The fast-paced advancement and adoption of AI raises questions about its regulation, impact on human capabilities, and global competition. While some fear AI may reduce critical thinking, others, like Reid Hoffman, co-founder of LinkedIn and partner at Greylock, see it as a tool for improving human potential when used thoughtfully. In a March 24 interview with Bloomberg, he emphasized the importance of responsible development, advocating for safeguards against major risks while allowing AI to evolve through real-world applications. Hoffman also highlighted the role of significant industry leaders in shaping AI’s future and acknowledged the economic competition between the West and China, stressing the need for continued innovation and strategic leadership.
The Role of AI in Expanding Human Potential
Hoffman believes that AI serves as a powerful tool for expanding human capabilities rather than replacing critical thinking. He described it as one of the most advanced educational technologies ever created, allowing users to explore a vast range of topics interactively. While concerns exist that AI might discourage independent thought, he argued that it can instead improve problem-solving skills when used as a complement to human intelligence.
Hoffman also acknowledged AI bias and agreed that complete neutrality is difficult, as human perspectives constantly evolve. However, he pointed out that leading AI labs are actively working to reduce biases in their models. He compared AI’s transformative impact to the Industrial Revolution, emphasizing that while such advancements bring challenges, they also lead to widespread progress. He believes AI should be designed to boost human agency and be broadly accessible, similar to how smartphones are used by people from all walks of life. He said:
“So your Uber driver has the same iPhone that Tim Cook has, that’s the kind of inclusion that we’re targeting.”
AI Governance and Leadership In a Shifting Global Landscape
On the regulation side, Hoffman advocates for a cautious approach, recommending that initial restrictions focus on preventing serious threats like cybercrime and terrorism rather than minor inaccuracies or biases. He supports an iterative regulatory model, where adjustments are made based on real-world applications, much like how car safety regulations evolved.
When the discussion moved to AI leadership, he credited Sam Altman with driving OpenAI’s success and praised other major figures like Kevin Scott (Microsoft), Dario Amodei (Anthropic), and James Manyika (Google) for their collaborative approach to AI development. When asked about Elon Musk’s influence, Hoffman differentiated between the risks entrepreneurs take in business and those that governments must manage, emphasizing that national stability requires more cautious decision-making.
While discussing China’s role in AI, Hoffman believes there is an ongoing economic competition between the West and China, with the Chinese government aiming to lead in AI by 2030. While some compare this to an arms race, he sees it primarily as an economic rivalry, where maintaining technological leadership is crucial for global competitiveness. He called the current competition “the economic race.”
For this article, 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 Q4 database of over 1000 hedge funds.
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12. NextNRG Inc. (NASDAQ:NXXT)
Number of Hedge Fund Holders: N/A
NextNRG Inc. (NASDAQ:NXXT) is a mobile fueling company providing on-demand fuel services across multiple markets in Florida.
In a PRISM MarketView interview published on March 24, Michael Farkas, founder of NextNRG and Blink Charging, discussed NextNRG’s role in the evolving energy sector. The company has developed a unique AI-driven Utility Operating System, optimizing energy distribution and reducing costs by over 10%. It serves 6 million customer accounts, and it integrates AI and machine learning to improve efficiency, especially in decentralized energy and microgrid deployment.
The recent $25 billion ADQ-ECP investment in U.S. energy infrastructure highlights the rising demand for AI-powered energy solutions. NextNRG is positioned to support this shift by offering scalable, reliable power for AI-driven industries through smart grid and microgrid technologies.
Farkas explained that his experience with Blink Charging led him to launch NextNRG, aiming to revolutionize energy infrastructure by integrating AI-driven solutions, microgrids, and advanced fueling technologies.
11. Wearable Devices Ltd. (NASDAQ:WLDS)
Number of Hedge Fund Holders: 2
Wearable Devices Ltd. (NASDAQ:WLDS) develops neural input interfaces that enable touchless control of digital devices through finger movements and hand gestures.
On March 24, Wearable Devices (NASDAQ:WLDS) announced that it is expanding its AI-powered LMM technology beyond wearables into predictive health monitoring and cognitive analytics. The system continuously learns from muscle activity signals and is being tested for early health detection, cognitive state tracking, and predictive insights. The company plans to make LMM available to businesses for healthcare and performance applications, aiming to accelerate commercialization and partnerships in bio-signal intelligence.
