OpenAI has just released two open-weight language models for the first time since it rolled out GPT-2 in 2019. The move marks a significant step in transitioning toward greater transparency and community collaboration.
According to OpenAI, the text-only models, gpt-oss-120b and gpt-oss-20b, are apt at advanced reasoning and can run on laptops with performance levels similar to its smaller proprietary reasoning models. These models serve as lower-cost options that can be easily run and customized.
Artificial intelligence models are deemed as overweight if their trained parameters or weights are publicly accessible. While they offer transparency and control, they differ from open source models whose full-source code is available to use or modify.
“One of the things that is unique about open models is that people can run them locally. People can run them behind their own firewall, on their own infrastructure,”
-OpenAI co-founder Greg Brockman said in a press briefing.
“It’s been exciting to see an ecosystem develop, and we are excited to contribute to that and really push the frontier and then see what happens from there.”
OpenAI has collaborated with Nvidia, Advanced Micro Devices, Cerebras, and Groq to allow its models to work well on a variety of chips.
“OpenAI showed the world what could be built on Nvidia AI — and now they’re advancing innovation in open-source software.”
-Nvidia CEO Jensen Huang said in a statement.
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 Q1 2025.
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).
15. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 18
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 5, the company announced that its Gen-AI enabled advanced voice assistant, SoundHound Chat AI Automotive, has been deployed to vehicles from three major global automotive brands across North America.
The integration will enable major brands from a prominent global automotive group to be able to enjoy state-of-the-art conversational AI capabilities. According to Soundhound, the SoundHound Chat AI Automotive is capable of recognizing natural human speech and leveraging generative AI to carry out highly intelligent, and conversationally fluid responses.
This will enable customers to move from traditional voice assistant controls like navigation to more versatile conversational experiences. Drivers can enjoy conversations related to trip planning, storytelling, fun quizzes, and even tips from the vehicle manual. They can even ask follow-up questions and receive contextually relevant responses.
According to recent research, in-car voice commerce has the potential to unlock up to $35 billion annually for automakers.
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
14. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 40
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 6, Barclays analyst George Wang raised the price target on the stock to $45.00 (from $29.00) while maintaining an Equalweight rating.
Analysts at Barclays noted that revenue challenges at SMCI stemming from capital constraints have been resolved, with large customer orders slated for recognition in the September and December quarters. Bottlenecks, however, remain.
“However, bottlenecks in growth remain with implied FY revenue cadence more back-end loaded (given FQ1 top-line guidance of only ~$6.5Bn at the midpoint with FY26 revenue guidance of at least $33Bn). Chip and resource availability, as well as customers waiting for GB300s are driving the bottleneck.”
SMCI did introduce its DCBBS (Data Center Building Block Solutions) in the previous quarter, anticipating increasing customer adoption throughout fiscal 2026. The solution is not only attractive to customers but is also likely to be margin accretive over time.
The firm also discussed SMCI’s gross margins miss.
“GM missed in the Q and FQ1 margin guidance was weaker than expected, due to product customer mix and production ramp learning curves, respectively. Two main drivers to improve GM, according to management, are both DCBBS and having fast time-to-market capabilities. We model sequential growth throughout FY26 to account for Blackwell ramp and forecast 11.3% GM, roughly flat (10bps improvement) from FY25, given competitive environment and manufacturing challenges and complexities cited for the flat Q/Q FQ1 GM (despite almost ~$1Bn incremental revenue).”
Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing worldwide.
13. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 45
Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 5, the company announced new cybersecurity and data protection solutions at the Black Hat USA 2025.
Built on HPE Aruba Networking and HPE Juniper Networking, HPE’s combined secure networking portfolio marks its first showcase since the acquisition of Juniper Networks.
The company introduced a new SASE copilot for HPE Aruba Networking EdgeConnect which enables AI-driven insights on network activity, security gaps, and more. It has also expanded its Central NAC to enforce zero trust policy to HPE, Juniper Networking and third-party devices.
For data protection and enabling HPE’s leadership in hybrid cloud data security, the Alletra Storage MP X10000 modern data protection solution helps achieve data backup speeds of up to 1.2 petabyte per hour.
Moreover, the HPE Zerto Software provides a new integration hub, enabling third-party applications to access HPE Zerto data. CrowdStrike is its exclusive integration launch partner.
