The AI arms race may seem like a two-nation contest to most, but one other country from Asia is rapidly ramping up its ambitions to join. In the latest news, South Korea has asked some of its biggest companies and promising startups to build a national foundational AI model, largely using domestic technology.
Seoul is aiming to create a near self-sufficient AI industry, aiming to present itself as a viable alternative to China and the U.S. According to the Ministry of Science and ICT (MSIT), Korea has announced that five consortia have been selected to develop the models. One is led by telecommunications giant SK Telecom, while other teams are led by prominent South Korean firms including LG and Naver.
“We are going through an important juncture in terms of our technological development. So Korea, at the national level, is focusing on ensuring that we lay the technical foundation to have our competitiveness…Korea has many entities that would excel at creating a big AI industry. And we could clearly see the possibility that we are very capable of creating a good AI stack.”
-Kim Taeyoon, head of the foundation model office at SK Telecom who also leads the company’s consortium, told CNBC.
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15. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 18
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 8, DA Davidson analyst Gil Luria raised the price target on the stock to $15.00 (from $10.00) while maintaining a Buy rating.
The rating follows in what CEO Keyvan Mohajer called its “strongest ever quarter.” The voice-based artificial-intelligence company beat revenue expectations by a wide margin, with Mohajer noting that businesses are increasingly turning to AI for voice-based customer-service offerings.
It continues to win large new logos which has led to rapid growth in its pipeline.
“SoundHound reported a great quarter significantly beating revenue expectations with sequential growth driven by demand across its product set from all industries. SoundHound continues to win large new logos including major OEMs and restaurants resulting in rapid growth in its pipeline. SoundHound is capturing market share across a massive and underpenetrated TAM while making progress towards profitability. We reiterate our BUY rating and raise our price target to $15.”
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
14. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 23
Informatica Inc. (NYSE:INFA) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, Guggenheim analyst Howard Ma downgraded the stock from Buy to Neutral. The downgrade follows Informatica’s second-quarter results, particularly due to the pending acquisition by Salesforce.
The firm said that Informatica will not be hosting an earnings conference call to discuss the quarterly results. It has also declined to provide financial guidance.
“Informatica reported 2Q25 results that were above consensus expectations across the board. In light of the pending transaction with Salesforce (which the company expects to close in Salesforce’s early FY27), Informatica will not be hosting an earnings conference call to review the 2Q results or providing financial guidance. We’re downgrading INFA shares to Neutral from Buy, reflecting the acquisition price of $25/share. Our last published price target was $27.”
Informatica is a leader in enterprise AI-powered cloud data management.
13. Appian Corporation (NASDAQ:APPN)
Number of Hedge Fund Holders: 27
Appian Corporation (NASDAQ:APPN) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 8, DA Davidson analyst Gil Luria assumed coverage on the stock following the company’s second-quarter 2025 earnings results. It has a Neutral rating and a price target of $30.00.
Appian’s Q2 2025 performance beat expectations on both revenue and earnings, with results remarkably above the company’s guidance.
“We are assuming coverage of Appian with a NEUTRAL rating and a price target of $30 following 2Q25 earnings that beat expectations on the top and bottom line with results significantly above guidance.”
The firm highlighted two factors driving significant increase to its full-year guidance.
“New business demand and a larger pipeline drove a material increase to the full-year guide, as management noted AI is having a tangible impact on results helping them realize higher prices and build momentum on the high end of the market.”
Appian Corporation (NASDAQ:APPN) provides an automation platform that helps businesses design, automate, and optimize processes using AI, process mining, and data integration.
12. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders: 44
Atlassian Corporation (NASDAQ:TEAM) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 8, Mizuho analyst Greg Moskowitz lowered the price target on the stock to $235.00 (from $265.00) while maintaining an Outperform rating.
Atlassian reported strong Q4 results, with total revenue growing 22% to over $5.2 billion and surpassing street estimates. The company also reported $1.4 billion in free cash flow for FY25.
Management has cited significant momentum in large deals and healthy cloud migration activity as primary drivers behind Atlassian’s strong growth. However, the firm noted that FY26 guidance was below consensus as expected, but slightly above their buy side expectations. It also believes that the company’s growth prospects are being underestimated.
