In this article, we discuss 10 AI news and ratings you should not miss.
AI Expansion Continues as Startups Receive Major Funding Rounds
On February 19, CNBC reported significant funding rounds for multiple AI-focused startups, highlighting the quick expansion of AI innovations across industries like healthcare, cloud computing, and model deployment. Baseten, a San Francisco-based company founded in 2019, raised $75 million at an $825 million valuation to improve its AI model deployment services. Using cloud infrastructure from Amazon and Google, Baseten helps clients access GPUs for AI inference, reducing costs by over 40% while supporting the cost-effective DeepSeek-R1 reasoning model. Its revenue increased sixfold in the last fiscal year, and its clients include over 100 enterprises and companies such as Descript, Patreon, and Writer.
OpenEvidence, an AI health-tech startup in Cambridge founded by Daniel Nadler, raised $75 million from Sequoia, bringing its valuation to $1 billion, as per CNBC. The company’s AI chatbot, trained on data from The New England Journal of Medicine and peer-reviewed journals, assists doctors with clinical decisions and is already used by a quarter of U.S. physicians. The chatbot avoids inaccuracies through tailored training and has grown rapidly due to word-of-mouth recommendations among doctors. OpenEvidence will also use its new funding to establish partnerships, including one with NEJM Group, and Nadler views the company as a solution to doctor burnout and the projected physician shortfall.
Lambda, a cloud computing firm specializing in AI development, raised $480 million in a Series D round co-led by Andra Capital and SGW, reaching a $2.5 billion valuation and total funding of $863 million. Lambda rents out Nvidia GPU-powered servers and offers software to train and deploy AI models, including open-source ones like DeepSeek-R1. CEO Stephen Balaban highlighted Lambda’s ability to repurpose its 25,000 GPUs for open-source AI models, which has fueled demand for H200 chips. The company will use the funding to expand its GPU inventory and further develop its software, including its Model Inference API and Chat AI Assistant. Lambda is positioned to meet the surging demand for AI infrastructure and is serving over 5,000 customers across industries such as manufacturing and finance.
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.
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. ZenaTech, Inc. (NASDAQ:ZENA)
Number of Hedge Fund Holders: N/A
ZenaTech, Inc. (NASDAQ:ZENA) develops cloud-based enterprise software for various industries and manufactures and distributes drones.
On February 19, ZenaTech reported promising results from the initial testing of its Quantum Computing Sky Traffic project, which uses AI and quantum computing for weather prediction. The test, based on 2016 data, showed high accuracy in temperature predictions. In response, ZenaTech is expanding its team over the next two months, recruiting AI, quantum, and aerospace engineers, along with researchers from international universities.
CEO Shaun Passley explained that the Sky Traffic project aims to improve weather forecasting and drone applications for traffic management, wildfire monitoring, and defense. By combining AI with quantum computing, the company seeks to optimize drone navigation, decision-making, and real-time data analysis. The integration could improve defense drone capabilities in areas like surveillance and reconnaissance by enabling faster data processing and decision-making.
9. Lantern Pharma Inc. (NASDAQ:LTRN)
Number of Hedge Fund Holders: 4
Lantern Pharma Inc. (NASDAQ:LTRN) uses AI and genomic data to develop cancer therapies, with a pipeline including treatments for lung, pancreatic, and central nervous system cancers.
On February 19, Lantern Pharma published a PCT patent application for its AI-driven machine learning solution designed to predict blood-brain barrier (BBB) permeability. The technology, capable of analyzing up to 100,000 molecules per hour with high accuracy, holds multiple top rankings on the Therapeutic Data Commons Leaderboard. By quickly identifying compounds that can cross the BBB, it aims to accelerate the development of treatments for CNS disorders and brain cancers. The system is integrated with Lantern’s RADR AI platform and it improves drug candidate evaluation. Lantern’s subsidiary, Starlight Therapeutics, will use this technology to advance its STAR-001 program. The company has initiated an expedited U.S. review and plans to secure global patent protection.
8. Research Solutions, Inc. (NASDAQ:RSSS)
Number of Hedge Fund Holders: 8
Research Solutions, Inc. (NASDAQ:RSSS) provides cloud-based software and services for discovering, managing, and accessing scientific, technical, and medical research content globally.
On February 19, Research Solutions introduced Tables in Scite Assistant, an AI-powered tool that automates data extraction from scientific literature, improving research efficiency. The feature allows users to structure and analyze important data points at scale, reducing manual effort in literature reviews.
Scite Tables offers customizable columns for organizing research details, streamlining systematic reviews, and improving competitive intelligence and biomarker analysis. Early adopters in Medical Affairs, R&D, and Clinical Operations have reported significant benefits in data management and decision-making. Research Solutions emphasized that user feedback played a crucial role in shaping these advanced capabilities.
7. Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 17
Tempus AI, Inc. (NASDAQ:TEM) provides healthcare technology solutions, including diagnostic testing, clinical trial matching, data analytics, and AI-driven platforms for healthcare and pharmaceutical industries.
