With President Donald Trump having returned to power, one of the first things he has done is revoke a 2023 executive order signed by Joe Biden seeking to reduce the risks that artificial intelligence posed to consumers, workers, and national security. The revoke marks a significant shift in federal oversight of artificial intelligence technology.
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According to Biden’s orders, developers of AI systems posing risks in any way to the US government, the economy, or even public health or safety, needed to share the results of safety tests with the government, which was in line with the Defense Production Act.
The order also required agencies to create orders for testing and address related chemical, biological, radiological, nuclear, and cybersecurity risks. As of now, all key safety and transparency requirements for AI developers have been revoked.
While it is currently unclear how the Trump administration will handle rules and regulations regarding AI, it is likely to be more of a “hands-off” approach. Regardless of how it is handled, the one clear thing is that this technology will continue to be extremely transformative.
As quoted by CEO of Abu Dhabi sovereign wealth fund Mubadala to CNBC at the World Economic Forum in Davos, the world has yet to completely recognize the extent of change AI will bring to every aspect of human life.
“In terms of the risks … this is a technology that no one today really appreciates, truly the level of disruption that it’s going to create, affecting everything from our lives, our businesses, human capital, employment, and every sector is going to be disrupted. And I think that while there’s a lot of opportunity, it also presents significant amount of risk, which is today unclear, because the technology is moving so fast and we’re all trying to catch up as much as possible”.
-Khaldoon Al Mubarak, managing director of the $330 billion fund, told CNBC’s Dan Murphy.
Al Mubarak is also optimistic about the future of AI and the UAE’s ability to leverage its investment strategy.
“The demand is going to be profoundly high in terms of the enablement of that technology. That means “the technology, the AI enablement, which is the infrastructure side of it — be it energy, be it transmission, but also all forms of technology, of energy technology that’s going to help fuel this huge demand, I would also add to that data center build-out, chip build-out.”
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10. Tempus AI, Inc (NASDAQ:TEM)
Number of Hedge Fund Holders: 7
Tempus AI, Inc (NASDAQ:TEM) is a healthcare technology company that provides AI-enabled precision medicine solutions. On January 21, the company announced the national launch of olivia, an AI-enabled personal health concierge app. Olivia helps to empower patients by fetching their health-related data into one central location and leveraging advanced AI to provide actionable insights. By centralizing health data and making it accessible and actionable through AI, Olivia helps patients keep all of their data onto a unified platform. Patients will have the ability to connect to over 1,000 health systems through Electronic Health Record (EHR) integration, sync data through health devices, and even manually update their health records. This data, organized into a dynamic timeline, can then be shared with a patient’s care team. Olivia is also capable of leveraging AI to allow patients to ask questions about their records, summarize health information, and receive responses based on their data. It can also connect to external sources for personalized insights.
“At Tempus, our goal has always been to improve patient outcomes by harnessing the power of data and AI. Now, as AI becomes increasingly integrated into healthcare, tools like olivia will be essential in helping patients understand and navigate their care. This app goes beyond organizing information; it’s a proactive partner empowering patients to steer their health with confidence and clarity”.
-Eric Lefkofsky, Founder and CEO of Tempus.
9. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 29
UiPath Inc. (NYSE:PATH) is a well-known software as a service (SaaS) enterprise that offers robotic process automation and artificial intelligence software. On January 21, Bryan Bergin from TD Cowen maintained a Hold rating on UiPath with a price target of $16.00. Several factors associated with UiPath’s current position and future outlook are responsible for the Hold rating. First, the company has demonstrated positive signs after its recent restructuring effort. The automation software developer cut 10% of its global workforce as part of its broader restructuring plan. It is now demonstrating increased clarity and focus, particularly in its agentic AI and go-to-market execution. Despite these promising developments, caution is still being exercised since the developments are expected to take time to reflect in valuation metrics. The firm’s rating also accounts for UiPath’s financial outlook. The firm is positive about potential growth areas like the SAP Solex partnership and test automation suite, but overall ARR growth is expected to moderate. In conclusion, investors are looking for clearer signs of successful restructuring execution and stabilization in growth.
8. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions. On January 17, TD Cowen analyst Derrick Wood upgraded the rating on SAP SE to “Buy” and raised its price target to $305 from $240. TD Cowen holds a generally positive outlook for SAP SE for numerous reasons. For starters, the firm’s analysts quote the company’s resilience in stock appreciation and growth execution, particularly in Cloud ERP. They also anticipate this performance to remain consistent in the coming years. The optimism is further supported by survey data which demonstrates a growing priority for Cloud ERP, with artificial intelligence helping them migrate faster.
The firm also noted that SAP is gaining from artificial intelligence in two ways. First, it is helping businesses migrate to Cloud. Second, it is monetizing from generative AI solutions. The firm’s 2025 Software Spending Survey revealed that ERP jumped four spots in ranking for SaaS spend priorities for 2025, which now places it third out of eleven categories. The company is also performing better in the mid-sized business market and demonstrates a healthier growth outlook for 2025. SAP SE is experiencing accelerated Cloud growth, and is anticipated to reach a five-year high. Lastly, a favorable foreign exchange environment is further anticipated to enhance growth prospects and valuations.
7. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT) is a cybersecurity company that provides enterprise-level next-generation firewalls and network security solutions. On January 16, Citi raised the firm’s price target on Fortinet to $101 from $100 and kept a “Neutral” rating on the shares. The rating has been issued as part of a 2025 systems software outlook. The firm is “generally more bullish” about IT and software development companies because they are growing well and have a strong connection with artificial intelligence. The firm quoted that these companies have a “cleaner” tether to general artificial intelligence. However, it is not as optimistic about cybersecurity companies, which is why it remains “selectively constructive” on cybersecurity names. Moreover, Citi’s chief information security officer survey has shown “mostly uninspiring” results.
6. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 52
Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company. On January 17, Morgan Stanley analyst Meta Marshall raised the firm’s price target on Twilio to $118 from $115 and kept an “Equal-Weight” rating on the shares. The rating has been issued ahead of the company’s analyst day on January 23rd. The event day presents a good opportunity for Twilio to “reset” messages related to the trends in Communications Platform as a Service (CPaaS). It could address concerns, provide updates, and elaborate on CPaaS growth trends. Other areas of discussion include how Segment fits into Twilio, which is a market-leading customer data platform (CDP) that Twilio has acquired. The analyst also highlighted Twilio’s artificial intelligence opportunity and its profit potential. As such, its AI opportunity lies in using the technology to enhance customer engagement and offer AI-powered communication solutions. The firm currently perceives the current valuation as capturing about a 10% compound annual growth rate for revenue.
5. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On January 15, the company announced that it is collaborating with IBM and the UK Home Office’s Emergency Services Mobile Communications Programme (ESMCP) to develop solutions for User Services for the Emergency Services Network (ESN). This multi-year project will provide a secure voice and data platform for the police, fire, and ambulance services for enhanced collaboration and data sharing in emergencies. Palo Alto, in particular, will be offering its Precision AI-powered comprehensive platform to protect network, cloud, and SOC environments as well as offer 24/7 cyber incident response services. Palo Alto’s security platform approach will enable the ESN to benefit from advanced protection against upcoming cyber threats.
“We are proud to be part of such a critical national infrastructure project alongside IBM and other partners to ensure the security and communications resilience of the Home Office’s Emergency Services Mobile Communications Programme. We commend the UK’s Home Office for their vision for secure modern IT transformation through security platformization”.
– Helmut Reisinger, CEO of Palo Alto Networks, EMEA & LATAM
4. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection. On January 21, Cognizant Technology Solutions, an information technology services and consulting company, announced that it has entered into a strategic partnership to improve cybersecurity for global enterprises across industries. Leveraging the capabilities of Crowdstrike’s AI-native Falcon® cybersecurity platform and Cognizant’s Neuro® Cybersecurity platform, the collaboration aims to provide comprehensive cybersecurity solutions to organizations. It will also help combat cybersecurity challenges such as the surge in cloud exploitation cases and sophisticated cyber-attacks, helping organizations modernize security operations, consolidate legacy point products, and reinforce their overall cybersecurity posture. In turn, customers will be able to generate a flexible operations framework for new technology and threats driven by an AI-native platform.
