In this article, we discuss 10 AI news and ratings investors should take a look at.

As AI continues to reshape industries, investors are closely watching how companies allocate capital during concerns over high valuations. According to some experts, despite market fluctuations, businesses are unlikely to cut AI investments significantly, as the technology’s long-term impact is still unfolding. The comparison to the dot-com era raises questions about sustainability, but many see AI as an innovation cycle that will drive broader economic growth.

Balancing AI Growth with Market Valuation Concerns

Marta Norton, chief investment strategist at Empower, believes companies are unlikely to significantly alter their AI-related spending despite concerns over high valuations, especially as DeepSeek raises questions about supply chains. She discussed this on Bloomberg Technology with Caroline Hyde and Mike Shepard, emphasizing that the market is still in an AI investment race and earnings reports will be key in determining future spending patterns.

She noted that recent market reactions have been more about valuation concerns than doubts about AI itself. While Nvidia remains central to AI supply chains, the debate is now shifting to whether businesses need to keep spending at the current pace. Comparing the situation to the dot-com era, Norton acknowledged the risks of high valuations but pointed out that major technological shifts, like AI, can drive long-term economic expansion, similar to how the internet transformed industries.

On the potential impact of cheaper AI solutions, she suggested that businesses, including retailers and software firms, could benefit from faster, more efficient deployments. However, she cautioned that these effects may take time to materialize rather than being immediately reflected in quarterly earnings. Addressing concerns about broader market disruption, she acknowledged vulnerabilities in major tech stocks but argued that the fundamental case for AI remains strong, with the primary uncertainty revolving around supply chains rather than AI adoption itself.

For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10. Safe Pro Group Inc. (NASDAQ:SPAI)

Number of Hedge Fund Holders: N/A

Safe Pro Group Inc. (NASDAQ:SPAI) manufactures protective gear and offers AI-powered drone services for critical infrastructure inspection, public safety, and emergency response.

On January 30, Safe Pro Group (NASDAQ:SPAI) announced that it has partnered with NIBULON Ltd. to address Ukraine’s agriculture crisis caused by the war, which has led to significant farmland contamination. Safe Pro will provide NIBULON with its AI-powered drone demining technology, SpotlightAI, to quickly and cost-effectively survey Ukrainian land for mines and unexploded ordnance. The collaboration aims to accelerate the land clearance process, which is crucial for restoring agricultural productivity. SpotlightAI will generate high-resolution maps of contaminated areas, which will improve survey precision compared to traditional methods.

9. ScanTech AI Systems Inc. (NASDAQ:STAI)

Number of Hedge Fund Holders: N/A

ScanTech AI Systems Inc. (NASDAQ:STAI) develops advanced non-intrusive CT scanners using AI to detect and identify hazardous materials and contraband at critical infrastructure checkpoints.

On January 30, ScanTech AI Systems, Inc. (NASDAQ:STAI) successfully launched its advanced ‘fixed-gantry’ CT security scanners at several nuclear power facilities across Canada, including those operated by Ontario Power Generation (OPG). This AI-driven technology replaces older X-ray systems, improving personnel screening efficiency, accuracy, and safety. The deployment follows a multimillion-dollar contract with OPG, with Visiontec Systems, ScanTech’s Canadian distributor, overseeing the installation. ScanTech’s use of AI and machine learning improves threat detection capabilities at critical infrastructure sites, which ensure high-precision, non-invasive screening.

8. Coeptis Therapeutics Holdings, Inc. (NASDAQ:COEP)

Number of Hedge Fund Holders: 4

Coeptis Therapeutics Holdings, Inc. (NASDAQ:COEP) develops innovative cell therapies for cancer, autoimmune, and infectious diseases, with a focus on advanced immunotherapies and partnerships for treatment development.

On January 30, Coeptis Therapeutics Holdings, Inc. (NASDAQ:COEP) rebranded to COEPTIS, marking a shift in its business strategy to include technology-driven sectors. The company has launched a new Technology Division, which recently acquired the NexGenAI Affiliates Network platform, an AI-powered marketing solution. This acquisition is part of COEPTIS’s effort to revolutionize marketing strategies and improve operational efficiency in regulated industries. With a focus on AI-driven precision, automation, and intelligent workflow optimization, COEPTIS aims to create sustainable, revenue-generating units to position itself for long-term growth and profitability.

7. SK Telecom Co., Ltd. (NYSE:SKM)

Number of Hedge Fund Holders: 9

SK Telecom Co., Ltd. (NYSE:SKM) offers a range of wireless, fixed-line, and digital services, including IoT, cloud solutions, media platforms, and mobile devices in South Korea.

On January 30, Korea JoongAng Daily reported that SK Telecom’s AI assistant, named Aster, will assist with tasks such as creating to-do lists and making transportation and accommodation reservations. Aster will be an autonomous “agentic AI,” capable of making decisions based on user conversations. Aster will also explore integrations with apps like Yelp, Uber, and Lyft, and incorporate the AI search engine Perplexity, and it is set to launch in North America later this year. A beta version will be available in March for user feedback.

