Representatives from around the world are going to be attending the Artificial Intelligence (AI) Summit at the Grand Palais on 10–11 February 2025. The summit will focus on harnessing the power of AI systems as well as the risks posed by them. From heads of state and government and leaders of international organizations to business leaders, as well as representatives from academia, civil society, and the arts, it would seem everyone related to the artificial intelligence world is to attend. However, that’s not quite true.
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Reuters has recently reported that the U.S. delegation to the AI Summit will not include technical staff from the country’s AI Safety Institute. Vice President JD Vance is leading the U.S. contingent to France, with attendees including members of the White House Office of Science and Technology Policy: Principal Deputy Director Lynne Parker and Senior Policy Advisor for Artificial Intelligence Sriram Krishnan. However, Homeland Security and Commerce Department officials are not going to be there, particularly the representatives of the U.S. AI Safety Institute trips have been canceled.
The AI Safety Institute, created under former President Joe Biden, was created to mitigate certain risks from AI, having signed agreements with U.S. startups OpenAI and Anthropic for safety testing. The absence of these representatives implies that the Commerce Department, in which the Safety Institute resides, is still in the transition phase after Trump’s inauguration.
Regarding the discussion on AI, Prof Gina Neff from the Minderoo Centre for Technology and Democracy said that there is currently “a vacuum for global leadership on AI”.
Another professor from Southampton University seems to agree:
“DeepSeek made everybody realize that China is a force to be reckoned with,” says the computer scientist. We don’t have to just go along with what the big companies on the West Coast are saying. We need global dialogue.”
-Prof Dame Wendy Hall, Southampton University.
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.
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).
A Wall Street trading floor, chaotic with activity as traders and financial analysts analyze the company’s impact on the markets.
10. Aurora Mobile Limited (NASDAQ:JG)
Number of Hedge Fund Holders: N/A
Aurora Mobile Limited (NASDAQ:JG) offers mobile big-data solutions for app developers. On February 7, the company announced that its leading enterprise AI agent platform, GPTBots.ai, has integrated DeepSeek LLM into its on-premise deployment solutions. The integration allows secure, flexible, and scalable AI solutions tailored to diverse business needs. The advanced capabilities of DeepSeek, together with GPTBots’ robust, enterprise-grade platform, enable businesses to leverage cost-effective AI solutions with optimized resource utilization and energy efficiency. Integrating DeepSeek into GPTBots’ platform will allow businesses to benefit from industry-specific applications, spanning from retail and e-commerce to finance, energy, and even the government. These businesses can ensure that they maintain full control over their data with enhanced security protocols, something particularly valued for industries such as finance, healthcare, and legal services. With customizable solutions, a comprehensive tool ecosystem, and end-to-end support, businesses can leverage cost-effective AI deployment through the integrated platform.
“GPTBots is committed to empowering businesses with the tools they need to innovate and grow. By integrating DeepSeek into our on-premise deployment solutions, we’re providing a powerful, secure, and flexible AI platform that drives measurable results across industries.”
-Jerry Yin, VP of GPTBots.ai.
9. Pagaya Technologies Ltd. (NASDAQ:PGY)
Number of Hedge Fund Holders: 21
Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology company, leveraging AI and data analytics to offer solutions for the broader financial services industry. One of the biggest analyst calls for Friday, February 7th, was for Pagaya Technologies. Citi upgraded the stock to “Buy” from Neutral. The firm stated that it is bullish on the artificial intelligence lending Software Company. In particular, Pagaya’s strategic advancements and strong financial position make the firm optimistic about the stock. The company has been attracting a broad base of investors, including repeat participants, which reflects strong confidence in its offerings.
“We think the narrative improves in 2025 towards a focus on network partner expansion and rising personal loan/point-of sale volume demand from existing partners.”
8. MicroStrategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 25
Strategy, formerly known as MicroStrategy Incorporated (NASDAQ:MSTR), offers AI-powered enterprise analytics software and services. It is the largest corporate holder of Bitcoin and the world’s first Bitcoin Treasury Company. On February 6th, Mark Palmer from Benchmark Co. reiterated a Buy rating on the stock with a price target of $650.00. Palmer’s buy rating stems from Strategy’s strategic focus and financial performance. The company has recently rebranded its name to “Strategy”, implying an increased focus on Bitcoin and artificial intelligence as the two main transformative technologies of the industry. The firm noted that the rebranding particularly reflects a commitment to aggressively acquiring Bitcoin, noted by the increased BTC Yield target for 2025. The introduction of new key performance indicators, namely BTC Gain and BTC $ Gain, reflects the value generated from MicroStrategy’s bitcoin treasury operations. Even though there is a projected decrease in the BTC $ Gain target for 2025 compared to 2024, Strategy’s focus on bitcoin acquisition remains intact.
7. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products. On February 7, BMO Capital analyst Keith Bachman reiterated the “Market Perform” rating on the stock with the associated price target raised to $122 from $100. The analyst told investors in a research note that Fortinet has delivered a strong quarter. Particularly, the company has gained from a significant demand boost due to an end-of-service firewall refresh cycle. It has gained from an impressive number of new customer wins and also delivered strong results in its Unified SASE and SecOps segments. Fortinet has embedded artificial intelligence in both its SASE and SecOps offerings, helping it detect and respond to threats proactively. The company’s product segment has also witnessed prominent growth, with total billings surpassing expectations and robust revenue increases in the SMB sector and EMEA region. There is also a potential for continued success in the absence of escalating US tariffs, further contributing to the rating.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, providing processors and graphics technologies for gaming, data centers, and AI-driven high-performance computing. On February 6, analyst Hans Mosesmann from Rosenblatt Securities reaffirmed his Buy rating on AMD stock and lowered his price target for AMD stock from $250 to $225. The analyst noted that the post-earnings dip could present an attractive opportunity for long-term investors. The company reported strong quarterly sales and an overall healthy outlook, but investors were skeptical over the slowing sales growth for its artificial intelligence chips. Nevertheless, the firm is optimistic and sees the dip as a buying opportunity.
5. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained traction after the launch of its AI-powered platform called Agentforce. On February 7, Bloomberg reported that software companies are increasingly being pressured to invest in artificial intelligence capabilities without hitting their profits. As a result, companies such as Salesforce Inc. and Workday are making two moves: cutting jobs and highlighting cost savings from adding workers internationally.
“Do we need to hire everybody in San Francisco? Or can we think about other locations that are cheaper where we can get really incredible labor like India and Mexico City.”
-Salesforce Chief Operating Officer Brian Millham said at an event hosted by Barclays Plc in December.
Previously, Bloomberg also reported on February 4th that Salesforce has been cutting jobs and simultaneously hiring workers to sell new artificial intelligence products.
The cuts speak “to the company’s focus on driving productivity and should help offset some of the incremental sales hiring that the company has already outlined”.
-Kirk Materne, an analyst at Evercore ISI.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. On February 7, CNBC reported that Morgan Stanley has reiterated the stock as “Overweight”, stating that it sticking with the AI winners, Broadcom and Nvidia.
“We remain positive longer term, with a focus on AI (NVDA, AVGO) as well as value beneficiaries of a cycle snapback, such as ADI, MKSI, and WDC.”
3. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is an online retailer that leverages AI in its e-commerce business. On February 7, Chinese news outlet The Paper reported that Alibaba has denied claims that said that the Chinese e-commerce giant intends to invest in DeepSeek. The Paper quoted Yan Qiao’s statements, who works as the vice president at Alibaba.
“As a fellow Chinese and Hangzhou company, we applaud DeepSeek, but news circulating that Alibaba will invest in DeepSeek is fake news.”
Earlier on Friday, other Chinese media outlets reported rumors that Alibaba planned to invest $1 billion into DeepSeek.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On February 5, Bloomberg reported that Alphabet Inc.’s Google has removed a passage from its artificial intelligence principles that pledged to avoid using AI in potentially harmful applications, such as weapons. Previously, the company’s AI principles included a passage titled “AI applications we will not pursue,” such as “technologies that cause or are likely to cause overall harm,” including weapons, reported Bloomberg. However, the writing is no longer visible on the page.
A Google spokesperson shared a blog post published Tuesday:
“We believe democracies should lead in AI development, guided by core values like freedom, equality and respect for human rights. And we believe that companies, governments and organizations sharing these values should work together to create AI that protects people, promotes global growth and supports national security.”
– James Manyika, a senior vice president at Google, and Demis Hassabis, who leads the AI lab Google DeepMind.
According to Margaret Mitchell, who co-led Google’s ethical AI team and is now chief ethics scientist for AI startup Hugging Face, removing the clause may have implications for the nature of work Google pursues.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com Inc (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. Some of the biggest analyst calls for Friday, February 7th, were for Amazon Inc. Several analysts remain bullish on the stock despite the company’s disappointing guidance for the current period. The company reported better-than-expected earnings and revenue for the fourth quarter, but guidance for Q1 was well short of the midpoint of Wall Street’s outlook. The company said it sees Q1 revenue of between $151 billion and $155 billion, while analysts were anticipating $158 billion. The company’s lackluster cloud revenue growth further intensified investor concerns that Big Tech’s massive artificial intelligence investments are taking longer to deliver returns.
Nevertheless, analyst Brian Nowak of Morgan Stanley has maintained a “Buy” rating and retained the price target of $280.00. Nowak’s rating stems from the company’s strategic advantages and potential for growth. The firm anticipates logistics and cost efficiency improvements due to advancements in robotics and GenAI (Generative AI) technologies. This will in turn boost Amazon’s retail operations significantly. Similarly, Amazon Web Services (AWS) is displaying profitable growth and tends to boost even further as the demand for GenAI inference expands. Even though current investments are impacting near-term free cash flow, the emphasis on long-term returns and Amazon’s leadership in GenAI applications render the company favorable for future success.
“We now turn to AMZN, which, in our view, is still the most under-appreciated GenAI winner of our mega-caps”.
-Brian Nowak.
While we acknowledge the potential of AMZN 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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