“Meanwhile, FY26 guidance for 18% revenue growth was below consensus as expected, although it was slightly above our and buyside expectations.
More broadly, we continue to believe TEAM’s multi-year growth prospects are better than most realize, and this includes pricing power and what should be a few years of significant Data Center-to-Cloud migrations. We reiterate our Outperform, though we modestly lower our PT to $235 (from $265).”
Atlassian Corporation (NASDAQ:TEAM) is a global software company that designs, develops, licenses, and maintains various software products worldwide.
11. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 62
Fortinet, Inc. (NASDAQ:FTNT) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 6, UBS analyst Fatima Boolani lowered the price target on the stock to $90.00 (from $105.00) while maintaining a Neutral rating. The rating affirmation comes after Fortinet’s second-quarter results.
“2Q results looked decent, with billings/revenue 3%/2% ahead of consensus, 33% OpM (32% guide), and strong service billings growth of 17%.”
Despite the positive results, the firm noted that Fortinet cut its second-half services revenue guidance by $50 million. It also revised down its assumptions for the 2026 End of Service Life refresh opportunity.
Expected growth in the fourth quarter looks weaker than before, and the firm sees a tougher setup going into CY26.
“2Q results now leave investors grappling with implied 4Q guidance for 11% billings growth in 4Q (below the company’s 12% 3-5yr CAGR outlook) and ~13% service revenue growth (down from 20% in CY24). We now see a tougher setup into CY26, where success with newer products (SASE, SecOps, etc) will need to contribute more materially.”
The stock seems fairly priced for a company with low double-digit growth, the firm stated, choosing to remain on the sidelines.
“While we continue to model 10% billings growth in CY26, we expect prior consensus for 12% y/y likely needs to come down. We’d argue that at 21x EV/FCF, shares appear more reasonable for what now appears to be a LDD growth story but come away with more questions than answers around CY26 and remain on the sidelines.”
Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.
10. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 64
monday.com Ltd. (NASDAQ:MNDY) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, Baird analyst Rob Oliver upgraded the stock from Neutral to Outperform with a price target of $310.00 (from $280.00). The rating change is due to several factors including its strong position in collaborative work management software-aligning with the rise of generative artificial intelligence.
“We view workflow as an intelligence layer for companies to unlock GenAI and Agentic value. Checks via customer conversations, industry events, and covered/private companies point to MNDY as being well positioned in workflow, with an opportunity to exploit this leadership position to deliver broader value.”
– Baird analysts Rob Oliver and Patrick Schulz, in a Wednesday investor note.
The firm expects another strong quarter for the Israel-based company.
“As the SaaS space evolves with the evolution of AI, our medium/long-term investment decisions are increasingly driven by the sustainability of platform value. We are upgrading MNDY to Outperform as we see the company leveraging its early CWM lead to execute on this opportunity. Unlike competitors, MNDY has ‘productized’ its platform in way that delivers value around use-cases and buying centers. We encounter high investor interest among potential holders. We expect solid Q2 results and like the catalyst path into the September user conference and investor day.”
monday.com Ltd. (NASDAQ:MNDY) develops software applications globally, offering a cloud-based Work OS for creating work management tools.
9. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 73
Twilio Inc. (NYSE:TWLO) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 8, Piper Sandler analyst James Fish raised the price target on the stock to $144.00 (from $140.00) while maintaining an Overweight rating.
The price target raise follows Twilio’s second-quarter results that demonstrated top-line strength and steady demand for services such as Messaging and Voice AI. However, the firm highlighted several issues that sent shares lower after hours.
“Q2 results showed top-line strength and demand drivers like Messaging and Voice AI remaining well intact, but the combination of lower GPM due to new A2P fees and increasing Messaging (i.e. international) mix, lack of EBIT guide raise given ongoing investments, coming stop of business-unit disclosures, minimal near-term anticipated impact from pricing given the deployment (which is better frankly for long-term), and 2H FCF reduction, has sent shares lower AH.”
