Tiger Brokers, an online brokerage firm, has recently revealed that it has embedded DeepSeek’s model into its AI-powered chatbot. The DeepSeek-R1 model integrated into TigerGPT signifies a strategic move made by the firm to enhance the platform’s capabilities and user experience. The move comes amid brokerages and money managers racing to leverage the start-up’s artificial intelligence breakthrough.
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Other Chinese brokers and fund managers who have integrated DeepSeek’s model include Sinolink Securities, CICC Wealth Management, and China Universal Asset Management. Their integrations have allowed them to radicalize how they conduct research, manage risks, make investment decisions, and even interact with clients.
The R1 model will allow Tiger Brokers to help customers analyze valuations, and make trading decisions and as Wu Tianhua, Tiger Brokers’ founder and CEO puts it, “feel the beauty of investment”, all by tapping on their financial data.
“Its impact is real. It’s no longer a concept, or a marketing trick,” he told Reuters in an interview.
Chinese firms may be integrating DeepSeek fast into their operations, but tech firms in the US are racing hard to develop their own. In the latest news, Elon Musk’s artificial intelligence startup xAI has revealed the Grok-3 model, a version of its chatbot that is launched to rival OpenAI merely days after Musk’s unsolicited cash bid to buy the company was rejected.
Grok-3 is available to Premium+ subscribers on X. The service costs $22 a month. In comparison, full access to OpenAI’s GPT-4o costs $200 a month. xAI has also revealed its plans to start a new subscription called SuperGrok for the bot’s mobile app and Grok.com website. Bloomberg reported that xAI plans to open-source preceding versions of Grok models as soon as the latest one is fully mature. This move coincides with similar ones made by other AI firms after the launch of DeepSeek’s AI models, reflecting a broader AI trend toward transparency and collaboration.
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.
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A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
10. Safe Pro Group Inc. (NASDAQ:SPAI)
Number of Hedge Fund Holders: N/A
Safe Pro Group Inc. (NASDAQ:SPAI) leads in artificial intelligence-driven drone imagery analysis for humanitarian mine-clearing efforts. On February 18, the company announced that its subsidiary, Safe Pro AI, will be presenting its patented Drone AI-powered SpotlightAI technology at XPONENTIAL Europe in Düsseldorf, Germany from February 18th to February 20th, 2025. The company will be showcasing its work in Ukraine, where its proprietary AI models have now analyzed more than 945,000 drone images and highlighted over 19,250 explosive remnants of war (ERW) across 4,355 hectares. SpotlightAI™ operates at lightning speed on the Amazon Web Services (AWS) cloud, analyzing each drone image in less than 0.2 seconds. The technology can play a potential role in recent Ukraine/Russia ceasefire initiatives.
“We are honored to present our disruptive American AI capabilities to leading international authorities at this pivotal point in time as global leaders are meeting in Europe to discuss the future security needs of Ukraine. Being chosen to present at flagship global events such as XPONENTIAL affords us the opportunity to bring greater attention to our firm and how our technology can support our allied nations in their global missions”.
– Dan Erdberg, Chairman and CEO of Safe Pro Group Inc.
9. Bullfrog AI Holdings, Inc. (NASDAQ:BFRG)
Number of Hedge Fund Holders: 1
Bullfrog AI Holdings, Inc. (NASDAQ:BFRG) is a technology-enabled drug discovery company that uses artificial intelligence to usher in the next generation of lifesaving therapies. On February 9, the company announced its CEO, Vin Singh, alongside guest, Daniel R. Weinberger, M.D., Director and CEO of the Lieber Institute for Brain Development (LIBD), will be participating in a fireside chat hosted by RedChip Companies on March 5, 2024. The chat will discuss early findings from BullFrog AI and LIBD’s collaboration.
Their collaboration has successfully stratified brain expression data to offer insights into psychiatric conditions such as schizophrenia, bipolar disorder, and major depressive disorder. The partnership allowed clustering subjects based on biological data alone, despite their behavioral diagnoses. The findings from the study have the potential to enhance understanding of psychiatric conditions, develop more targeted, effective treatments, and initiate revenue-generating partnerships with pharmaceutical companies.
8. SoundHound AI (NASDAQ:SOUN)
Number of Hedge Fund Holders: 11
SoundHound AI (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses. On February 18, Michael Latimore from Northland Securities maintained a “Hold” rating on the stock with a price target of $8.00.
The stock crashed on Friday, February 14, after Nvidia revealed in its latest filing that it had sold off its stakes in SoundHound AI (NASDAQ:SOUN). The chip maker had initially invested in the company back in 2017 as part of a $75 million funding round but disclosed its stakes in February 2024.
