In this article, we will take a detailed look at the Top 10 Stocks Wall Street is Buzzing About These Days.
An increasing number of analysts are pointing out that the AI revolution that started with the launch of ChatGPT is here to stay, and we are still in the early innings of a broader AI infrastructure build. Brent Thill from Jefferies highlighted in a latest program on CNBC why he believes we are in the early phases of AI infrastructure buildout.
“I’m a tech analyst, so I don’t cover other sectors, but I would say that we had a big fear at the beginning of the year in macro, and all these stocks did nothing. And then we’ve ripped now into the face of a better environment. The CEO of IBM said something very telling on the earnings call last night—he went from cautious optimism to optimism. IBM’s results were mediocre, but Arvind is a great leader, and I respect what he has to say. In his global travels, he’s seeing deal velocity improving, deal sizes picking up, and companies getting ready for AI. All these things suggest we’re still at the beginning of this buildout. And when you look at the percent of AI deployed inside enterprises, it’s tiny.”
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For this article, we picked 10 stocks Wall Street analysts were talking about recently. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Joby Aviation Inc (NYSE:JOBY)
Number of Hedge Fund Investors: 23
Josh Brown, CEO of Ritholtz Wealth Management, recently talked about how impressed he is with the electric vehicle takeoff and landing aircraft company Joby Aviation Inc (NYSE:JOBY) stock performance. Brown recommends that people keep the stock on their radar.
“I brought the stock to the show on June 17th and I took an initial position and I said this is highly speculative. It’s really not the kind of thing that I do a lot of. Unfortunately, I didn’t buy that much of it. It’s up 104% since then. Did not expect that. If I did, I would have bet the rich. So, let’s just be very clear. This thing took off way faster than I had a chance to accumulate. But I just want to give people an update as to what’s going on and why. They just doubled their air taxi production capacity in the state of California and made a major announcement in Ohio. These are eVTOL. Basically, these are electric vehicle, electric vertical takeoff and landing. So they are—think of it like a cross between a helicopter and a plane for very short trips. They just want to lift you up off the ground, bring you to your destination, drop you off. There will be a lot of uses for these over the next 10 years. This is the leading company in the space. Just delivered their first production aircraft to Dubai.”
Brown believes Joby Aviation Inc (NYSE:JOBY) progress in the US could be its next catalyst:
“They’re running an eVTOL trial in Dubai where I guess the government’s allowing them to do more than they could do here. So in the United States, the last thing they have to clear is the final FAA certification phase. That’s the next catalyst. I don’t know how much the stock rally is already pricing that in, but I’m going to remain long with my position. Very exciting company. Highly speculative. Not telling people to buy it up 100% in a month, but keep it on your radar. It’s worth learning what they’re working on.”
9. Fastenal Co (NASDAQ:FAST)
Number of Hedge Fund Investors: 39
Josh Brown, CEO of Ritholtz Wealth Management, recently highlighted Fastenal Co (NASDAQ:FAST) as one of his best stock picks in the market. Here is how Brown explained his thesis about the stock:
“When you look at a long-term chart of this, it’s just up and to the right. The buyers come in pretty much on every dip, and the trend line has been pristine dating back to early 2023. Basically, what they’ve done is they’ve Amazon-ed the construction business. They have something called Fastenal Managed Inventory. It’s a digital tech platform so that you don’t even have to reorder the things that you’re running out of as an industrial company building things. Fastenal already knows, and they will deliver what you need right to the site. And this has been incredible for the business.44% of total sales last quarter, which they announced on Monday, came in as a result of this FMI technology—this platform that I’m talking about. The important thing to understand here is it’s an industrial company. It’s not a tech company, doesn’t grow revenue at 40% a year or anything like that, but it’s incredibly well-managed.”
8. General Dynamics Corp (NYSE:GD)
Number of Hedge Fund Investors: 46
Citi’s Jason Gursky named General Dynamics Corp (NYSE:GD) as one of the top stocks to benefit from the increasing defense spending in the US and Europe. The analyst believes the new contracts these companies are winning “look more margin-accretive going forward.”
Gursky mentioned specifically why he likes General Dynamics Corp (NYSE:GD):
“Shipbuilding is another area of focus. There’s concern over the capacity gap between the U.S. and China, with China having far greater production capacity. That’s why we’re constructive on Huntington Ingalls and General Dynamics—they’re positioned to benefit from investment in shipbuilding infrastructure.”
