In this article, we discuss 10 AI news investors probably missed.
The world of AI is shifting fast, and DeepSeek is at the center of the latest shake-up. A small Chinese company with just 200 employees has built an AI model that rivals tech giants at a fraction of the cost. This breakthrough raises big questions about the future of AI: Will open-source models challenge the dominance of closed systems? Will companies still need massive data centers, or is AI becoming more efficient? And how will major tech firms respond? While the answers aren’t clear yet, one thing is, that AI is evolving, and the race is far from over.
DeepSeek Breakthrough and the Future of AI Development
Chief Investment Strategist and Portfolio Manager at Hightower, Stephanie Link joined CNBC Squawk Box to discuss the market downturn, especially in tech and energy, and the impact of DeepSeek on AI competition. She acknowledged concerns about the AI semiconductor sector but emphasized that the market is large enough for multiple players. While she questioned whether DeepSeek’s technology is truly superior, she suggested investors look for opportunities in companies like Amazon and Broadcom.
Andrew Ross Sorkin of CNBC raised points about the potential shift toward open-source AI, questioning whether this could commoditize AI technology and reduce the need for massive data centers. Link responded that while open-source models like DeepSeek may become widespread, there are still unresolved questions regarding security and long-term adoption by large companies. Despite this, she believes hyperscalers will continue to invest in AI, with billions earmarked for the sector. While Link sees the AI market continuing to grow, she emphasized the need for careful stock selection rather than jumping in immediately.
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. zSpace, Inc. (NASDAQ:ZSPC)
Number of Hedge Fund Holders: N/A
zSpace, Inc. (NASDAQ:ZSPC) develops AR/VR technology for education, offering 3D interactive experiences without requiring head-mounted displays.
zSpace’s Career Readiness Solution, powered by Career Coach AI, won the 2025 District Administration Top EdTech Products Award in the CTE, Upskilling, and Credential Technology category. This innovative platform uses augmented and virtual reality to assist students in career exploration, skills development, and earning industry-recognized credentials. Career Coach AI provides real-time feedback and insights into fields like healthcare, IT, and engineering, helping students gain skills directly applicable to the workforce. The award highlights zSpace’s commitment to enhancing career readiness and preparing students for modern industry demands.
9. SEALSQ Corp (NASDAQ:LAES)
Number of Hedge Fund Holders: N/A
SEALSQ Corp (NASDAQ:LAES) designs and markets semiconductor chips and provides security solutions for IoT, data protection, and device authentication across industries like smart energy, automotive, aerospace, and more.
On January 28, SEALSQ Corp announced the decentralization of AI development through its cost-effective post-quantum semiconductors, aiming for a sustainable and decentralized AI future. With an R&D investment of $10 million, SEALSQ’s semiconductors offer high performance while addressing security concerns related to quantum computing. This move is influenced by the success of China’s DeepSeek, a large language model that rivals GPT-4 in performance at a fraction of the cost. SEALSQ’s innovations, optimized for IoT and edge devices, aim to democratize AI access and reduce environmental impact.