What is the biggest security risk in artificial intelligence? According to CPPCC member Zhou Hongyi, co-founder and chairman of internet security firm Qihoo 360, it is to fall behind.
The Chinese People’s Political Consultative Conference (CPPCC) is a political advisory body in China and a key component of the Chinese Communist Party (CCP)’s united front system.
Unlike former President Joe Biden’s stance on AI, which was supportive but cautious, current AI leaders, including President Donald Trump, and political advisors in Beijing, are against overregulation in the AI industry.
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The Trump administration has since reversed Biden’s AI executive order and launched the Stargate project, reflecting on his pro-innovation stance instead. Likewise, Beijing’s political advisors have made remarks ahead of the country’s annual parliamentary meetings, advising against overregulating artificial intelligence companies amid a growing debate about the emerging technology.
“We should neither exaggerate nor ignore security issues related to AI. Some leading AI companies in the US exaggerate the security issues of AI as an excuse for not having open-sourced products as they seek a monopoly, so the latecomers cannot catch up.”
– CPPCC member Zhou Hongyi.
Zhou cautioned that China must “correctly understand” the security risks in AI.
“Falling behind in [AI] development is the biggest security risk. We must seize this opportunity of AI to improve productivity and let everyone benefit from the fruits of the inclusiveness of science and technology”.
Zhang Yi, a senior partner at King & Wood Mallesons and CPPCC member, advised that China needs to develop its own AI rules to ensure stable development but at the same time, needs to be aware that “overly strong legal intervention might become a rope that strangles the development of AI as global competition intensifies”.
In a race towards supremacy in artificial intelligence, Beijing is working hard and has signaled that it will act cautiously on regulation of the sector. According to the Ministry of Science and Technology, legislation on artificial intelligence is going to be rolled out in an “orderly” way in response to proposals from the CPPCC.
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10. Penguin Solutions, Inc. (NASDAQ:PENG)
Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI infrastructure provider for organizations looking to build and operate state-of-the-art generative AI facilities. On March 4th, the company announced that it has expanded its ICE ClusterWare™ software platform, (formerly Scyld ClusterWare®) with multi-tenancy support, streamlined workflows, and enhanced controls. These enhancements will enable enterprises to build fully optimized AI ecosystems known as Intelligent Compute Environments.
In addition, Penguin Solutions also announced the launch of its ICE ClusterWare AIM™ service, an advanced optimization service that leverages prediction automation to maximize performance, availability, and operational efficiency of AI infrastructure. These solutions from Penguin aim to address the challenge of underutilized GPU clusters, enabling enterprises to build compute environments that allow AI workloads to run optimally.
“AI computing demands an integrated, intelligent approach that goes beyond traditional IT infrastructure. With ICE ClusterWare software and ICE ClusterWare AIM service, we enable enterprises to build intelligent compute environments that optimize efficiency, scalability, and cost-effectiveness—ensuring AI workloads run at peak performance while minimizing operational complexity.”
-Trey Layton, vice president of software and product management, Penguin Solutions.
9. Keysight Technologies, Inc. (NYSE:KEYS)
Number of Hedge Fund Holders: 51
Keysight Technologies, Inc. (NYSE:KEYS) is a global technology company that provides electronic design and test solutions. On March 4th, the company announced that it has collaborated with Samsung and NVIDIA to train artificial intelligence (AI) models for Samsung’s 5G-Advanced and 6G technologies. The collaboration will allow Samsung to integrate a powerful AI model in their vRAN software solution, improving network performance.
AI modeling will help solve problems such as slow networks and weak signals, helping increase signal quality, boosting efficiency, and reducing power use. Keysight’s Channel Emulation Solutions will play a key role by providing channel generation capabilities for various channel conditions, along with real-time signal processing and radio frequency (RF) capabilities. The AI-powered solution will leverage both Keysight’s channel emulation solutions and Nvidia’s AI Aerial platform and GH200 Grace Hopper Superchip, paving the way for the widespread adoption of AI-enhanced RAN technologies.
