The United Arab Emirates is all set to emerge as the next leading global hub for artificial intelligence. In latest news, it has launched a new Arabic language artificial intelligence (AI) model as the race to develop AI technologies accelerates in the Gulf region.
US President Donald Trump visited the Gulf countries last week, striking major deals with Saudi Arabia, Qatar, and the United Arab Emirates in numerous areas. One noteworthy outcome of the deals was the UAE’s commitment to becoming a global artificial intelligence leader.
READ ALSO: 10 AI Stocks Making Waves This Week and 12 AI Stocks on Analysts’ Radar.
According to Trump, an AI agreement with the UAE offers a path for it to access some of the advanced AI semiconductors from U.S. firms. This is going to a major win for the Gulf country.
A statement shared revealed that the AI model Falcon Arabic, developed by Abu Dhabi’s Advanced Technology Research Council (ATRC), strives to capture the full linguistic diversity of the Arab world through a “high-quality native (non-translated) Arabic dataset.” The model matches the performance of models up to 10 times its size.
“Today, AI leadership is not about scale for the sake of scale. It is about making powerful tools useful, usable, and universal.”
-Faisal Al Bannai, ATRC secretary general said in the statement.
ATRC has also launched Falcon H1. ATRC claims that it outperforms competitors from Meta and Alibaba by lowering the computing power and technical complexity needed to run advanced systems.
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.
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10. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 27
SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions. On May 22, TD Cowen reaffirmed a “Buy” rating on the stock and increased the price target from $320.00 to $350.00. The adjustment comes following SAP’s Sapphire ’25 conference and Analyst Day held in Orlando. The firm has come away optimistic about the stock due to management’s confidence in the company’s growth and margin acceleration strategy.
It reported a gross profit margin of 74% and revenue growth of 10.5% over the past year, reflecting strong operational execution. Key drivers include the transition to cloud-based services, revenue-growth potential from the current on-premises customer base, and new artificial intelligence initiatives with Joule and BDC. The firm also particularly highlighted SAP’s strong commitment to cloud migration, expecting sustained growth. All in all, the firm is confident in SAP’s financial prospects and strategic initiatives that position it strategically for long-term growth.
9. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 40
Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services. On May 22, Barclays analyst Dan Levy reiterated an “Equal Weight” rating on the stock with a $14.00 price target. According to the firm, there is growing momentum in Rivian’s autonomous vehicles driven by its R2 platform. This platform has the potential to be licensed to other original equipment manufacturers (OEMs).
The company is also expected to showcase its capabilities in autonomous vehicles and artificial intelligence (AI) during the company’s AV/AI day in the fall. The event will highlight Rivian’s advancements in these areas. The analysis also highlighted potential benefits Rivian may receive from the U.S. electric vehicle tax credit, offering partial financial support to the company until 2026. Overall, the firm is watchfully optimistic about the company based on both the company’s progress in key technological areas and the broader financial and strategic challenges it is facing in the EV market.