On February 19, Tempus AI secured $300 million in additional debt financing from Ares Management’s Credit funds to support its acquisition of Ambry Genetics, finalized on February 3, 2025. It brings Ares’ total funding for Tempus to approximately $560 million since 2022. Tempus uses AI and data-driven technology to improve clinical care and research and the management emphasized that this investment will help drive innovation in precision medicine. The company views the funding as crucial for advancing its technological solutions and improving patient outcomes across oncology, cardiology, and other medical fields. Douglas Dieter, Dr.P.H., Partner in the Ares Credit Group commented:
“Over the last two years, we’ve been impressed by the Tempus team’s execution of its growth strategy and complementary acquisition of Ambry, and we look forward to further supporting their efforts in AI-enabled solutions that help advancements in medicine.”
6. STMicroelectronics N.V. (NYSE:STM)
Number of Hedge Fund Holders: 22
STMicroelectronics N.V. (NYSE:STM) develops and sells semiconductors for automotive, industrial, personal electronics, communication, and computing markets worldwide. On February 18, Jefferies analyst Janardan Menon upgraded STMicroelectronics to Buy from Hold, raising the price target to €34 from €23. Menon expects growth to accelerate in the latter half of the year due to post-inventory correction normalization, increased iPhone 17 content from metasurface-based solutions, and industrial demand recovery. Long-term growth factors include Edge AI, LEO satellites, silicon photonics, and automotive microcontrollers.
5. Extreme Networks, Inc. (NASDAQ:EXTR)
Number of Hedge Fund Holders: 30
Extreme Networks, Inc. (NASDAQ:EXTR) provides global software-driven networking solutions, including cloud-based network management, wireless and wired infrastructure, and SD-WAN services.
On February 19, Extreme Networks announced the upcoming release of Extreme Platform ONE for Managed Service Providers (MSPs), offering a multi-tenant, AI-driven architecture with consumption-based billing and poolable licensing. The platform enables MSPs to manage licenses, performance, and service issues from a centralized workspace, improving network visibility and security while reducing operational complexity. Extreme’s AI Core automates tasks with conversational and autonomous agents to improve productivity. Its consumption-based model eliminates large upfront costs, allowing MSPs to scale flexibly and predict costs. MSP partners highlighted the platform’s benefits in improving financial management, scaling services, and boosting operational efficiency.
4. RingCentral, Inc. (NYSE:RNG)
Number of Hedge Fund Holders: 36
RingCentral, Inc. (NYSE:RNG) provides cloud-based communication, collaboration, video meeting, and contact center solutions for businesses worldwide across various industries.
On February 19, RingCentral and BT introduced Cloud Work RingCX, a cloud-based contact center platform with built-in AI assistance. Designed for corporate and public sector organizations, it enables seamless customer interactions across voice and messaging channels while enhancing efficiency and engagement.
The platform integrates with BT Cloud Work, unifying voice, video, and digital communication for streamlined customer support. AI-driven tools provide real-time analytics and assistance, improving response times and agent performance. BT emphasized that the solution offers businesses flexibility, security, and fraud protection, with a broader rollout planned for small and medium-sized enterprises later this year.
3. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 41
NetApp, Inc. (NASDAQ:NTAP) provides enterprise software, storage solutions, cloud services, and support across industries globally, focusing on hybrid and public cloud infrastructure. On February 19, Bank of America upgraded NetApp to Neutral from Underperform and raised its price target to $128 from $121, pointing to a stronger storage market. The firm sees growth opportunities from AI and cloud demand, market share gains, stable gross margins, improving operating margins, and strong free cash flow. However, despite better trends, it expects limited upside to consensus estimates.
2. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 52
Ciena Corporation (NYSE:CIEN) offers global network hardware, software, and services, including optical networking, IP routing, network automation, and support solutions across multiple regions.
On February 19, Cirion Technologies announced that it will deploy Ciena’s WaveLogic 6 Extreme technology to improve Cirion’s terrestrial and submarine networks across Latin America, marking the region’s first 1.6 Tb/s single-carrier wavelength deployments. The upgrade will connect over 160 data centers, supporting bandwidth-heavy applications like AI, IoT, and streaming. Cirion will also upgrade the SAC East submarine cable and activate the SAC-2 route with Ciena’s GeoMesh Extreme and 6500 optical platform. Ciena’s coherent aggregation routers and Navigator Network Control Suite will enable Cirion to improve routing, network management, and overall efficiency for scalable, sustainable connectivity.
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) offers e-commerce, cloud computing, logistics, and digital media services across multiple global and Chinese platforms. The company is also one of the biggest investors in AI development.
Chinese AI startup DeepSeek is reportedly exploring external funding for the first time and Alibaba is among the interested parties, along with state funds, according to The Information. DeepSeek’s fast growth has led to service outages due to increased demand and the need for more AI chips and servers. The company, along with its parent High-Flyer Capital Management, is also discussing a shift toward developing a revenue-generating and profitable business model. Nevertheless, in a report by Chinese news outlet The Paper on February 7, an Alibaba executive had previously dismissed rumors of the company planning to invest in Chinese AI startup DeepSeek.
While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) 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 BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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