The Nasdaq Composite tumbled 5% from its record high in the past week as investors were hit with worrisome economic data, including the worst consumer sentiment reading in 15 months. However, certain Wall Street analysts still think monster gains are possible in the next year for Arm Holdings (NASDAQ: ARM) and Axon Enterprise (NASDAQ: AXON).

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 Q4 2024.

Nvidia reported its fourth-quarter results after Wednesday's closing bell. Investors and analysts have focused on early sales of the company's new Blackwell line.