While AI is transforming industries worldwide and is expected to elevate our society to new heights, Caleb Maresca at New York University shared a contrarian view in his latest study. The economist believes that transformative AI could upend economies, decimating wages and lifting interest rates to extremely high levels.
“My findings reveal that expectations of [transformative AI] can substantially affect current economic conditions even before any technological breakthrough occurs. When AI automates a job — whether a truck driver, lawyer, or researcher — the wages previously earned by the human worker don’t vanish or automatically transform into broader economic gains. Instead, they flow to whoever controls the AI system performing that job.”
-said Maresca
He highlighted that expectations of AI gutting the price businesses pay for work could massively drive interest rates by up to 16% in some scenarios. In such a situation, the cost of launching a new business or purchasing a house could increase to unaffordable levels, which could compel people to save more and spend less, creating a “form of prisoner’s dilemma in saving behavior.”
He urged people to collectively push politicians to enact policies, which ensure that the wealth created by transformative AI is shared broadly, especially if AI leads to persistently high unemployment.
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 database of over 1000 hedge funds.
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10. Veritone Inc. (NASDAQ:VERI)
Number of Hedge Fund Followers: 5
Veritone Inc. (NASDAQ:VERI) offers a leading enterprise AI platform and software solutions to clients in the media, entertainment, and public sectors. These solutions help clients transform data sources into actionable intelligence for faster and more accurate decision-making and better profitability.
On February 27th, Veritone Inc. (NASDAQ:VERI) announced that Vital Voices Global Partnership, a nonprofit, has chosen the company’s AI-driven Digital Media Hub to improve media management and storytelling. This development highlights the revolutionary potential of AI for social good, which will be facilitated through the Amazon Web Services Marketplace. The Digital Media Hub, a digital asset management and monetization solution, utilizes AI-driven metadata tagging and advanced search capabilities to help organizations create compelling narratives and improve the storytelling process by centralizing media assets and automating workflows.
“Our collaboration with Vital Voices illustrates how AI and cloud technology can drive meaningful change, empowering organizations to innovate and operate more effectively. Together with AWS, we’re committed to advancing the vision of AI for good.”
-said Sean King, chief revenue officer, Veritone.nasdaq:hpai
9. Helport AI Ltd. (NASDAQ:HPAI)
Number of Hedge Fund Followers: 6
Helport AI Ltd. (NASDAQ:HPAI) is an AI firm that offers intelligent customer communication software and services to enterprise clients.
On February 27th, Helport AI Ltd. (NASDAQ:HPAI) announced the introduction of AI-powered self-learning, multimodal data integration, and advanced real-time data retrieval capabilities to its knowledge base to optimize enterprise knowledge management. Helport AI’s enhanced knowledge base will now leverage advanced self-learning capabilities to improve data accuracy, automate data curation, and streamline information access to increase customer engagement, elevate service efficiency, and enable better decision-making for businesses in diverse industries.
“Organizations need knowledge solutions that evolve with them. With these enhancements, our knowledge base doesn’t just store information—it actively learns, adapts, and provides real-time insights to support enterprise operations at scale. This evolution aligns with our commitment to continuous innovation. By providing enterprises with an AI-driven, intelligent knowledge management solution, we help ensure that businesses stay competitive in an increasingly digital world.”
-said Guanghai Li, CEO of Helport AI.
8. Ceva Inc. (NASDAQ:CEVA)
Number of Hedge Fund Followers: 14
Ceva Inc. (NASDAQ:CEVA) offers wireless communications, Edge AI NPU IPs, and sensor fusion solutions to power billions of smart edge products like AI-based smartwatches, IoT devices, autonomous vehicles, and 5G mobile networks. These solutions enable efficient, safer, and reliable data inference and interconnectedness.
On February 27th, Ceva Inc. (NASDAQ:CEVA) announced the launch of its high-performance, baseband vector DSPs built on the Ceva-XC20 architecture, which comes with AI support for 8-bit neural networks. The DSPs will target 5G and 6G-ready applications and enable users to apply ML to optimize modern algorithm performance.
