There is no room for artificial intelligence to be dominated by massive players looking to use revolutionary technology to censure and control users’ thoughts. That’s the sentiment echoed by US Vice President JD Vance, who is against authoritarian regulatory approaches that stifle innovation. The remarks come against the backdrop of the European Union passing the EU AI Act, which claims to protect people’s safety and rights.
The US has already taken issue with the new EU AI act over concerns that it could be used to clamp down on Silicon Valley.
“The Trump administration is troubled by reports that some foreign governments are considering tightening the screws on US tech companies with international footprints,” Vance said during an AI summit hosted by French President Emmanuel Macron. “Now America cannot and will not accept that, and we think it’s a terrible mistake, not just for the United States of America, but for your own countries.”
The remarks underscore the high stakes in play as nations race to gain an edge around the artificial intelligence boom. While there have been calls for guardrails to avoid the development of AI models that are beyond human control, the prospects of such measures having a negative impact on AI development continue to rattle feathers. Additionally, there are concerns that economic blocks and nations could resort to AI regulation as one of the ways of safeguarding their interest rather than use it to gain a competitive edge.
The US has been at the forefront of limiting access to advanced semiconductors and equipment, touting them as a national interest. Its tussle with China threatens to throw the nascent sector into disarray at a time when there are calls for collaboration to accelerate development.
“We will safeguard American AI and chip technologies from theft and misuse, work with our allies and partners to strengthen and extend these protections and close pathways to adversaries attaining AI capabilities that threaten all of our people,” he said. “And I would also remind our international friends here today that partnering with such regimes; it never pays off in the long term.”
Vance has promised to prevent foreign enemies or authoritarian governments from abusing US chip technology. The sentiments echo restrictions imposed by the previous administration that limited access to advanced AI to certain EU member states. The Trump administration has been under pressure from EU officials to overturn that ruling.
The European approach to AI differs from the closed-source approach that American entrepreneurs prefer because its programmers release their models for others to enhance. A growing perception is that open-source models make things much cheaper going by DeepSeek’s success.
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.
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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 leading provider of AI-driven technology solutions for brick-and-mortar retailers. On February 10th, the company confirmed the execution of a strategic reseller agreement with GlobeTopper. Under the terms of the agreement, the company is to sell GlobeTopper’s digital transaction solutions through its AI-powered kiosks.
Alpha Modus Holdings, Inc.’s (NASDAQ:AMOD) CashX AI kiosks will be able to perform better thanks to the integration of GlobeTopper’s services, which include prepaid cards, event tickets, cryptocurrency services, and remittance products. These kiosks are placed in retail settings to enable customers to conduct smooth online financial transactions. CashX AI’s incorporation into Alpha Modus’s technological ecosystem improves digital financial transactions’ accessibility and automation, setting the company apart in the rapidly changing retail technology market. The collaboration should improve Alpha Modus’s market position through an inventive revenue-sharing model and generate new revenue streams.
9. Cosmos Health Inc. (NASDAQ:COSM)
Number of Hedge Fund Holders: 1
Cosmos Health Inc. (NASDAQ:COSM) is a healthcare company that manufactures, develops, and trades branded nutraceutical products. It offers OTC medicines, nutraceutical products, vitamins, minerals, dietary products, health care products, medical devices, and baby products under the Sky Premium Life brand name. On February 10th, the company confirmed significant intellectual property addition as part of its collaboration with Cloudpharm and the National Hellenic Research Foundation.
Cosmos Health Inc. (NASDAQ:COSM) has since filed two new patent applications covering groundbreaking developments in treating glioma, aggressive brain cancer, and hematologic malignancies. The fillings are based on simulations, predictive insights, and encouraging preclinical findings produced by Cosmos Health’s AI-powered Cloudscreen drug repurposing platform. The therapeutic potential of a repurposed marketed drug for both indications has been confirmed by recent in vitro studies.
