In this article, we will list the 5 AI Stocks on Wall Street’s Radar. Please visit 10 AI Stocks on Wall Street’s Radar: Datadog, Microsoft, and More if you would like to see the extended list and the methodology behind it.
5. Taiwan Semiconductor Manufacturing Co. (NYSE:TSM)
Number of Hedge Fund Holders: 234
Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is one of the AI stocks on Wall Street’s radar. On July 6, Citi reiterated that Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is well-positioned to raise its 2026 revenue growth outlook and long-term growth targets.
The research firm has already reiterated a Buy rating on the stock and raised the price target to NT$3,800 from NT$2,875. The bullish stance and price target hike underscore confidence that the company will continue to benefit from rising demand for advanced artificial intelligence chips. Stronger visibility into AI-related demand affirms the optimistic earnings outlook.
Citi expects the company to continue capitalizing on strong demand for advanced AI chips, which remain strong across advanced process technologies and extend beyond AI graphics processors. It also expects the company to benefit from wafer pricing rising into next year as demand for TSMC’s N2 and N3 process technologies strengthens. The research firm has also touted TSMC’s competitive edge, stemming from its manufacturing scale and leadership in advanced packaging.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the AI stocks on Wall Street’s radar. On July 2, Meta Platforms, Inc. (NASDAQ:META) chief executive officer Mark Zuckerberg acknowledged that the company’s AI agents have not progressed as quickly as expected. Likewise, the company’s bet on the new structure has not borne fruit.
The remarks come as the company plans to spend as much as $145 billion on AI infrastructure this year, a significant portion of the more than $700 billion that big tech companies are poised to spend. Amid the expected investment, Zuckerberg remains confident that the company will reap significant benefits from the AI investments within the next three to six months.
The AI push has already led Meta Platforms to conduct a major reorganization, resulting in significant job cuts. The company has already laid off about 10% of its global workforce and reassigned about 7,000 employees to AI-focused teams. The cuts are part of a broader restructuring aimed at funding costly AI investments to position the company to capitalize on efficiency gains from AI-assisted work.
Meta Platforms, Inc. (NASDAQ:META) is an American multinational tech conglomerate that owns and operates several prominent social media platforms and communication services.
3. NVIDIA Corp. (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corp. (NASDAQ:NVDA) is a top AI stock on Wall Street’s radar. On July 6, Bank of America touted NVIDIA Corp (NASDAQ:NVDA) as one of the stocks poised for a rally after the recent reset. According to the research firm, the recent pullback aligns perfectly with historically weak seasonal patterns in the sector.
Consequently, it expects Nvidia to be one of the leading stocks in the near term, capitalizing on global cloud and AI infrastructure capital expenditure, which is expected to soar to $1.5 trillion, representing a 40% to 50% year-over-year increase. The research firm expects the robust growth to be driven by token expansion, agent adoption, and supply-constrained infrastructure. Bank of America expects hyperscalers to continue prioritizing utilization and growth over depreciation optimization.
On July 3, Nvidia confirmed it is offering cloud computing resources through a revenue-sharing credit support model. The new business model will see AI cloud providers sell Nvidia-powered cloud services, a move that will grant the company standard product revenue and a share of cloud earnings.
NVIDIA Corp. (NASDAQ:NVDA) is a dominant technology company that designs graphics processing units (GPUs) and AI software platforms. Originally famous for powering video games, its hardware has become the global foundation for artificial intelligence, data centers, and autonomous vehicles.
2. Microsoft Corp. (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corp (NASDAQ:MSFT) is a top AI stock on Wall Street’s radar. On July 6, Wolfe Research cut its price target on Microsoft Corp (NASDAQ:MSFT) to $525 from $570, citing surging memory costs that lifted its FY27 capex forecast to $270 billion from $230 billion, while maintaining an Outperform rating.
Analyst Alex Zukin noted Micron’s earnings commentary on rising memory prices drove the revision, which now projects FY27 free cash flow at negative $17.4 billion versus a prior $14.7 billion positive and well below consensus. Wolfe also trimmed gross margin and EPS estimates but remains bullish on Microsoft’s AI monetization, forecasting Azure growth of 41% in FY27 and 40% in FY28, ahead of consensus, while highlighting $11.5 billion in restricted supplier investments that may offset component price pressures.
On July 2, reports emerged indicating Microsoft Corp plans to merge its consumer and enterprise versions of Copilot AI chatbots into a single platform. The merger is part of a plan to create a formidable AI platform capable of taking on Anthropic’s Claude and OpenAI’s ChatGPT.
The combined platform will include AI coding tools and new AI agents that customers will need to pay to use. Copilot already boasts of over 100 million monthly active users, signaling its ability to scale. The platform consolidation affirms plans to eliminate the awkward split personality that has defined Microsoft’s AI assistant strategy.
The consolidation comes as Microsoft seeks to take on OpenAI’s ChatGPT and Anthropic, which continue to dominate the consumer mindshare. Likewise, it faces stiff competition from Google’s Gemini, which continues to weave into every corner of the AI product ecosystem.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) is a top AI stock on Wall Street’s radar. On July 2, Bloomberg reported Amazon.com, Inc. (NASDAQ:AMZN) has enough satellites in orbit to start rolling out its broadband service, Amazon Leo.
The company has more than 390 satellites deployed and has completed enough launches for the initial service. The push follows the Atlas V rocket, carrying the latest batch of Amazon Leo Satellites, as it takes off from Cape Canaveral Space Force Station in Florida.
Meanwhile, Amazon has confirmed it’s working on its own artificial intelligence chips for Echo, Fire TV, and future devices. According to Panos Panay, the head of devices and services at Amazon, the focus on custom chips is part of a broader push to improve AI on devices. The company has already unveiled the AZ3 and AZ3 Pro chips, designed to run AI models on devices rather than in the cloud. It joins the likes of Apple, which designs its own chips to gain more control over hardware and software integration.
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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