6. Silicon Laboratories Inc. (NASDAQ:SLAB)

Number of Hedge Fund Holders: 18

Silicon Laboratories Inc. (NASDAQ:SLAB) designs analog-intensive mixed-signal solutions for different IoT applications, including smart homes, industrial automation, and healthcare.

On January 30, Silicon Labs unveiled the BG22L and BG24L SoCs, designed for Bluetooth LE applications. The BG22L offers up to ten years of battery life and supports Bluetooth 5.4, making it ideal for cost-sensitive, low-power uses. The BG24L is optimized for Bluetooth 6.0 Channel Sounding and AI/ML applications, enabling precise tracking and efficient machine learning at the edge. Equipped with an ARM Cortex M33 processor, the BG24L delivers improved performance while minimizing power consumption. Both SoCs will be available in Q2 2025.

5. Wolfspeed, Inc. (NYSE:WOLF)

Number of Hedge Fund Holders: 26

Wolfspeed, Inc. (NYSE:WOLF) specializes in silicon carbide and gallium nitride technologies, offering power and RF devices for applications like electric vehicles, telecommunications, and industrial power systems.

On January 29, Wolfspeed (NYSE:WOLF) reported a fiscal ‘25 Q2 non-GAAP EPS of -$0.95, surpassing estimates by $0.05, with revenue of $180.5 million, down 13.4% year-over-year but exceeding expectations by $0.61 million. For fiscal Q3, the company projects revenue between $170 million and $200 million. GAAP net loss is expected to range from $295 million to $270 million, while non-GAAP net loss is forecasted between $138 million and $119 million, factoring in the issuance of 27.8 million shares.

According to the company, channel inventory has declined significantly in recent quarters, and long-term demand drivers, especially in AI and data centers, provide additional confidence. With substantial investments in renewable energy, the growing need for electricity generation and storage is expected to sustain demand.

4. N-able, Inc. (NYSE:NABL)

Number of Hedge Fund Holders: 27

N-able, Inc. (NYSE:NABL) provides cloud-based software solutions to managed service providers, supporting digital transformation, security, and data protection for small and medium-sized businesses.

On January 30, N-able launched the N-able Developer Portal, an AI-powered platform designed to accelerate API integrations with its IT management and cybersecurity solutions. The portal allows partners to build custom integrations, automate tasks, and improve service delivery, ultimately improving efficiency and reducing manual processes. Some important features include interactive documentation, AI search, AI-suggested scripts, dynamic code previews in 20+ languages, and over 200 automated scripts. The portal is part of N-able’s open Ecoverse to enable rapid connection with Technology Alliance Program partners. The platform is expected to streamline workflows, offering partners greater flexibility and faster development.

3. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 58

Lam Research Corporation (NASDAQ:LRCX) designs and manufactures semiconductor processing equipment for integrated circuit fabrication, offering a range of systems for deposition, etching, cleaning, and wafer applications globally.

On January 30, Cantor Fitzgerald upgraded Lam Research (NASDAQ:LRCX) to Overweight from Neutral, raising its price target to $100 from $95. The firm highlighted strong recent performance, including an earnings beat and expectations for wafer fabrication equipment growth of about 5% in the calendar year 2025. Lam is expected to outgrow wafer fabrication equipment with a notable uptick in NAND, Gate-All-Around/Advanced Packaging revenue growth, and strong leverage to Taiwan Semiconductor Manufacturing Company throughout 2025.

Cantor Fitzgerald has revised its earnings per share estimate to $3.85 for the CY 2025, above consensus, and anticipates a further acceleration in earnings per share to $4.65+ in the CY 2026. With the stock trading at approximately 20 times CY 2025 earnings per share, the firm views the risk/reward as favorable as it mentioned potential upside and a solid catalyst pipeline, including an Analyst Day in three weeks.

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and substantial AI investments

After Microsoft (NASDAQ:MSFT) reported earnings on January 29, DA Davidson maintained a Neutral rating on Microsoft with a $425 price target and noted a lack of acceleration in Azure growth and an increase in capital expenditures. While AI demand remains strong, core Azure services (excluding AI) are slowing, which is leading management to retract previous expectations of a recovery in the second half of the year. Investors are looking for clarity on when AI-driven revenue will compensate for the decline in traditional Azure services.

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) incorporates AI across shopping, entertainment, and operations, fueling innovation through investments, AWS collaborations, and Tranium. On January 30, TipRanks reported that Bank of America’s Justin Post reaffirmed a Buy rating on Amazon with a $255 price target. The firm mentioned strong demand for AWS and its expected 19-20% year-over-year growth in Q4. He highlighted Amazon’s investments in infrastructure, including Trainium chips, as key to sustaining future growth. The company’s practice of billing primarily in USD also helps reduce foreign exchange risks, supporting its overall financial stability.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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