Below, we take a look at 5 AI Stocks in Focus on Wall Street. For a deeper dive into the full list, check out 12 AI Stocks in Focus on Wall Street.
5. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 202
On April 14, Broadcom together with Meta announced a multi-year, multi-generation strategic partnership to support Meta’s artificial intelligence compute infrastructure through at least 2029. This partnership news has landed the stock fifth place on our list of AI Stocks in Focus on Wall Street.
Broadcom will co-develop multiple generations of Meta’s next-generation MTIA (Meta Training and Inference Accelerator) chips. These chips help power AI across all of Meta’s apps and services.
The initial commitment surpasses 1 gigawatt and marks the first phase of a multi-gigawatt rollout planned over the next three years.
Broadcom will deliver its industry-leading Ethernet networking solutions, which include high-radix Ethernet switches, Optical Connectivity products, PCIe switches, and high-speed SerDes capabilities.
As part of this expanded relationship, Broadcom CEO Hock Tan will be stepping down from Meta’s board to switch into an advisor role for Meta on silicon strategy. He will be offering guidance on Meta’s custom silicon roadmap, helping mold the future of their infrastructure investments.
We are pleased to expand our strategic collaboration with Meta as they pioneer the next frontier of artificial intelligence. This initial MTIA deployment is just the beginning of a sustained, multi-generation roadmap to serve the trajectory of massive growth over the next few years highlighting Broadcom’s unmatched leadership in AI networking and the power of our foundational XPU custom accelerator platform.
-Hock Tan, President and CEO, Broadcom.
Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned for the AI revolution, owing to its custom chip offerings and networking assets.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 224
On April 21, Barclays analyst Simon Coles raised the price target on the stock to $470 from $450 while maintaining an Overweight rating. TSM lands fourth on our list of AI Stocks in Focus on Wall Street.
The rating affirmation follows TSMC’s strong quarterly performance and earlier-than-expected guidance; reinforcing growth visibility.
Strengthening AI demand, the firm noted, continues to drive momentum for TSM and positions it as a core holding. Strong AI chip demand led the company to report a 58% increase in first-quarter profit, beating estimates.
Net income reached NT$572.48 billion for the three months ended in March, marking a fourth consecutive quarter of record earnings.
Another quarter of impressive delivery, a guidance upgrade earlier than expected with AI demand strengthening means momentum is set to continue.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 256
Meta recently received rating affirmation from Citizens, with 256 hedge funds holding the stock. Meta Platforms, Inc. (NASDAQ: META) is also featured in our list of AI Stocks in Focus on Wall Street.
On April 21, Citizens analyst Andrew Boone reiterated a Market Outperform rating on the stock with a $900.00 price target. The firm is confident in Meta’s AI-driven engagement and ad performance fueling upside.
According to the firm, Meta is likely to report earnings ahead of consensus and expectations, driven by modest upward revisions in 2026 revenue and EPS estimates. It explained that the revision is based on Meta’s implementation of more powerful models across its services.
These practices are helping Meta improve the relevance of its content recommendations, boosting user engagement, and more performance for advertisers.
Citizens particularly highlighted key systems GEM, Andromeda, and now ARM, together forming an AI-driven renovation of Meta’s ad delivery system, as structural upgrades that are enhancing the benefits of AI.
All of this boils down to the conclusion that Meta is currently in a “structural cycle of AI,” and that the market is underappreciating revenue growth sustainability.
To be clear, we acknowledge Meta’s AI investment cycle and are unclear how Meta will monetize Meta AI directly (it is already helping advertising indirectly), but with shares not overly expensive at 20.3x our 2027E GAAP EPS, we continue to be buyers of shares as we reiterate our Market Outperform rating and $900 price target ahead of earnings.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
On April 21, Piper Sandler analyst Billy Fitzsimmons reiterated an Overweight rating on the stock with a $500.00 price target. Firm analysts are optimistic about Microsoft’s AI momentum, particularly led by Copilot and Azure. The stock is second on our list of AI Stocks in Focus on Wall Street.
Piper Sandler highlighted two key investor debates surrounding the stock ever since the last print. These include concerns that there may be a need to make more capacity internally available to support growing AI demand, and that Copilot has lagged behind the native capabilities of frontier model providers at a time when seat-based models are under pressure.
The firm expects that the management may signal higher capital expenditures on the upcoming fiscal third quarter call or through early comments on fiscal 2027 spending. Nevertheless, MSFT remains one of Piper Sandler’s top picks.
Piper Sandler also noted how Copilot has improved year to date, with the multi-model approach serving as a differentiator.
On Azure, MSFT is one of the few companies able to monetize both OpenAI and Anthropic’s growth. CEO Satya Nadella announced on LinkedIn on 4/16 that the Fairwater data center in Wisconsin is going live ahead of schedule. We think the F3Q cc Azure growth bar is ~38.5%, a similar 1 pt beat to F2Q.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) continues to gain renewed attention from Wall Street, landing itself the top spot on our list of 12 AI Stocks in Focus on Wall Street.
On April 21, Cantor Fitzgerald analyst Deepak Mathivanan raised the price target on the stock to $280.00 (from $260.00) while maintaining an “Overweight” rating. The firm feels strongly confident in Amazon’s AI-driven AWS growth and long-term margin expansion.
Discussing first-quarter performance expectations, the firm noted that the company is likely to report a strong quarter, driven by accelerating growth in AWS. This acceleration is in turn led by healthy demand from AI labs and recent supply unlocks, the firm said.
Recent company shareholder letters highlight several contributors to growth near-term, including 100% growth in its chips business. Backlog growth for the first and second quarter is also likely to experience a sharp increase, fueled by commitments from players such as OpenAI and Anthropic. The growth is anticipated to reach over $450B by the end of 2Q26E.
The firm anticipates AWS to see growing contribution from diverse Enterprise workloads in 2026.
Discussing retail, the firm expects in-line results with low-double-digit year-over-year revenue growth as well as 40-basis-point year-over-year margin expansion in the first quarter.
On outlook, AMZN’s 2Q guide is likely to bracket current Street estimates on revenues and EBIT. 2Q EBIT is likely to be pressured by elevated fuel costs (partly offset by surcharge), Q/Q seasonal SBC ramp, and incremental infra operating expenses. On the call, we will be watching for progress on infra buildout and incremental demand for AI. Overall, there is a lot to like at AMZN in 2026.
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 to grow, 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 the cheapest AI stock.
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