In this article, we discuss 10 AI news and ratings making waves around Wall Street.
DeepSeek’s Bold Move in the Global AI Race
At the World Economic Forum in Davos, tech executives stressed the importance of the U.S. and its allies advancing data centers and finding the right regulatory balance to stay competitive with China in AI development. Ruth Porat from Alphabet acknowledged the US’s lead in AI models but warned that it was not guaranteed to last, Bloomberg reported.
Meanwhile, a Chinese startup, DeepSeek, launched an AI model, R1, which claimed to outperform US-developed models at a fraction of the cost. This development shook the US tech industry, with companies like OpenAI and Meta urgently analyzing DeepSeek’s model to understand its capabilities. The release has disrupted assumptions about AI economics, as DeepSeek’s R1 demonstrated that AI models could be developed more efficiently without heavy investment in specialized chips, the report stated.
DeepSeek’s rise challenges the massive spending plans of US tech giants, raising questions about the future direction of AI development, with some suggesting that focusing on efficient techniques rather than costly hardware may be the key to success.
Navigating Market Corrections
As the market experienced a mass sell-off after the Deep Seek news, some experts are not concerned about it. In a Bloomberg interview, Bob Diamond, CEO of Atlas Merchant Capital, expressed confidence in the ongoing role of artificial intelligence, believing it will be beneficial for businesses by offering more efficient and cost-effective alternatives. While acknowledging the recent tech selloff, he sees it as a correction rather than a market collapse, emphasizing that AI’s growth could spur competition and improve business operations.
For this article, 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).
10 AI News and Rating Making Waves Around Wall Street
10. Janover Inc. (NASDAQ:JNVR)
Number of Hedge Fund Holders: N/A
Janover Inc. (NASDAQ:JNVR) connects commercial property borrowers with lenders through its online platform to facilitate financing for real estate projects.
On January 29, Janover Inc. introduced advanced AI search capabilities in Janover Pro, its B2B marketplace for multifamily and commercial property financing. This new feature allows real estate professionals to find suitable lenders quickly by describing their loan scenarios in natural language. The AI processes millions of data points in seconds, streamlining the capital markets process. A user recently closed a loan in just one month through Janover Pro, highlighting the platform’s effectiveness in matching lenders with borrowers. CEO Blake Janover emphasized the company’s focus on using technology to improve capital market outcomes for all parties involved.
9. Bridgeline Digital, Inc. (NASDAQ:BLIN)
Number of Hedge Fund Holders: 3
Bridgeline Digital, Inc. (NASDAQ:BLIN) offers marketing technology solutions, including site search, SEO tools, web content management, and digital engagement services for various industries globally.
On January 29, Bridgeline (NASDAQ:BLIN) announced that a major global manufacturer of life safety equipment and first responder training has successfully implemented its AI-based HawkSearch platform. The company, which uses Salesforce Commerce Cloud, is utilizing HawkSearch’s advanced search and merchandising tools to improve the online customer experience.
Features such as product promotion, out-of-stock management, and improved search result rankings help refine navigation, while Instant Engage highlights trending items in real time. These upgrades are designed to improve website performance, increase traffic, and drive conversions. CEO Ari Kahn emphasized that the implementation supports stronger customer engagement and business growth.
8. ePlus Inc. (NASDAQ:PLUS)
Number of Hedge Fund Holders: 11
ePlus Inc. (NASDAQ:PLUS) offers IT solutions and financing services to optimize IT environments, supply chains, and equipment management for businesses and public sector organizations.
On January 29, ePlus Inc. launched its first AI Readiness survey, revealing key insights into AI adoption across industries. The survey, which polled 200 IT professionals, found that while interest in AI is high, many organizations are still in the early stages. Only 24% of tech leaders consider themselves “AI mature,” with skills gaps, cost, and security being the top challenges. A significant 74.8% plan to implement GenAI in the next year, even though concerns around regulation and governance are still there. Data quality, security, and governance are also major concerns. ePlus aims to support organizations on their AI journey with solutions like the ePlus Secure GenAI Accelerator.
7. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)
Number of Hedge Fund Holders: 13
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) provides mobile connectivity solutions, including network infrastructure, cloud software, enterprise communications, and media services to global telecom operators and businesses.
On January 28, Ericsson launched Cognitive Labs, an AI-focused initiative to advance technologies like Graph Neural Networks, Active Learning, and Large-Scale Language Models. The labs, operating virtually from locations such as Madrid, Malaga, and Cairo, aim to improve mobile communications and extend AI applications to areas like healthcare. In collaboration with the open-source community, the initiative includes three specialized labs: GAI Lab (Geometric AI), MLR Lab (Machine Learning and Reasoning), and FAI Lab (Fundamental AI), each targeting distinct research areas. Ericsson also signed a research partnership with Universidad Pontificia Comillas to further drive innovation.
