In this article, we discuss 10 important AI news on investor radars.

The Stakes of AI Infrastructure and Competition in 2025

In an interview at CNBC’s ‘Squawk Box,’ Alexandr Wang, founder, and CEO of Scale AI, shared his insights on the ongoing AI competition between the U.S. and China, and emphasized its critical importance. Wang noted that while the U.S. has been ahead in AI for the past decade, Chinese labs, especially DeepSeek, are narrowing the gap. He said:

“It has been true for a long time that the United States has been ahead. And that’s been true for, you know, maybe the past decade. That being said, you know, the very recent event, on Christmas Day, you know, about a month ago, DeepSeek released a model, which by the way, I think is symbolic that the Chinese lab releases, you know, an earth-shattering model on Christmas Day when, you know, the rest of us are sort of celebrating the holiday. And they released it to much fanfare, and then they followed up with their Reasing Model, DeepSeek R1, which is the one that we evaluated as top of the leaderboard. You know, the reality is, yes and no. So, you know, the Chinese labs, they have more H100s than people think, you know.”

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He revealed that DeepSeek has access to around 50,000 H100 chips, despite U.S. export controls, and suggested that Chinese AI development may be more advanced than many expect. Wang also discussed the quick pace of AI model development and mentioned that different models excel in different areas. For example, OpenAI’s models are strong in reasoning, while Anthropic’s models are good at coding.

Regarding the new $500 billion Stargate project, Wang stressed that the U.S. needs significant infrastructure and computational power to maintain its AI leadership. He expressed concern that the growing competition will require the U.S. to rapidly build more data centers and invest in energy to fuel AI progress. While there are discussions around the future of AI models and whether fewer, larger companies will dominate, Wang believes the market is set for exponential growth, and could potentially become a trillion-dollar scale as AI advances toward superintelligence or artificial general intelligence in the next few years.

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.

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10. Nebius Group N.V. (NASDAQ:NBIS)

Number of Hedge Fund Holders: N/A

Nebius Group N.V. (NASDAQ:NBIS) develops AI-focused infrastructure, including cloud platforms, GPU clusters, and autonomous driving technology, while also offering AI data services and tech education.

On January 22, Nebius (NASDAQ:NBIS) launched new open-source text-to-image AI models through its Inference-as-a-Service platform, Nebius AI Studio, to meet the growing demand for scalable, high-quality image generation. The models, including Flux Schnell, Flux Dev by Black Forest Labs, and SDXL, offer premium output with usage-based pricing.

The release is aimed at creative professionals and businesses to enable them to generate high-quality visuals from text prompts quickly. Nebius AI Studio is built on proprietary infrastructure that offers cost-effective, flexible pricing and strong performance with fast, scalable data processing. The platform is designed for various applications, including marketing, e-commerce, and gaming.

9. BlackSky Technology Inc. (NYSE:BKSY)

Number of Hedge Fund Holders: 7

BlackSky Technology Inc. (NYSE:BKSY) provides geospatial intelligence, satellite imagery, and analytics services for government and commercial clients in sectors like national security and supply chain management.

On January 23, BlackSky (NYSE:BKSY) shipped its first Gen-3 satellite to Rocket Lab for launch in February from New Zealand. The Gen-3 constellation will improve space-based intelligence with high-resolution 35-centimeter imagery and AI-enabled analytics, offering rapid, high-frequency data at industry-leading speeds. BlackSky plans to launch additional Gen-3 satellites regularly throughout the year, improving capacity and operational efficiency for tactical and strategic intelligence applications. Brian O’Toole, BlackSky CEO said:

“Gen-3 represents a transformative leap forward for space-based intelligence, combining very high- resolution imagery with high frequency monitoring… When combined with BlackSky Spectra®, the Gen-3 constellation is designed to deliver data at sub-hourly, mission-relevant speeds. We look forward to the inaugural launch and introducing the advanced features of our Gen-3 satellites to our customers.”

8. Logitech International S.A. (NASDAQ:LOGI)

Number of Hedge Fund Holders: 18

Logitech International S.A. (NASDAQ:LOGI) creates and sells hardware with software support for gaming, streaming, and productivity, including accessories, peripherals, and audio devices worldwide.

On January 22, Logitech (NASDAQ:LOGI) introduced the Rally Board 65, an all-in-one portable video conferencing solution featuring a 65″ touchscreen display, intelligent audio and video, and AI-powered features. Designed for hybrid work environments, it enables seamless setup in various spaces, from traditional offices to open workspaces.

The device offers 4K video, AI-driven RightSight 2 and RightSound 2 technologies, and advanced features like Depth Blur and Camera and Mic Zones. Additionally, it includes sensors that monitor occupancy, environmental data, and room health, providing insights through the Logitech Sync platform. Rally Board 65 will be available in May 2025 for $6,999 and is designed with sustainability in mind, using recycled materials and energy-saving features.

7. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 44

Cloudflare, Inc. (NYSE:NET) delivers cloud services that use AI to improve security, performance, and zero-trust features across various platforms, including IoT and SaaS applications.