“Our latest vector DSPs represent a significant leap forward in performance and efficiency for advanced 5G and 6G applications. Building on the success of our industry-leading Ceva-XC4500, which has powered hundreds of millions of devices, these new DSPs offer a robust, future-proof platform to develop highly efficient next-generation modems and infrastructure ASICs. With AI support and programmability, these DSPs not only improve modem performance but also enable advanced AI and ML workloads, ensuring optimal network performance and efficiency towards 6G.”
-said Guy Keshet, VP and GM of the Mobile Broadband Business Unit at Ceva Inc.
7. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 16
Nokia Oyj (NYSE:NOK) is a leading supplier of networking, software, and hardware solutions. The company integrates AI into its products to automate complex processes, accelerate security incident response, fortify network infrastructure, and enhance customer services.
On February 27th, Nokia Oyj (NYSE:NOK) announced integrating new Agentic AI capabilities into its autonomous networks portfolio to enable Communication Service Providers (CSPs) to better automate, secure, and monetize their networks. The AI upgrades will help CSPs detect security threats with ease, speed up new service creation, enhance analytics capabilities, and improve overall network management.
“CSPs around the world are actively pursuing higher levels of network autonomy to achieve increased operational efficiency and offer their customers personalized experiences. AI is the catalyst to unlock L4/L5 autonomy, manage complexity, and orchestrate actions across network domains and operational functions.”
-said Kal De, SVP Product and Engineering, Cloud and Network Services at Nokia.
6. Arlo Technologies Inc. (NYSE:ARLO)
Number of Hedge Fund Holders: 20
Arlo Technologies Inc. (NYSE:ARLO) is a smart home security leader. It offers AI-powered analytics, cloud services, user experience, and product design, as well as wireless and RF connectivity hardware and software.
On February 27th, Arlo Technologies Inc. (NYSE:ARLO) announced a partnership with RapidSOS, which is an AI-driven safety platform to enhance emergency response. The collaboration will enable RapidSOS Safety Agents to receive details from Arlo users for real-time visual confirmation of security incidents through video verification for better response times and minimal false alarms.
“First responders do extraordinary work responding to hundreds of millions of emergencies annually. We are excited to see Arlo connecting millions of users directly to 911. When 911 receives an emergency call, accurate information is critical. By combining Arlo’s video verification with RapidSOS’s AI-assisted connection to public safety, first responders get the complete picture—allowing them to react quickly and appropriately to every situation.”
-said Michael Martin, CEO of RapidSOS.
5. Progress Software Corp. (NASDAQ:PRGS)
Number of Hedge Fund Holders: 23
Progress Software Corp. (NASDAQ:PRGS) offers AI-powered digital experience and infrastructure software to help clients build, deploy, and manage AI-driven applications with ease.
On February 27th, Progress Software Corp. (NASDAQ:PRGS) announced the appointment of Ed Keisling as the Chief AI Officer. He is now responsible for leading the company’s AI strategy to enhance product portfolios with the goal of supporting clients in their AI transformation journeys. He will directly report to CEO Yogesh Gupta. Keisling most recently served as SVP of Engineering for Infrastructure Management at the company.
“Our customers rely on Progress to power and solve mission-critical parts of their business, and AI is redefining how these solutions evolve. With recent advancements in AI, the pace of innovation is accelerating, removing traditional barriers to adoption. Progress has been offering AI capabilities within its products for years and has passionate teams already focused on this space. I am excited to further develop and lead this charge ensuring our customers have the tools, processes and expertise to fully leverage AI’s transformative potential and drive even further value with our products.”
-said Ed Keisling, Chief AI Officer of Progress Software Corp.
4. GlobalFoundries Inc. (NASDAQ:GFS)
Number of Hedge Fund Holders: 24
GlobalFoundries Inc. (NASDAQ:GFS) is a leading designer and manufacturer of power-efficient and high-performance semiconductor products for the automotive industry, smart mobile devices, IoT, and communications infrastructure, among other high-growth sectors.
