In this article, we discuss the 10 AI news and ratings you need to take a look at.
As businesses invest heavily in artificial intelligence, many leaders remain skeptical about its impact on enterprise productivity. Despite advancements in generative AI, a significant gap exists between its potential and real-world implementation. May Habib, CEO of Writer, shared insights on why AI adoption has been slower than expected and how companies can bridge this divide to unlock its true value.
Habib discussed enterprise adoption of generative AI with Bloomberg’s Caroline Hyde, highlighting that many business leaders feel AI has not delivered expected productivity gains. A survey of Fortune 500 executives found that 71% were disappointed with their AI initiatives. Habib attributed this to outdated development approaches, where IT teams create solutions that fail to meet business needs. However, her firm, Writer emphasizes collaboration between IT and business units to build AI tools that integrate with enterprise workflows effectively.
She explained that AI models need more than just raw computing power; they must be combined with structured and unstructured data to function efficiently in enterprise settings. Unlike many AI firms focused on reasoning models, Writer prioritizes self-evolving models that update in real-time based on user feedback rather than requiring extensive retraining. She argued that this approach is essential for achieving advanced AI capabilities.
Habib also discussed workforce challenges and acknowledged that talent shortages persist, prompting Writer to expand internationally with new offices in London and Singapore. She also noted that the AI startup market is crowded, with many struggling to secure enterprise clients. Writer is exploring acquisitions to improve its platform by integrating innovative solutions from smaller firms.
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 Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Sidus Space, Inc. (NASDAQ:SIDU)
Number of Hedge Fund Holders: 1
Sidus Space, Inc. (NASDAQ:SIDU) provides satellite manufacturing, launch services, and space-based data solutions for commercial and government customers.
On March 17, Sidus Space announced that it successfully launched and deployed LizzieSat-3 into Low Earth Orbit as part of SpaceX’s Transporter-13 mission. It marks the company’s third AI-powered satellite launch within a year, strengthening its presence in space technology. LizzieSat-3 is equipped with the proprietary Sidus Orlaith AI Platform, which improves on-orbit data processing for applications such as space situational awareness, maritime monitoring, and disaster response. Using NVIDIA’s Jetson NX Orin module, it delivers high-speed, real-time analytics, reducing reliance on ground computing. As per its management, Sidus Space continues expanding its satellite constellation, advancing AI-driven solutions for government, defense, and commercial sectors.
9. Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI)
Number of Hedge Fund Holders: 7
Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI) designs and manufactures electric vehicles with advanced technology in the United States.
Faraday Future hosted its first Open AI Day on March 16, introducing its AI strategy and Future AIHER, a subsidiary focused on AI-driven hybrid extended-range powertrains. The company aims to integrate AI across its vehicles, advance human-vehicle interaction, and develop an AI automotive operating system. Future AIHER will first integrate third-party range extenders before developing its own advanced solutions. The event highlighted Faraday Future’s vision of transforming vehicles into intelligent mobility devices.
8. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 20
Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions, along with software, services, and technology licensing worldwide.
On March 17, Nokia announced that Worldstream has implemented its Deepfield Defender and 7750 SR routers to boost protection against large-scale DDoS attacks in the Netherlands and globally. The upgrade increases mitigation capacity eightfold, ensuring real-time defense against AI-driven and high-volume cyber threats. Before this deployment, Worldstream struggled with large-scale attacks, such as carpet-bombing tactics, but now offers automated, scalable protection without performance disruptions. The solution provides ultra-fast mitigation for various DDoS threats, securing multiple customers simultaneously while maintaining network reliability and efficiency.
7. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 24
Lucid Group, Inc. (NASDAQ:LCID) develops and sells electric vehicles, powertrains, and battery systems with in-house software.
On March 17, Morgan Stanley upgraded Lucid (NASDAQ:LCID) from Underweight to Equal-weight while keeping its $3 price target and a $10 bull case. Analyst Adam Jonas sees potential in Lucid’s AI strategy and strategic alliances, especially in developing domestic EV manufacturing as a platform for AI integration. The firm believes risks are now more balanced, and upcoming earnings may not bring unexpected negative surprises. Leadership changes and Lucid’s ability to navigate geopolitical challenges could help secure capital and partnerships across both Western and Chinese markets, contributing to a more optimistic outlook.
6. Varonis Systems, Inc. (NASDAQ:VRNS)
Number of Hedge Fund Holders: 38
Varonis Systems, Inc. (NASDAQ:VRNS) provides AI-powered data security solutions for cloud, on-premises, and SaaS environments across various industries worldwide.