7. Rtx Corp (NYSE:RTX)
Number of Hedge Fund Investors: 79
Citi’s Jason Gursky said in a recent program on CNBC that increasing defense budgets in the US and Europe are likely to help several major defense companies, including Rtx Corp (NYSE:RTX).
“It’s hard not to like both defense and aerospace. Heading into earnings next week, we’re particularly constructive on defense names. Rising budgets in the U.S. and Europe are providing strong visibility for these companies.”
Asked which companies stand to benefit the most from Congress’s defense policy bill, the analyst named Rtx Corp (NYSE:RTX) among the companies positioned to benefit “front and center.”
“Honestly, I think it’s a rising tide for everyone. But if you look at the president’s priorities—air and missile defense, Iron Dome, etc.—the key beneficiaries are the missile makers. RTX and Northrop are front and center.”
ClearBridge Large Cap Value Strategy stated the following regarding RTX Corporation (NYSE:RTX) in its Q1 2025 investor letter:
“In industrials, defense names RTX Corporation (NYSE:RTX) and Northrop Grumman led performance as geopolitical tensions remained elevated. Both companies have moved away from fixed-price contracts, and as those contracts have diminished as parts of their business, should see margin expansion over the next few years. European countries have also pledged to increase their spending on defense, which, given the lack of capacity available for European defense companies, should benefit U.S. defense primes.”
6. Pfizer Inc (NYSE:PFE)
Number of Hedge Fund Investors: 99
Josh Brown, CEO of Ritholtz Wealth Management, explained in a recent program on CNBC why he’s bearish on Pfizer. Brown said he was “dead wrong” in hoping to see a turnaround at the pharma giant.
“Do you know how hard it is to find a stock as bad as Pfizer Inc (NYSE:PFE) like in the last couple of years? I managed the impossible. I haven’t really lost a lot of money here. I think my initial purchase was like 28. But it’s a loss nonetheless. But the way I think about these types of things, it’s a loss relative to the overall market having gone up so much, which makes it even worse. And I stuck to my guns on this for no reason. I’m not really a value investor. I just felt the stock was so hated and down so much that it was a relatively low-risk entry and at some point they’d find a way to turn it around. I was right about the low-risk entry part, but I was dead wrong. There is no turnaround. Maybe it’ll happen starting today now that I’m no longer in the stock.”
5. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Fund Investors: 119
Talking about Morgan Stanley’s bullish call on Eli Lilly, Kevin Simpson, Capital Wealth Planning founder and CIO, said that he agrees with the call and thinks the company’s GLP-1 oral medication Orforglipron could be a “game changer.”
“The catalyst, Frank, is if they can deliver an oral drug. And I believe that they will. This ORFO would be a game-changer 100%. If their orals are as effective or almost as effective as the injectables, then this is a catalyst and I couldn’t agree more with the call.”
Macquarie Large Cap Growth Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q1 2025 investor letter:
“The largest individual detractors from performance relative to the benchmark were not owning Meta Platforms, not owning Eli Lilly and Company (NYSE:LLY), and our position in Electronic Arts Inc. Eli Lilly stock recovered following a period of volatility in the second half of 2024 as investors digested the possibility of competition, sustained compliance for patients taking its weight-loss therapy, and side effects, among other threats that the valuation hadn’t reflected. The stock recovered some value in 1Q25, but we continue to be on the sidelines.”
4. Uber Technologies Inc (NYSE:UBER)
Number of Hedge Fund Investors: 145
Joseph M. Terranova, Senior Managing Director for Virtus Investment Partners, said in a recent program on CNBC that he believes Uber stock could see $100 as its floor in the near future amid strong momentum and AI.
“I believe they report on August 6. It’s going to be an important report to understand if the strength of the balance sheet continues. And that’s what I’ve been focused on. This company several years ago made a remarkable turn in their financial conditions. Free cash flow generation went positive. It’s accelerated from there and it’s allowed them to do the things that they need to do in terms of diversifying the business model. Not all about mobility, going to other areas like delivery, obviously including AI in the story and ultimately having partnerships like they do in Atlanta with Waymo. So, the company has technically very strong momentum. And it continues to hug all the major supportive technical moving average lines. It looks like it wants to make that run ultimately at 100. I’m not so sure it’s going to do it ahead of earnings, but post earnings, if you hear what you need to hear, I do think above 100 uh is a price target that would be not so much the ceiling, but will ultimately become the floor. You could be talking about support at that level.”
