According to a state media report, China’s President Xi Jinping has pledged “self-reliance and self-strengthening” to develop artificial intelligence in China. The country is eagerly competing with the United States for supremacy in the AI arms race. Xi has stressed that China should be leveraging its “new whole national system” to push forward with the development of AI.
“We must recognise the gaps and redouble our efforts to comprehensively advance technological innovation, industrial development, and AI-empowered applications.”
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With the emergence of DeepSeek and other artificial intelligence models that have followed, many experts are of the belief that China has already covered much of the AI development gap it had with the United States.
“We must continue to strengthen basic research, concentrate our efforts on mastering core technologies such as high-end chips and basic software, and build an independent, controllable, and collaborative artificial intelligence basic software and hardware system.”
-Xi Jinping.
Xi is also of the belief that AI shouldn’t be a “game of rich countries and the wealthy. Rather, he believes in more international governance and cooperation on AI.
In his recent visit to Shanghai, he underscored China’s leading role in the “Global South,” calling for more innovation, support for AI startups, and stronger global influence in technology. He also urged the city to expand its exploration of AI models and noted that more supportive policies for the technology should be rolled out.
Visiting the Shanghai-based New Development Bank, a multilateral lender of BRICS member nations, he affirmed how China is ready to strengthen project cooperation with the bank and share development experience with other member countries. The visit underscores Xi’s commitment to positioning China as the leader of the Global South.
“China wants to offer an alternative to the world against the U.S.-dominant global order.”
– Alfred Wu, a China expert at National University of Singapore.
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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Stocks
10. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 43
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products. On May 8, JPMorgan reiterated the stock as “Overweight” and adjusted the price target to $150 from the previous $175. The firm said it’s sticking with Arm following earnings on Wednesday. The optimism in the stock stems from Arm’s strong financial performance, while the revised projections reflect the increased trade and tariff uncertainties expected in the second half of the current calendar year.
“Our Overweight rating is based on Arm’s strong leadership profile in semiconductor compute architecture and it being well positioned to intercept the increasing demand for higher performance compute capabilities while optimizing for energy efficiency.”
9. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing worldwide. On May 7, Needham resumed the stock as “Buy” and set a price target of $39. This move marks their renewed interest in the stock following a period of suspended coverage due to financial uncertainties that the company was facing. The firm believes that the worst that has happened to the company is behind it. It also noted how SMCI has a robust positioning in markets for artificial intelligence and high-performance computing, as well as leadership in liquid-cooled data center technology.
“With filing risks behind the company, along with an attractive valuation, we are stepping off the sideline and resuming coverage with a Buy.”