Grok 3, xAI’s chatbot and ChatGPT challenger is in its final stages of development, reported Elon Musk on Thursday. The chatbot is reportedly going to be released in a week or two. Speaking at the Dubai World Governments Summit, Musk said that the chatbot outperforms all others in the market.
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“Grok 3 has very powerful reasoning capabilities, so in the tests that we’ve done thus far, Grok 3 is outperforming anything that’s been released, that we’re aware of, so that’s a good sign”.
-Elon Musk
Musk had founded xAI as a rival to ChatGPT after he left OpenAI back in 2018. When Emirati State Minister for AI Omar Sultan Al Olama asked what to expect from the upcoming Grok 3 model, Musk bragged that it was “scary smart” with “very powerful reasoning capabilities.”
A few days back, a consortium of investors led by Musk said it had offered $97.4 billion to buy the nonprofit that controls OpenAI. The move marked an attempt by the billionaire to stop OpenAI from becoming a for-profit company. He had even sued CEO Sam Altman and others in August, asking a U.S. district judge to block OpenAI’s attempt to transition to a for-profit entity.
“I think the evidence is there in that OpenAI has gotten this far while having at least a sort of dual profit, non-profit role. What they’re trying to do now is to completely delete the non-profit, and that seems really going too far.”
Musk may be bragging that his chatbot is superior to others, but Benjamin De Kraker, who worked on the human data team for Grok development, has differing opinions on the top AI models for code. According to De Kraker, OpenAI’s o1-pro, o1, and o3-mini are all tied for the top spot, while the unreleased Grok 3 is in fourth position. Only time will tell who is right.
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A close up of a circuit board, its microchips creating a powerful computing system.
10. Cloudastructure, Inc. Class A Common Stock (NASDAQ:CSAI)
Number of Hedge Fund Holders: N/A
Cloudastructure, Inc. Class A Common Stock (NASDAQ:CSAI) is a cloud-based video surveillance platform that specializes in artificial intelligence (“AI”) and computer vision analytics. On February 12, it was announced that the company had been selected by a leading property management firm to deploy its AI-powered security solutions. The move, made in response to new surveillance compliance regulations in a DC Metro municipality, will allow the property management firm to use Cloudastructure’s innovative cloud surveillance solution across all five of its multifamily communities subject to the new requirements. An increasing number of cities and counties have been introducing new security mandates to ensure prime resident safety and law enforcement support. Cloudastructure’s NextGen AI-powered surveillance solution will not only offer regulations compliance, but will also provide continuous monitoring, real-time alerts, standardized surveillance views, system health checks, advanced search capabilities, and 30-day video storage.
“We are delighted to welcome this respected property management firm to the Cloudastructure family. Their decision to implement our AI-powered security solution reflects a forward-thinking approach to multifamily security—one that prioritizes not only compliance but also operational efficiency and, most importantly, resident safety. In an era where municipalities are introducing stricter surveillance mandates, this firm is leading by example, demonstrating how innovative technology can seamlessly enhance security while supporting law enforcement efforts. By embracing next-generation AI-driven solutions, they are setting a new industry benchmark—one that will undoubtedly inspire other property managers to rethink their approach to safety, compliance, and risk mitigation.”
-Lauren O’Brien, CRO of Cloudastructure.
9. JX Luxventure Group Inc. (NASDAQ:JXG)
Number of Hedge Fund Holders: N/A
JX Luxventure Limited provides tourism services and supplies related products. On February 12, the company announced the launch of “LuxGent”, its proprietary AI-based DeepSeek type chat agent intended to transform customer interactions within its technology products and solutions. This chat agent leverages advanced artificial intelligence technologies that allow users to avail intelligent, personalized assistance. The agent analyzes extensive user behavior data to offer customized product recommendations, efficient self-service order management, and responsive customer support.
“The introduction of LuxGent marks a significant milestone in our commitment to integrating cutting-edge technology into our services. It will bring a more personalized and efficient experience to our end users.”
-Ms. Sun “Ice” Lei, Chief Executive Officer of the Company.
8. VCI Global Limited (NASDAQ:VCIG)
Number of Hedge Fund Holders: 1
VCI Global Limited (NASDAQ:VCIG) is a leading provider of AI-driven enterprise solutions. On February 12, the company announced that it had secured a US$12 million contract through its subsidiary, VC AI Limited (“VC.AI” or the “Company”), with Malaysian-based marketing and data solutions agency Datanex Sdn Bhd. The partnership will allow VC.AI to support Datanex in enhancing and expanding its services through AI-driven solutions and custom-built programs. Using AI-powered tools, clients will be able to implement their marketing campaigns so that they can target high-potential leads, optimize ad spend, and even refine targeting strategies for enhanced engagement and conversions. VC.AI will also be able to reinforce its position in the AI solutions market through the contract, expand its client base, and drive digital transformation.