“With the rise in both the volume and sophistication of cyber threats, organizations need advanced solutions to mitigate risk, defend against attacks and build resiliency, across their entire IT estate. HPE’s security solutions are designed to enable a multi-layered, zero-trust approach to protection, including AI-driven capabilities for continuous validation, anomaly detection, and automated remediation.”
-David Hughes, SVP & GM, SASE & Security, HPE Networking.
Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.
12. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 45
Astera Labs, Inc. (NASDAQ:ALAB) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 6, Evercore ISI analyst Mark Lipacis raised the price target on the stock to $215.00 (from $104.00) while maintaining an Outperform rating.
The rating affirmation follows Astera Lab’s blowout quarterly results, with Lipacis deeming the stock as an “AI pure play in [an] accelerating capex market.”
Analysts at the firm highlighted that ALAB is hitting its AI product cycle stride on three dimensions.
“We are Buyers of ALAB following its “Big Beat, Big Raise” quarter as we think it is hitting its AI product cycle stride on three dimensions: 1) Scorpio P Series ramp surprised positively in the Q for ALAB’s lead customer and mgmt announced multiple new designs which should ramp in 2026, 2) X Series addition will increase ALAB’s content per accelerator to >$1,000, and 3) customer interest in X Series and/or UALink is proving to be robust with 10+ unique customers engaged across the spectrum of design wins ramping into production, design-ins under qualification, and early engagement.”
With Cloud capital expenditure rapidly increasing, the firm believes ALAB is well-positioned to outperform expectations driven by its its multi-pronged product cycle.
Astera Labs, Inc. (NASDAQ:ALAB) is engaged in the design, manufacture, and selling of semiconductor-based connectivity solutions for cloud and AI infrastructure.
11. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 6, the company announced two new offerings as part of its expanding AI Security Services portfolio: AI Systems Security Assessment and AI for SecOps Readiness. The two services enable organizations to secure AI systems and safely integrate AI into security operations.
The growing need for cybersecurity services in an AI-first world arises from new risks and vulnerabilities introduced by artificial intelligence. Companies are increasingly using large language models (LLMs), copilots, and agentic tools, which in turn exposes them to a rapidly expanding attack surface with all kinds of new risks.
Adversaries are also using AI to automate reconnaissance, produce phishing content, and bypass traditional defenses. Through CrowdStrike’s new AI Security Services, organizations will be able to both secure AI and use AI to boost detection, response, and decision making across the SOC.
“Security teams are under pressure on both sides, to protect rapidly evolving AI systems and to bring AI into the SOC without introducing new risk. These services are purpose-built to meet that dual challenge head-on, combining the power of the Falcon platform, threat intelligence, and expert guidance to help organizations reduce risk, improve resilience, and move faster with confidence.”
-Tom Etheridge, chief global services officer, CrowdStrike.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
10. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 69
Accenture plc (NYSE:ACN) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 6, the company announced that it has made a strategic investment, through Accenture Ventures, in Snorkel AI. The investment aims to enable enterprises to build and scale AI solutions rapidly by managing high-quality datasets for training and evaluating AI models.
Snorkel’s flagship platform uses automation and repeatable workflows to transform data and domain knowledge into high-quality training and evaluating data for AI models.
Through its data-centric approach, AI systems can be deployed safely and swiftly, particularly in complex and regulated environments.
Accenture and Snorkel AI will also be collaborating to build industry-specific solutions, using best-in-class training data to build AI solutions at scale. Their initial focus is going to be on the financial services industry.
“Our clients are looking to harness AI in ways that are fast, secure, and aligned to real business outcomes. Snorkel’s unique approach solves one of the most persistent pain points in AI development—high-quality datasets for training and evaluation of AI models. This investment can help our clients move from experimentation to impact more quickly.”
-Tom Lounibos, global lead for Accenture Ventures.
Accenture plc (NYSE:ACN) offers strategy and consulting services.
9. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 75
Arista Networks Inc (NYSE:ANET) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 6, Barclays analyst Tim Long raised the price target on the stock to $151.00 (from $119.00) while maintaining an Overweight rating.
The rating affirmation follows Arista Networks’ second-quarter earnings report which beat expectations and included guidance for both the third quarter and fiscal year 2025 which exceeded market forecasts.
Barclays has also increased its campus segment forecast. The firm anticipates it to surpass $1.5 billion in AI networking revenues for the year.
