Top 10 AI Stocks Trending On Wall Street

4. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On February 4^th, Piper Sandler reiterated Tesla as “Overweight” with a $500 target. According to the firm, the stock is relatively insulated from tariffs. President Donald Trump recently put 25% tariffs on goods from Mexico and Canada and 10% tariffs on China. Even though he has agreed to pause the tariffs on Mexico and Canada for a month, the one on China is still active. Tesla produces a significant portion of its automobiles in China. Even though these tariffs will hit all automakers, Tesla will sidestep some challenges considering that it operates factories in the U.S., Berlin, and Shanghai, CNBC reports. Currently, Tesla boasts the highest percentage of domestically assembled cars with most of its models on Cars.com’s list of most American-made vehicles. The Piper Sandler analyst also trimmed his full-year vehicle deliveries forecast on the automotive company to just under two million. This is about 58,000 units lower than its previous outlook.

“In the meantime, we think TSLA is one of the most defensive stocks in our coverage. Tesla assembles five vehicles in the U.S., and all five rank among the most American-made cars. Nobody is completely insulated, but in relative terms, Tesla is better-positioned than most.”

-Piper Sandler

Post-election, Tesla has been worth more, Wall Street says. However, the main way it sees Tesla benefitting under Trump 2.0 is with federal standards easing the introduction of self-driving cars. Investors, in particular, are on the watch for self-driving cars.

“Musk has discussed FSD/autonomy as the true value of Tesla. This has been met with a higher level of skepticism from investors, but may have even greater upside than the core automotive business if successful”.

-Baird analyst Ben Kallo wrote on Tuesday.