10 AI Stocks Making Waves on Wall Street

Market Overview - The artificial intelligence boom is considered to be in the early stages of a bubble according to hedge fund manager Ray Dalio [1] - US stock markets experienced double-digit gains in 2025, largely driven by AI-related companies, but US stocks have underperformed compared to international stocks and gold [1][2] - Gold prices surged over 60% in 2025, and emerging markets, along with the UK's FTSE 100, outperformed major global markets [2] Geopolitical and Economic Factors - Geopolitical tensions in the Middle East and uncertainty regarding the U.S. Federal Reserve's interest rate policy have contributed to investor concerns [3] - There are expectations that the newly appointed Fed chair and the FOMC will likely push nominal and real interest rates down, which could support prices and inflate bubbles [3] Company-Specific Insights: Baidu, Inc. - Baidu, Inc. is recognized as a leading AI stock, with 33 hedge fund holders [7] - Jefferies analyst raised Baidu's price target from $159 to $181 while maintaining a "Buy" rating, citing potential value from a recent Hong Kong listing [7] - Baidu plans to spin off its AI chip subsidiary, Kunlunxin, and list it in Hong Kong, with a public offering and share placement [8][9] - The spin-off is contingent on regulatory approvals and is seen as a strategic move to unlock value [9] Company-Specific Insights: Rivian Automotive, Inc. - Rivian Automotive is another notable AI stock with 36 hedge fund holders [11] - Morgan Stanley maintains an Underweight rating on Rivian with a price target of $12, citing challenges in near-term demand due to tech transitions and policy shifts [11] - Rivian delivered 9,745 vehicles in Q4 2025, reflecting a 31% year-over-year decline, slightly above estimates but below consensus forecasts [12] - The company produced and delivered 42,284 and 42,247 vehicles respectively, both showing year-over-year declines in line with guidance [13] - Demand for Rivian's vehicles in 2026 is viewed cautiously due to the expiration of the EV tax credit and evolving technology, including the introduction of LiDAR for advanced autonomy [14][15]