In this article, we discuss 12 AI news and ratings investors are keeping their eye on.

How AI Is Shaping Global Power and Innovation

Josh Wolfe, co-founder of Lux Capital, discussed the current AI space and the increasing importance of both capital and human talent in the field as he joined Caroline Hyde and Mike Shepard on “Bloomberg Technology.” He highlighted how investments in large foundation models, previously seen as groundbreaking, are being overshadowed by more cost-effective open-source models and the rise of novel AI applications, especially in physical intelligence, robotics, and biology.

Wolfe pointed out the significance of AI models’ geopolitical implications, especially regarding the competition between the U.S. and China. He stressed that U.S. leadership in AI is at risk due to China’s rapid advancements and its ability to produce a significant portion of AI talent globally. Wolfe also highlighted concerns about China’s state-backed companies, such as TikTok and Huawei, which he views as extensions of the Chinese government, posing national security risks. He emphasized the importance of attracting top international talent to the U.S. to maintain a competitive edge, as China produces a large percentage of AI researchers and students.

Additionally, Wolfe noted the growing significance of AI infrastructure, especially in hardware and inference. He predicts a shift toward on-device AI processing, which could reduce reliance on cloud-based systems and change the competitive landscape in AI. On national security, Wolfe praised initiatives that foster collaboration between technologists, policymakers, and venture capitalists to strengthen U.S. competitiveness. He also expressed concern about potential challenges to scientific research funding under the current administration, urging more federal investment in basic science and research to promote innovation, especially in physical sciences, robotics, and space exploration.

Wolfe concluded by stressing the need for more support for young researchers, as significant breakthroughs often come from ambitious and unconventional ideas, and called for a stronger focus on advancing U.S. leadership in these fields.

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.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

12. Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ)

Number of Hedge Fund Holders: 1

Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) focuses on developing novel biological therapeutics for various conditions, including erectile dysfunction, infertility, and degenerative diseases.

On February 5, Creative Medical Technology Holdings expanded its partnership with Greenstone Biosciences to advance its human induced pluripotent stem cell (iPSC) platform for diabetes treatment using AI. The collaboration focuses on improving Creative Medical’s hypoimmune iPSC technology, specifically its iPSC-derived pancreatic islet cells, to optimize insulin secretion. AI will help identify small molecules to refine these cells and enable the development of next-gen hypoimmune iPSCs with enhanced survival and differentiation capabilities. The initiative aims to work on challenges related to immunosuppression in stem cell therapies and improve outcomes for diabetes and other chronic conditions.

11. D-Wave Quantum Inc. (NYSE:QBTS)

Number of Hedge Fund Holders: 6

D-Wave Quantum Inc. (NYSE:QBTS) develops quantum computing systems and software, offering solutions for different industries, including logistics, drug discovery, and manufacturing.

On February 5, D-Wave Quantum Inc. announced that its Qubits 2025 user conference will be held in Scottsdale, Arizona, on March 31 and April 1. With the theme “Quantum Realized,” the event will show customer success stories, technical advancements, and the growing impact of quantum AI. The conference will provide insights into its real-world benefits as quantum computing moves from research to practical applications. Speakers from industry and academia, including IDC and various D-Wave customers, will discuss their use of the company’s quantum technology. CEO Dr. Alan Baratz emphasized that D-Wave’s solutions are already addressing complex computational challenges. He further added:

“Qubits 2025 is an incredible opportunity to engage with the trailblazing innovators at the center of this quantum transformation. It’s a must-attend event for anyone looking to harness the remarkable power of this technology to strengthen business operations, achieve new scientific breakthroughs, and capitalize on the beneficial relationship between quantum and AI.”

10. Acrivon Therapeutics, Inc. (NASDAQ:ACRV)

Number of Hedge Fund Holders: 9

Acrivon Therapeutics, Inc. (NASDAQ:ACRV) is a clinical-stage biopharmaceutical company developing precision oncology drugs using its AI-powered AP3 platform to match treatments with patients based on tumor-specific sensitivities.

