A high US inflation print has diminished hopes of interest rate cuts by the Federal Reserve, which triggered a downdraft in the US stock markets as the S&P 500 index fell 0.27% to 6051.97 on February 12th, led by share price declines witnessed by several of the magnificent seven companies.
Meanwhile, industry experts are forecasting that DeepSeek’s open-source nature and low fees could drive AI adoption and the development of real-life applications for the technology, which could enable Chinese firms to overcome US export limitations on their powerful chips. Furthermore, dozens of Chinese firms across industries are mulling the integration of DeepSeek’s AI model into their products and business operations.
“This development is very much aligned with the capability of Chinese AI chipset vendors,” said Lian Jye Su, a chief analyst at Omdia. “Chinese AI chipsets struggle to compete with Nvidia’s GPU (graphics processing unit) in AI training, but AI inference workloads are much more forgiving and require a lot more local and industry-specific understanding.”
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 900 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).
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10. Alpha Modus Holdings, Inc. (NASDAQ:AMOD)
Number of Hedge Fund Holders: N/A
Alpha Modus Holdings, Inc. (NASDAQ:AMOD) is a tech firm offering AI-powered retail and fintech products using patented technologies to optimize consumer engagement and in-store experiences to drive returns for brands and retailers.
On February 13th, the company, through its subsidiary Alpha Modus Corp., announced its partnership with CashX to deploy its new-age financial kiosks across 10,000 locations, including supermarkets in California and Colorado, which will translate to 150 million unique visits annually and generate $75 million in yearly ad revenue.
“This is a defining moment for Alpha Modus. We see our AI technology revolutionizing the self-service financial kiosk industry, creating an entirely new revenue stream while providing critical services to millions of consumers,” said William Alessi, CEO of Alpha Modus. “With projected advertising revenue alone reaching $75 million annually, we plan on delivering scalable, high-margin revenue growth for our investors during the deployment period. This deployment is intended to solidify our market leadership and position Alpha Modus as the backbone of AI-driven financial automation in retail.”
9. SEALSQ Corp (NASDAQ:LAES)
Number of Hedge Fund Holders: N/A
SEALSQ Corp (NASDAQ:LAES) provides digital security products, including data security, access control, anticounterfeiting, provisioning, and secure satellite IoT connectivity through its FIPS-certified semiconductors, managed Public Key Infrastructure (PKI), and quantum innovation. The firm’s Quantum Lab offers quantum-resistant secure microcontrollers to safeguard digital assets in the quantum computing era.
SEALSQ Corp (NASDAQ:LAES) today announced it is integrating WISeAI’s decentralized model into its quantum platform to build a secure and transparent AI system enhanced by quantum computing. The company believes this would facilitate secure data markets and ensure responsible development and deployment of AI solutions through verifiable AI mechanisms like federated learning and blockchain. SEALSQ Corp’s (NASDAQ:LAES) decentralization of AI will empower individuals and small businesses to partake in AI advancements, develop valuable solutions, and capture economic benefits. The company will further enhance security by integrating an ML tool called WISeAI.IO 2.0 into its quantum platform to track activities within a PKI) system and identify suspicious activities.
8. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 3
Rezolve AI Limited (NASDAQ:RZLV) offers AI-powered solutions to transform the digital shopping experience, from helping customers with search and discovery to providing personalized experiences and enhancing customer support.
On February 13th, Rezolve AI Ltd. (NASDAQ:RZLV) announced the acquisition of GroupBy Inc. to unlock an unprecedented level of personalization and AI-driven engagement for shoppers and retailers. The acquisition will offer GroupBy customers access to the Rezolve AI Brain Suite’s next-gen conversational commerce, intelligent checkout, geolocation, and real-time engagement solutions designed to drive merchant revenues and enhance digital shopping experiences.
7. Coeptis Therapeutics Holdings, Inc. (NASDAQ:COEP)
Number of Hedge Fund Holders: 4
Coeptis Therapeutics Holdings, Inc. (NASDAQ:COEP) is a biopharma company that uses AI to design and innovate targeted cell therapies for various diseases, such as cancer, autoimmune, and infectious diseases to improve patient outcomes.
On February 13th, Coeptis Therapeutics Holdings, Inc. (NASDAQ:COEP) announced the launch of its new investment arm, COEP Venture Group, to accelerate tech startups focusing on AI-driven enterprise solutions, Robotic Process Automation, and AI agents by offering capital, strategic mentorships, and access to industry networks.
“The launch of COEP Venture Group aligns with our vision of investing in disruptive technologies that redefine industries,” said CEO Dave Mehalick. “AI-driven automation and intelligent agents are transforming the way businesses operate. Through COEP Venture Group, we are committed to supporting pioneering startups at the forefront of AI and RPA innovation.”
6. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 6
D-Wave Quantum Inc. (NYSE:QBTS), the parent company of D-Wave Systems and DPCM Capital, works to advance quantum AI product to enhance optimization capabilities of annealing quantum computing, helping clients develop energy-efficient AI and ML workloads. The commercial supplier of quantum computers helps companies address real-world business problems across diverse industries like logistics, AI, materials science, and drug discovery.
On February 13th, D-Wave Quantum Inc. (NYSE:QBTS) announced that it is witnessing a growing interest in its new D-Wave Advantage quantum computing system, as Forschungszentrum Julich became the first high-performance computing center globally to purchase the company’s new offering. D-Wave Quantum Inc. (NYSE:QBTS) believes its new offering will facilitate research centers, academic institutions, and governments to drive innovation in quantum-fueled experimentation, development, and usage. The company expects the new system to propel advanced research and discoveries in AI and quantum simulation.
5. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
Number of Hedge Fund Holders: 7
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) mines and sells digital currencies like Bitcoin and Ethereum. The company also develops and manages data centers that fuel cryptocurrency mining. It uses AI in data centers to power Web3 projects and high-performance computing for industries like healthcare and education.
On February 13th, H.C. Wainwright increased HIVE Digital Technologies Ltd.’s (NASDAQ:HIVE) target price to $10 from $8 and retained a “Buy” stock rating. The brokerage highlighted the company’s “solid” fiscal Q3 results, adding that its “compelling near-term growth prospects remain underappreciated.” Analysts explained that HIVE Digital Technologies Ltd. (NASDAQ:HIVE) remains among the most undervalued miners in the sector despite its compelling near-term growth prospects and upside potential from AI.
4. BlackSky Technology Inc. (NYSE:BKSY)
Number of Hedge Fund Holders: 7
BlackSky Technology Inc. (NYSE:BKSY) offers an advanced space-based intelligence platform for real-time satellite imagery, analytics, and high-frequency monitoring of economic assets, important locations, and global events for government and commercial customers. The company leverages AI-enabled systems for object detection, geospatial data processing automation, and extracting actionable intelligence at industry-leading speeds.
On February 13th, BlackSky Technology Inc. (NYSE:BKSY) announced securing multi-year contracts to speed up the development of India’s commercial Earth observation abilities by offering subscription-based Assured access to its low-latency, high-cadence imagery and AI-enabled analytics services. The deals include the delivery of a high-resolution Earth observation satellite, launch support operations, and on-orbit maintenance services.
“Contributing to the development of India’s commercial Earth observation capabilities is an immense honor, and we look forward to supporting our customer’s upcoming launch and on-orbit operations. BlackSky’s combined offering will provide India immediate foresight into critical events impacting the nation as it continues to expand its sovereign space capabilities over the next few years,” said CEO Brian O’Toole.
3. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 16
Nokia Oyj (NYSE:NOK) is a networking, software, and hardware provider that uses AI to automate complex processes, accelerate security incident response, fortify network integrity, and improve customer services facilitated by faster decision-making.
On February 13th, Nokia Oyj (NYSE:NOK) secured a 5G standalone deal from Ooredoo Qatar to integrate AI and ML capabilities combined with network slicing in an attempt to modernize the Qatar-based telecom operator’s core network for delivery of advanced services, robust network performance, and a better customer experience.
2. Riot Platforms Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 19
Riot Platforms Inc. (NASDAQ:RIOT) is a Bitcoin mining and digital infrastructure firm that operates Bitcoin mining data center and electrical switchgear fabrication operations across the US.
On February 12th, Riot Platforms appointed Jaime Leverton, Doug Mouton and Michael Turner to its Board of Directors. They have extensive experience in directly overseeing the conversion of Bitcoin mining assets for potential AI/HPC uses, managing data center operations, and improving the value of dynamic real estate properties like those owned and operated by the company. Riot Platforms Inc. (NASDAQ:RIOT) also said it has engaged Evercore and Northland Capital Markets to assist in the firm’s evaluation of AI/HPC uses for its power assets at its Texas-based Corsicana facility with the goal of maximizing their value.
1. A10 Networks Inc. (NYSE:ATEN)
Number of Hedge Fund Holders: 20
A10 Networks Inc. (NYSE:ATEN) offers secure application solutions for multi-cloud and edge-cloud environments to deliver reliable and secure business applications via advanced cybersecurity features of its proprietary “Advanced Core Operating System” (ACOS) platform. The company integrates AI in their network security delivery solution to improve the detection and remediation of evolving cyber threats while optimizing network performance.
On February 12th, A10 Networks Inc. (NYSE:ATEN) announced the acquisition of ThreatX Protect to leverage its WAAP solution, which uses behavioral and risk profiling to protect enterprises from threats to AI applications. ThreatX Protect offers API protection, bot management, and web application firewall via its SaaS solutions.
While we acknowledge the potential of A10 Networks Inc. (NYSE:ATEN) 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 ATEN 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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