The US Commerce Department has just announced that it is voiding an agreement with an outside center to oversee $7.4 billion in semiconductor research funds.
Previously finalized under President Joe Biden, the agreement has been deemed void on the grounds that the Biden administration illegally created Natcast. Consequently, the agreement granting the organization up to $7.4 billion in taxpayer money is now invalid.
According to the US Commerce Department, its National Institute of Standards and Technology will shoulder the operational responsibility for the National Semiconductor Technology Center from the private non-profit National Center for the Advancement of Semiconductor Technology (Natcast).
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 Q2 2025.
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15. Zoom Communications Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 48
Zoom Communications Inc. (NASDAQ:ZM) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 22, Rosenblatt analyst Catharine Trebnick raised the price target on the stock to $110.00 (from $100.00) while maintaining a Buy rating.
According to the firm, Zoom posted its strongest revenue growth in 11 quarters driven by increasing enterprise demand, rapid AI adoption, and continued Contact Center momentum. It also raised its fiscal 2026 guidance.
Enterprise revenues have also grown, reflecting the successful expansion into large accounts. That said, the firm believes that Zoom offers greater growth visibility, continued share repurchases, and expanding opportunities for artificial intelligence monetization.
“Notably, management raised full-year FY26 guidance across revenue, PF EPS, and free cash flow, underscoring both top-line stability and industry-leading profitability (41% op.margin, 80% gross margin). With greater growth visibility, a strong $7.8B cash balance, continued share repurchases, and expanding opportunities for AI monetization, we reiterate our Buy rating and raise our price target to $110 (from $100) on the back of these robust results and upwardly revised estimates. The next key catalyst is Zoomtopia in September.”
Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology company.
14. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 66
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 25, BMO Capital analyst Keith Bachman lowered the price target on the stock to $460.00 (from $500.00) while maintaining an Outperform rating.
The firm has found positive channel feedback for Crowdstrike’s July quarter, with channel representatives particularly praising the company’s success in promoting Falcon Flex deals and Next-Gen SIEM.
The only concern that the firm has ahead of CrowdStrike’s upcoming earnings report is the potential guidance for the second half of fiscal year 2026.
“Feedback from the channel has been mostly positive for CRWD ‘s July quarter. Channel reps commented that CRWD has been successfully promoting Falcon Flex deals, as well as Next-Gen SIEM. However, we are cautious going into the print based on concerns around potential 2HFY26 guidance comments. Further, we believe that CRWD needs to grow ARR and revenues by at least 22-23% y/y in FY27 to move the shares meaningfully higher, which is not our base case scenario. Hence, we are lowering our target price from $500 to $460.”
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
13. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 67
monday.com Ltd. (NASDAQ:MNDY) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, BofA Securities analyst Michael Funk downgraded the stock from Buy to Neutral with a price target of $205.00 (from $240.00).
The downgrade follows an in-depth review of Monday.com’s web traffic by marketing channel which has highlighted increasing risks from Google’s integration of AI Overviews into search results. These are eroding the company’s web traffic and posing a threat to its self-serve business model.
“According to Similarweb, search engine optimization (SEO) driven website visits to Monday.com sank by an avg of 23.5% Y/Y in 2Q25 – and Y/Y declines accelerated to -25.3% in July. Mounting headwinds are likely driven by Google’s expanding integration of AI Overviews into search results. Given that <30% of total signups come through Google, we introduce a proprietary framework leveraging Similarweb data to quantify potential impact to growth. Our conclusion is that, despite recent pressure on shares (-30% since 2Q25 earnings), fundamental challenges and a potentially gnawing AI search disruption bear narrative make risk/reward balanced from here. We are not predicting a ’25 rev guide miss, but trim our ’26 rev estimates and lower our PO to $205 (6.2x EV/26E Revs, down from $240/7.5x).”
monday.com Ltd. (NASDAQ:MNDY) develops software applications globally, offering a cloud-based Work OS for creating work management tools.
12. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 76
Workday, Inc. (NASDAQ:WDAY) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 22, KeyBanc analyst Jason Celino lowered the price target on the stock to $285.00 (from $325.00) while maintaining an Overweight rating.
Workday surpassed expectations for current remaining performance obligations (cRPO), subscription revenue, and operating margin in its second-quarter fiscal results. However, “heightened uncertainty around near-term to mid-term growth trajectory” has led to a price target reduction.
The company raised its fiscal year 2026 subscription revenue guidance by $15 million. However, the firm noted this increase comes majorly from the Paradox acquisition, an AI-powered hiring solution, instead of organic growth.
“That said, F3Q cRPO growth guide of 15.5%, which excludes Paradox, came in a tad better, and the Company is raising OM to 29% and OCF guidance to $2.85B, above cons. 28.7% and $2.75B, respectively. While we lower our PT to $285 (based on 22x FY27 FCF) to reflect the heightened uncertainty around NT-MT growth trajectory, we are encouraged by Workday’s continued focus on profitability. Remain OW.”
Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.
11. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 82
Intel Corporation (NASDAQ:INTC) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 22, the company announced that the U.S. government will purchase $8.9 billion in Intel’s common stock under an agreement with the Trump Administration. Through the investment, the government will receive a 9.9% stake in the company.
433.3 million primary shares will be purchased at $20.47 per share, funded through $5.7 billion in remaining CHIPS Act grants previously awarded to the compay, while $3.2 billion will be done so from the Secure Enclave program. Together, this will bring total government investment in the semiconductor manufacturer to $11.1 billion, including $2.2 billion in CHIPS grants already received.
A joint release from the Trump administration and Intel has revealed that the United States will not be seeking direct representation on Intel’s board. It has also pledged to vote with the current Board of Directors on matters requiring shareholder approval, “with limited exceptions.”
“It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future. I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation.”
-US President Donald Trump
10. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, Guggenheim analyst John DiFucci reiterated a Neutral rating on the stock. The company is set to report its second-quarter fiscal 2026 earnings for August 27.
The firm reported that field checks for the quarter have been “solid,” demonstrating good progress. It believes that Q2 looks possible, even if it means a 29.5% decline in New ARR.
In the firm’s view, consensus outperformance compared to historical norms looks more challenging, while the second half of the year appears even more difficult. Partner conversations have also been positive, even though AI conversations remain “muted.”
“AI conversations remain more muted, though new product announcements are helping drive increased customer interest in capabilities. Most notably, CRO Mike Gannon has made an impact, creating an increasingly friendly business environment for partners, and showing early signs of enterprise sales skills. Overall, in our view it appears SNOW is making the right decisions to continue capturing their core cloud data warehouse opportunity, and continued product innovations set the stage to potentially draw more spend and mind share for the platform. Shares are currently trading at 13.8x EV/NTM Product revenue and 55.5x NTM FCF. SNOW is scheduled to report earnings 8/27 after the close.”
9. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 104
Adobe Inc. (NASDAQ:ADBE) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, RBC Capital analyst Matthew Swanson reiterated an Outperform rating on the stock with a $480.00 price target. The firm remains bullish on the stock despite increasing competition in the creative tools market.
The firm acknowledges that a key area of investor concern has been the growing fragmentation in the creative market, especially in generative content creation tools.
Working with RBC Element, the firm’s in-house data science team, RBC has looked at the onging trends in the market and tracked metrics for products such as Express and GenStudio. The firm has concluded that the biggest opportunity lies in editing with AI instead of merely creating new content.
“All you need to know: Over the past two-years we’ve seen an uptick in the number of creative tools on the market particularly in terms of generative content creation. As the market has become more fragmented, we have worked with RBC Elements™, our in-house data science team, to try to get a snapshot of the current trends in the creative market. This has been a key area of debate for investors where concern has been around the intersection of GenAI and competition where management has looked at additional metrics around Express and GenStudio to help quantify performance. Recent changes including embedding competitive models within Firefly allows for customer choice and aligns with our view that the long-term wallet share opportunity revolves around generative editing more than creation. We continue to look towards both tiered pricing and potential consumption revenue from more compute intensive models for video, 3D and vector as key sentiment drivers for investors looking for visibility around GenAI monetization. New to the report is mobile data which is led by Leonardo AI followed by Canva with improved trends from Adobe. Maintain our OP rating and $480 PT.”
8. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, ServiceNow and SENAI-SP, Latin America’s largest technical education institution, announced a statewide training and certification program at the annual ServiceNow São Paulo Summit.
The program, launched via ServiceNow University, will offer Brazilians the skills they need to succeed in an AI-driven world. This includes Portuguese-language training in AI, digital workflow automation, and low-code development.
Students will also receive access to hands-on instruction through practical labs and real-world case studies coupled with certification pathways and job readiness support, allowing them to have a smooth transition from learning to employment.
Hundreds of learners will gain access to this opportunity this year alone, backing ServiceNow University’s global goal of upskilling 3 million people by 2027.
“This partnership is more than an educational initiative, it is a catalyst for Brazil’s digital future,” said Federico Grosso, group vice president of Latin America at ServiceNow. “By combining scale, technology, and employability, we’re training and preparing Brazilians to thrive in the rapidly evolving digital economy. These skills are critical to our growing ecosystem of customers and partners who rely on ServiceNow to drive innovation and productivity.”
ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.
7. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 109
AppLovin Corporation (NASDAQ:APP) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, Wells Fargo raised the firm’s price target on the stock to $491 from $480 and kept an Overweight rating on the shares.
According to the analysts, the firm’s web advertising deep dive reveals multiple bright spots ahead of general availability in 2026.
Even though web advertising customer growth has slowed in recent months, the new customers acquired are much larger.
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, TD Cowen analyst Derrick Wood lowered the price target on the stock to $335.00 (from $375.00) while maintaining a Buy rating. The rating comes ahead of the company’s second-quarter earnings report due on September 3rd.
Firm’s enterprise checks reveal a down-tick, driven by a weak book of renewal business. However, the firm’s commercial checks have upticked and it looks like renewed investments down-market are bearing fruit.
Moreover, data cloud is performing strongly, while Agentforce commits are still measured.
“CRM reports 2Q on 9/3. Our enterprise checks down-ticked, which feels weighed down by a weak book of renewal business. But our commercial checks up-ticked & it seems renewed investments down-market are bearing fruit. Data Cloud strength remains a highlight, while Agentforce commits are still measured. Shares likely rangebound until we hit the seasonally strong 4Q. Maintain Buy. PT to $335.”
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, Loop Capital analyst Ananda Baruah lowered the price target on the stock to $226.00 (from $230.00) while maintaining a Hold rating.
In an investor note, the firm noted that it has updated its model to reflect mixed shifts toward Pro/Pro Max models, lower air models, and average sale prices adjustments.
The firm also said that Apple has revised expectations for the iPhone 17 Air model, estimating it to account for about 20% of total unit sales from the previous 30%.
“Reiterating our Hold and lowering PT to $226 from $230 while updating our estimates to reflect mix shifts toward Pro/Pro Max models, lower air models and ASP adjustments. Our estimate changes are based on Loop Capital Supply Chain Analyst John Donovan’s checks throughout the component and CM ecosystems as detailed in his note (One Last Bite of the AAPL – Builds, Shipments Augmented – Final Thoughts).”
Apple is a technology company known for its consumer electronics, software, and services.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 22, Piper Sandler analyst Harsh Kumar raised the price target on the stock to $315.00 (from $300.00) while maintaining an Overweight rating.
In an investor note, the firm highlighted that it is optimistic on Broadcom’s prospects into the October quarter around both the core semiconductor business and the infrastructure software segments. It strongly believes that Broadcom is well-positioned in the AI landscape, leading to the rating affirmation.