“This partnership marked a significant step for VCI Global, reinforcing the expertise of our subsidiary, VC.AI, in AI-powered digital solutions and positioning us as a leader in the industry. We are excited to work with Datanex to drive innovation in digital marketing and continue helping businesses use technology to grow and evolve. Together, we believe we can make a real impact on the future of marketing and deliver valuable solutions to our clients”.
-Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
7. TELUS Digital (NYSE:TIXT)
Number of Hedge Fund Holders: 8
TELUS Digital (NYSE:TIXT), formerly known as TELUS International, provides digital customer experience and IT services, including software infrastructure solutions. On February 11, the company announced that it is expanding its global AI research footprint through the launch of the TELUS Digital Research Hub. The research hub will be launched at the University of São Paulo (USP) in Brazil on March 18. The $1 million investment, spread over three years, will allow the state-of-the-art facility to serve as a collaborative research space. This space will attract leading global AI research talent that will drive advancements in artificial intelligence (AI)-fueled CX. The hub will be located within the Center for Artificial Intelligence and Machine Learning (CIAAM), joining global companies such as Motorola, IBM, and Itaú.
“The launch of TELUS Digital’s partnership with USP and our new TELUS Digital Research Hub on campus marks an exciting milestone in our company’s sustained commitment to advancing AI research and development, incorporating diverse perspectives to mitigate bias and promote responsible AI, and contributing to the global dialogue on AI’s potential. Our company’s dedication to providing exceptional, AI-fueled customer experiences and outcomes for the brands we serve globally will help direct our research agenda over the next three years. This will include advancing the capabilities of Fuel iX™, our proprietary, generative AI platform and suite of solutions that personalize, secure and scale digital interactions. By uniting academia and leading CX industry experts, our goal is to leverage the strengths of both groups to create innovative and transformative real-world applications with measurable impacts.”
-Renato Vicente, Director, TELUS Digital Research Hub.
6. Sapiens International Corporation N.V. (NASDAQ:SPNS)
Number of Hedge Fund Holders: 12
Sapiens International Corporation (NASDAQ:SPNS) is a prominent leader in software solutions for the insurance industry. On February 11, the company announced that it has released the Sapiens UnderwritingPro v14, the latest version of its award-winning, automated underwriting and new business case management system for life & annuities insurers. The release encompasses functional and technical enhancements to the system such as AI integration with predictive analytics and intelligent insights, helping users achieve greater operational efficiency, smooth communication, and advanced AI-driven capabilities. There is an innovative agent communication portal that offers streamlined interactions so that agents can provide faster service and enable underwriters to manage their workloads effectively. The new case management system also includes features for easier control and management of underwriting rules. All in all, the new solution will help insurers automate decisions, optimize their underwriting processes, and improve operational accuracy across all sectors.
“Our new version of UnderwritingPro reflects Sapiens’ strategic commitment to innovation and continuous development driven by industry trends, and input from our user community. This latest release takes automated underwriting to the next level by integrating AI and provides tools that empower insurers to deliver faster, smarter, and more accurate underwriting decisions.”
-Roni Al-Dor, Sapiens President and CEO.
5. Domo, Inc. (NASDAQ:DOMO)
Number of Hedge Fund Holders: 15
Domo, Inc. (NASDAQ:DOMO) provides a cloud-based business intelligence platform for real-time data access and analytics across multiple devices. On February 11, Cantor Fitzgerald analyst Yi Fu Lee initiated coverage of the stock with an “Overweight” rating and an $11 price target. The analyst told investors in a research note that Domo is a cloud-native modern business intelligence and analytics software platform that helps companies analyze data, unlock actionable insights, and collaborate on important insights. The firm also advises investors to consider buying the stock, stating that it is an “under-followed” small-cap data cloud name expanding to areas in artificial intelligence model management and agentic AI. It further contended that the stock’s pullback of 30% from a one-year high of over $12 presents an attractive entry point.
4. CEVA, Inc. (NASDAQ:CEVA)
Number of Hedge Fund Holders: 17
CEVA, Inc. (NASDAQ:CEVA) provides silicon and software solutions for semiconductor and OEM companies globally. On February 11, the company announced that ListenAI Technology has licensed the Ceva-Waves Wi-Fi 6 IP to enhance its portfolio of Edge AI processors. ListenAI Technology is a leader in intelligent terminal system-on-chip (SoC) solutions, with its processors targeting a wide range of applications that use audio, voice, and vision. The partnership aims to address the need for cutting-edge wireless solutions and seamless connectivity. By adopting Ceva-Waves Wi-Fi 6 IP for its new Wi-Fi 6 SoC, ListenAI will ensure that devices can meet performance, reliability, and power efficiency demands. The partnership will enable the company to expand its product offerings, integrating robust wireless capabilities with advanced AI-driven features.
