In this article, we discuss 10 AI news and ratings making waves on Wall Street.
As AI is transforming industries by automating tasks, optimizing processes, and creating new opportunities for innovation, it is also giving rise to discussions around its safety, ethical implications, and societal impact. Balancing the potential benefits of AI with concerns about transparency, accountability, and equitable outcomes seems to be an important challenge for governments, businesses, and communities worldwide.
Exploring AI Risks and Opportunities in Today’s World
On Bloomberg Technology, Hugging Face’s Chief Ethics Scientist, Dr. Margaret Mitchell discussed the evolving focus of lawmakers and companies regarding AI safety and noted a shift toward emphasizing opportunity over accountability and safety, as seen in recent actions by companies like Meta and Google. She believes that the government should prioritize protecting people over businesses, ensuring a fair marketplace with rules that encourage responsible practices. Mitchell expressed uncertainty about the Trump administration’s plans, emphasizing the need to address both immediate and future AI risks.
She also talked about Elon Musk’s influence and raised concerns about his lack of focus on preventing AI discrimination and noted a recent reduction in attention to existential risks in favor of more current issues. She highlighted the importance of transparency in AI development, mentioning Hugging Face’s open approach, and also appreciated EU efforts on legislation that balances risks and benefits.
Furthermore, Mitchell warned about growing wealth disparities due to AI, where large companies gain wealth from data while many lose jobs. She pointed out that disempowered groups face increased surveillance and potential harm due to misuse of their data, and stressed the need for protective measures and discussions on universal basic income.
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 Ratings Making Waves on Wall Street
10. Akso Health Group (NASDAQ:AHG)
Number of Hedge Fund Holders: 1
Akso Health Group (NASDAQ:AHG) operates a social e-commerce platform in China, offering different consumer goods, medical devices, and health services.
On February 18, Akso Health Group announced its integration of DeepSeek’s AI technology to improve its AI-powered medical consultation and improve healthcare service efficiency. By using DeepSeek’s multimodal models and deep learning capabilities, Akso Health will upgrade its diagnostic system to analyze patient text, medical imaging, and lab results for more accurate diagnoses and personalized treatments. The company also plans to develop an AI medical assistant to aid doctors in case analysis and treatment recommendations. CEO Yilin Wang highlighted this as a milestone in AI-driven healthcare, with plans to expand into telemedicine and health management.
9. Telefónica, S.A. (NYSE:TEF)
Number of Hedge Fund Holders: 9
Telefónica, S.A. (NYSE:TEF) provides telecommunications, internet, broadband, IoT, cloud, and digital services across Europe and Latin America.
As per a February 16 report by Bloomberg, Telefonica-backed AI cloud startup Ori has secured investment from Saudi Aramco’s venture arm, Wa’ed Ventures, as part of its efforts to expand AI capabilities in Saudi Arabia. The deal will help Ori establish a regional base in Riyadh to drive local talent development and technology innovation. Ori specializes in AI-optimized cloud infrastructure and recently deployed Nvidia’s H200 chips. The company previously raised £140 million and plans a larger funding round in 2025.
8. Fiverr International Ltd. (NYSE:FVRR)
Number of Hedge Fund Holders: 15
Fiverr International Ltd. (NYSE:FVRR) operates a global online marketplace connecting businesses with freelancers across multiple service categories and offering value-added solutions.
On February 18, Fiverr launched Fiverr Go, an AI platform focused on protecting and improving creator rights while helping freelancers scale their businesses. It allows creators to train AI models on their own work, retain ownership, and set prices. The platform also includes a Personal AI Assistant to handle routine tasks and provide business insights. Fiverr plans to roll out a Freelancer Equity Program to offer top freelancers company shares. Initially available to select creative categories, Fiverr Go will also be open to developers for building AI applications on Fiverr’s extensive data platform.
7. Mitek Systems, Inc. (NASDAQ:MITK)
Number of Hedge Fund Holders: 19
Mitek Systems, Inc. (NASDAQ:MITK) provides mobile image capture and identity verification solutions, including check deposit, fraud detection, and biometric authentication services.
On February 18, The Mitek Systems company, ID R&D, displayed its AI-powered IDLive Face technology in the U.S. Department of Homeland Security’s evaluation of remote identity verification systems. Among 21 tested solutions, IDLive Face was one of two passive liveness systems that blocked 100% of impostors and had the fastest transaction time at one second. It achieved zero error in fraud detection and showed no bias across age, race, or gender. The system is already used by over 150 partners globally to provide secure and seamless identity verification without disrupting user experience.
6. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU, GPU, and system IP products used across industries like automotive, IoT, and consumer technologies worldwide. According to the Financial Times, Arm plans to release its first in-house chip this year, shifting from licensing chip designs to producing its own processors. The new chip, aimed at servers in large data centers, will be customized for clients like Meta and manufactured by a third party such as TSMC. The move may put Arm in competition with major customers like Qualcomm and Nvidia. The company has seen significant growth since its Nasdaq listing, driven by its involvement in AI and partnerships with Nvidia and Amazon, the report states.
5. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix, Inc. (NASDAQ:EQIX) provides digital infrastructure solutions, enabling businesses to connect and scale their operations globally with speed and flexibility.
On February 13, Scotiabank lowered its price target for Equinix from $1,114 to $1,033 but maintained its Outperform rating. The firm highlighted Equinix’s solid Q4 performance and ongoing efforts to expand both its retail and xScale data center capacity to meet increasing customer demand. However, it also pointed out that some tier-1 markets remain supply-constrained, which may limit the company’s ability to capitalize on growing demand in those important areas fully.
4. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) provides comprehensive IT solutions, including infrastructure, client devices, cybersecurity, and services, serving businesses and institutions globally.
On February 18, Bank of America reduced Dell’s price target from $155 to $150 while maintaining a Buy rating ahead of its Q4 report on February 27. The firm expects discussions to focus on Dell’s AI server backlog and delays in Blackwell. Although near-term challenges in AI server revenue and margins are anticipated, BofA expects these issues to be temporary. As Dell meets AI server demand and customers increase enterprise spending, its revenue and margins are expected to improve over time.
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) develops and sells computing products, including processors, storage, networking, AI solutions, and self-driving technologies, serving several global industries.
On February 18, Cantor Fitzgeralds gave their opinion on the latest talks surrounding Intel and TSMC. The firm increased Intel’s price target to $29 from $22, identifying TSMC as the main winner in recent developments. The firm said:
“The situation at Intel is extraordinarily complex, but we believe reports suggesting a split of DesignCo/IFS are credible. While still early in the process, all signs indicate that the new administration is pushing this forward. We expect TSMC to participate under specific conditions that are beneficial to them, making TSMC the clear strategic winner.”
The firm noted that TSMC will not license its IP or acquire IFS, and a U.S.-based joint venture, similar to its ESMC model, is likely, with TSMC holding majority control. TSMC’s expanded U.S. capacity may reduce tariff risks and improve its leadership in advanced foundry services. Intel may split its DesignCo and IFS divisions, with TSMC being the logical operator for IFS. Intel’s refocus on its x86 business could slightly impact AMD, while investments in advanced packaging could benefit COWOS companies.
2. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 107
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for various markets, including data centers, PCs, mobile devices, automotive, and industrial sectors worldwide.
On February 18, Micron Technology launched the Micron 4600 PCIe Gen5 NVMe SSD, its first Gen5 client SSD, designed for gamers, creators, and professionals. It features 14.5 GB/s read and 12.0 GB/s write speeds, enabling AI PCs to load large language models in under a second and reducing AI model load times by up to 62% compared to Gen4 SSDs. The drive also offers 107% better energy efficiency. The 4600 SSD is compatible with platforms like AMD’s Ryzen 9000 and Intel Core Ultra processors. It also includes advanced security features and is available globally for OEM sampling.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) produces and sells a range of semiconductor devices for industries like smartphones, automotive, IoT, and high-performance computing worldwide.
Bank of America Securities analyst Brad Lin reaffirmed a Buy rating for Taiwan Semiconductor Manufacturing Company (TSMC) on February 14, highlighting its strong positioning and operational resilience. Lin views TSMC’s potential involvement in Intel’s foundry operations as a way to expand its global presence, despite possible short-term financial strain. He emphasized TSMC’s dominance in the semiconductor industry, minimal competitive threats, and a stable role in the global supply chain. Lin also pointed out that TSMC’s profitability is not highly sensitive to changes in CHIPS Act subsidies, reinforcing confidence in the company’s financial stability and U.S. expansion plans.
While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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 TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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