“Our partnership with Cognizant delivers cutting-edge cybersecurity solutions that tackle the evolving challenges enterprises face today and tomorrow. CrowdStrike’s AI-native Falcon platform with Cognizant’s extensive expertise in technology transformation offers customers best-in-class protection, performance, and efficiency. Together, we will drive positive customer outcomes and enhance the security posture of organizations globally”.
-George Kurtz, CEO and founder, CrowdStrike.
3. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 78
ServiceNow, Inc. (NYSE:NOW), a cloud-based, AI-driven platform, enables enterprises to automate multiple management workflows. On January 21, BofA analyst Brad Sills raised the firm’s price target on ServiceNow to $1,280 from $1,075 and kept a “Buy” rating on the shares. The analyst noted that after talking to key ServiceNow partners, he has found deal activity in Q4 to be “solidly in-line or slightly better” which is “a slight improvement” from Q3. The analyst further argued that ServiceNow is “second only to Microsoft (MSFT) with tangible AI revenue”. The company has been leveraging artificial intelligence, particularly generative artificial intelligence, AI, to help customers streamline workflows and processes across various functions. BofA is very optimistic about the company’s top-line growth and share gains.
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider. On January 15, the company announced that it is partnering with Adarga, a leader in AI-driven information intelligence, to bring Adarga’s Vantage software to Oracle Cloud Infrastructure (OCI) and Oracle’s distributed cloud. The collaboration will allow the two companies to help defense and security organizations in the UK along with its allies by delivering mission-critical data and insights to them. Adarga Vantage enhances defense and security organizations by extracting, contextualizing, and connecting information from millions of internal and external sources, and that too, in over 75 languages. It also offers advanced search, discovery, and AI tools to improve intelligence gathering and enhance decision-making in multi-domain environments. With Oracle being the only hyperscaler capable of delivering AI and a full suite of 150+ cloud services across multiple cloud environments, the deployment of Vantage across Oracle’s distributed cloud would mean Adarga customers will be able to maximize the value of their data and make faster and better-informed decisions. They will be able to do so while addressing security and sovereignty requirements. Customers will be able to run operational applications in disrupted, disconnected, intermittent, and low-bandwidth environments. Initially, Adarga will deploy Vantage in the Oracle Cloud for the UK Government and Defense by leveraging Oracle’s dual-region cloud dedicated to the UK public sector and defense customers.
“Armed forces, government, and defence organisations need to continually access, analyse, and act on intelligence faster than ever as warfare is increasingly fought on a digital battlefield. Adarga Vantage on Oracle Cloud Infrastructure brings together a powerful AI-driven solution on an industry-leading cloud and AI infrastructure to help military organisations win”.
-Bram Couwberghs, vice president of defence, Oracle EMEA.
1. 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 Tuesday, January 21, Piper Sandler analyst Brent Bracelin reiterated an “Overweight” rating on Salesforce and a $405.00 price target. The firm stated that even though the introduction of Agentforce, Salesforce’s AI-powered platform that enables organizations to build, customize, and deploy autonomous AI agents, has garnered significant customer engagement, it is not likely to materialize in revenues until fiscal year 2027. Nevertheless, the firm is confident about the competitive advantage that Agentforce brings to the company and also noted that it could benefit from AI indirectly by selling more services across its platforms.
“Early But Promising Feedback on Agentforce. We hosted investor meetings with Alexandra Chan and Valmik Desai in Europe last week which reinforced prior commentary that 1) the demand environment remains measured, 2) Agentforce has reinvigorated customer engagement but not likely a material revenue driver until F2027E (CY26E), 3) investor fears that Agentforce investments could pressure margins appear overstated and unlikely, 4) internal confidence in agent potential is building with clear competitive differentiation on time-to-value (days vs. weeks), and 5) indirect AI monetization via multi-cloud cross-sell and premium editions could be underappreciated.
Agentforce Anecdotes: Early feedback suggests that 1) new deals are driving incremental ACV, albeit via bite-sized pilots, 2) consumption pricing is holding near list price of $2 with a rate card coming for higher and lower pricing, and 3) internal confidence sparked more direct competitive bake-offs with clear differentiation in timeto-value (days) vs. alternatives (weeks)”.
While we acknowledge the potential of CRM 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 CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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