10 AI Stocks Dominating the News This Week

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Elon Musk and OpenAI have jointly proposed to fast-track their trial over OpenAI’s transition to a for-profit company in December. According to OpenAI, the transition toward a for-profit company is crucial to staying ahead in the AI race and raising more capital in the process. Regardless of the shift, Bloomberg News has reported that the company is not expecting its cash flow to turn positive until 2029.

READ ALSO: 10 AI Stocks Making Headlines This Week and 9 Trending AI Stocks Making Headlines Today.

The report has confirmed that the company expects revenue to triple to $12.7 billion in 2025. However, it is struggling with significant costs from chips, data centers, and talent needed to develop cutting-edge AI systems, which is why cash flow may not turn positive until after a few years. The company expects its revenue to surpass $125 billion by this time. As of 2025, the company said its revenue will triple due to the strength of its paid AI software.

Reuters further noted that the company must transition to a for-profit company by the end of the year to secure the full $40 billion funding led by SoftBank, which is in the final stages of raising. If OpenAI fails to restructure into a for-profit company by the end of the year, the bank may invest only $20 billion instead. The ChatGPT maker was originally given a two-year deadline, with the news marking an accelerated deadline.

Provided it successfully completes its $40 billion funding round, it would be the largest of all time, according to data compiled by research firm PitchBook. The deal would set to value the company at $300 billion, including dollars raised. This is more than double the ChatGPT maker’s previous valuation of $157 billion back in October. A part of this funding is anticipated to be used for OpenAI’s commitment to Stargate, an AI infrastructure project announced by President Donald Trump.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

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 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

10 AI Stocks Dominating the News This Week

A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.

10. Spectral AI Inc. (NASDAQ:MDAI)

Number of Hedge Fund Followers: 7

Spectral AI Inc. (NASDAQ:MDAI) is an artificial intelligence company focusing on medical diagnostics, predictive analytics, and healing predictions. On March 28, BTIG maintained a “Buy” rating on the stock with a price target of $3.00. The firm’s optimism for Spectral AI stems from its strong performance in the fourth quarter of 2024. The company is also on track to submit its DeepView system for FDA approval by the second quarter of 2025.

DeepView system is a predictive medical device that leverages multispectral imaging and AI algorithms to assess burn wound healing potential. Commercialization efforts are further boosted by gathering clinical feedback from its systems deployed in the UK and Australia. The company is also developing a miniaturized version of DeepView for military and similar applications. All of these factors have contributed to a positive outlook toward the stock.

9. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 77

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection. On March 28, TipRanks reported that J.P. Morgan analyst Brian Essex maintained their bullish stance on the stock, giving a Buy rating on March 25. Essex is bullish given Crowdstrike’s reacceleration in annual recurring revenue (ARR) backed by lower-than-anticipated cost containment initiatives. The shift is anticipated to boost Cloud and Identity segment growth.

Moreover, Falcon’s Flex platform, a flexible licensing agreement providing access to the entire AI-powered CrowdStrike portfolio, is proving to be a significant driver for platform adoption. The larger deals and increased customer commitments are expected to further boost ARR growth. The company’s strategic approach to mergers and acquisitions and positive outlook for federal business further support Essex’s buy rating. The Wiz transaction is also seen as beneficial for the company, boosting its cloud security offerings.

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