8. Wearable Devices Ltd. (NASDAQ:WLDS)
Number of Hedge Fund Holders: 3
Wearable Devices Ltd. (NASDAQ:WLDS) engages in the development of a non-invasive neural input interface for controlling digital devices using subtle touchless finger movements. The pioneer in artificial intelligence-based wearable gesture control technology confirmed on February 10th that it is developing cutting-edge methods for gesture personalization that will transform user interactions in the near future.
The gesture personalization technology that Wearable Devices Ltd. (NASDAQ:WLDS) is working on is geared towards redefining how people interact with digital devices while creating an intuitive, personalized experience for the artificial intelligence era. An AI-powered neural wristband technology is being developed to detect user-specific micro-gestures, opening the door to a future with user-specific controls. Wearable Devices are already improving their capacity to produce genuinely customized gesture experiences that get better and adapt more skillfully with continued use by utilizing Large MUAP Models (“LMMs”).
“We believe AI-driven gesture personalization is the next frontier in human-device interaction,” said Asher Dahan, Chief Executive Officer of Wearable Devices. “By seamlessly integrating AI with biopotential sensing, we are developing innovations that will revolutionize the way people engage with technology.”
7. BlackSky Technology Inc. (NYSE:BKSY)
Number of Hedge Fund Holders: 7
BlackSky Technology Inc. (NYSE:BKSY) offers geospatial intelligence, imagery, data analytics, and mission systems, including the development and operation of satellite and ground systems for government and commercial customers worldwide. On February 10, 2025, BlackSky Technology Inc. and Rocket Lab USA, Inc. (NASDAQ:RKLB) announced a launch window opening on February 18 for the first Gen-3 satellite. The launch, named “Fasten Your Space Belts,” will enhance BlackSky’s high-cadence, low-latency data and AI-enabled analytics with 35-centimeter imaging capability.
“This launch represents a major inflection point for our global defense and intelligence customer base as BlackSky introduces very high-resolution Gen-3 capabilities,” said Brian O’Toole, BlackSky Technology Inc. (NYSE:BKSY) CEO. Sir Peter Beck, Rocket Lab founder and CEO, added, “BlackSky is one of our earliest and longest-standing commercial satellite customers, and it’s great to be heading back to the pad with them once again to continue to advance and expand their constellation.” The addition of Gen-3 satellites will enable automated detection, identification, and classification of various objects, enhancing BlackSky’s intelligence applications.
6. Unisys Corporation (NYSE:UIS)
Number of Hedge Fund Holders: 22
Unisys Corporation (NYSE:UIS) is an information technology solutions company. It provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, and unified experience management. On February 11th, the company unveiled a cutting-edge artificial intelligence-powered route optimization solution.
The cutting-edge multi-modal route optimization (MMRO) module, driven by artificial intelligence (AI), is intended to assist freight forwarders and third-party logistics firms in going beyond rate quoting. It allows them to take into account important data to identify the best routes and more effectively control costs across various modes of transportation.
The system uses artificial intelligence (AI) to evaluate weather information, cargo details, customer preferences, and past performance to recommend various routes based on the operationally crucial KPIs, including the most economical and space-efficient ones. This sophisticated analysis will boost client loyalty and satisfaction by assisting freight forwarders and third-party logistics firms in achieving more on-time deliveries.
5. Lumen Technologies, Inc. (NYSE:LUMN)
Number of Hedge Fund Holders: 26
Lumen Technologies, Inc. (NYSE:LUMN) is a facilities-based technology and communications company that provides various integrated products and services to business and residential customers. On February 10th, Bora Lee of RBC Capital reiterated a Hold rating on the stock with a $4.25 price target. The company has been building the backbone for artificial intelligence.
The telecom-turned-company has already reiterated that 2025 will be a “year of investment” as it continues to strengthen its prospects and network for artificial intelligence. Lumen Technologies, Inc. (NYSE:LUMN) intends to boost network utilization overall from 57% in 2022 to 70% by 2028 to help meet the rising demand for AI. Supporting the push is the $8.5 billion private connectivity fabric deals that Lumen Technologies inked with tech giants, including Microsoft, Amazon, and Google, last year. Additionally, hyperscalers are currently using Lumen’s network to train AI models.
4. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) is an internet giant best known for operating the largest search engine in China. While the company also offers online marketing and cloud services, it also offers services from artificial intelligence initiatives. It was one of the first companies to launch AI products following OpenAI’s ChatGPT launch in 2022 and has already released its own large language model, Ernie, that matches GPT-4’s capabilities.
Amid the flurry of investment and scare triggered by DeepSeek, Baidu, Inc.’s (NASDAQ:BIDU) CEO Robin Li reiterated on February 11th that more investment in data centers and cloud infrastructure is needed. While DeepSeek has shown it is possible to come up with cost-efficient large AI models, Li insists investments are needed to support the AI boom: “The investment in cloud infrastructure is still very much required. In order to come up with models that are smarter than everyone else, you have to use more computing,” Li told attendees at the World Government Summit in Dubai. The remarks come amid soaring questions on the necessity of spending billions of dollars on AI infrastructure.
3. Pinterest, Inc. (NYSE:PINS)
Number of Hedge Fund Holders: 61
Pinterest, Inc. (NYSE:PINS) is an Internet Content & Information company that operates a visual search and discovery platform. Its platform allows people to find ideas, such as recipes, home and style inspiration, and search. On February 7th, the company confirmed that its AI-powered system that maps the relationship between user behaviors, content, and products, “Taste Graph,” has expanded connections by 75% over the past two years.
The AI-powered system gaining traction with people and brands was one of the catalysts behind Pinterest delivering an 18% year-over-year increase in revenues as monthly active users increased by 11%. Likewise, the system’s ability to convert user engagement into sales was the catalyst behind a 90% year-over-year increase in clicks to advertisers, consequently bolstering Pinterest, Inc. (NYSE:PINS) advertising streams.
“Our Taste Graph contains many billions of connections,” CEO Bill Ready said during the earnings call. The AI-powered system relies on user curation and shopping intent signals to offer recommendations.
2. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 78
ServiceNow, Inc. (NYSE:NOW) is a leading artificial intelligence platform provider designed to enhance digital transformation. On February 11th, RADCOM, a leading provider of network intelligence solutions for telecom operators, confirmed the inking of a strategic partnership with the company. The pact paves the way for the integration of RADCOM RAN analytics solution with ServiceNow while leveraging artificial intelligence operations.
The integration will enable the use of data and notes captured from live contact centers to identify issues in networks and investigate the root cause. With the help of artificial intelligence and machine learning, the solution generates network resolution actions to maximize the impact of large subscriber segments. The integration with ServiceNow automates numerous tasks related to resolving service tickets. As a result, all subscribers’ complaints are prioritized based on tasks based on customer impact scores.
1. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 71
Workday, Inc. (NASDAQ:WDAY) is a software application company that provides enterprise cloud applications. It offers a suite of financial management applications to maintain accounting information in the general ledger. Likewise, on February 11th, the company unveiled a new way for enterprises to keep track of artificial intelligence agents. The company also launched a few agents of its own.
Workday Agent System of Record is the new system that will help users keep track of AI agents in one control center, whether managed by Workday or a third-party provider. The system keeps track of what the AI agents do and whether they complete the assigned tasks. It will also track the impact of each AI agent and project costs. The unveiling of the new system is part of Workday, Inc.’s (NASDAQ:WDAY) push to unlock new growth opportunities as AI agents become an essential part of an enterprise company’s workflows. While Workday will not charge enterprises for using the AI agent platform at the start, it will charge for the use of its Workday AI agents.
“The workforce is expanding. It’s no longer just human workers, it’s now digital workers, and we need to have a unified platform that manages your entire workforce going forward,” Workday CEO Carl Eschenbach said.
While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) 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 timeframe. If you are looking for an AI stock that is more promising than WDAY 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
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