“We believe that robust and efficient wireless connectivity is essential for the performance of edge AI devices. Our Wi-Fi 6 IP enables ListenAI’s edge AI portfolio to seamlessly connect, process, and respond in real time, empowering smarter interactions and delivering the reliability, speed, and efficiency demand from intelligent devices.”
-Tal Shalev, vice president and general manager of the wireless IoT business unit at Ceva.
3. Conduent Inc. (NASDAQ:CNDT)
Number of Hedge Fund Holders: 20
Conduent Inc. (NASDAQ:CNDT) offers business process services and technology solutions to help businesses and government agencies manage critical tasks and interactions. On February 12, the company announced its fourth quarter and full-year 2024 financial results. It reported Q4 EPS of ($0.15), $0.03 below the analyst estimate of ($0.12). Meanwhile, revenue for the quarter came in at $800 million compared to the consensus estimate of $806.33 million. Its full revenue was down 4.3% compared to 2023, slightly below expectations owing to discrete drivers. Looking ahead, the company sees FY2025 revenue of $3.1-3.25 billion, versus the consensus of $3.28 billion.
The company said that it successfully divested several assets at good multiples, which allowed it to pay down debt and streamline its strategy. Improved retention and increased new business ACV quarter-over-quarter led to a strong net ARR, while the company’s commercial segment also demonstrated a solid sales year. The company has also made significant progress in leveraging artificial intelligence across its entire portfolio, achieving milestones in digital and AI solutions and garnering recognition for its services. Integrating AI, particularly in fraud detection and document automation, has allowed it to generate revenue and reduce expenses.
“We remain bullish on achieving expectations in 2025. We continue to see opportunities for a further rationalized portfolio and remain focused on delivering outstanding service to our valued client base.”
-Cliff Skelton, Conduent President and Chief Executive Officer
2. F5 Inc. (NASDAQ:FFIV)
Number of Hedge Fund Holders: 31
F5 Inc. is a multi-cloud application delivery and security solutions provider that provides networking, unified, app management, and security solutions. On February 11, the company outlined its vision for transforming Application Delivery Controllers (ADCs) to meet the demands of ordinary and AI-powered applications. Its new ADC framework, known as ADC 3.0, presents reference architectures and strategic partnerships designed to enable enterprises to securely deploy and manage modern applications in the AI era. By converging high-performance application delivery and sophisticated application security capabilities into a single platform, F5 strives to lead the ADC transformation and help businesses manage AI applications efficiently. Its new reference architecture along with partner alliances helps customers deliver a secure future for the AI-powered digital world.
“The rise of AI and modern applications demands a fundamental rethinking of application security and delivery. Traditional approaches fall short in managing today’s complex, distributed systems…Organizations need solutions that provide consistency, flexibility and complete visibility across their IT landscape. F5 has transformed our technology portfolio to meet these challenges head-on, enabling our customers to confidently secure and deliver advanced digital experiences.”
-Chief Innovation Officer Kunal Anand.
1. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 64
Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing (HPC) systems, AI software, and data storage solutions for running complex AI workloads. On February 12, the company announced the latest additions to a new generation of enterprise servers with eight new HPE ProLiant Compute Gen12 servers. Featuring the upcoming Intel Xeon 6 processors for data center and edge environments, these servers are designed for enhanced security, improved performance, and AI automation. They also feature industry-first security capabilities with HPE Integrated Lights Out (iLO) 7, helping organizations protect against threats. They aim to address demanding workloads that include AI, data analytics, edge computing, hybrid cloud, and virtual desktop infrastructure (VDI) solutions. Moreover, they deliver up to 41% better performance per watt compared to legacy enterprise systems3, up to 65% in power savings per year, and enable organizations to free up data center capacity. HPE has announced that six of the eight new HPE ProLiant Compute Gen12 servers will be available in Q1 2025.
“Our customers are tackling workloads that are overwhelmingly data-intensive and growing ever-more demanding. The new HPE ProLiant Compute Gen12 servers give organizations – spanning public sector, enterprise and vertical industries like finance, healthcare and more – the horsepower and management insights they need to thrive while balancing their sustainability goals and managing costs. This is a modern enterprise platform engineered for the hybrid world, designed with innovative security and control capabilities to help companies prevail over the evolving threat landscape and performance challenges that their legacy hardware cannot address.”
-Krista Satterthwaite, senior vice president and general manager, Compute at HPE.
While we acknowledge the potential of HPE as an investment, our conviction lies in the belief that some 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 HPE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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