“Our collaboration with Samsung, NVIDIA, and AI-RAN Alliance underscores the transformative potential of AI-native networks. This partnership not only enhances performance and reduces power consumption but also paves the way for more energy-efficient networks.”
-Giampaolo Tardioli, Vice President, 6G and Next Generation Technology at Keysight.
8. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 74
Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company. On March 4th, the company announced that it has entered into a collaboration with Cedar, the leading patient financial experience platform for healthcare providers, to enhance patient financial experiences in healthcare. Twilio will be powering Cedar’s patient communications across SMS and Voice, including via Twilio’s AI-powered ConversationRelay service.
Its scalable communications technology will be integrated into Cedar’s platform to enhance accessibility, streamline patient interactions, and develop an inherent financial experience. Its AI-powered financial experience will allow Cedar to streamline communications with clients, enable a seamless payment experience, and inculcate smart patient support through AI-powered voice agents. According to the company, Twilio’s ConversationRelay service will become HIPAA-eligible in the coming weeks.
“Cedar is doing the work to unlock a better financial experience, so patients and providers are less focused on billing and more on patient outcomes. We’re just beginning to see the potential of how conversational AI agents can streamline billing for patients while maintaining their trust. Beyond simple IVRs, AI backed by relevant, secure data can provide the patient with context and resources to create a seamless and empathetic experience. We look forward to continuing our work with Cedar to deliver more efficiencies and value to their customers.”
-Andy O’Dower, Vice President of Product Voice and Video at Twilio.
7. 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 3rd, Canaccord raised the firm’s price target on the stock to $420 from $370 and kept a “Buy” rating on the shares. Analyst Michael Walkley highlighted several factors leading to the bullish outlook, particularly Crowdstrike’s engagement with customers and the expansion of its product platform, including the introduction of Flex packaging initiatives.
The company has been strengthening relationships with existing customers since July and is now viewed as a robust security platform and potential business partner by prospective customers. The company’s “Falcon” is the AI-powered, cloud-based security platform that protects against cyberattacks, malware, ransomware, and other threats.
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained popularity after the launch of its AI-powered platform called Agentforce. On March 3rd, Mizuho Securities analyst Gregg Moskowitz reiterated a “Buy” rating on the stock and kept the price target at $425.00. The firm is optimistic on the stock based on its strong performance and potential for growth. Salesforce has reported a robust quarter, with cRPO growth demonstrating an impressive 11% increase in constant currency terms.
The early momentum of Salesforce’s AI-powered platform Agentforce has also been notable, the firm added. An estimated 5,000 deals have closed since October, contributing to a combined Data Cloud and AI annual recurring revenue of around $900 million. The firm did acknowledge that FY26 revenue guidance fell short of consensus, but believes the market overreacted considering that company fundamentals remain strong. All in all, the firm is bullish on the stock considering Salesforce’s strong position in managing its customers’ digital transformation efforts and the promising opportunity of Agentforce.
5. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 120
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. On March 4th, Bank of America upgraded the stock to “Buy” from neutral with a price target of $152, down from $164. The firm believes investors should buy the dip in the electric energy company. It also asserted that Vistra’s core business remains well-positioned to benefit from tightening power markets and growing demand, despite the lack of new data center deals.
“We raise our rating on Vistra Corp. (VST) to “Buy” from Neutral following the stock’s underperformance resulting from the lack of datacenter news.”
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On March 4th, Bank of America lowered its price target on the electric vehicle maker to $380 per share from $490 and reiterated its “Neutral” rating. According to Murphy, “renewed uncertainty” in 2025, particularly Trump’s tariffs, are going to be a challenge for production in North America.
