execution, healthy gaming trends, and self-serve ad momentum.
According to the firm, an investor meeting was held last week with AppLovin CEO and Co-Founder Adam Foroughi, CFO Matt Stumpf, and Head of IR David Hsiao.
The discussions revolved around topics including self-serve ads roll out, new prospecting campaigns, the gaming market, and the GTM strategy.
The firm noted how management is satisfied with the progress of E-Com thus far and is focused on “building the self-serve technology to scale the business profitably and with a small team.”
“Gaming trends are healthy, and we are now seeing more data points the market is not zero-sum. We continue to like the stock. Reit OW, $800 PT.”
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 120
Tesla, Inc. (NASDAQ:TSLA) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Morgan Stanley downgraded the stock to Equal Weight and raised the price target by $15 to $425. The firm holds a neutral stance on the stock due to fair valuation and lack of fresh upside drivers.
“Tesla is a clear global leader in electric vehicles, manufacturing, renewable energy, and real world AI and thus deserving of a premium valuation. However, high expectations on the latter have brought the stock closer to fair valuation.”
Firm analyst Andrew Percoco anticipates a choppy trading environment for Tesla as they see a downside to estimates. Meanwhile, catalysts for its non-auto business appear priced at current levels.
“We’ve conducted a full re-calibration of our Tesla model, adding in Humanoid valuation supported by our Morgan Stanley Global Humanoid team’s TAM work, expanding our robotaxi model with proprietary market analyses, broadening our Network Services (including FSD) model, moderating our Auto and Energy forecasts, and building an illustrative pay package dilution analysis.”
Percoco said he would “wait for a better entry” for Tesla. He is now Morgan Stanley’s lead analyst for Tesla.
“However, with the stock trading at 30x 2030 EBITDA downside to NTM [next twelve months] cons. estimates, and non-auto catalysts priced, we assume at EW and wait for a better entry.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
6. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Mizuho maintained its “Outperform” rating on the stock with a $400.00 price target. With Oracle’s second-quarter results scheduled for December 10, analyst sees the current stock pullback as a compelling entry point amid long-term AI growth tailwinds.
Oracle shares have plunged 34% from their recent peak on September 10th, with analysts attributing the pullback to investor concerns about Oracle’s capital expenditure needs for data center buildout and its ability to finance these investments.
However, the demand for high-density AI is stronger than supply, and GPU deployments at the company are monetized within weeks. Given these circumstances, Mizuho expects that the company leverage increasingly common financing structures (primarily vendor financing and capital leases) to reduce upfront cost and limit new debt.
The firm also believes that the print ahead will likely provide additional clarity on Oracle’s data-center funding strategy. As such, the current pullback offers a compelling entry point.
“Ahead of FQ2 results on December 10, we expect Oracle to deliver a solid print and provide additional clarity on its data-center funding strategy, which should help alleviate recent concerns. We view the current pullback as a compelling entry point and reiterate our Outperform rating.”
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the 12 Trending AI Stocks on Wall Street. On December 8, UBS analyst David Vogt reiterated a “Neutral” rating on the stock with a $280.00 price target.
The rating affirmation follows firm research that has indicated rising interest in Apple Intelligence and foldables. However, the firm believes that these improving interest trends are not yet compelling enough.
“Considering investor expectations for a long-awaited Siri overhaul, as well as a foldable iPhone next year, we highlight interest in upgrading for new Apple Intelligence features and an Apple foldable.”
According to the firm, an estimated 29% of total respondents expressed interest in upgrading to new Apple Intelligence features. On the contrary, 28% respondents noted that the new AI features will have no impact on their purchasing plans.
The responses from the survey are roughly split, but it has become evident that the gap between positive and negative views has been narrowing. Meanwhile, interest for an Apple foldable has also been increasing.
“While the responses were roughly split, we note that the delta narrowed relative to the prior survey. Further, total ‘net interest’ in an Apple foldable was ~40% (+300 bps HoH), driven by a ~1,400 bps increase in ‘net interest’ in the US (~39%).”