Aristotle Capital Value Equity Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its second quarter 2025 investor letter:
“Founded in 2009 and headquartered in San Francisco, California, Uber Technologies, Inc. (NYSE:UBER) is a global technology platform that facilitates the movement of people, goods and services across a wide range of markets. What began as a simple ride-hailing app has evolved into a multi-segment leader operating in more than 70 countries, connecting millions of consumers, drivers, couriers and merchants worldwide.
Uber’s operations are organized into three primary business segments: Mobility, which includes ridesharing, car rentals and other personal transportation services (~45% of revenue); Delivery, which spans food, grocery, convenience and retail delivery through the Uber Eats platform (~50%); and Freight, its digital brokerage and logistics arm (~5%). These segments are built on a shared platform supported by real-time matching technology, global app penetration, strong network effects and one of the most recognized consumer brands globally—reflected in the familiar phrase, “I’ll call an Uber.”…” (Click here to read the full text)
3. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 159
Kevin Simpson, Capital Wealth Planning founder and CIO, said in a recent program on CNBC he’s hopeful about Apple’s shares despite uncertainties around the company’s AI strategy.
“I don’t want to pretend to know what they’re going to do when it comes to artificial intelligence or Apple AI, but I do believe that they’re going to do something. I feel like this device (iPhone) will be a great catalyst for us to be able to interface with artificial intelligence. How they decide to do it, I don’t know. But remember, we’re an active portfolio. So I sold out of the position, Frank, just to go back in time back in December. So we liquidated Apple at 247 and a half. At that point, we thought it was a little bit too pricey at 250. At 200, we feel the stock is very attractive and it’s a longer-term investment. We know we’re going to get paid while we wait.”
Apple Inc (NASDAQ:AAPL) is desperately in need of new catalysts. The company’s revenue in China fell 8% in fiscal year 2024, following a 2% decline the previous year. The Chinese market accounts for about 15% of Apple’s total revenue, so this downtrend cannot be ignored.
Investors had hopes from the Wearables, Home, and Accessories segment, but so far its performance has been weak. Vision Pro faces tough competition from Meta’s $500 Quest and the more affordable Quest 3S, making it hard to justify its $3,500 price tag. The failure of Apple’s HomePod, unable to compete with Amazon’s and Google’s lower-priced offerings, further highlights the challenges in this market.
Apple’s iPhone 16 has not shown promising growth prospects yet, and investors are still in a wait-and-see mode on the AI platform.
Wedgewood Partners stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:
“Apple Inc. (NASDAQ:AAPL) detracted from performance after investors became impatient with the Company’s AI development efforts – particularly the promises made but promises not kept with Siri integrated with AI. It is much too early to conclude that Apple cannot succeed in developing a compelling AI-assisted offering for its device and software ecosystem. For decades, Apple’s proprietary hardware and software have enabled the Company to consistently provide unmatched user experiences that consumers increasingly rely on a daily basis. Whether Apple – with their unmatched installed base of over a billion user devices – develops its AI with eager partners or over a slightly longer timeframe than what investors hoped for does not change the Company’s core competitive differentiation that comes from years of integrating custom silicon with internal operating system software.”
2. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 212
Josh Brown, CEO of Ritholtz Wealth Management, recently said during a program on CNBC that he is giving “permission” to his followers to sell NVIDIA Corp (NASDAQ:NVDA) shares and take some profits amid the stock’s strong performance. However, the analyst said he is not selling Nvidia shares.
“I’m not selling. I’m giving people permission. Let me give you the context. On the China front, let’s just do this quickly. Bernstein reiterated Nvidia, $185 target. And what they said was that for every 10 billion dollars in recovered revenue in China, meaning business we didn’t think they could do up until a few days ago, that could add 25 cents to Nvidia’s earnings per share. So they say that could be like 40–50 cents in 2026 if they capture back 15 to 20 billion worth of China revenue. Great news. Happy to hear that as a long. Be that as it may, put that aside. We’ll assume Bernstein has it roughly right.”