He noted that levies on Canadian, Mexican, and Chinese imports went into effect on Tuesday, and that China and Canada have since issued retaliatory duties. These tariffs and potential trade war “could create a supply shock similar to COVID.” Other issues faced by Tesla include its slowing vehicle production in Europe year over year, Murphy noted, and a lack of news on the company’s low-cost model and that “sentiment on the brand potentially souring.” Overall, industry dynamics are expected to be inconsistent in 2025.
“Early in 2025, there are material and potentially disruptive changeovers at F (Ford Motor, Kentucky Truck) and TSLA (Tesla, Model Y globally), while GM (General Motors) is largely clear,” Murphy said. “The resulting volume disruption and macroeconomic headwinds should continue to haunt suppliers, but cost actions flowing through the P & L should support flat to up margins.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. On March 4th, the company unveiled new versions of its iPad Air. These versions have been enhanced with Apple’s M3 chip and artificial intelligence capabilities in an attempt to boost upgrades among customers. The iPad Air also features a new Magic Keyboard, enhancing its versatility, alongside the iPadOS 18, support for Apple Intelligence, advanced cameras, fast wireless 5G connectivity, and compatibility with Apple Pencil Pro and Apple Pencil (USB-C).
“iPad Air is so popular because of its unmatched combination of powerful performance, portability, and support for advanced accessories, all at an affordable price. For everyone from college students taking notes with Apple Pencil Pro, to travelers and content creators who need powerful productivity on the go, iPad Air with M3, Apple Intelligence, and the new Magic Keyboard take versatility and value to the next level.”
-Bob Borchers, Apple’s vice president of Worldwide Product Marketing.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the biggest analyst calls on Tuesday, March 4th, was for Nvidia Corporation. Bernstein reiterated the stock as “Outperform” and a $185.00 price. The firm stated that the selloff in Nvidia shares is overdone and that the stock is “so back”.
“Nevertheless, worries that the AI trade is ‘over’ feel a little premature to us, and valuation is getting increasingly attractive.”
The firm considers Nvidia’s derating to be a “little stunning” considering how Blackwell product revenues of $11 billion all shipped in January, reflecting easing supply constraints and an anticipation that demand will exceed supply in the coming quarters.
Also, “it is becoming increasingly clear that DeepSeek is not doomsday for AI demand.”
The firm has highlighted how multiple catalysts remain in favor of the stock, including rising spending intentions, the beginning of a new product cycle, and the upcoming GTC event, which is Nvidia’s GPU Technology Conference, an AI conference for researchers, developers, engineers and investors.
“It is clear that the Blackwell introduction has not gone as smoothly as the company might have hoped, and there remains added volatility given how laser-focused investors are on this supply chain. However, it does seem they have worked through things.”
A potential headwind to keep a lookout for is how strict President Donald Trump’s export restrictions on China will ultimately prove.
“For what it is worth, every ~$10B would account for ~25 cents in NVDA EPS; a full China datacenter ban would likely impact EPS ($5-6 baseline?) by mid to high single digits, with the stock already pulling back by much more than that.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
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. On March 4th, renewable energy company GE Vernova reported that it has signed an agreement with Amazon’s cloud services business to support the e-commerce giant’s data center expansion plans. The strategic framework agreement (SFA) will not only support AWS’s data center scaling, but also allow collaboration to address increasing global energy demand, advance grid security and reliability, and decarbonize electric power systems.
GE Vernova will provide AWS with new offerings to electrify and decarbonize data centers across North America, Europe, and Asia. These include electrification systems, renewables, and power generation equipment and services. In turn, AWS will offer GE Vernova its cloud services solutions to progress its cloud migration and digital innovation efforts, including through generative AI.
“Through this expanded collaboration with GE Vernova, we’ll be able to accelerate data and energy efficiencies, driving reliable and more sustainable operations. Our shared goals of addressing increased global energy demand, advancing grid security, and decarbonizing electric power systems will help our customers across the globe.”
-Howard Gefen, general manager, energy & utilities, AWS.
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 time frame. 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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