“The strength was broadbased with the higher guide assuming momentum across AI, cloud, and the enterprise, and ANET continued its track record of efficiency with improved inventory management and supply chain benefiting margins.”
The firm remains confident in Arista’s ability to achieve over $10B in revenues in 2026.
“We raise our estimates and remain confident in ANET’s ability to execute to achieve over $10B in revenues in 2026. The growth opportunity is widespead, and we maintain the view that the long-term revenue CAGR of mid-teens could see upside.”
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.
8. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 5, Raymond James analyst Brian Gesuale reiterated a Market Perform rating on the stock. The rating affirmation follows Palantir’s blowout quarter, exceeding across multiple metrics.
“PLTR posted another exceptionally strong 2Q25 and guide that was above our Street high model. The fundamentals were strong with a 7% top-line beat, U.S. commercial growth of 93% and a AEBIT beat of ~15%. The strong AIP momentum and demand across virtually all markets supported management’s raised guide (midpoint $4.15B vs. Street at $4.05B) that was 6.4% higher, AEBIT that was 11.6% better and a new FCF expectation of $1.9B (vs. prior $1.7B). Key metrics also impressed with $843M of U.S. Comm TCV closed (up 4% q/q, and 222%+ y/y), U.S. comm RDV of $2.8B (up 145% y/y), net dollar retention of 128%.”
According to the firm, Palantir’s momentum is being fueled by both new customer adds (up 43% y/y to 849) and expansion with existing customers considering TTM revenue from top 20 was up 30% y/y to $75M/customer.
“The company is obliterating Rule 40/50 metrics posting 94, is talking about a 10x increase in revenue with a simultaneous reduction in headcount, and has truly established itself as a unicorn in such a way that seeing Palantir execute makes us want to revisit our thesis on Santa Claus and the Easter Bunny!”
While the firm is in awe of Palantir’s results and future potential, it did note valuation concerns considering the stock has expanded from 7x sales in 2023 to 74x sales currently. The firm continues to look for a better entry point as “ “fundamental momentum is only gathering steam”.
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
7. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 90
Vertiv Holdings Co (NYSE:VRT) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 5, the company announced the global availability of Vertiv™ OneCore, a scalable prefabricated solution that integrates Vertiv’s power, thermal, and IT infrastructure technologies into a single, factory-assembled system.
The end-to-end solution aims to deliver flexible, faster-to-deploy infrastructure to simplify and accelerate high-performance data center buildouts. It also strives to simplify project execution by reducing on-site complexity and compressing timelines.
Vertiv OneCore has been thoughtfully designed to simplify logistics, reduce on-site labor and complexity, and support consistent quality, cost, and schedule outcomes. The solution is ideal for data centers with mixed loads or extreme rack densities.
Some of the key features include scalable power capacity, high-rack density flexibility, integrated thermal and power systems, and concurrent maintainability. The solution can also support customer’s sustainability strategies by means of improved efficiency, reduced power requirements, and an evolving design.
“Vertiv OneCore is our answer to the need for reducing complexity and enabling speed in building data center capacity at scale. We know the challenge isn’t just designing for today’s needs but building an adaptable foundation for the future. This solution reduces project complexity by standardizing key components while preserving the flexibility to scale and evolve, expand easily, and integrate new technologies as business and IT requirements evolve.”
-Viktor Petik, senior vice president of infrastructure solutions at Vertiv.
Vertiv Holdings Co (NYSE:VRT) is a global provider of digital infrastructure technology and services for data centers, communication networks, and commercial and industrial facilities.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 6, Barclays analyst Tom O’Malley raised the price target on the stock to $200.00 (from $130.00) while maintaining an “Overweight” rating.
O’Malley’s continued optimism toward AMD is driven by strong artificial intelligence trends in AMD’s data center business and continued market share expansion in its client segment.
AMD’s MI-series chips are moving toward approximately $2.3 billion in run rate as it nears the end of the current year. This, the firm believes, is creating a clear path to more than $10 billion in revenue in calendar year 2026. This excludes future contributions in China.
Overall, the firm is bullish on AMD as it is positioned for multiple avenues of growth heading into 2026.
