Below, we take a look at 5 AI Stocks Wall Street Is Watching Now: Nvidia, Micron, and More. For a deeper dive into the full list, check out 12 AI Stocks Wall Street Is Watching Now: Nvidia, Micron, and More.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 137
Micron’s growth profile seems to be shifting as memory demand enters a new, more profitable phase. The stock is fifth on our list of 12 AI Stocks Wall Street Is Watching Now.
On May 11, D.A. Davidson reiterated the stock as “Buy” with a $1,000.00 price target. The firm believes Micron is a table-pounding buy.
Following up on our recent initiation after investor conversations, we have increased conviction around our BUY rating and $1,000 target. We are blissfully unencumbered by the memory industry’s past.
DA Davidson noted that there are many investors that still believe that Micron is still an old-style, highly cyclical business. However, artificial intelligence is changing this perspective. In fact, Micron’s business is becoming stronger owing to high-end HBM, the DRAM oligopoly, and longer-term contracts.
That said, investors are still underestimating “the new math of memory in the AI age,” and how much the new AI-driven memory cycle can benefit the stock.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 169
Apple Inc. (NASDAQ: AAPL) is one of the 12 AI Stocks Wall Street Is Watching Now. On May 7, Evercore ISI reiterated the stock as “Outperform” with a $330 price target. The firm believes that Apple’s supply chain is robust.
AAPL’s supply chain playbook remains highly sophisticated, but the AI cycle has meaningfully reduced the relative leverage it historically carried with key suppliers. Still, incremental insourcing and AAPL’s sophisticated supply/demand planning leave it better positioned than many OEM peers. Maintaining our OP rating and $330 target.
Separately, Wedbush raised its price target on the stock from $350 to $400, expressing encouragement regarding the company’s entry into the AI Revolution. The firm believes that over the coming years, roughly 20% of the world’s population will access AI through an Apple device.
We believe over the next few years Apple will be able to monetize the AI Services and storage features translating into what could be an additional $15 billion of annual services revenue for Apple as it starts to become the ‘consumer hub of AI’ technology for its global user base.
Apple is a technology company known for its consumer electronics, software, and services.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 256
Analysts have recently become more bullish on Meta Platform’s AI opportunity, entitling the stock to third place on our list of 12 AI Stocks Wall Street Is Watching Now.
On May 5, Mizuho analyst Lloyd Walmsley lowered the price target on the stock to $835.00 (from $850.00) while maintaining an Outperform rating.
While the firm is positive on Meta, it is somewhat cautious and closely watching it on its execution and cost discipline. It expects Meta to roll out more AI products, which will likely explain what the company plans to do with its new and improved LLM model and how it can eventually monetize.
Mizuho particularly acknowledged Meta’s vision for developing agentic AI “for mom.” Like other AI labs, this means that Meta isn’t just serving businesses but focusing on everyday users across its platforms. It also highlighted the encouragement from hearing the company flag “ large increases in Meta AI use” since the Muse Spark launch.
We believe it is critical for Meta to (1) demonstrate more of a product roadmap and adoption progress, and/or (2) figure out how to curtail cost/capex growth ahead of the 2Q print and guide for 3Q, given significantly harder comps. If growth peaks in 2Q, unless we get one of the above definitively, the multiple could compress. Maintain Outperform, target to $835 (from $850).
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 264
Accelerating AI demand and estimate revisions has recently drawn renewed interest from Goldman Sachs on Nvidia. The stock is second on our list of 12 AI Stocks Wall Street Is Watching Now.
On May 7, analyst James Schneider reiterated a Buy rating on the stock with a $250.00 price target.
With Nvidia posting its earnings on May 20, the firm anticipates investors to focus on a few major points. The first of these is whether there is more upside to Nvidia’s $1 trillion data center guidance from GTC. The second, the firm noted, is whether there is potential benefit from agentic AI for the server CPU business.
Investors should also be focusing on Nvidia’s competitive dynamics, as per the firm, as well as gross margin outlook given the rising input costs. Overall, Goldman Sachs anticipates a beat-and-raise quarter for Nvidia on the back of positive industry supply and demand data points. However, the firm also warned that the “bar for stock outperformance is relatively high heading into the print.”
The firm also acknowledged how the stock has lagged peers and trades at a meaningful discount relative to history, there is also a chance that the stock’s multiple can re-rate.
Our updated CY26/27 estimates are 14%/34% above the Street, and we expect positive estimate revisions and multiple re-rating to drive stock outperformance over the next 12 months. We raise our estimates by ~12% on average and reiterate our Buy rating and $250 price target.
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: 312
Tigress recently turned more positive on Microsoft, raising its price target on the stock to $680, a 64% upside. Analyst Ivan Feinseth sees the AI-driven cloud flywheel strengthening the company’s high-margin growth story.
Microsoft is one of the 12 AI Stocks Wall Street Is Watching Now.
The firm sees Microsoft’s Q3 FY26 results having strengthened its bullish view, with solid performance across Cloud and AI, robust profitability, and continued heavy investment in areas that could extend its competitive lead.
Tigress further noted how Microsoft’s AI-driven cloud growth and app adoption will likely continue boosting its Business Performance trends, and that heavy capital investment will drive higher returns on capital and economic profit growth.
Copilot was also highlighted as driving the next phase of expansion across Microsoft’s installed base.
MSFT’s unified AI platform and partner ecosystems turn data, automation, and agents into a high-velocity growth engine. MSFT’s strong balance sheet and cash flow continue to drive aggressive funding of AI growth and the ongoing return of cash to shareholders.
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 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 MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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