In this article, we discuss 10 AI news and ratings you should not miss.
DeepSeek is making significant strides in the artificial intelligence landscape. It is known for its advanced capabilities as it competes with major players like OpenAI’s ChatGPT by offering highly specialized and dynamic AI models. It is part of a broader trend in China, with AI applications quickly developing beyond basic chatbots to more sophisticated functions.
DeepSeek’s potential impact spans many sectors, from national security to business operations. However, its development has raised national security concerns, especially regarding the handling of sensitive information and the risks of closed models. As AI continues to evolve, DeepSeek presents itself as a significant player in the ongoing global AI race.
At CNBC’s ‘Closing Bell Overtime,’ Josh Wolfe, co-founder of Lux Capital, discussed the launch of DeepSeek AI and its impact on national security. He views the rise of AI as a wake-up call for American innovation, emphasizing that U.S. companies should be allowed to compete freely in AI development, especially in defense.
Wolfe also highlighted the significance of open-source models like Huggingface and companies such as Together and Runway, which allow organizations to use their proprietary data securely. He expressed concerns over heavily funded closed models that lack proprietary data, stressing the potential risks they pose, especially in the context of AI and national security.
More Advancements from China
Chinese companies are quickly advancing AI technology, with products such as Baidu’s Wenku platform gaining millions of users and Tencent planning to integrate AI agents into WeChat. AI adoption is growing in China, with over 10% of businesses using generative AI, as per a CNBC report.
The development of AI applications is focused on specific functions and AI agents, which aim to automate processes. While Chinese companies face compliance challenges, local AI applications are becoming popular both in China and abroad, an example would be Alibaba’s AI-powered search engine, Accio.
As China accelerates its AI innovations and adoption, the competition is intensifying, with both local and global implications. Moving forward, the balance between open-source advancements and the regulation of AI technologies will be crucial in shaping the future of this transformative field.
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 You Should Not Miss
10. Quantum Corporation (NASDAQ:QMCO)
Number of Hedge Fund Holders: N/A
Quantum Corporation (NASDAQ:QMCO) provides storage and management solutions for digital video and unstructured data, including software for backup, archiving, and analytics.
On January 30, it was announced that Quantum Corporation (NASDAQ:QMCO) has improved its Myriad all-flash file system with scalability features designed to meet growing storage demands in the AI era. The system allows customers to start with as few as five NVMe Storage Server nodes and expand incrementally as it adds nodes without admin intervention or service disruption.
Myriad’s architecture supports automatic data leveling and dynamic n+m data protection across all nodes, which enables up to 80% usable capacity. The solution also offers support for cutting-edge technologies like Solidigm 61.44 TB and 122.88 TB NVMe drives and integrates with Quantum’s ActiveScale for large data ingestion and archiving. With these updates, Myriad promises nearly unlimited scalability, high performance, and improved storage flexibility for AI/ML workloads.
9. Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)
Number of Hedge Fund Holders: 10
Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) provides technology consulting, cloud engineering, AI, and digital transformation services globally across various industries.
On January 30, Grid Dynamics (NASDAQ:GDYN) introduced a Visual Process Monitoring starter kit to simplify and reduce the cost of visual analytics projects. This framework enables real-time tracking of moving objects, behavioral analysis, and automated alerts without the need for extensive data collection and manual model training.
It is designed for applications in retail, manufacturing, and logistics and it uses vision-language models to streamline deployment. According to VP of Technology Ilya Katsov, the solution improves efficiency by making visual analytics more accessible and cost-effective. The launch expands Grid Dynamics’ AI-driven offerings for smart manufacturing and supply chain management.
8. Backblaze, Inc. (NASDAQ:BLZE)
Number of Hedge Fund Holders: 14
Backblaze, Inc. (NASDAQ:BLZE) offers cloud storage and data protection services for businesses and consumers worldwide.
On January 30, Backblaze introduced its Winter Release for B2 Cloud Storage, improving security and workflow management for large organizations. Backblaze’s Winter Release for B2 Cloud Storage boosts security, workflow automation, and AI-driven data management for enterprises. Some important updates include scalable and scoped application keys for secure access, improved CLI credential management, and event notifications that automate tasks like media processing and security alerts.
Custom upload timestamps aid compliance, while a partner API enables trial storage accounts. IPv6 support expands network capacity, and backend optimizations improve efficiency. These advancements support AI applications by streamlining data storage, migration, and accessibility for machine learning and analytics.
7. RingCentral, Inc. (NYSE:RNG)
Number of Hedge Fund Holders: 32
RingCentral, Inc. (NYSE:RNG) provides cloud-based communication, video, and collaboration solutions for businesses worldwide.