“Client is also showing leverage with ASPs up 42% Y/Y in June and expectations for continued share gains. The company acknowledged Client pull-ins in their prior guide for a flat 2H but is revising expectations for growth in Q3 and a flat Q4 off a higher base. There are multiple ways to win with this name into ’26 as Client and DC both hit their stride.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 6, White House economic adviser Kevin Hassett said Apple Inc was likely to make an investment announcement. Hassett shared the information as he discussed the financial pledges made by companies and countries under President Donald Trump.
“They’re moving here in droves. This is trillions and trillions of dollars of commitments for people to build new factories here. In fact, you’re likely to see one today from Apple,” -Hassett said in an interview with Fox Business Network.
Back in February, Apple had announced that it would spend $500 billion in U.S. investments in the next four years. This, the company noted, will include a giant factory in Texas for artificial intelligence servers and an estimated 20,000 research and development jobs across the country.
Hassett’s hint at a major investment from Apple was swiftly confirmed when the tech giant announced a new $100 billion commitment to America, a major boost to its U.S. investment that now totals $600 billion over the next four years.
“Today, we’re proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program. This includes new and expanded work with 10 companies across America. They produce components that are used in Apple products sold all over the world, and we’re grateful to the President for his support.”
-Tim Cook, Apple’s CEO.
Apple is a technology company known for its consumer electronics, software, and services.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the Top 15 AI Stocks Taking Wall Street by Storm. One of the biggest analyst calls on Tuesday, August 5th, was for the chipmaker stock. Morgan Stanley reiterated it as Overweight stating that Nvidia is a beneficiary as artificial intelligence capex remains robust.
“Hyperscalers’ Capex Remains Strong into 2026. … We see AI demand remaining strong. In AI semis, we are OW Nvidia , Broadcom, TSMC…”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 5, BofA Securities analyst Justin Post reiterated a Buy rating on the stock with a $217.00 price target amid Google’s stable KPIs.
As per the firm, Google’s key KPIs have been stable in July despite artificial intelligence adoption growing across several sites, including its own Gemini.
“Google’s key KPIs (traffic, search share, & mobile DAUs) were relatively stable in July, despite rapidly growing AI adoption across several sites, including Gemini. Data suggests AI-driven usage appears incremental, with growing adoption complementing, rather than significantly altering existing search activity.”
The firm is encouraged by the growing App usage and Gemini traction, noting how the Street may be underestimating AI-driven upside potential for Google search and YouTube monetization
“Also, we are encouraged with growing Google App use (vs Browser) and Gemini traction, 450mn reported MAUs in July (vs 400mn in May). We think Street could be underestimating AI driven upside potential for Google search and YouTube monetization. Reit Buy. Next Alphabet catalyst: DOJ Search remedy ruling (expected in August).”
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the Top 15 AI Stocks Taking Wall Street by Storm. One of the biggest analyst calls on Wednesday, August 6th, was for Microsoft. Deutsche Bank reiterated the stock as “Buy,” stating that the tech giant is well positioned for AI.
“Overall, Microsoft has noted that leaning in on AI among other things is baking in double-digit productivity gains across most of its business processes and contributing to stronger operating margins.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $630 implies a 20% upside; however, the Street-high target of $700 implies an upside of 33.5%.
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: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Top 15 AI Stocks Taking Wall Street by Storm. On August 5, Amazon Web Services, Inc. (AWS), an Amazon company, announced the general availability of Amazon Elastic VMware Service (Amazon EVS) to enable customers to run VMware workloads on AWS infrastructure.
WIth Amazon EVS, customers will be able to run VMware Cloud Foundation on AWS without the need to re-platform or re-factor their applications. They will also be able to use familiar VMware tools to control and customize their virtualization stack while accessing AWS cloud capabilities.
The service supports license portability, enabling customers to run their VMware workloads alongside other applications in AWS. The Amazon EVS can be self-managed or via partners from the AWS Partner Network.
“Since 2016, enterprises have trusted AWS to run their most mission-critical VMware workloads, and today, we’re expanding our VMware portfolio by giving customers even more flexibility, control, and choice. Amazon Elastic VMware Service offers customers a straightforward way to bring their VMware workloads to AWS using the tools they know and trust, plus an easy onramp to the breadth of AWS services to help them increase agility, reduce costs, and accelerate innovation.”
-Steven Jones, general manager of Commercial Applications at AWS.
Amazon.com Inc. (NASDAQ: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 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 AMZN 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
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