On February 5, Acrivon Therapeutics announced that the FDA has granted Breakthrough Device designation for its ACR-368 OncoSignature assay, which identifies endometrial cancer patients who may benefit from ACR-368 treatment. The proprietary biomarker assay is developed using Acrivon’s AI-driven AP3 platform and is being used in a Phase 2b trial to predict patient response. Recent clinical data from ESMO 2024 showed a significant correlation between biomarker-positive patients and treatment response. Acrivon also continues enrollment for ACR-368 and its Phase 1 WEE1/PKMYT1 (protein kinases that regulate the cell cycle) inhibitor, ACR-2316.

9. Altair Engineering Inc. (NASDAQ:ALTR)

Number of Hedge Fund Holders: 13

Altair Engineering Inc. (NASDAQ:ALTR) offers software and cloud solutions in simulation, design, high-performance computing, data analytics, and AI, serving diverse industries.

On February 5, Altair introduced major upgrades to its HPC and cloud platform, Altair HPCWorks, improving scalability, AI-driven job scheduling, and monitoring. The platform now operates under the Altair Units licensing system, offering flexible access to Altair’s HPC, simulation, and data analytics tools.

It supports seamless cloud scaling for both Altair and third-party workload managers, optimizing hybrid environments while managing costs. New AI integrations improve job scheduling, reduce wait times, and improve efficiency through Altair RapidMiner. Additional improvements include better security, performance boosts, and expanded GPU and Kubernetes support, providing users with more control over complex computing workflows.

8. Nokia Oyj (NYSE:NOK)

Number of Hedge Fund Holders: 16

Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions, including infrastructure, services, and technologies, to global communications, digital industries, and government sectors.

On February 5, Nokia and StarHub announced the successful completion of StarHub’s nationwide rollout of its XGS-PON fiber broadband network in Singapore, enabling 10 Gbps connectivity across the country. StarHub uses Nokia’s Altiplano Access Controller to make its network run more efficiently with AI-driven automation, helping to improve performance and detect issues faster. It is also the first operator in the world to fully switch to a software-based access network with Nokia’s technology. The deployment, aligned with Singapore’s Digital Connectivity Blueprint, improves broadband capacity for high-bandwidth applications like AI, immersive gaming, and security solutions.

7. A10 Networks, Inc. (NYSE:ATEN)

Number of Hedge Fund Holders: 20

A10 Networks, Inc. (NYSE:ATEN) offers networking solutions, including load balancing, security, and DDoS protection, serving various industries globally.

On February 4, A10 Networks reported a Q4 non-GAAP EPS of $0.31, surpassing estimates by $0.09. The company’s revenue reached $74.2 million, a 5.4% year-over-year increase, exceeding expectations by $2.38 million. A10 Networks is seeing a positive outlook driven by its strong competitive position, especially with security and AI-related investments. Demand for AI data centers is increasing, and A10’s products offer efficient performance with integrated security, giving the company a competitive edge.

A10 continues to invest in cybersecurity and AI solutions, including Bot Protection, DDoS mitigation, and AI infrastructure for GPUs. The company is focused on internal investments, shareholder returns, and strategic opportunities, ending the year with nearly $200 million in cash and marketable securities.

6. Intapp, Inc. (NASDAQ:INTA)

Number of Hedge Fund Holders: 20

Intapp, Inc. (NASDAQ:INTA) offers AI-powered solutions for deal management, compliance, time tracking, and collaboration, serving professional services firms globally.

On February 4, Intapp reported Q2 non-GAAP EPS of $0.21, surpassing estimates by $0.05. Revenue for the quarter totaled $121.21 million, reflecting a 16.7% year-over-year increase, in line with expectations. In the quarter, Intapp continued advancing its vertical AI roadmap, introducing an AI-powered search feature within Intapp Assist for DealCloud. The feature allows professionals to use natural language queries to combine various types of DealCloud data, enabling them to answer more complex questions and apply broader firm-wide intelligence to their work.

The company also deepened DealCloud’s integration with Microsoft Outlook and added a new integration with Google Calendar and Gmail to streamline workflows. Additionally, Intapp expanded its Walls for Copilot to include risk assessment data, allowing firms to manage the data Copilot can access for each professional. The solution now also detects and alerts compliance teams about potential data oversharing and security risks within documents stored in OneDrive, improving the secure adoption of AI and reinforcing Intapp’s partnership with Microsoft.

5. DXC Technology Company (NYSE:DXC)

Number of Hedge Fund Holders: 30

DXC Technology Company (NYSE:DXC) provides IT services and solutions globally, specializing in analytics, cloud infrastructure, security, and software engineering across various sectors.

