We recently compiled a list of the 18 AI News and Ratings Making Waves on Wall Street. In this article, we are going to take a look at where Nokia Oyj (NYSE:NOK) stands against the other AI stocks.
In a recent discussion at CNBC’s ‘Squawk on the Street’, NYU professor and AI expert, Gary Marcus shared his perspective on the limitations of current AI models, the hurdles in enterprise adoption, and the financial sustainability of major AI companies. His insights raise important questions about the future of AI and whether it can truly deliver on its ambitious promises.
AI’s Future Faces Hurdles in Reliability, Costs, and Enterprise Use
Gary Marcus challenged the idea that AI will significantly boost GDP growth in the near future, as suggested by Microsoft CEO Satya Nadella. While Nadella sees AI driving efficiency and benefiting multiple platforms, Marcus argued that the current technology remains unreliable, with persistent hallucinations and logical errors that have yet to be resolved. Despite advancements like Grok 3, which underwent extensive training and required large-scale infrastructure, the fundamental problems of AI accuracy are still there.
He expressed skepticism about AI’s readiness for enterprise adoption and noted that while models may appear impressive, they still make subtle but costly mistakes, which undermine their reliability. He highlighted examples where AI-generated outputs contained factual errors that could go unnoticed at first but would pose risks for businesses relying on accuracy. Marcus also critiqued AI’s so-called “reasoning” abilities, arguing that they rely more on pattern recognition from training data than true logical reasoning, limiting their real-world applicability.
Additionally, he warned that generative AI is increasingly shifting toward data collection and surveillance as a business model. He pointed toward government monitoring programs and OpenAI’s access to vast amounts of personal and business data, suggesting that AI companies may monetize data rather than achieve widespread enterprise integration due to reliability concerns.
While OpenAI is experiencing rapid user growth and generating billions in revenue, Marcus pointed out its high operational costs and continued financial losses. He argued that, unlike traditional software companies, AI firms face significant expenses in building and running models, making long-term profitability uncertain despite their rising valuations.
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 Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with 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 computer engineer engaging in coding activities in a brightly lit server room.
Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 20
Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions, along with IP networking, optical transport, and technology licensing.
On February 26, Nokia Oyj (NYSE:NOK) introduced MX Context, an AI-powered solution using sensor fusion technology to improve contextual awareness in industrial settings. It is integrated into Nokia’s Edge Compute and AI platform and it processes real-time data from multiple sources to improve decision-making, automation, and operational efficiency.
MX Context helps industrial enterprises overcome data silos by unifying and analyzing sensor data. It supports Industry 4.0 applications through Nokia Oyj (NYSE:NOK)’s on-premise compute solutions and offers modular suites, including tracking and positioning for asset management and worker safety for real-time risk detection. Additionally, MX Context provides low-code tools for workflow design and integrates with Nokia’s AI assistant, MX Workmate. Nokia also plans to expand its industrial routers with advanced sensory and positioning capabilities to further improve operational insights.
Overall NOK ranks 10th on our list of the AI stocks that are making waves on Wall Street. While we acknowledge the potential of NOK 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 time frame. If you are looking for an AI stock that is more promising than NOK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center