Brown said over the past few years, he’s seen “mostly ups” holding NVIDIA Corp (NASDAQ:NVDA) shares
“People walk up to me on the street. They come to me at stores, airports, you name it. The question that I’m getting the most over the last month or so is not, “Do you still like Nvidia?” It’s, “Should I sell some Nvidia?” And I totally get it. Look at what the stock has just done. It’s really remarkable.”
With its latest numbers and stock performance, Nvidia was able to prove the skeptics wrong. In its recently reported quarter, Nvidia’s data center computer revenue rose 76% year over year, driven by Blackwell GB200. The company is finding new catalysts for growth. Saudi Arabia’s Humain plans to buy more than 200,000 AI GPUs from Nvidia, potentially generating $15 billion in sales. The UAE reportedly has an agreement for up to 500,000 GPUs. Even without China’s involvement for now, Nvidia said nearly 100 AI factories are under construction. These factories have hyperscalers deploying 1,000 GB200 NVL72 racks weekly, each with 72,000 Blackwell GPUs.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) recovered strongly in the second quarter, climbing back from earlier declines to end the quarter at an all-time high. As the undisputed leader in Graphics Processing Units (GPUs), Nvidia continues to benefit from surging demand for AI training and inference. Despite concerns over competition from TPUs and rivals like AMD, Nvidia remains in the lead. The company is rapidly releasing next-gen products, with the Blackwell line-up, its fastest architecture yet, hitting the market just 2 years after its predecessor. Moreover, Nvidia is aggressively expanding into adjacent areas including robotics, edge AI, AI cloud leasing, and AI software putting them in direct competition with some of their biggest customers. CEO Jensen Huang describes Nvidia as a “full-stack, accelerated computing platform”, reflecting its blend of cutting-edge hardware, software (CUDA), and AI infrastructure. With leading-edge tech, a shortening innovation cycle, and robust cash flow, we believe Nvidia is well positioned to ride the accelerating wave of AI adoption.”
1. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Investors: 273
Kevin Simpson, Capital Wealth Planning founder and CIO, explained in a recent program on CNBC why he’s buying Meta Platforms Inc (NASDAQ:META) shares. The analyst highlighted the social media giant’s AI catalysts:
“It was our top pick coming into the year. It remains that way. Time will tell from an AI standpoint, but don’t forget the hardware. Don’t forget what they’re doing with advertising, how they’re monetizing AI in advertising specifically. Margins are just going higher. I think the numbers are going to be fantastic.”
Meta Platforms (NASDAQ:META) is driving usage and ads revenue by improving its algorithms and user experience thanks to AI. Meta Platforms (NASDAQ:META)’s advancements in Reels and WhatsApp are helping manage CapEx growth as the company strives to stay competitive in AI. Meta Platforms (NASDAQ:META)’s substantial user base of 3.3 billion provides a data and distribution edge that could capture a significant share of the GenAI market.
Meta Platforms can see huge progress related to AI as CEO Zuckerberg is aggressively spending on the technology and hiring top talent to achieve breakthroughs via the Superintelligence Labs team. He recently said his company plans to invest hundreds of billions of dollars in AI infrastructure. The company plans to build a massive 1+ gigawatt supercluster by next year. Mark Zuckerberg’s commitment to AI could make it a key focus in the upcoming earnings call and potentially act as a major catalyst for the stock.
Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) was once again a leading contributor to performance for the quarter – and our best portfolio performer since the panic-selling lows in the stock back in September of 2022. Revenue grew +16% despite ad-spending headwinds related to trade protectionism, and operating margins expanded thanks to continued investments in automation, driving a stellar +37% growth in earnings per share. The Company has been a consistent beneficiary of artificial intelligence (AI) over the past several years, investing aggressively in deep learning recommendation systems that help power it’s products which reach nearly half the population of the planet. Meta’s AI investments, combined with its massive scale, allow the Company to quickly spin up new products across its digital advertising real estate to reinforce its competitive positioning. Meta’s core Family of Apps products are backed by extremely large and complex (i.e. difficult to copy) AI recommendation systems that have to sort through billions of datapoints in real time and come up with the probability of a user clicking on something. Meta is one of the few companies that has been able to consistently and, most critically, profitably monetize AI technologies for shareholders, and we continue to hold the stock as a top position in portfolios.”
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
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