With the AI arms race heating up every passing day, more businesses and countries are eager to stake their claim in the rapidly evolving industry. However, restrictions on artificial intelligence chip exports, particularly those announced in the final days of outgoing President Joe Biden’s administration, have made progress in AI difficult for some.
The restrictions have capped AI chips and technology exports to most countries, blocked access to China and the three other adversaries, and allowed almost unlimited access for Washington’s closest allies.
“The US leads AI now – both AI development and AI chip design, and it’s critical that we keep it that way”
-US Commerce Secretary Gina Raimondo told reporters before the announcement was made.
One country that has not been included by Washington among the “key allies and partners” exempted from the measures is Poland. However, it has recently come to light that the country hopes these restrictions may be lifted.
READ NOW: 10 High Flying AI Stocks This Week and 12 AI Stocks Making Headlines: Latest News and Ratings
Reuters reported on the news, stating that Polish deputy digital minister Dariusz Standerski said there is a chance that the Trump administration may lift restrictions on Poland’s access to the U.S.-designed AI chips. According to Standerski, Biden’s decision was “irresponsible” and “the outgoing administration was unable to provide us with a specific reason why we found ourselves in tier two”.
However, he confirmed that dialogue with the new administration has been “very constructive”.
“I think there is a big chance for that. Consultations last until May 15.”
– Standerski, when asked whether there was a chance that Poland would end up in tier one.
The Polish deputy digital minister also said that Polish Deputy Prime Minister Krzysztof Gawkowski discussed rolling back the AI chip curbs on Poland with U.S. Vice President JD Vance during the AI Action Summit in Paris last month. Even some tech groups have been asking President Donald Trump’s team to ease export restrictions, saying the measures should not extend to a group of U.S. allies.
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 desk monitoring the performance of large-cap growth stocks.
12. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing worldwide. On March 11, Rosenblatt Securities analyst Kevin Cassidy reinitiated coverage of the stock with a price target of $60. According to the firm, it is motivated by SMCI’s larger chunk of AI (artificial intelligence) revenues (70% of sales) and increased growth visibility in the near term. It further noted that SMCI’s ability to deliver liquid cooling at scale is seen as a competitive advantage, which can increase rack compute power by over two times. This is a “disruptive dynamic in a power constrained data center.
11. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On March 12, William Blair reiterated the stock as “Market Perform”, stating that the stock’s valuation remains “frothy” right now.”
Even though new customers demonstrate strong commercial growth, the stock price has been highly correlated with Nasdaq-100 movements.
“Palantir’s stock has demonstrated a very high beta correlation with the Nasdaq-100. If the Nasdaq-100 continues to trend lower, Palantir shares will likely also decline, potentially by a 3-times factor of the market due to its high beta.”
The firm noted that its revenue growth guidance of 31% for 2025 and operating margin of 45% remain impressive, but also cautioned that high volatility presents risks for investors.
“Palantir’ s combination of revenue growth (31% guidance for 2025) and operating margin (45% for 2025) rank among the highest in all software. Palantir’s revenue from 2022 through 2024 grew 50% while headcount increased by only 3%.”
