According to Goldman Sachs, the AI-powered rally in Chinese equities could boost other markets as well. Consequently, the firm has raised its 12-month target for MSCI Emerging Markets Index by 3%, reaching 1,220 from 1,190, and reflecting an 11% potential upside from current levels. This increase reflects the impact of AI adoption on valuations through earnings, multiples and portfolio flows.
The firm further noted that China’s stock market rally has the potential to boost emerging markets that are linked to China but have been lagging previously. This could also be supported by a stimulus-driven catch-up in A-shares. In this regard, the firm said that the recent fiscal stimulus announced at China’s “Two Sessions” meeting is anticipated to stabilize growth and improve market confidence, Reuters noted.
READ ALSO: 10 High-Potential AI Stocks to Watch Right Now and 12 AI Stocks Making Headlines: Latest News and Ratings
With regard to the AI arms race, another region aiming to address the competitiveness gap is Europe. Reuters has reported how AxeleraAI, one of the few companies in Europe making computer chips for artificial intelligence, has been awarded a grant of up to 61.6 million euros ($66 million).
This grant aims to develop a chip for use in data centers, aiming to uplift EU efforts to boost the sector. Europe is increasingly trying to fund domestic chipmakers and build publicly funded data centers, known as “AI factories,” making them accessible to European scientists, companies and startups.
“It’s a moment of pride.”
-Axelera CEO Fabrizio Del Maffeo in a phone interview
Axelera has won funding from EuroHPC, which is an agency overseeing the European Union’s network of supercomputers and AI factories – to bring out a chip efficient at “inference” AI computing.
“We are not here to challenge Nvidia in the data centre space, in the training. But when the network is ready and you want to run it, we are developing a solution that can deliver extremely high performance … we can do that.”
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).
A Wall Street trading floor, chaotic with activity as traders and financial analysts analyze the company’s impact on the markets.
10. ARB IOT Group Limited (NASDAQ:ARBB)
Number of Hedge Fund Holders: 2
ARB IOT Group Limited (NASDAQ:ARBB) offers Internet of Things (IoT) system solutions, and system integration and support services in Malaysia. On March 4, the company announced that it has signed an artificial intelligence (AI) Products Supply Agreement through its indirect wholly owned subsidiary, ARB IOT Group Sdn Bhd. The agreement has been signed with Gajah Kapitalan Sdn Bhd (“GKSB”), a Malaysian enterprise technology innovator, and aims to deliver advanced computing systems for enterprises, research institutions and developers in Malaysia. The deal, valued at US$45.0 million, requires RB IOT to supply 500 units of state-of-the-art ARB-222 AI servers (“AI Products”) to provide high-performance immersible computer servers to GKSB. Through this agreement, ARB IOT is strategically expanding its presence into the growing data center sector.
“Our collaboration with GKSB strengthen our mission to provide leading-edge AI server solutions and to deliver significant cost savings and operational efficiencies to the customers. Such order represents a significant milestone for the Company and highlights the growing demand for the AI Products. This not only strengthens our collaboration but also drives our continued growth and expansion in the market. As we carry out this agreement with GKSB, our commitment to excellence and innovation remains unwavering. The trust placed in ARB IOT to deliver these state-of-the-art AI Products reflects our shared dedication to enhancing the operational capabilities. We look forward to enhancing our technological capabilities and providing valuable market insights that will enable ARB IOT to better serve the needs of our target audience where AI is universally accessible, leading to diverse applications and breakthroughs across industries.”
-Muhammad Badrun Almuhaimin Bin Baharon, Director of GKSB.
9. Lantronix, Inc. (NASDAQ:LTRX)
Number of Hedge Fund Holders: 17
Lantronix, Inc. (NASDAQ:LTRX) designs and sells IoT products and services globally. On March 6, the company announced that it will demonstrate its SmartLV, the first AI-enabled IoT Edge Compute Cellular Gateway, at Embedded World, March 11–13, 2025, in Nuremberg, Germany. The innovative device, powered by Qualcomm Dragonwing™ IQ-615, aims to tackle challenges within smart grids by providing Distribution System Operators (DSOs) the capability to manage and steer energy when and where it’s needed.
The device is a testament to Lantronix’s long-standing collaboration with Qualcomm Technologies, integrating Qualcomm Technologies’ industry-leading AI and connectivity capabilities with Lantronix’s expertise in IoT solutions. This way, utilities can manage electricity more effectively. The SmartLV is built with cybersecurity protocols and AI capabilities, empowering it to be a secure and intelligent solution specifically designed for low-voltage substations and Distributed Energy Resources (DERs).
“Integrating advanced sensors, AI and decentralized computing enhances efficiency, reliability and sustainability. Powered by the Dragonwing IQ-615, the SmartLV delivers Edge AI computing features to help bring power grids into the future.”
-Tom Thornton, director of Embedded Compute at Lantronix.