6. SES AI Corporation (NYSE:SES)
Number of Hedge Fund Holders: 14
SES AI Corporation (NYSE:SES) Corporation develops and produces high-performance lithium-metal rechargeable batteries for electric vehicles and other applications.
On January 29, SES AI (NYSE:SES) signed a non-binding MOU with AISPEX, a Texas-based Retail Energy Provider, to provide AI-enhanced battery energy storage solutions (BESS). The partnership aims for a potential purchase pipeline of up to $45 million and 100 MWh, with an initial 30 MWh project planned for 2025 at a crypto mining site in Texas. SES AI will supply its AI for Safety Battery Management System to monitor battery health and safety. The collaboration seeks to address growing energy storage needs, particularly in the crypto mining and data center sectors, which SES AI views as a significantly larger market than electric vehicles.
5. Tenable Holdings, Inc. (NASDAQ:TENB)
Number of Hedge Fund Holders: 29
Tenable Holdings, Inc. (NASDAQ:TENB) offers comprehensive cybersecurity solutions for managing vulnerabilities, securing cloud environments, and ensuring operational technology security across various industries.
On January 29, Tenable Holdings announced an agreement to acquire Vulcan Cyber for approximately $147 million in cash and $3 million in restricted stock units, with the deal expected to close in the first quarter of 2025. The acquisition aims to add to Tenable’s Exposure Management platform by improving risk prioritization, expanding third-party data integration, and automating remediation efforts.
Tenable plans to integrate Vulcan Cyber’s technology to unify security data, providing organizations with better visibility and control over their attack surface. The platform will use AI for risk assessment and streamline workflows to help security teams address vulnerabilities more effectively.
4. F5, Inc. (NASDAQ:FFIV)
Number of Hedge Fund Holders: 31
F5, Inc. (NASDAQ:FFIV) delivers multi-cloud security and application delivery solutions, enabling secure and efficient application deployment across various platforms.
F5 (NASDAQ:FFIV) reported strong earnings on January 28 with Q1 non-GAAP EPS of $3.84, outperforming estimates by $0.46, and revenue of $766 million, $49.52 million above consensus. AI is seen as a potential catalyst as F5’s President and CEO, François Locoh-Donou said that the company is seeing new opportunities in hybrid multi-cloud and AI. Locoh-Donou added:
“Over the last several years, we have substantially reshaped F5 for the hybrid and multi-cloud architectures of the AI era. With all its advantages, hybrid multi-cloud also brings with it new challenges. IT teams are being overwhelmed by high cost, crushing complexity and escalating cyber risk, a set of challenges we call the ball of fire.
As AI becomes ubiquitous, it will add fuel to the ball of fire, requiring more capacity to handle massive amounts of data, more sophisticated traffic management to deal with complex traffic patterns and enhanced security capabilities to stay ahead of new security threats.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) creates AI technologies for applications in data centers, self-driving cars, robotics, and cloud computing.
On January 29, Bloomberg reported that the Trump administration is considering expanding restrictions on Nvidia’s H20 chips to limit China’s AI progress, though discussions are still early. Commerce Secretary nominee Howard Lutnick supported strong semiconductor controls but gave no specifics. Nvidia’s stock fell sharply on the news, as further restrictions could hurt its revenue and push China toward self-sufficiency. Concerns grew after DeepSeek launched an AI model rivaling U.S. firms using older Nvidia chips, contributing to a major tech selloff, the report states.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) provides AI-powered solutions across multiple platforms, enhancing cloud services, business tools, and consumer products, with a strong focus on advancing AI research.
On January 29, Reuters reported that Alphabet’s (NASDAQ:GOOGL) Waymo plans to expand its AI-powered autonomous vehicle testing to over 10 new cities in 2025 after successful trials in various locations. The expansion includes San Diego and Las Vegas, alongside existing test areas like Truckee, Michigan’s Upper Peninsula, Upstate New York, and Tokyo.
A limited number of vehicles will be deployed in each city, with trained specialists behind the wheel. Initial testing will focus on manually navigating dense urban areas and highways for a few months. The company also recently secured $5.6 billion in funding and continues to grow despite regulatory scrutiny over safety concerns.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) delivers cloud, productivity, and business solutions driven by AI, advancing operational efficiency and security while making significant investments in AI development.
On January 29, Microsoft reported FY25 Q2 GAAP EPS of $3.23, exceeding expectations by $0.13. Revenue reached $69.6 billion, reflecting a 12.2% year-over-year increase and surpassing estimates by $790 million. Satya Nadella, Microsoft’s CEO, highlighted the company’s AI advancements, noting that the AI business has exceeded an annual revenue run rate of $13 billion, marking a 175% year-over-year growth. Intelligent Cloud revenue reached $25.5 billion, up 19% year-over-year.
While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) 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 MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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