We recently published a list of the 11 Hidden AI Stocks to Buy Right Now. In this article, we are going to take a look at where Deere & Company (NYSE:DE) stands against other hidden AI stocks.
David Grain, Founder & CEO of Grain Management, joined CNBC on May 1 to discuss the AI-driven demand for data centers and tariff uncertainty. The main concerns regarding tariffs are the potential impact on costs, the resilience of supply chains, and the overall effect on business operations and their expansion. He also shared his perspective on why investors are still confident in the broadband and digital infrastructure sector. He characterized broadband as universally essential and emphasised that the demand for faster connectivity has not slowed, which is why the regulatory support for broadband expansion is globally robust. Grain noted that the administration has also met expectations for lighter regulation in the infrastructure sector, which makes it easier to advance projects and close deals. He described the admin’s stance as pro-growth and supportive of secure and competitive networks. Grain also observed that infrastructure, especially broadband, is an area where there is bipartisan support, given its positive impact on economic growth at both the state and local levels.
DeepSeek’s announcement was also followed by reports that suggested that some companies might be pulling back on data center spending. However, the latest earnings reports appeared to settle at least this debate and confirmed that the investments in this sector were still ongoing. David Grain elaborated on the current trends in data center investments and also stated that the demand for data centers is rising due to the increasing expansion of AI, as it requires vast amounts of computing power. He explained that while the demand here is not slowing, the feasibility of building new data centers is still influenced by the availability of reliable and high-capacity electricity.
Our Methodology
We sifted through financial media reports to compile a list of the top hidden AI stocks with AI-related operations and opportunities. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A combine harvesting crops, showing the capabilities of the company’s agriculture equipment.
Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 57
Deere & Company (NYSE:DE) manufactures and distributes various equipment worldwide. The company operates through four segments: Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry, and Financial Services. The company’s Precision Agriculture segment also leverages AI for its operations.
The company’s Production & Precision Agriculture business unit in total reported net sales of $3.067 billion in Q1 2025. Deere’s commitment to integrating AI into its agricultural machinery and solutions is evident through actions like the adoption of Precision Agriculture Essentials kits and JDLink Boost, which is a satellite connectivity solution powered by Starlink in the Brazilian market with over 1,500 and 1,200 orders, respectively, in Q1.
Through AI-powered tools and services, Deere aims to drive value for its customers. On February 10, JPMorgan raised the price target for the stock to $500 from $470, expecting short sellers to continue exiting their positions. One of the reasons behind this sentiment was the recent rise in agricultural equipment stocks, which included a $30 billion aid package that could boost US farm income by about 30% in 2025, just below previous highs.
Nightview Capital expressed strong optimism about Deere’s transition into a tech leader and stated the following regarding Deere & Company (NYSE:DE) in its Q4 2024 investor letter:
“In January, we purchased shares of Deere & Company (NYSE:DE) based on a simple thesis: the 185-year-old company is evolving from a machinery manufacturer into a technology leader in an industry that urgently needs innovation.
Deere’s vision of autonomous tractors, dump trucks, and mowers address critical labor shortages, enabling farmers, builders, and landscapers to maintain productivity with fewer workers.”
Deere’s potential to transform the multi-trillion-dollar agriculture market is significant. Technologies like its See & Spray system, which reduced herbicide use by nearly 60% across over one million acres in 2024, demonstrate its ability to drive efficiency and environmental benefits. Its connected ecosystems, such as the John Deere Operations Center, are integrating machinery and data to improve decision-making and outcomes for customers.
The company has also implemented structural improvements to weather challenging market conditions. In 2024, Deere generated $6.9 billion in operating cash flow from equipment operations, achieving 18.2% operating margins despite lower shipment volumes. These measures support reinvestment in technology and steady shareholder returns, while maintaining operational discipline.
Deere’s continued pivot toward technology-driven solutions and recurring revenue models, such as pay-per-use and software licensing, enhances its ability to serve modern farmers and contractors effectively. We are optimistic about the company’s ability to lead innovation in its markets and will share further updates as we continue to evaluate its long-term prospects.”
Overall, DE ranks 5th on our list of the hidden AI stocks to buy right now. While we acknowledge the growth potential of DE, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.