On January 30, RingCentral (NYSE:RNG) introduced Studio, a new feature in its RingCentral Events platform that improves live streaming and event production. Studio allows users to create branded, high-production events within an easy-to-use interface, eliminating the need for third-party production services.
Some significant features include seamless event management, real-time streams, advanced branding options, and improved audience engagement tools such as AI-powered Q&A categorization and chat interactions. Additionally, RingCentral launched AI Clips, which automatically generates highlight snippets from event recordings, helping marketers save time and improve post-event engagement. These AI-driven tools are designed to streamline the event experience and maximize ROI, all at no extra cost for RingCentral Events customers.
6. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 58
Lam Research Corporation (NASDAQ:LRCX) designs and manufactures semiconductor equipment used in the production and processing of integrated circuits.
On January 29, Lam Research (NASDAQ:LRCX) posted FQ2 non-GAAP EPS of $0.91, outperforming estimates by $0.03, and revenue of $4.38 billion exceeding forecasts by $70 million. For FQ3, the company expects a revenue of $4.65 billion and a net income per diluted share of $1. During the earnings call, President and CEO, Tim Archer said:
“…gate all around and advanced packaging technologies are critical enablers for AI device manufacturing, including GPUs and high bandwidth memory. They are also highly deposition and etch intensive. And as a result, we saw Lam’s shipments for gate all around nodes and advanced packaging each grow to exceed $1 billion in 2024. In calendar 2025, we see WFE spending rising slightly to approximately $100 billion. Again, we expect technology inflections to lead to faster growth for Lam. As AI applications demand greater device and package level performance.”
5. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 59
Gilead Sciences, Inc. (NASDAQ:GILD) develops and markets medicines for HIV, COVID-19, hepatitis, cancer, and other serious conditions.
On January 30, Gilead Sciences, Inc. (NASDAQ:GILD) and Cognizant announced that they expanded their partnership to improve the biopharmaceutical company’s productivity and cost-efficiency through AI and advanced technologies. The collaboration focuses on using machine learning and generative AI across different functions, including customer service, employee interactions, and business value management.
Cognizant aims to improve Gilead’s operations and financial framework and ultimately provide significant cost savings that can be reinvested into its core business of developing life-saving treatments. Their expanded partnership builds on their decade-long collaboration, with Cognizant deploying its Neuro AI platform to accelerate value creation and improve IT and business processes.
4. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 64
ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced equipment for chipmakers, specializing in lithography, metrology, and inspection systems for semiconductor production.
On January 30, Argus analyst Jim Kelleher reduced ASML’s price target from $1,250 to $1,000 while maintaining a Buy rating. He noted that ASML reported record Q4 revenue and earnings that exceeded expectations, although bookings, including extreme ultraviolet machines, declined 23% year over year. The company expects lower exposure to China in 2025 but sees stronger demand in other important markets.
Extreme ultraviolet machines are advanced lithography systems used in semiconductor manufacturing to produce smaller and more powerful chips. They are essential for producing cutting-edge processors used in AI, smartphones, and data centers.
3. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 66
Western Digital Corporation (NASDAQ:WDC) makes and sells data storage devices for different applications, including personal, enterprise, and consumer use. On January 30, TipRanks reported that Citi’s Asiya Merchant kept a Buy rating on Western Digital with an $80 price target.
Strong demand for high-capacity HDDs, driven by supply constraints and long lead times, supports the company’s valuation. Although the flash business faces short-term weakness due to slow consumer device growth and inventory adjustments, conditions are expected to improve by spring. AI-driven demand and stabilizing NAND prices also signal potential recovery, which reinforces confidence in Western Digital’s outlook.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) makes AI platforms for data centers, self-driving cars, robotics, and cloud computing.
On January 30, South China Morning Post reported that Chinese researchers at Shenzhen MSU-BIT University, in collaboration with Lomonosov Moscow State University and Beijing Institute of Technology, have developed a high-performance algorithm that boosts the speed of peridynamics simulations by 800 times compared to traditional methods. This new algorithm is optimized using Nvidia’s CUDA technology and it significantly boosts computational efficiency, which allows for faster simulations of material damage and fractures on low-cost, widely available GPUs.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) offers AI-driven cloud, productivity, and business solutions, enhancing operations, security, and AI development.
After its earnings were reported on January 29, KeyBanc remained Overweight on Microsoft with a $575 price target, despite challenges posed by DeepSeek. Microsoft has adapted by incorporating DeepSeek into Azure and Copilot while showing flexibility in capital expenditure after FY25. Although AI-related capital expenditures are expected to remain significant, the company is balancing the disruptive potential of AI with caution regarding heavy infrastructure investments.
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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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