It hasn’t been long since DeepSeek released its efficient yet low-cost models, causing a frenzy in the tech world. The AI startup has returned to the spotlight today, releasing a major upgrade to its V3 large language model in a quest to intensify competition with its Western counterparts.
The new model, called DeepSeek-V3-0324, has been made available through the AI development platform Hugging Face. The move marks the startup’s continued push to gain a foothold in the rapidly intensifying tech landscape.
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The updated model includes added parameters and improvements in coding and mathematical problem-solving. The company’s website has used the terms “enhanced reasoning capabilities, optimised front-end web development and upgraded Chinese writing proficiency”, to define its updates.
According to the South China Morning Post, this new version and DeepSeek V3 are both foundation models trained on vast data sets. These can be applied in different use cases, such as that of a chatbot.
DeepSeek data has shown that the updated model demonstrates notable benchmark improvements on tests such as the American Invitational Mathematics Examination (AIME). The new version scored 59.4 compared with 39.6 for its predecessor on the test, while it achieved a 49.2 on LiveCodeBench, an increase of 10 points.
According to Häme University of Applied Sciences lecturer Kuittinen Petri, “Anthropic and OpenAI are in trouble.” He noted this when he tested out the new version and asked it to “create a great-looking responsive front page for AI company.” In response, the new version produced a mobile-friendly, accurately functioning website after coding 958 lines.
Petri further noted that “DeepSeek is doing all this with just [roughly] 2 per cent [of the] money resources of OpenAI”.
Another tester, Jasper Zhang, a Math Olympiad gold medalist from the University of California, Berkeley, checked the model with an AIME 2025 problem. According to him, “it solved it smoothly”.
“More confident open-source AI models will win in the end.”
-Jasper Zhang.
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.
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11. 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 25, BTIG upgraded the stock to “Buy” from Neutral with a $431 price target, stating that Street estimates for the cybersecurity company are too low.
“We are upgrading CRWD from a Neutral to a Buy Rating for two primary reasons. First, with the 7/19/2024 IT outage now eight months in the rearview mirror, we think CRWD has much better visibility on forecasts.”
The other reason the firm cited has been its potential for growth to reaccelerate in the second half of 2026.
“We see CRWD emerging as the cleanest platform play across the security software space,” BTIG analyst Gray Powell said in a note.
The company has been leading the core endpoint security market, which is valued at $16B. The analyst further added how recent fieldwork suggests that it could win in the Security Information and Event Management market, valued at $6B or more.
“To be clear, we are still skeptical when vendors claim their products can cover multiple pillars and buying centers within security budgets. That said, CRWD has demonstrated its dominance in the core endpoint security target market.”
10. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 83
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On March 24, Tal Liani from Bank of America Securities maintained a “Hold” rating on the stock with a price target of $215.00. The firm said that it had “positive” discussions with the company’s Chief Financial Officer, Dipak Golechha.
“Various strategies to drive platformization Management noted that platformization is less of a bundling and discounting tactic, rather it is a selling motion to remove friction points for customers consolidating on Palo Alto Networks.”
-Tal Liani wrote in a note to clients.
“To help promote platformization deals, the company is taking a few tactics: it solves deployment friction by assisting through deployment services, and eases the economic friction by offering upfront credits to avoid overlap between contracts. The vast majority of platform deals are not milestone-related, carrying ratable revenue recognition, which suggests not much volatility around revenue recognition as the company laps its first anniversary since launching its platformization program.”
Discussing the acquisition of Cloud security startup Wiz, the firm said it could also lead to some share gain.
“Management views the pending acquisition of Wiz by Google as a form of ‘co-opetition’ given its history with Google, running its Cloud services. The deal spells some opportunities for Palo Alto. First, Wiz ran on AWS management and there could be some friction with customers, as it migrates to GCP. In addition, the acquisition could spark concerns among enterprises whether Wiz would remain a multi-Cloud provider. On the fundamental front, Wiz gained share by focusing on Cloud Security Posture Management (CSPM) and Cloud Workload Protection Platform (CWPP), while Palo Alto made a long-term focus on a wider set of services, expanding the number of modules and consolidating its Cloud business under its Cortex security operations umbrella.”
9. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 85
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions. On March 25, Elizabelle Pang from DBS maintained a “Hold” rating on the stock and lowered the associated price target to $225.00.
Despite Constellation delivering strong performance in the fourth quarter of 2024, backed by favorable nuclear production tax credits and market conditions, the stock’s rich valuation suggests limited upside potential.
The company is poised to benefit from increasing electricity demand, particularly from data centers, and the strategic acquisition of Calpine Corp is another positive for the stock. However, the analyst noted certain headwinds, which include possible removal of power auctions in key markets and uncertainties surrounding policy changes, leading to the hold rating.
8. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. On March 24, Truist Financial analyst Terry Tillman reiterated a “Buy” rating on the stock with a $400 target. The analyst is confident of several growth drivers for Salesforce that could potentially revitalize the company’s growth trajectory through the fiscal year 2026 (FY26).
Some factors contributing to this revitalization include Salesforce’s diverse portfolio, including Data Cloud and AI/Agentforce, along with improvements in segments such as Marketing Cloud. The company’s growth and valuation factors, as well as its capital allocation strategy, are also seen as positives.
7. 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 25, Piper Sandler analyst Alexander Potter reiterated an Overweight rating on the stock with a $450.00 price target. Addressing concerns about the impact of CEO Elon Musk’s political activities on Tesla’s delivery numbers, Potter asserted that his activities aren’t the only cause driving the year-over-year delivery declines in the first quarter.
“However: we think it’s incorrect when investors and/or journalists point to politics as the primary driver of Tesla’s double-digit y/y delivery declines (in Q1).”
According to him, supply constraints are the main factor causing the plunge in delivery numbers. Despite these challenges, Tesla maintains strong financial health. Potter has also highlighted Tesla’s potential for new product launches and the anticipated introduction of a robo-taxi service in June behind his optimism for the stock.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. On March 24, Jefferies analyst Edison Lee reiterated an “Underperform” rating and $202.33 price target on the stock. According to Lee, iPhone sales have been falling far faster than their Android-based rivals.
“That indicates the launch of iPhone 16e (shipment started on February 28) has not been able to support overall iPhone sales in China, even though 16e is covered by the government subsidy program.”
In contrast, Apple bull Wedbush analyst Dan Ives maintains a $325 price target and an Outperform rating on the stock. The analyst has estimated that Apple’s AI delays will remove around 10 million iPhone handset sales from its fiscal 2025 tally. That said, further delays in Apple Intelligence rollout may discourage users from buying the next round of upgrades.
5. 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 25, was for Nvidia Corporation. Morgan Stanley reiterated the stock as “Overweight, stating that Nvidia’s AI Chip, H20, is a beneficiary of China’s AI capex.
“Expect H20 to be strong again in the April quarter for Nvidia , with company commentary suggesting that China will make up ~10% or so of the data center segment in April…”
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
On March 25, Google introduced its most intelligent model yet, the Gemini 2.5. The company’s first 2.5 release is an experimental version of 2.5 Pro, offering remarkable advancements in reasoning and coding and substantially outperforming competitors across major industry benchmarks.
Google has deemed 2.5 models to be “thinking models,” which have the ability to reason through their thoughts before responding, leading to enhanced performance and improved accuracy. Gemini 2.5 Pro is available in Google AI Studio and in the Gemini app for Gemini Advanced users. It will also be available on Vertex AI soon. Pricing details will be announced in the coming weeks.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On March 25, Justin Post from Bank of America Securities maintained a “Buy” rating on the stock.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $775 implies a 24% upside, however, the Street-high target of $900 implies an upside of 44%.
Meta Platforms Inc. has been working hard in the artificial intelligence arena. According to CEO Mark Zuckerberg, 2025 will be “a defining year for AI”. However, a recent attempt toward this goal has proven unsuccessful.
Only yesterday, Bloomberg reported that Korean chip startup FuriosaAI, a company that designs and develops data center accelerators for AI models and applications, has reportedly turned down an $800 million takeover offer from Meta. Local media reports revealed that there were disagreements over post-acquisition business strategy and organizational structure, causing the negotiations to break down.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On March 24, Piper Sandler reiterated the stock as “Overweight” with a $520 price target. The firm said that Microsoft is best positioned to weather a bumpy macro environment and that investors should “buy the weakness.”
Highlighting discussions from recent investor meetings with Microsoft’s VP of Investor Relations, Jonathan Neilson, and Finance Director of Investor Relations, Josh Elvidge, from last week, the analysts are optimistic about the stock based on the company’s diverse product portfolio, robust commercial Remaining Performance Obligation (RPO), significant operating cash flows, and a substantial AI business expanding at a triple-digit rate. These factors provide Microsoft with a firm base to navigate uncertain economic conditions.
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 25, Bernstein reiterated Amazon, along with Walmart and Costco, as “Outperform.” The firm believes these names are the best positioned in e-commerce in a choppy macro.
“We generally view the likes of AMZN, WMT, and COST as the best positioned to ride a macro storm given the combination of a defensive category mix, relative value, and membership lock-in that comes with each platform. In some ways, an extension of what we’ve seen in recent years.”
Several analysts are bullish on Amazon stock not only because of its strategic positioning in the market, but also because of its massive growth potential. On March 24, Monness analyst Brian White maintained a “Buy” rating on the stock, backed by the potential of Amazon Web Services or AWS, to capitalize on long-term trends in artificial intelligence. The company has already reaped benefits from generative AI, particularly from training large language models, and growth drivers are expected to boost this further.
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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