“In a nutshell, the semiconductor business is benefiting from strong growth in AI which in the current quarter is on track to grow 60% Y/Y to $5.1 billion. We suspect that the segment will overachieve the revenue objective of $5.1 billion revenue run rate providing upside in the quarter. For the July quarter non-AI sales, we anticipate business will be largely flattish for the July quarter. Overall, we see the AI piece as the lead driver of growth in the July quarter as the non-AI business remains flattish and at the cusp of a recovery with some segments improving but others flattish to down. We continue to view AVGO as well positioned in the AI landscape and reiterate our OW rating. PT to $315.”
Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, Stifel analyst Mark Kelley reiterated a Buy rating and $222.00 price target on the stock. The reiteration follows Google’s annual Made by Google event.
The annual Made by Google event on Wednesday demonstrated the latest generation of Pixel devices. Google’s SVP of Platforms & Devices Rick Osterloh particularly highlighted the company’s AI integration plans, stating how the past two years have been as much about artificial intelligence as they have been about hardware.
“On Wednesday (8/20), we heard from Rick Osterloh (SVP, Platforms & Devices) and co. at Google’s annual Made by Google event, showcasing the latest generation of Pixel devices. The past two year’s-worth of “Made By” events have become as much about AI as it has been about hardware, as the company looks to integrate Gemini seamlessly into every day life; Mr. Osterloh stated “This fall, it’s going to be coming to your car, to your TV, and to your smart speakers and smart display in the home…it’s going to be everywhere you are. We are even working on smart glasses with Gemini.” While Pixel remains a small share of the U.S. market (~3%), we found yesterday’s presentations as very well done, hammering home the key differentiators relative to Apple devices, with Gemini (and Agents) as the center of attention (Host Jimmy Fallon is a self-proclaimed “expert user”).”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the 15 Hot AI Stocks to Keep on Your Radar. On August 21, UBS analyst Timothy Arcuri raised the price target on the stock to $205.00 (from $175.00) while maintaining a Buy rating. The firm is bullish on the stock ahead of earnings due this week citing that “tailwinds remain strong.”
“We see overall demand signals as strong as ever (Oncor ~40GW of ‘high confidence’ new load requests for data center just in TX, though some of this may be 2x ordering to ‘get in line’) and expect NVDA’s commentary to reflect this very strong backdrop with commentary from GB200/GB300 rack partners suggesting 30k racks is doable this year with a strong CQ4 ramp.”
The firm is optimistic that the company could bring in a few billion dollars each quarter after reaching a deal with the US government, allowing it to sell H20 chips in return for 15% revenue.
“We see FQ2 (Jul) revenue in the ~$46B range (or a similar ~$1B beat to last Q) and see FQ3 (Oct) revenue guided to ~$54-55B excluding China, or as much as ~$57B if China is included. Our supply chain work on production suggests compute can grow ~20-25% Q/Q on a base of ~$35B in FQ2 – this alone should add $7-8B of compute revenue on a Q/Q basis for FQ3. We are a bit less clear on the networking portion of data center as some in the supply chain have called out shortages at 800G, though we still think networking revenue of ~$6B is do-able for FQ3 (up nearly $1B Q/Q). Ergo, total data center revenue of ~$49B seems reasonable for FQ3 while gaming is coming off such a strong FQ1 that comps are harder there. On China, there is likely some re-usable H20 inventory that had been written down, but we believe NVDA did place new Hopper wafer orders upon receipt of H20 license news and we still believe it is working on a Blackwell version as the US government likely (in our view) raises the ceiling of what is allowed to ship into China as part of its rare earth deal efforts.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the 15 Hot AI Stocks to Keep on Your Radar. One of the biggest analyst calls on Friday, August 22, was for Microsoft. JPMorgan reiterated the stock as “Overweight” stating that it is sticking with the Windows and Xbox parent.
“MSFT (Azure accelerates another 4 pts to 39% growth, non-AI Enterprise remains strong, demand > supply).”
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
While we acknowledge the potential of MSFT 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 MSFT 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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