The AI arms race may seem like a two-nation contest to most, but one other country from Asia is rapidly ramping up its ambitions to join. In the latest news, South Korea has asked some of its biggest companies and promising startups to build a national foundational AI model, largely using domestic technology.
Seoul is aiming to create a near self-sufficient AI industry, aiming to present itself as a viable alternative to China and the U.S. According to the Ministry of Science and ICT (MSIT), Korea has announced that five consortia have been selected to develop the models. One is led by telecommunications giant SK Telecom, while other teams are led by prominent South Korean firms including LG and Naver.
“We are going through an important juncture in terms of our technological development. So Korea, at the national level, is focusing on ensuring that we lay the technical foundation to have our competitiveness…Korea has many entities that would excel at creating a big AI industry. And we could clearly see the possibility that we are very capable of creating a good AI stack.”
-Kim Taeyoon, head of the foundation model office at SK Telecom who also leads the company’s consortium, told CNBC.
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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A business analyst reviewing a portfolio of stocks and bonds in the current market capitalization.
15. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 18
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 8, DA Davidson analyst Gil Luria raised the price target on the stock to $15.00 (from $10.00) while maintaining a Buy rating.
The rating follows in what CEO Keyvan Mohajer called its “strongest ever quarter.” The voice-based artificial-intelligence company beat revenue expectations by a wide margin, with Mohajer noting that businesses are increasingly turning to AI for voice-based customer-service offerings.
It continues to win large new logos which has led to rapid growth in its pipeline.
“SoundHound reported a great quarter significantly beating revenue expectations with sequential growth driven by demand across its product set from all industries. SoundHound continues to win large new logos including major OEMs and restaurants resulting in rapid growth in its pipeline. SoundHound is capturing market share across a massive and underpenetrated TAM while making progress towards profitability. We reiterate our BUY rating and raise our price target to $15.”
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
14. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 23
Informatica Inc. (NYSE:INFA) is one of the 15 Hot AI Stocks on Wall Street’s Radar. On August 7, Guggenheim analyst Howard Ma downgraded the stock from Buy to Neutral. The downgrade follows Informatica’s second-quarter results, particularly due to the pending acquisition by Salesforce.
The firm said that Informatica will not be hosting an earnings conference call to discuss the quarterly results. It has also declined to provide financial guidance.
“Informatica reported 2Q25 results that were above consensus expectations across the board. In light of the pending transaction with Salesforce (which the company expects to close in Salesforce’s early FY27), Informatica will not be hosting an earnings conference call to review the 2Q results or providing financial guidance. We’re downgrading INFA shares to Neutral from Buy, reflecting the acquisition price of $25/share. Our last published price target was $27.”
Informatica is a leader in enterprise AI-powered cloud data management.