On January 23, TD Cowen analyst Shaul Eyal raised the price target for Cloudflare to $130 from $110, reflecting 18x its 2026 revenue estimate. The firm believes recent leadership additions, including Mark Anderson as President of Revenue and CJ Desai as Chief Product Officer, will improve enterprise reach and performance. Cloudflare’s expanding focus on AI inference, alongside its strong security platform, supports its growth potential. The analyst views Cloudflare as resembling a smaller version of AWS and highlighted its increasing enterprise focus and AI momentum as key positives.

The firm noted:

“We remain positive on NET for the following reasons:

1. Growing Enterprise Focus;

2. AI Momentum Building.”

6. Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Fund Holders: 46

Seagate Technology Holdings plc (NASDAQ:STX) specializes in providing data storage solutions and cloud infrastructure products.

On January 21, Seagate Technology (NASDAQ:STX) reported Q2 non-GAAP EPS of $2.03, exceeding estimates by $0.15, and revenue of $2.33 billion, up 49.4% year-over-year, surpassing expectations by $10 million. The company recorded $221 million in operating cash flow and $150 million in free cash flow. For Q3, Seagate projects revenue of $2.10 billion, plus or minus $150 million, and non-GAAP EPS of $1.70, plus or minus $0.20.

The company recently became the center of analyst attention as several revised their rating and price targets upwards for the stock. On January 22, Benchmark analyst Mark Miller upgraded Seagate (NASDAQ:STX) to Buy from Hold with a $120 price target following strong fiscal Q2 results, supported by strong cloud demand that boosted margins.

Although supply constraints may affect the March quarter, the firm expects sustained cloud demand and growth in the AI segment to drive performance in the latter half of FY25 and into 2026. Benchmark forecasts non-GAAP earnings to increase 25% year-over-year, reaching $9.96 per share.

5. ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 64

ASML Holding N.V. (NASDAQ:ASML) develops and supplies advanced semiconductor equipment to chipmakers worldwide. TipRanks reported on January 23 that Bank of America Securities analyst Didier Scemama maintained a Buy rating on ASML’s stock, mentioning strong earnings growth expectations of 16% annually until 2030, based on company guidance.

Despite concerns over potential declines in demand from China and challenges with Intel and Samsung, Scemama remains optimistic due to ASML’s solid long-term revenue prospects, especially from the growing AI accelerator chip market.

4. GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Holders: 89

GE Vernova Inc. (NYSE:GEV) offers energy solutions across gas, nuclear, wind, solar, and storage, focusing on electrification and power conversion to meet increasing electricity demand for data centers.

On January 22, GE Vernova (NYSE:GEV) reported its Q4 earnings with an EPS of $1.73 and revenue of $10.56 billion, missing estimates for both by $0.71 and $140 million. However, several analysts still remain bullish on the company. On January 23, Truist analyst Jordan Levy increased the price target for the company stock to $470 from $420 and maintained a Buy rating.

Levy highlighted strong booking momentum and growing interest in AI infrastructure, especially with the Stargate Project. He also pointed to better-than-expected electrification orders as another positive factor for the company’s growth, which reinforces the outlook for GE Vernova as a leader in the energy transition sector.

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOGL) offers AI-based solutions across various platforms, improving cloud services, collaboration tools, and consumer products, with a strong focus on advancing AI research.

At Samsung Galaxy Unpacked on January 22, Alphabet Inc. (NASDAQ:GOOGL) introduced updates to Gemini, improving its functionality as a personalized assistant on Android devices. New features include Gemini Live, which now supports images, files, and YouTube videos in conversations, available on Galaxy S24, S25, and Pixel 9 devices, with broader Android support coming soon. Additionally, Project Astra will introduce screen sharing and live video streaming on the Samsung Galaxy S25 and the Gemini app in the coming months.

Gemini now integrates with Samsung apps like Calendar, Notes, Reminder, and Clock on Galaxy S25 devices, alongside existing compatibility with apps such as YouTube and Gmail. Users can combine multiple extensions in a single prompt, making tasks like saving recipes to Samsung Notes or Google Keep easier.

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) provides a variety of AI-driven solutions, including cloud services, productivity tools, and business applications, to improve business operations and security. The company has also made huge investments in AI development.

According to a January 23 report by The Guardian, leaked documents reveal that Microsoft deepened its relationship with Israel’s military during the Gaza war, providing significant support with cloud technology and AI systems.

As demand for storage and computing surged during the conflict, Microsoft played a key role, supplying the IDF with Azure services and technical support, generating about $10 million in fees. Microsoft worked on sensitive projects, including supporting elite intelligence units like Unit 8200 and handling data for military operations.

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) uses AI to enhance its shopping experience, entertainment services, and operational efficiency, while also investing in AI through initiatives like Anthropic, AWS partnerships, and Tranium to strengthen its position in AI development.

On January 22, Cantor Fitzgerald analyst Deepak Mathivanan reiterated an Overweight rating on Amazon, maintaining it as a top pick with a price target of $270. Mathivanan highlighted the potential upside for Amazon in both the fourth quarter of 2024 and the first quarter of 2025, driven by accelerated AWS growth and retail margin expansion. He noted that AWS is set to benefit from increased AI workloads, while retail margins should improve due to fixed cost leverage. Despite challenges from the Kuiper launch, the outlook for 2025 remains positive.

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