Chinese artificial intelligence startup DeepSeek, which wreaked havoc in the tech world when it launched the R1 model back in January, is reportedly delaying the release of its new model after failing to train it using Huawei’s chips. The delayed release reflects the limits in Beijing’s self-reliance push which seems to be hitting technological walls.
According to people familiar with the matter, authorities encouraged DeepSeek to adopt Huawei’s Ascend processor instead of Nvidia’s systems. However, DeepSeek faced persistent technical issues during its R2 training process using the said chips.
The delayed release of the R2 model reflects how Chinese chips still lag behind their US counterparts, at least for now.
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 Q1 2025.
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10. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 13, Citizens JMP analyst Greg Miller reiterated a Market Perform rating on the stock without a price target. The rating affirmation reflects CoreWeave’s stronger-than-expected results and positively revised outlook.
JMP has noted how CoreWeave encompasses a business model that enables cloud and hyperscale companies to manage capital expenditure increases while accelerating time to market for their services.
At the same time, it remains cautious about GPU-as-a-Service providers’ ability to steer through falling average selling prices and increasing customer churn against rising real estate costs.
“CoreWeave reported 2Q25 results that one would expect after such a high-profile IPO; stronger-than-consensus expectations with a positively revised outlook that clearly demonstrates the hyperscale company’s willingness to push balance sheet liabilities onto other companies in exchange for a high initial margin (over a 3-4-year term). While we continue to believe cloud/hyperscale companies will accelerate the push to use these companies to help manage capex increases and speed time to market, we remain cautious with regard to GPUaaS providers’ abilities to manage a declining ASP and increasing churn against the backdrop of an increasing real estate cost structure. We remain Market Perform rated on CoreWeave, as we wait for investors to gain a better understanding of the underlying KPIs.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
9. Freshworks Inc. (NASDAQ:FRSH)
Number of Hedge Fund Holders: 41
Freshworks Inc. (NASDAQ:FRSH) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 11, Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on the stock with a $19.00 price target. The rating affirmation follows a webinar and investor meetings with the company’s CFO.
Oppenheimer hosted Freshworks CFO Tyler Sloat at its 28th Annual Technology, Internet, and Communications Conference on Monday. The conference included discussions about the company’s market opportunities, artificial intelligence momentum, and competitive positioning.
The firm recommends Freshworks to those investors who are looking for exposure to artificial intelligence.
“We hosted a well-attended webinar and investor meetings with Tyler Sloat, CFO of Freshworks, at our 28th Annual Technology, Internet, and Communications Conference earlier today. Management’s tone was upbeat as the discussion centered on the company’s large and underpenetrated TAM, AI business momentum, growth opportunities and competitive moat in the AI era, its go-to-market strategy with improving efficiency, move into adjacent workflow markets, multi-products adoption, product led growth momentum, stabilization in the CX business, technology updates, and productivity trends. Following the webinar, we remain positive on Freshworks’ business momentum and AI monetization trajectory. Bottom Line: We recommend FRSH for investors looking for exposure to AI, the services modernization and customer/IT engagement themes at a discount valuation versus peers.”
Freshworks Inc. is a software development company that provides software-as-a-service products.
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