On February 27th, GlobalFoundries Inc. (NASDAQ:GFS) announced a new master research agreement with the Massachusetts Institute of Technology to jointly pursue innovations for improving the performance and efficiency of critical semiconductor technologies. The first projects will focus on AI and related applications, leveraging the company’s silicon photonics technology and 22FDX platform that prioritizes power efficiencies for data centers and intelligent devices.
“By bringing together MIT’s world-renowned capabilities with GF’s leading semiconductor platforms, we are positioned to drive significant research advancements in GF’s essential chip technologies for AI. This collaboration underscores our commitment to innovation and highlights our dedication to developing the next generation of talent in the semiconductor industry. Together, we will research transformative solutions in the industry.”
-said Gregg Bartlett, chief technology officer at GlobalFoundries Inc.
3. Zoom Communications Inc. (NASDAQ:ZM)
Number of Hedge Fund Followers: 48
Zoom Communications Inc. (NASDAQ:ZM) is a leading provider of communication services such as chat and video conferencing, as well as sales and marketing products through Zoom’s Business Services segment.
On February 27th, Zoom Communications Inc. (NASDAQ:ZM) and business communications leader Mitel announced the launch of a hybrid cloud solution that integrates Zoom Workplace and Zoom AI Companion with Mitel’s platforms, including telephony solutions, expanding on the partnership first announced in September 2024. The hybrid solution will meet the surging demand for hybrid unified communications deployments, delivering critical communications capabilities and collaboration functions to boost business productivity.
“As businesses navigate the connectivity requirements to support hybrid work, they need solutions that unite the benefits of on-prem or single-instance cloud communications infrastructure with Zoom’s industry-leading collaboration experiences, giving them the best of both while future-proofing their organizations. The AI-first solution provided by Zoom and Mitel makes connecting and collaborating seamless and efficient while giving customers the flexibility to migrate to the cloud on their own terms and with their existing Mitel devices.”
-said Graeme Geddes, chief sales and growth officer at Zoom Communications Inc.
2. Baidu Inc. (NASDAQ:BIDU)
Number of Hedge Fund Followers: 50
Baidu Inc. (NASDAQ:BIDU) is a Chinese technology giant that offers AI and internet services, including video streaming and discussion forums. The company’s search engine is the most popular in the country. In recent years, the company has ramped its AI investments in an attempt to position itself as a leader in the mainland’s evolving tech landscape.
On February 27th, Baidu Inc. (NASDAQ:BIDU) announced a partnership with EV battery leader CATL to explore the development of “competitive” driverless vehicles and innovative business models. The companies will prioritize digital intelligence and autonomous driving and also focus on using CATL’s power batteries, battery swapping products, and skateboard chassis technology in driverless vehicles.
1. Veeva Systems Inc. (NYSE:VEEV)
Number of Hedge Fund Followers: 60
Veeva Systems Inc. (NYSE:VEEV) offers cloud software and drives AI innovation for the life sciences industry. Their products, including CRM tools and content and master data management solutions, help pharma companies and clients in the consumer products industries improve operational efficiency and accelerate time to market. The company is developing AI solutions like the TMF Bot, Vault CRM Bot, and Vault CRM Voice Control and also supporting clients in doing the same via its AI Partner Program.
On February 27th, Veeva Systems (NYSE:VEEV) announced that its Direct Data API, which powers AI applications and systems-to-systems integrations, is now available in the Veeva Vault Platform for no additional license fee. The new class of API makes Veeva Vault data accessible up to 100 times faster than traditional APIs. Direct Data API is part of the company’s plan to enable advanced automation for the life sciences industry.
“Veeva Direct Data API is a breakthrough technology that will enable new types of applications and integrations. Giving customers and partners easy and reliable access to large volumes of Veeva Vault data will fuel innovation in AI and analytics throughout the industry.”
-said Andy Han, senior vice president of Veeva AI Solutions.
While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) 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 VEEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
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