Apple is a technology company known for its consumer electronics, software, and services.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the 12 Trending AI Stocks on Wall Street. On December 8, HSBC analyst Frank Lee reiterated a Buy rating on the stock with a $535.00 price target. The firm believes that the Street undervalues ASIC upside ahead of the print.
Broadcom shares have rallied an estimated 15% since November 18 following Alphabet’s launch of its Gemini 3 model. The model has been completely trained on TPUs which Broadcom helps design and supply.
This is in contrast to previous models which were trained using GPUs and TPUs being used for internal workloads only. Market sentiment for Broadcom has improved as TPUs are increasingly being viewed as an alternative to GPUs.
“Though the street has raised its FY26/FY27e ASIC revenue estimates by 5%/14% since the Gemini 3 launch date, our ASIC revenue estimates (unchanged) remain 38%/40% above the street. Given the improving ASIC momentum, we believe management is likely to raise its ASIC revenue guidance again at its 4QFY25 earnings call.”
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Bernstein SocGen Group raised the price target on the stock to $330.00 from $290.00, while maintaining an “Outperform” rating. The firm sees TSM as a “quality compounder” driven by CoWoS ramp, AI demand, and pricing power across nodes.
According to the firm, increased CoWoS (Chip on Wafer on Substrate) capacity will serve as a major driver for revenue growth toward Taiwan Semi’s 5-year AI target.
The firm has raised TSMC CoWoS capacity to 125K wpm by the end of 2026, combined with contributions from OSATs (Outsourced Semiconductor Assembly and Test providers). This will bring the total CoWoS capacity to 1250K/yr in 2026.
Bernstein believes that these numbers will be sufficient to support the recently announced projects, including an estimated $0.5 trillion from Blackwell and Rubin for NVIDIA in 2025 and 2026.
The firm also noted improving mature-node demand, while stating that that N2 node development and price increases on N3/5 nodes will support smartphone revenue.
Based on these factors, the firm anticipates TSMC’s revenue to grow 23% this year and 20% in 2027.
“Outperform with 1-year price target at NT$1,800.00 on 20x forward P/E. We’re slightly above consensus on revenue, a tad below on margins, but 5% above on EPS. We view TSMC a quality compounder and a core holding for investors.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the 12 Trending AI Stocks on Wall Street. On December 9, Wells Fargo analyst Aaron Rakers reiterated an “Overweight” rating on the stock with a price target of $265. The rating follows news that the United States has allowed Nvidia’s H200 processors to be exported to China.
H200s are the second most-powerful AI chips by Nvidia. While they have been permitted for export, 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.
The firm views these official reports from the Trump administration as an incremental positive. It believes investors think about a $25-$30B/annum-plus revenue and positive 60c-70c/share EPS impact.
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Citizens reiterated its “Market Outperform” rating on the stock with a price target of $300.00. The firm highlighted Rufus-driven engagement spike on the platform and fee cuts to boost EU fashion seller growth.
Rufus is a generative AI-powered shopping assistant available in the U.S. and parts of Europe within the Amazon Shopping app on mobile and desktop. Based on data from Similarweb, the genAI assistant has been helping drive more successful purchases on Amazon.
Data has revealed that there has been a 75% day-over-day increase for sessions that included Rufus and resulted in a purchase. Meanwhile, those without it resulted in a 35% day-over-day increase for sessions that resulted in a purchase.
Citizens also noted that Amazon will be making cuts on seller referral fees for European sellers in order to encourage more listings from affordable fashion sellers. These changes will take effect December 15.
“Amazon cuts seller referral fees for European sellers by ~2 points for clothes and accessory items up to 15 euros or 15 pounds and 5 points for items between 15 and 20 euros and pounds beginning December 15. As Amazon continues to expand its roster of affordable fashion sellers, we believe that lower fees will encourage more listings on its platform, positioning it to better compete with fast-growing rivals like Shein and Temu.”
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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