Before the news of its selloff by Nvidia, the AI Company announced the launch of Brand Personalities on February 5th, a cutting-edge feature for its SoundHound Chat AI Automotive voice assistant. The cutting-edge innovation allows automakers to customize unique personas for their in-vehicle voice assistants, improving both user experience and brand loyalty for Original Equipment Manufacturers (OEMs).
7. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country. On February 18, Citi analyst Alicia Yap maintained a “Buy” rating on the stock with an associated price target of $139.00. The rating follows Baidu’s better-than-expected financial results for the fourth quarter of 2024.
In particular, AI cloud revenue was a star performer, with a 26% year-over-year growth. Cloud services growth has been good for Baidu’s profitability, as reflected by its better-than-anticipated operating and net income figures. The company has also highlighted a slight increase in its monthly active users on its app, reflecting its steady user engagement. Online marketing revenue did decline, but disciplined cost management and operational efficiency helped the company maintain profitability.
6. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On February 18, Susquehanna raised the firm’s price target on the stock to $230 from $217.50 and kept a “Positive” rating on the shares. According to the firm, the company has reported a solid Q2 and raised its outlook. Palo Alto is also boosting its growth through platformizations, the company’s strategy of providing a unified cybersecurity platform. At the heart of this unified data strategy is Precision AI, Palo Alto Networks’ proprietary AI system. Management said that it remains positive on the long-term potential of this strategy.
5. 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 18, analyst Adam Jonas from Morgan Stanley maintained a “Buy” rating on the stock and kept the price target at $430.00.
Tesla’s strategic positioning in the automotive and technology sectors, particularly its focus on innovation and leadership in electric vehicles (EVs), has led to the rating. Moreover, the company’s ability to integrate cutting-edge technology and sustainable energy solutions, strong financial performance, and expanding production capabilities make the investment particularly appealing. In addition, Tesla is expanding in autonomous driving technology and energy storage solutions, which further enhances its long-term prospects.
“We continue to view Tesla as one of the leading enablers of humanoid robotics in the Western world and anticipate growing investor interest in TSLA’s role in this potential multi-trillion TAM end-market”.
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained traction after the launch of its AI-powered platform called Agentforce. On February 18, TipRanks reported that Bank of America Securities analyst Bradley Sills has reiterated their bullish stance on the stock, giving a “Buy” rating and a $440 price target on February 14. Sills’s buy rating comes from the solid performance and growth prospects of its core products and new initiatives. The firm’s checks have revealed strong deal activity as well as a positive outlook for Salesforce’s Sales and Service Clouds.
Moreover, the firm has highlighted that there is additional potential from Agentforce pilots that are gaining traction. Another factor contributing to Salesforce’s growth potential is new use cases for Agentforce, including call summarization and semantic search. The company’s data cloud deals are also growing, powering its AI-powered Agentforce. However, results from Tableau and Slack have been mixed. Nevertheless, the company has a strong sales pipeline and expects to see revenue growth of 9-10% revenue growth in fiscal 2026.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL) is a technology company. One of the biggest analyst calls on Friday, February 18, was for Apple Inc. Evercore ISI reiterated the stock as “Overweight”, stating that it’s bullish on Apple’s upcoming iPhone SE launch. Analyst Amit Daryanani noted that the new model is anticipated to feature significant hardware upgrades, such as insourced baseband and combo chips. It will also be featuring Apple Intelligence.
While DRAM costs may potentially increase, it would also likely enhance Apple’s gross margins. Moreover, the iPhone SE remains attractive with its slightly higher price point compared to the average selling price of Apple’s other iPhones. This will potentially drive strong sales in both established and emerging markets.
“The fourth-generation iPhone SE is expected to be released sometime around March (expecting an announcement in mid/ late February). We think this could modestly bolster growth in Mar-qtr but be more material as units ramp-up in Jun qtr and Sept-qtr.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the biggest analyst calls on Tuesday, February 18, was for Nvidia Corporation. Bank of America reiterated the stock as “Buy”, stating that it’s bullish heading into Nvidia earnings next week.
“The next important test for AI bulls comes on Feb. 26 when NVDA reports FQ4 results.”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On February 18, Morgan Stanley reiterated the stock as “Overweight” Morgan Stanley, highlighting that the company has the potential to be a robotics leader. As previously reported on February 14, Meta is making a significant investment in AI-powered humanoid robots. These robots will have the ability to act like humans and assist with physical tasks.
“We view META’s potential movement into robotics as a furthering of its already rapidly expanding wearables offerings we have written about ..”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $770 implies an 8% upside, however, the Street-high target of $900 implies an upside of 27%.
While we acknowledge the potential of META as an investment, our conviction lies in the belief that some 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 META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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