Regardless, Twilio’s core business seems to be doing well with actual dollars of profitability/FCF continuing to increase. This is why the firm is recommending to buy the stock, particularly those who wish for an exposure to digital communications and Voice AI infrastructure.
8. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 75
Arista Networks Inc (NYSE:ANET) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, Barclays raised its price target on the stock to $151.00 from $119.00, while maintaining an Overweight rating after the company posted its second-quarter earnings report.
The company beat expectations in its second quarter and issued guidance for both the third quarter and fiscal year 2025, exceeding market forecasts. The beat has helped put investor concerns to rest, the analysts noted. Arista also revised its 2025 growth projection upward to 25% year-over-year.
It also increased its campus segment forecast, anticipating it to surpass $1.5 billion in AI networking revenues for the year. The firm also noted that Arista’s strength was broad-based across AI, cloud, and enterprise segments.
Overall, Barclays remains optimistic about Arista’s execution capabilities. It believes the networking equipment provider will achieve over $10 billion in revenues by 2026. It also said that the company’s growth prospects are extensive, with potential upside to its long-term mid-teens revenue CAGR.
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.
7. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 6, Bernstein SocGen Group analyst Peter Weed lowered the price target on the stock to $204.00 (from $225.00) while maintaining an Outperform rating.
The firm reviewed the $25b CyberArk acquisition and ultimately views it positively despite intial negative investor reaction. It believes the deal has long-term strategic benefits that outweigh short-term dilution and market volatility.
“Is the CyberArk deal accretive? Last week Palo Alto announced their intention to acquired CyberArk in a cash + equity deal worth ~$25B at the then-PANW stock price (~$5B premium) — this would be an effective FCF/share dilution of ~6% + $2B cash and any restructuring costs. Since then, investors reacted negatively and PANW’s market captalization lost the equivalent to CyberArk’s predeal value (~$20B). After exploring the deal potential, we come away more constructive. We find these worries half-baked. Channel checks continue to confirm platformization resonates.”
The firm further noted how CyberArk is a strong player and is considered an AI winner. The current gap in their portfolio will be closed through this deal.
“Instead, we believe the strategy to enter Identity closes the remaining gap in their portfolio. It also offers a rare toehold in an AI-winner cyber category. The deal is large because CyberArk covers all the key parts to enter, is a strong player, and is considered an AI winner. Assuming Palo Alto stays on strategy, there aren’t other large portfolio gaps (thus large targets) to acquire.”
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
6. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 84
Datadog, Inc. (NASDAQ:DDOG) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, DA Davidson analyst Gil Luria raised the price target on the stock to $170.00 (from $160.00) while maintaining a Buy rating. The firm continues to highlight Datadog as a top pick, with the rating affirmation following Datadog’s “ strong beat and raise” quarter.
The New-York based company reported better-than-expected usage growth due to AI native activity and normal growth from other business segments.
Its overall growth outlook has improved as well. Its September quarter sales guidance came in well above expectations while 2025 revenue guidance was also raised.
“The overall growth outlook improved and Datadog is doubling down on product investments where it is seeing good traction. Datadog’s favorable positioning for growth this year is unchanged in our view after results. We continue to highlight DDOG as a top pick. We reiterate our BUY rating and raise our price target to $170.”
5. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, UBS analyst John Hodulik reiterated a Buy rating on the stock with a $540.00 price target. The rating affirmation follows Applovin’s second quarter results, beating Wall Street’s targets and guiding higher for sales in the current period.
The firm increased its fiscal year 2026 EBITDA estimate to $6.18 billion, above the Street consensus of $5.65 billion. This was driven by better-than-expected gaming-related trends in the second and third quarters.
The firm is optimistic that AppLovin’s staggered rollout of its self-serve web-based ad platform, which begins in October, reduces medium-term risk for web-based advertising revenue growth. The rollout will start with referral-based advertisers before moving to general availability in the first half of 2026.
This will allow the company to deliver multi-quarter revenue growth particularly with expansion into international markets.
