We recently published a list of 10 Buzzing AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Fortinet, Inc. (NASDAQ:FTNT) stands against other buzzing AI stocks on latest news and ratings.
With President Donald Trump having returned to power, one of the first things he has done is revoke a 2023 executive order signed by Joe Biden seeking to reduce the risks that artificial intelligence posed to consumers, workers, and national security. The revoke marks a significant shift in federal oversight of artificial intelligence technology.
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According to Biden’s orders, developers of AI systems posing risks in any way to the US government, the economy, or even public health or safety, needed to share the results of safety tests with the government, which was in line with the Defense Production Act.
The order also required agencies to create orders for testing and address related chemical, biological, radiological, nuclear, and cybersecurity risks. As of now, all key safety and transparency requirements for AI developers have been revoked.
While it is currently unclear how the Trump administration will handle rules and regulations regarding AI, it is likely to be more of a “hands-off” approach. Regardless of how it is handled, the one clear thing is that this technology will continue to be extremely transformative.
As quoted by CEO of Abu Dhabi sovereign wealth fund Mubadala to CNBC at the World Economic Forum in Davos, the world has yet to completely recognize the extent of change AI will bring to every aspect of human life.
“In terms of the risks … this is a technology that no one today really appreciates, truly the level of disruption that it’s going to create, affecting everything from our lives, our businesses, human capital, employment, and every sector is going to be disrupted. And I think that while there’s a lot of opportunity, it also presents significant amount of risk, which is today unclear, because the technology is moving so fast and we’re all trying to catch up as much as possible”.
-Khaldoon Al Mubarak, managing director of the $330 billion fund, told CNBC’s Dan Murphy.
Al Mubarak is also optimistic about the future of AI and the UAE’s ability to leverage its investment strategy.
“The demand is going to be profoundly high in terms of the enablement of that technology. That means “the technology, the AI enablement, which is the infrastructure side of it — be it energy, be it transmission, but also all forms of technology, of energy technology that’s going to help fuel this huge demand, I would also add to that data center build-out, chip build-out.”
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).
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Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT) is a cybersecurity company that provides enterprise-level next-generation firewalls and network security solutions. On January 16, Citi raised the firm’s price target on Fortinet (NASDAQ:FTNT) to $101 from $100 and kept a “Neutral” rating on the shares. The rating has been issued as part of a 2025 systems software outlook. The firm is “generally more bullish” about IT and software development companies because they are growing well and have a strong connection with artificial intelligence. The firm quoted that these companies have a “cleaner” tether to general artificial intelligence. However, it is not as optimistic about cybersecurity companies, which is why it remains “selectively constructive” on cybersecurity names. Moreover, Citi’s chief information security officer survey has shown “mostly uninspiring” results.
Overall, FTNT ranks 7th on our list of buzzing AI stocks on latest news and ratings. While we acknowledge the potential of FTNT 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 time frame. If you are looking for an AI stock that is more promising than FTNT 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.