10. Perfect Corp. (NYSE:PERF)
Number of Hedge Fund Holders: 9
Perfect Corp. (NYSE:PERF) provides AI- and AR-powered software solutions for the beauty, fashion, and skincare industries, serving brands and consumers worldwide.
On March 24, Perfect (NYSE:PERF) introduced an advanced HD Skin Analysis feature to its Skincare Pro solution, enhancing precision in skin assessments for skincare professionals. This upgrade utilizes AI algorithms trained on high-resolution images, offering deeper insights into skin conditions.
Developing this technology involved complex AI training, requiring precise labeling of diverse skin concerns and overcoming computational challenges to maintain real-time efficiency. The update includes zone-based analysis, detecting six wrinkle types and analyzing pores in specific facial areas. CEO Alice Chang emphasized the feature’s potential to improve personalized skincare recommendations and consultations.
9. Koninklijke Philips N.V. (NYSE:PHG)
Number of Hedge Fund Holders: 12
Koninklijke Philips N.V. (NYSE:PHG) is a global health technology company offering diagnostic imaging, patient care solutions, and personal health products.
On March 24, Philips (NYSE:PHG) announced that it has expanded its partnership with Ibex Medical Analytics and introduced Philips IntelliSite Pathology Solution (PIPS) 6.0 to advance AI-powered digital pathology. The collaboration aims to improve diagnostic accuracy and efficiency, addressing the global shortage of pathologists and the increasing demand for cancer diagnostics.
The integration of Ibex’s AI with PIPS improves workflows, enabling AI-driven cancer detection and reporting while streamlining case prioritization. PIPS 6.0 introduces improved navigation, AI-driven insights, and cloud-based archival solutions in partnership with Amazon Web Services, allowing secure data storage and management. These advancements support more efficient pathology workflows and improved patient care.
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and sells high-performance server and storage solutions for enterprise, cloud, AI, 5G, and edge computing markets.
On March 24, Goldman Sachs downgraded Super Micro (NASDAQ:SMCI) from Buy to Sell and reduced its price target from $40 to $32, indicating increased competition in AI servers and margin pressures. The firm sees risks in valuation, with the stock trading at 16x projected fiscal 2025 earnings, and expects its premium over peers to narrow due to limited product differentiation. Rising competition, the Blackwell product transition, and pressure from major customers and suppliers could further impact gross margins through 2027. Analyst Michael Ng also noted that SMCI’s market leadership in AI servers may weaken as rivals ramp up R&D investments.
7. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 47
Digital Realty Trust, Inc. (NYSE:DLR) provides data center, colocation, and interconnection solutions worldwide.
As reported by TipRanks on March 24, analyst Alexander Waters from Bank of America Securities reaffirmed a Buy rating on Digital Realty with a $205 price target. The rating reflects strong demand for the company’s data centers, driven by hyperscale clients and the expanding role of AI, which is expected to follow cloud adoption trends. Major lease commencements are projected for 2025 and 2026, supporting long-term growth.
Digital Realty also expects rental rates to rise by 4-6% in 2025 across retail and wholesale deployments. Additionally, power availability in Northern Virginia, its largest market, is set to improve between 2026 and 2028. These factors, along with efforts to improve power infrastructure and expand renewable energy use, reinforce the positive outlook.
6. nVent Electric plc (NYSE:NVT)
Number of Hedge Fund Holders: 48
nVent Electric plc (NYSE:NVT) provides electrical connection and protection solutions for industrial, commercial, and infrastructure applications worldwide.
On March 21, Seaport Research analyst Scott Graham upgraded nVent Electric (NYSE:NVT) to Buy from Neutral, setting a price target of $74. The firm considers concerns about reduced AI-related data center spending to be exaggerated, as demand for computing and storage is expected to stay strong even with lower AI projections. Additionally, the firm anticipates continued strength in nVent’s main markets, including buildings and power, through 2025.
5. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Hedge Fund Holders: 51
Monolithic Power Systems, Inc. (NASDAQ:MPWR) develops and sells semiconductor-based power electronics solutions for different industries worldwide.
