We recently compiled a list of the 9 Must-See AI News Updates That Are Trending on Wall Street. In this article, we are going to take a look at where Cisco Systems, Inc. (NASDAQ:CSCO) stands against the other AI stocks.
CNBC recently spoke to companies worldwide on how DeepSeek’s new AI models will likely impact their operations and financials. Roadzen, a technology company using artificial intelligence to disrupt the auto insurance sector, was asked how things are now different with DeepSeek releasing its R1 model.
According to its chief executive Rohan Malhotra, his company helps its insurance underwriting clients speed up claim processing, cutting the time to resolve 80% of minor accident claims from six weeks to two minutes. Since the nature of processing such claims is sensitive, the company has been using sophisticated AI models that produce accurate results, such as those from OpenAI, Meta, and Anthropic. However, things may be different now that DeepSeek is in the picture.
“Our clients cannot afford a model which has 60%-70% accuracy, that’s like a major economic issue. We need to deploy models that have 95%-99% accuracy.”
-Chief executive Rohan Malhotra
Rough calculations reveal that the company may be able to incur costs 50% lower using DeepSeek than the costs incurred with OpenAI’s models.
“What we really care about is the cost of inference. We care about the accuracy of the outputs. And we care about whether this model is performing to the certain benchmarks that we’ve set, in a good way”.
READ NOW: Top 10 AI Stocks Trending On Wall Street and 12 High Flying AI Stocks This Week
Besides cost efficiencies, other companies have lauded the decision to keep the technology open source, stating that it makes it more attractive compared to existing open-source models like Meta Platforms’ Llama. Another company excited with the advent of DeepSeek is a North Carolina-based eldercare platform CareYaya. Neal K. Shah, CEO, told CNBC that their company has started using AI to help customers fight health insurance claims denials.
“DeepSeek just lowered our costs by 90% so we can help more people,” he said in a message. “The average cost to appeal a U.S. health insurance claims denial is $43.84. We had used OpenAI and Anthropic to get the cost down to 12 cents — now we’re doing it with DeepSeek on the back end, the cost per appeal is 2 cents.”
The above findings suggest how DeepSeek may democratize artificial intelligence. However, its models are also raising concerns regarding data privacy, security, and potential for misuse. That said, while the impact DeepSeek’s models have made is undeniable, it is a wait-and-watch moment to see whether it reshapes the AI world for the better or for worse.
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.
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).
Engineers using the latest Cisco TelePresence technology to collaborate with colleagues around the world.
Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 61
Cisco Systems, Inc. (NASDAQ:CSCO) is an American technology company that provides information technology and networking services. On February 5th, Booz Allen Hamilton, a military-defense-focused AI company, announced that Cisco Systems, Inc. (NASDAQ:CSCO) has completed the acquisition of Snap Attack. The acquisition itself was completed on January 31, 2025, while the announcement from Booz Allen came today. Snap Attack is the cyber threat hunting and detection company created by Booz Allen DarkLabs, an elite team of cyber operators and defenders, to help clients stay proactive in the face of threats and fix gaps in cybersecurity. The company spun out of Booz Allen in 2021. SnapAttack will now be providing critical threat detection and engineering (TD/E) technology, intellectual property, and expertise to help Cisco’s Splunk improve its threat detection and engineering roadmap. Splunk is an AI-powered system for managing and analyzing network data, another firm that was acquired by Cisco to strengthen its AI-powered security and observability solutions. Snap Attack will also help Cisco customers switch to Splunk Enterprise Security from other platforms smoothly, Cisco has informed. Its TD/E management lifecycle solution enables security analysts to assess, organize, and optimize their security content, streamline research, writing, and validation and deployment of threat detections across their technology estate.
“We spun out SnapAttack because we believe in the power of dual-use technology to speed outcomes. When great products scale in the commercial market, their benefit expands across our government missions as well. This is an excellent outcome for all involved and we look forward to continuing to work with the SnapAttack team.”
-Booz Allen Chief Financial Officer Matt Calderone.
Overall CSCO ranks 4th on our list of the AI stocks that are trending on Wall Street. While we acknowledge the potential of CSCO as an investment, our conviction lies in the belief that some 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 CSCO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center