Once the ad platform becomes generally available, advertisers will likely spend faster. The stock dip after-hours is therefore a buying opportunity:
“From here we see scope for GA advertisers to ramp spend faster as they benefit from more iteration on the platform. All-in, we’d take advantage of the AH weakness and reiterate our Buy rating on the basis of attractive risk/reward (2.1x), attractive valuation (37x FY26 P/E vs 42% 3-YR EPS CAGR) and improving catalyst path visibility.”
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the 15 Hot AI Stocks on Wall Street’s Radar. One of the biggest analyst calls on Thursday, August 7, was for Tesla. Bank of America reiterated the stock as “Neutral” stating that the Tesla is “most impacted” following President Trump’s decision to impose tariffs on semiconductors and chips.
“Recall that TSLA is exposed to semiconductors both for vehicle production and capex (purchases of advanced chips for AI purposes); F manufactures most of their vehicle in the U.S. …”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, Wells Fargo analyst Aaron Rakers reiterated an Overweight rating on the stock with a $245.00 price target. The rating affirmation follows Apple’s recent announcement that it is increasing its investment in the United States by $100B to $600B over the next four years.
Apple announced that it will be making major investments across its multiple top suppliers, including a $2.5B deal with Corning and a multi-year deal with Coherent.
“Apple previously announced in February that it would spend $500B over the next 4 years. The announcement reiterated the company’s plan for a major AI server facility in Houston. In addition to Corning and Coherent, Apple’s press release highlights partnerships with Broadcom, GlobalWafers, TSMC, Texas Instruments, Applied Materials, GlobalFoundries, and Amkor. Apple also emphasized its focus on building out its US data center footprint, building on an already $5B investment in Maiden, North Carolina; also noting expanding data center capacity in Iowa, Nevada, and Oregon”.
The firm believes that the said announcement aims to strike a deal to minimize tariff impacts.
“Apple’s announcement of an additional $100B investment in the US will (should) be viewed as more about posturing/a deal to minimize tariff impacts, i.e., companies committed to building in the US would be exempt from tariffs,”
-Analysts led by Aaron Rakers.
According to Rakers and his team, President Trump discussed plans of imposing 100% tariffs on imports of semiconductors. However, he added that “the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge.”
The analysts further noted that Apple’s announcement has made no reference that they are bringing final iPhone assembly into the U.S.
Apple is a technology company known for its consumer electronics, software, and services.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, Goldman Sachs analyst James Schneider reiterated a Buy rating on the stock with a $200.00 price target ahead of its quarterly results. The firm is bullish on the stock, expecting it to deliver a clean beat-and-raise quarter.
It believes that any potential upside could be due to a company update on revenue in China or even its gross margin outlook.
“Key stock takeaways: We expect investors to focus on the underlying Blackwell ramp and gross margin implications in 2H, plus the pending China ramp. We believe investor expectations are high heading into the quarter given a strong Blackwell ramp and upside to hyperscaler CapEx reports. We expect Nvidia to deliver a clean beat-and-raise quarter, with the stock reaction likely hinging on the level of upside to guidance and impact from China (if any) – and we increase our estimates. We expect three focal points on the call: (1) the shape of the Blackwell ramp in 2H and timing of Rubin introduction in 2026; (2) the timing of China’s H20 ramp and go-forward contribution; (3) any gross margins benefits from previously reserved H20 inventory.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 6, Alphabet’s Google announced a three-year, $1 billion commitment for providing artificial intelligence training and tools to U.S. higher education institutions and nonprofits.
The initiative has been signed on by more than a 100 universities, with prominent names including Texas A&M and the University of North Carolina.
According to the report, participating schools may receive cash funding and resources. This includes cloud computing credits towards AI training for students or research on AI-related topics.
The billion-dollar investment will also include the value of paid AI tools, such as an advanced version of the Gemini chatbot. Google will be giving this to college students for free.
Senior Vice President James Manyika also noted that the company plans to extend the program to every accredited nonprofit college in the U.S and likewise to other countries.
While Google hasn’t faced resistance from administrators regarding the initiative, “many more questions” about AI-related concerns remain.
“We’re hoping to learn together with these institutions about how best to use these tools.”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.
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