We recently published a list of Top 11 AI News and Ratings You Probably Missed. In this article, we are going to take a look at where Flex Ltd. (NASDAQ:FLEX) stands against other top AI news and ratings you probably missed.
AI is rapidly evolving, with lower costs making it more accessible and shifting attention from infrastructure to real-world applications. As companies explore new ways to integrate AI, open-source models are gaining momentum, challenging proprietary systems. This shift is reshaping investment strategies and raising questions about the future of AI development and adoption.
The Future of AI Development and Market Trends
Big Technology’s Alex Kantrowitz and Alger’s Dan Chung joined CNBC Closing Bell to discuss AI’s growing power demand, investment trends, and changing perceptions around the technology. Kantrowitz highlighted that AI development is becoming more affordable as it is shifting the focus from infrastructure to practical applications. Companies integrating AI into their products stand to gain the most, while infrastructure-based businesses face uncertainty as models become more accessible. He emphasized the need for real-world applications to sustain AI’s momentum.
Chung shared an optimistic view and noted that lower costs could drive wider AI adoption. He acknowledged the need for further validation of DeepSeek’s claims but recognized its potential to reshape AI development. The conversation also explored the rise of open-source AI, which is challenging proprietary models by promoting collective advancements. While there is some skepticism remaining over DeepSeek’s reported costs, its results suggest a significant shift in AI’s evolution.
AI is evolving quickly, with advancements making it cheaper to develop and more accessible through open-source models. While early discussions centered on infrastructure and cloud computing, the focus is now shifting to real-world applications. Investors and tech leaders are watching closely to see if these breakthroughs will lead to meaningful innovation or if the excitement is outpacing reality. The next phase of AI will depend on how well companies turn these technologies into practical, widely used solutions.
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).
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Flex Ltd. (NASDAQ:FLEX)
Number of Hedge Fund Holders: 45
Flex Ltd. (NASDAQ:FLEX) provides manufacturing, design, and supply chain solutions for industries including automotive, healthcare, and consumer electronics worldwide.
Flex (NASDAQ:FLEX) reported Q3 non-GAAP EPS of $0.77, surpassing expectations by $0.14, with revenue of $6.6 billion, exceeding estimates by $400 million despite a 7% year-over-year decline. The company’s data center business grew 45% year-over-year. Revathi Advaithi, CEO & Director said:
“The trends in Q3 were largely as expected, with some additional strength coming from data center, from health solutions and consumer-related markets. This quarter, our data center business grew a robust 45% year-over-year despite increasingly difficult comps. We continue to see sustained demand in our hyperscale cloud integration programs and our power portfolio, resulting from AI-driven cloud expansion. We’re seeing hyperscalers place greater emphasis on tailored solutions and looking for more help from fewer suppliers.”
For Q4 FY25, the company projects revenue between $6.0 billion and $6.4 billion, with adjusted EPS ranging from $0.65 to $0.73, compared to the $0.66 consensus. Full-year FY25 guidance was updated, forecasting revenue between $25.4 billion and $25.8 billion, with adjusted EPS of $2.57 to $2.65, exceeding the $2.45 consensus.
Overall, FLEX ranks 5th on our list of top AI news and ratings you probably missed. While we acknowledge the potential of FLEX 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 FLEX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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