On March 17, Varonis announced that it acquired Cyral to improve database security using cloud-native, AI-driven technology. Cyral’s agentless monitoring overcomes the limitations of traditional solutions, improving compliance and threat detection. As AI and cloud computing fuel massive data growth, organizations need better security for sensitive information. According to the company, the acquisition strengthens Varonis’ unified platform, aiming to reduce data exposure and mitigate risks. The deal is not expected to impact revenue this year.
5. Rapid7, Inc. (NASDAQ:RPD)
Number of Hedge Fund Holders: 45
Rapid7, Inc. (NASDAQ:RPD) provides cybersecurity software and services for threat detection, vulnerability management, and cloud security.
On March 17, Rapid7 announced its expansion in India with a new Global Capability Center (GCC) in Pune, set to open in April 2025. This hub will improve global security operations, develop cybersecurity talent, and drive AI collaborations. CEO Corey Thomas highlighted the move as a step toward delivering advanced, AI-driven cybersecurity solutions.
Rapid7’s Vice President of Global Government Affairs, Sabeen Malik, will join a panel at the Raisina Dialogue on digital security. In May, the company will host Security Day events in Mumbai, Delhi, and Bangalore to discuss cyber threats and AI-powered security advancements.
4. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 51
Astera Labs, Inc. (NASDAQ:ALAB) develops semiconductor-based connectivity solutions for cloud and AI infrastructure.
On March 14, Raymond James initiated coverage on Astera Labs with an Outperform rating and an $82 price target, highlighting its strong position in high-speed connectivity amid rising GenAI demand. The firm noted that increasing computational needs are driving demand for advanced interconnects, an area where ALAB excels. The company leads the $2 billion PCIe retimer market and is expanding in the Active Electrical Cable segment.
Furthermore, the newly introduced Scorpio fabric switches nearly double ALAB’s serviceable market and address concerns about its role in NVIDIA’s Blackwell NVL systems, the firm noted. Growth in custom ASICs also presents expansion opportunities through open standards-based back-end networks. At 38 times FY26 estimated EPS, the firm views ALAB’s valuation as justified due to strong GenAI-driven growth potential, high margins, and a projected 25-30% growth rate. While the stock has pulled back this year due to “AI fatigue,” Raymond James sees this as a buying opportunity. Risks include competition, customer concentration, and possible reductions in cloud capital spending.
3. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 66
Texas Instruments Incorporated (NASDAQ:TXN) develops and sells semiconductors, including analog and embedded processing products, for global electronics manufacturers across different industries.
On March 17, Texas Instruments (NASDAQ:TXN) introduced new power-management chips to support the increasing energy demands of data centers, driven by AI and high-performance computing. The TPS1685 is the industry’s first 48V integrated hot-swap eFuse with power-path protection, designed to improve efficiency in 48V architectures. TXN also launched a new family of GaN power stages, offering high efficiency in industry-standard TOLL packaging. The innovations aim to improve power density and reduce environmental impact. TXN is collaborating with companies like Dell, Vertiv, and Greatwall to integrate its technology into high-power server power supplies.
2. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 78
Arista Networks Inc (NYSE:ANET) develops and sells data-driven networking solutions for AI, cloud, and data center environments worldwide.
On March 17, Erste Group’s Hans Engel downgraded Arista Networks to Hold from Buy as the analyst pointed toward concerns over its operating margin decline and high valuation relative to other sectors. While Arista is developing a cross-vendor ecosystem for AI networks and computing infrastructure, and its revenue growth is expected to stay above average in the medium term, these factors currently limit its upside potential.
1. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
Intel Corporation (NASDAQ:INTC) develops and sells computing hardware, semiconductors, AI solutions, and networking technologies for global markets.
On March 17, Reuters reported that Intel’s incoming CEO, Lip-Bu Tan, is considering major changes to the company’s AI strategy and manufacturing operations to address inefficiencies and improve competitiveness. His focus includes streamlining management, restructuring Intel Foundry, and attracting major clients for its contract chip manufacturing business. Tan aims to advance AI chip production, revive the company’s innovation culture, and boost manufacturing efficiency. While continuing past efforts to compete with TSMC, he plans to improve customer service and chip yields. Intel’s upcoming Panther Lake AI chips are crucial for its financial outlook, and long-term success in AI development is expected by 2027.
While we acknowledge the potential of Intel Corporation (NASDAQ:INTC) 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 INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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