11 Hidden AI Stocks to Buy Right Now

5. Deere & Co. (NYSE:DE)

Number of Hedge Fund Holders: 57

Deere & Co. (NYSE:DE) manufactures and distributes various equipment worldwide. The company operates through four segments: Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry, and Financial Services. The company’s Precision Agriculture segment also leverages AI for its operations.

The company’s Production & Precision Agriculture business unit in total reported net sales of $3.067 billion in Q1 2025. Deere’s commitment to integrating AI into its agricultural machinery and solutions is evident through actions like the adoption of Precision Agriculture Essentials kits and JDLink Boost, which is a satellite connectivity solution powered by Starlink in the Brazilian market with over 1,500 and 1,200 orders, respectively, in Q1.

Through AI-powered tools and services, Deere aims to drive value for its customers. On February 10, JPMorgan raised the price target for the stock to $500 from $470, expecting short sellers to continue exiting their positions. One of the reasons behind this sentiment was the recent rise in agricultural equipment stocks, which included a $30 billion aid package that could boost US farm income by about 30% in 2025, just below previous highs.

Nightview Capital expressed strong optimism about Deere’s transition into a tech leader and stated the following regarding Deere & Company (NYSE:DE) in its Q4 2024 investor letter:

“In January, we purchased shares of Deere & Company (NYSE:DE) based on a simple thesis: the 185-year-old company is evolving from a machinery manufacturer into a technology leader in an industry that urgently needs innovation.

Deere’s vision of autonomous tractors, dump trucks, and mowers address critical labor shortages, enabling farmers, builders, and landscapers to maintain productivity with fewer workers.”

Deere’s potential to transform the multi-trillion-dollar agriculture market is significant. Technologies like its See & Spray system, which reduced herbicide use by nearly 60% across over one million acres in 2024, demonstrate its ability to drive efficiency and environmental benefits. Its connected ecosystems, such as the John Deere Operations Center, are integrating machinery and data to improve decision-making and outcomes for customers.

The company has also implemented structural improvements to weather challenging market conditions. In 2024, Deere generated $6.9 billion in operating cash flow from equipment operations, achieving 18.2% operating margins despite lower shipment volumes. These measures support reinvestment in technology and steady shareholder returns, while maintaining operational discipline.

Deere’s continued pivot toward technology-driven solutions and recurring revenue models, such as pay-per-use and software licensing, enhances its ability to serve modern farmers and contractors effectively. We are optimistic about the company’s ability to lead innovation in its markets and will share further updates as we continue to evaluate its long-term prospects.”