We recently compiled a list of the 10 AI Stocks Making Waves on Wall Street. In this article, we are going to take a look at where Perion Network Ltd. (NASDAQ:PERI) stands against the other AI stocks.
The United States’ lead in artificial intelligence technology has become questionable after the release of DeepSeek’s AI models. As a direct consequence, the US Commerce Department is now looking into whether the Chinese company used US chips that were not allowed to be shipped to China in the first place. Last week, DeepSeek’s AI model and its free assistant, which the company claimed used less data and power than US models, wreaked havoc in the tech world and resulted in a massive broad market sell-off.
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Investors began questioning the sustainability of the huge investments in AI made by leading tech giants and the significant power demand from power-hungry data centers. DeepSeek’s emergence led to worries that cost-effective AI solutions would erode market share and US tech companies’ profitability. Consequently, a rout sparked that wiped around $1 trillion off U.S. technology stocks.
DeepSeek has claimed that its chatbot performs on par or better than Microsoft-backed OpenAI at a fraction of the cost. However, a report published by NewsGuard has revealed that the chatbot achieved only 17% accuracy in delivering news and information. It further revealed that it repeated false claims 30% of the time and gave vague or useless answers 53% of the time in response to news-related prompts, raising doubts about the claims it initially made.
While clarity on these models is yet to be achieved, the current restrictions on companies such as Nvidia have been in place to stop the most sophisticated chips from reaching China and restrict the country from taking the lead in AI. According to a source reported by Reuters, however, organized AI chip smuggling to China has been tracked out of a few countries, including Malaysia, Singapore, and the United Arab Emirates.
In this regard, Singapore’s trade ministry noted that there is no reason to believe that DeepSeek obtained any export-controlled products from the country. It further noted that it has always upheld the rule of law and acted decisively against those who disobey the rules.
“We expect U.S. companies to comply with U.S. export controls and our domestic legislation. Our customs and law enforcement agencies will continue to work closely with their U.S. counterparts.”
– Singapore’s Trade Ministry
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).
A close-up of a busy web page, representing the creative platform solutions of the digital advertising solutions company.
Perion Network Ltd. (NASDAQ:PERI)
Number of Hedge Fund Holders: 21
Perion Network Ltd. (NASDAQ:PERI) is a global technology company that offers digital advertising solutions for brands, agencies, and publishers globally. On February 3rd, the company announced the launch of its “Perion One” strategy, unifying all its brands and technologies into one advanced platform named “Perion One”. The Perion One transformation will integrate artificial intelligence technology to simplify modern advertising and optimize the company’s cost structure. Customers will be offered an all-in-one solution to gain benefits such as greater customer retention, longer duration contracts, an increase in large-scale customers, increased recurring revenue per customer, as well as a more efficient business structure.
“Perion One represents a significant transformation for our company, which will unify our diversified brands and advanced technologies into one leading platform. Chief Marketing Officers (CMOs) and their marketing teams need seamless, nimble, and comprehensive solutions that can connect the dots across the media ecosystem, empowering them to deploy advertising dollars with confidence and report on actual impact – Perion One will be that solution. Perion’s growth is rooted in innovation – from the strength of our technological capabilities to our acquisitions of market-leading technologies. With Perion One, our customers will have access to the full breadth of our capabilities in one platform, and our sales leaders can reach markets with pre-existing relationships. Our new journey is just beginning, and we believe we will become a premier solutions provider in our industry, which will help us drive long-term value for all our stakeholders”.
– Tal Jacobson, Perion’s CEO.
Overall PERI ranks 8th on our list of the AI stocks that are making waves on Wall Street. While we acknowledge the potential of PERI 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 timeframe. If you are looking for an AI stock that is more promising than PERI 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.