We recently published a list of Top 10 AI News Updates Taking Wall Street By Storm. In this article, we are going to take a look at where SentinelOne, Inc. (NYSE:S) stands against other top AI news updates taking Wall Street by storm.
Escalating costs for developing bigger and more powerful artificial models has always been a big problem. Over the years, the cost of creating AI models has ranged between a thousand to million dollars, depending on complexity, project scope, and the need for specialized resources. The development of advanced and more powerful graphics processing units costing thousands of dollars has only fueled the costs.
In comes, DeepSeek, a Chinese AI startup that has shown it is possible to develop AI models without spending much. It maintains that its R1 AI model, despite being constructed at a fraction of the cost, competes with or surpasses top US AI models on various industry standards.
As the tech sector attempts to figure out how DeepSeek accomplished the feat, the fallout from the R1 launch is rapidly spreading around the world. DeepSeek’s achievements are fueling the race to develop cost-effective AI models.
Cohere is in the process of launching an AI model to conduct complicated business tasks while running on just two A100 H100 chips. It is significantly less than the number of chips required for some large models and also less than what DeepSeek’s system is thought to need. Similarly, Google has unveiled an AI model that runs on a single advanced AI chip.
Nevertheless, tech giants are still spending billions of dollars on data centres, semiconductors, and personnel. However, the latest releases also allude to a drive within the industry to create AI software that operates as effectively as possible. The fervor surrounding the Chinese startup might only hasten the development of robust, cost-effective AI models.
DeepSeek has disrupted numerous beliefs within Silicon Valley regarding the financial aspects of creating AI, the optimal technical approaches for developing the technology, and the degree of the United States’ advantage over rivals in China. For the longest time, the burgeoning AI sector has assumed that achieving superior AI heavily relies on substantial investments in advanced chips and significantly larger data centres to accommodate them.
“The release of DeepSeek AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win,” US President Donald Trump said.
Our Methodology
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 in 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).
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SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 46
SentinelOne, Inc. (NYSE:S) is an AI-powered cybersecurity firm that provides unified endpoint, cloud, and identity protection solutions. It also offers real-time threat detection, prevention, and response across an organization’s security estate. On March 12, SentinelOne (NYSE:S) delivered fourth quarter and fiscal 2025 results that affirmed solid execution and accelerated adoption of its AI-powered platform solutions.
Revenue in the fourth quarter was up 29% year-over-year to $225.5 million as annualized recurring revenue increased 27% to $920.1 million. Customers with more than $100,000 annual recurring revenue increased by 25% to 1,411. The company’s chief executive officer, Tomer Weingarten, reiterated they are on course to surpass $1 billion in ARR revenue this year as increased focus on artificial intelligence and machine learning capabilities pays off.
“For more than a decade, we’ve patented leading machine learning security models — now, we’re pioneering fully autonomous, agentic AI workflows. We’re solidifying Singularity as the preeminent AI security platform of the future,” Weingarten said.
Overall, S ranks 4th on our list of top AI news updates taking Wall Street by storm. While we acknowledge the potential of S 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 S 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.