We recently published a list of Top 10 AI News Updates to Catch Up on This Weekend. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other AI stocks that are our list of top AI news updates.

Artificial intelligence models are often criticized for “hallucination”, but they are also being used deliberately to spread misinformation. In recent news, China’s securities watchdog has said that it is going to be working with the police and cyberspace regulators to crack down on those who are disseminating false news. The move comes amid the increasing need for monitoring fake information in the stock market which is made quite easy due to artificial intelligence.

Regulators will “hit early, hit hard, and hit at the heart” of the issue.

– Securities Times.

In a separate article, Shanghai Securities News described how artificial intelligence is being used to create and spread misleading information in an attempt to con investors or manipulate stocks. Investors are being lured by get-rich-quick schemes. However, they should stay wary of such bad actors leveraging the hype around technological advancements to lure them into schemes.

READ ALSO: 10 AI Stocks On Wall Street’s Radar and 12 AI Stocks Making Headlines: Latest News and Ratings

Any claims of high and guaranteed investment returns with little or no risk are known to be classic warning signs of fraud. Even though the emergence of DeepSeek has been motivating investors and fund managers to embrace AI, their adoption of technology also raises the chances of them being scammed at the hands of it. Anything from cloned voices to altered images and fake videos can be used to spread investment misinformation.

In order to combat the spread of misinformation, the China Securities Regulatory Commission said that it would be proactive in dispelling stock market rumours. They will do this by issuing clarifications and boosting investor education and guidance to “enhance investors’ ability to spot” fake information.

According to the DC Department of Insurance, Securities and Banking (DISB), some warning signs of a fake actor/promoter are their lack of registration status. To avoid falling victim to it, users can use the Investor.gov website to confirm the registration status of investment professionals and check for disciplinary history.

Moreover, it’s reasonable to work with a registered investment professional and on a registered exchange. For added assurance, the authenticity of underlying sources should be checked and multiple sources of information should be reviewed before making investment decisions.

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. The hedge fund data is 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).

Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 63

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On March 13, the company announced a strategic partnership with Databricks, the Data and AI Company, to accelerate the production of AI applications and reduce total cost of ownership. The partnership will integrate Palantir’s world-class AI operating system with Databricks’ leading platform for AI, data warehousing, and data engineering to develop a secure, scalable system for real-time AI-driven workflows. The integration of Unity Catalog through Delta Sharing and Palantir’s multimodal security system allows customers to maximize the value of their data, consistently governing and securing their entire data estate so enterprises can build on a trusted foundation, all while maintaining efficiency and keeping TCO low. The collaboration between Palantir and Databricks is already serving customers in the private and public sector such as the Department of Defense, the Department of the Treasury, and others.

“Operational integration of Palantir and Databricks reduces costs and complexity for our customers while providing a foundation to accelerate their operations into the age of AI. Palantir and Databricks are aligned to deliver on our customers’ mission-critical objectives, and this partnership has already proven to accelerate those outcomes. The ‘best of both worlds’ technical approach means the best outcomes for our mutual customers.”

-Ted Mabrey, Palantir’s Global Head of Commercial.

Overall, PLTR ranks 10th on our list of AI news updates to catch up on. While we acknowledge the potential of PLTR 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 PLTR 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 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.