Despite DeepSeek and Qwen 2.5 disrupting the global tech sector, investors welcomed the impressive Q4 AI revenues from leading US tech firms like International Business Machines Corp. (NYSE:IBM). The company’s stock price reached an all-time high of $261 on January 30th as it reported GenAI’s book of business surpassing $5 billion since the segment’s inception.
“Three years ago, we laid out a vision for a faster-growing, more-profitable IBM. I’m proud of the work the IBM team has done to meet or exceed our commitments. With our focused strategy, enhanced portfolio, and culture of innovation, we’re well-positioned for 2025 and beyond and expect revenue growth of at least five percent and free cash flow of about $13.5 billion this year,” said IBM CEO Arvind Krishna.
While the S&P 500 sharply fell from its record high of 6,118 on January 23rd to 6,012 on January 27th, the benchmark index appears to have momentum in the past few days, climbing to 6,071 on January 30th.
However, several concerns remain about the adoption of AI, in terms of security and job losses. Code.org Founder and CEO Hadi Partovi said at the World Economic Forum that the risk isn’t people losing their jobs to AI, but losing work “to somebody else who knows how to use AI. That is going to be a much greater displacement.”
“It’s not that the worker gets replaced by just a robot or a machine in most cases, especially for desk jobs, it’s that some better educated or more modernly educated worker can do that job because they can be twice as productive or three times as productive,” he explained. “The imperative is to teach how AI tools work to every citizen, and especially to our young people.”
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.
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10. Logitech International S.A. (NASDAQ:LOGI)
Number of Hedge Fund Holders: 18
Logitech International S.A. (NASDAQ:LOGI) offers premium software-enabled hardware like computer accessories and audio devices to enhance business productivity, gaming, and streaming experiences. The company recently rolled out the feature-rich Rally Board 65 video conferencing solution powered by AI to offer a superior work experience in hybrid environments. Elsewhere, the Logi AI Prompt Builder is another leading productivity tool that utilizes ChatGPT to summarize and develop custom-made prompts to optimize business workflows.
On January 31st, Deutsche Bank analyst George Brown upgraded Logitech International S.A. (NASDAQ:LOGI) to “Hold” from “Sell” as well as increased the stock price target to ₣80 ($87) from ₣60 ($65). The analyst said the company’s “strong” Q3 report, boosted by surprisingly robust growth in China and the gaming segment, should shift investor attention to the capital markets day in Silicon Valley on March 5th. The brokerage anticipates upgrades to Logitech International S.A.’s (NASDAQ:LOGI) long-term profitability targets and deems its relatively lower product costs as a sustainable tailwind to gross and operating margins.
9. STMicroelectronics NV (NYSE:STM)
Number of Hedge Fund Holders: 18
STMicroelectronics NV (NYSE:STM) is a semiconductor company that manufactures communication equipment, computer accessories, and microchips for use in IoT, consumer electronics, cloud connectivity, and the automotive and industrial industries. The company’s ST Edge AI suite enables AI on microcontrollers, microprocessors, and smart sensors. STMicroelectronics NV (NYSE:STM) offers a proprietary neural processing unit called ST Neural-ART Accelerator to deliver efficiency in handling AI tasks. Meanwhile, its online STM32 edge AI tools enable developers to swiftly create and deploy ML algorithms on microcontrollers for lower costs. For instance, the Edge AI ST smart sensor embeds an ML core to facilitate context awareness in industrial equipment and IoT devices to help lower power utilization and facilitate meaningful data-sharing between microprocessors.
On January 31th, Susquehanna analyst Christopher Rolland reduced STMicroelectronics NV’s (NYSE:STM) price target to $28 from $33 but maintained a “Positive” stock rating. The brokerage said they posted in-line results but again delivered disappointing guidance due to long-standing softness in automotive and industrial segments.