On February 4, DXC Technology reported Q3 non-GAAP EPS of $0.92, exceeding expectations by $0.15. However, revenue of $3.23 billion declined 5% year-over-year, missing estimates by $30 million. The company management said that it continues to drive digital transformation by expanding its AI capabilities, including partnerships with SAP and ServiceNow to help clients leverage AI for growth. DXC is also enabling GenAI adoption by ensuring clean, reliable data for scalable solutions. Significant projects include working with Singapore General Hospital to create an AI tool for clinical data analysis and partnering with Ferrari to develop software for the F80 supercar’s infotainment system. Additionally, DXC’s strong position in the insurance sector and focus on secure AI-driven cloud infrastructure solutions contribute to its ongoing growth.

4. Genpact Limited (NYSE:G)

Number of Hedge Fund Holders: 31

Genpact Limited (NYSE:G) offers business process outsourcing and IT services across financial services, consumer healthcare, and high-tech manufacturing sectors globally.

On February 5, Genpact launched its Agentic Solutions, a Service-as-Agentic-Solutions model designed to revolutionize service delivery by shifting from traditional linear models to autonomous agent-led systems. These solutions use AI and industry-specific expertise to offer hyper-personalized, scalable, and precise services. The first solution, Genpact AP Capture, modernizes accounts payable by improving invoice extraction with greater precision. The launch follows the introduction of the Genpact AI Gigafactory, an accelerator for AI development, aiming to help businesses scale AI while maintaining governance and control.

3. Super Micro Computer, Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 33

Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for various markets, including AI, cloud computing, and 5G, offering comprehensive products and services globally.

On February 5, Supermicro announced the full production availability of its AI data center Building Block Solutions, powered by NVIDIA Blackwell. The portfolio includes both air-cooled and liquid-cooled systems with various CPU options and superior thermal design for efficient operation. It supports complex AI workloads with scalable infrastructure, offering systems like the NVIDIA HGX B200, which integrates advanced liquid and air cooling technologies.

Supermicro’s solutions include rack-level integration, network switching, and cluster validation for turnkey AI deployments. The company’s SuperCluster design allows scalable AI units, supporting up to 768 GPUs, and is optimized for AI deployment using NVIDIA AI Enterprise software. Furthermore, Supermicro offers full end-to-end solutions with global manufacturing and liquid-cooling expertise for large-scale AI infrastructure.

2. Juniper Networks, Inc. (NYSE:JNPR)

Number of Hedge Fund Holders: 47

Juniper Networks, Inc. (NYSE:JNPR) designs and sells network products, including routing, switching, security solutions, and software services, targeting cloud, service providers, and enterprise markets.

On February 4, Juniper (NYSE:JNPR) reported a Q4 non-GAAP EPS of $0.64, exceeding estimates by $0.07. The company’s revenues of $1.4 billion were up 3% year-over-year and outperformed the forecasts by $10 million. Juniper’s CEO, Rami Rahim, highlighted strong demand in the fourth quarter, with total product orders rising over 40% from the previous year and showing double-digit growth from the prior quarter.

He noted that both enterprise and service provider segments saw double-digit order increases, while the cloud segment experienced triple-digit year-over-year growth, driven by AI networking demand. Rahim attributed these results to effective execution and the success of Juniper’s AI-native networking solutions, which he believes will support ongoing growth.

1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 158

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and semiconductor devices globally, serving industries like computing, smartphones, and automotive with a range of fabrication processes and support services.

According to a report by The Chosun Daily posted on February 4, Taiwan Semiconductor Manufacturing Company (NYSE:TSMC) is set to build a 1 nm process fab in southern Taiwan, to introduce the 1 nm process ahead of competitors like Samsung and Intel. The facility, located in Shalun, Tainan, will feature six production lines, with the first three focusing on 1.4 nm chips and the remaining three on 1 nm chips. According to the report, TSMC aims to strengthen its leadership in the semiconductor market as demand for AI chips increases. Initially expected to launch the 1.4 nm process in 2027, TSMC has accelerated its timeline, planning to produce 1.6 nm chips in 2026, ahead of rivals.

While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, our conviction lies in the belief that 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 TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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