Needham analyst Quinn Bolton reaffirmed a Buy rating on Monolithic Power, pointing toward its strong market position and growth potential, TipRanks reported on March 21. The company is refocusing on its roots as a diversified analog supplier, expanding its product offerings and nearly doubling its serviceable available market since 2018. Key growth areas include automotive, AI/cloud computing, automation, and robotics.
Monolithic Power is set for notable expansion in the Enterprise Data Center sector with its upcoming 3A/mm solutions in 2026. Its increasing role in automotive, particularly with 48V systems, and its opportunities in automation and robotics, including humanoid robots, further support its growth outlook.
4. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 58
DuPont de Nemours, Inc. (NYSE:DD) provides technology-driven materials and solutions across electronics, industrial, water, and protection markets worldwide.
On March 24, DuPont announced that it is showcasing its advanced circuit materials at the International Electronic Circuits Exhibition 2025 in Shanghai, focusing on innovations in fine-line technology, signal integrity, and thermal management. As AI, machine learning, and 5G drive demand for high-performance devices, DuPont’s solutions support miniaturization and efficiency in AI-driven substrates.
The company’s IC substrate portfolio includes dielectric materials, metallization chemistries, and dry film photoresists, addressing performance and cost challenges. Featured products include Circuposit SAP8000 for AI server chips, Microfill SFP-II-M for large AI chip plating, and Riston DI1600 & DI1600M for fine-line imaging. DuPont experts are present at Booth #8A31 to discuss industry trends and solutions.
3. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
As reported by TipRanks on March 24, analyst Wamsi Mohan from Bank of America Securities reaffirmed a Buy rating on Dell Technologies, maintaining a $150 price target. The rating reflects Dell’s strong presence in the AI market and key partnerships, highlighted at Nvidia GTC 2025, where its AI infrastructure offerings, including AI PCs and Nvidia-powered racks, were recognized. Dell has also expanded its AI solutions, delivering the AI Factory to over 2,200 customers.
Financially, Dell increased its dividend by 18% and approved a $10 billion buyback, emphasizing shareholder returns. Despite a 15% stock decline this year, its valuation remains low at 9.5 times projected 2026 earnings, suggesting upside potential. Supplier data from Asia also indicates strong demand for Dell’s GB200 systems, reinforcing confidence in its growth.
2. Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 71
Coherent Corp. (NYSE:COHR) develops and supplies engineered materials, optoelectronic components, and laser systems for industrial, communications, electronics, and instrumentation markets.
On March 24, Raymond James analyst Simon Leopold upgraded Coherent (NYSE:COHR) and Lumentum Holdings Inc. (NASDAQ:LITE) from Outperform to Strong Buy after insights from Nvidia’s GTC and Corning’s analyst meetings. The analyst revised his price target on COHR stock to $91 from $110 and trimmed his price target on LITE stock to $82 from $96. The firm believes concerns about Co-Packaged Optics (CPO) are exaggerated. It has revised its datacom optical model, forecasting $22.2 billion in AI backend transceiver sales by 2030, with a ~30% annual growth rate. Its 2027 estimate for AI backend revenue increased to $7.5 billion from $7.1 billion.
Nvidia’s Blackwell orders suggest stronger near-term 800G demand, with projections of 15 million units in 2025. Additionally, the optical telecom market is showing signs of recovery, and industrial lasers appear to be stabilizing. With Coherent and Lumentum stocks under pressure ahead of the OFC trade show, greater clarity on CPO could serve as a positive catalyst.
1. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 80
Comcast Corporation (NASDAQ:CMCSA) provides broadband, wireless, media, entertainment, and theme park services worldwide.
On March 24, Comcast announced that it is expanding its Janus trial, a network virtualization initiative, using DriveNets’ Network Cloud to enhance performance, reliability, and AI-driven innovation. Initially launched in Atlanta in September 2024, Janus aims to improve flexibility and efficiency in Comcast’s core network for Xfinity and Comcast Business customers.
By separating hardware and software, DriveNets’ cloud-based solution allows Comcast to virtualize network layers, integrate AI for self-healing capabilities, and scale efficiently. The initiative improves network reliability, reduces latency for live-streamed events, improves issue detection, and lowers power consumption. Comcast plans to further optimize its broadband infrastructure to support growing data demands and future innovations.
While we acknowledge the potential of Comcast Corporation (NASDAQ:CMCSA) as an investment, our conviction lies in the belief that 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 CMCSA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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