In this article, we discuss 12 AI updates worth taking a look at.
AI’s Expanding Role in Carbon Up-Valuing and Biopharma Development
In a Bloomberg interview, SandboxAQ CEO Jack Hidary started discussing the company’s partnership with Saudi Aramco, which focuses on using AI to convert carbon emissions into valuable products. Unlike language models trained on internet data, SandboxAQ develops large quantitative models (LQMs) that specialize in chemistry and physics, making them suitable for industries such as petrochemicals and pharmaceuticals.
Hidary explained that Aramco, as one of the world’s most valuable companies, can improve its market value not just by increasing production but by converting carbon emissions into high-value materials. For example, AI-driven chemical processes can transform carbon into composites used in the automotive industry to make vehicles lighter and more efficient. The shift from traditional carbon capture and storage to carbon capture and up-valuing represents a new approach to sustainability, turning emissions into useful resources rather than simply storing them underground.
Moreover, Hidary emphasized AI’s broader economic impact, predicting that AI-driven innovations will contribute to deflationary trends by lowering costs in sectors like energy storage, housing, agriculture, and manufacturing. He noted that while inflation is a short-term concern, AI’s influence on business-to-business applications will significantly drive down costs over the next several years.
Hidary also discussed future expansion as SandboxAQ sees strong potential in the Gulf region, where governments are actively embracing AI across different sectors. Hidary pointed out that countries like Saudi Arabia, the UAE, and Bahrain possess valuable genomic and medical data, which could enable them to develop their own biopharma assets rather than relying on imported medicines and diagnostics. By using AI-powered LQMs, these nations could create homegrown pharmaceutical innovations to address regional health concerns and contribute to the global biotech industry.
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 AI Updates Worth Taking a Look At
12. Huize Holding Limited (NASDAQ:HUIZ)
Number of Hedge Fund Holders: N/A
Huize Holding Limited (NASDAQ:HUIZ) is a Chinese company that operates an online insurance platform offering life, health, property, and casualty insurance, along with brokerage and digital services.
On February 21, Huize announced that it integrated DeepSeek AI into its Huize App, making it the first in the insurance sector to embed AI deeply into consumer-facing services. The integration enables real-time AI-driven insurance consultations and personalized recommendations, which improve efficiency by 300% and achieve a 91% accuracy rate in product matching. The platform is available 24/7 and offers instant responses and a customizable virtual advisor, simplifying the insurance process. CEO Cunjun Ma highlighted AI’s role in bridging the gap between complex insurance products and consumer needs. The initiative aligns with Huize’s “AI+” strategy, which has also introduced AI tools for marketing and business development, with plans to expand similar technologies internationally.
11. Cloudastructure Inc. (NASDAQ:CSAI)
Number of Hedge Fund Holders: N/A
Cloudastructure Inc. (NASDAQ:CSAI) provides cloud-based AI surveillance, remote monitoring, and smart parking solutions in the United States.
On February 21, Cloudastructure (NASDAQ:CSAI) launched Alpha, a mobile surveillance trailer combining AI-driven video monitoring with remote guarding. It features AI analytics, cloud storage, and real-time crime deterrence. Alpha is equipped with multiple cameras, LED lighting, and a 27-foot mast with a speaker and it ensures continuous security through solar power, batteries, and a backup generator. It supports live monitoring, virtual patrols, and detailed reporting, with a 97% deterrence rate against threats. It is designed for different locations, including construction sites and disaster zones, and it improves security with real-time threat detection and response.
10. SEALSQ Corp (NASDAQ:LAES)
Number of Hedge Fund Holders: 4
SEALSQ Corp (NASDAQ:LAES) develops and markets semiconductor chips and security solutions for IoT, authentication, and data protection across multiple industries worldwide.
On February 21, SEALSQ Corp announced the launch of its Post-Quantum Cryptography (PQC) technology across sovereign data centers in Switzerland and France, in collaboration with its parent company, WISeKey. The initiative strengthens cybersecurity by integrating advanced cryptographic defenses against emerging quantum threats. SEALSQ’s PQC solutions, including Hardware Security Modules (HSMs), ensure data protection, regulatory compliance, and independence from public cloud providers. WISeKey operates ultra-secure data centers, originally military-grade bunkers, now used for critical infrastructure protection.
9. Koninklijke Philips N.V. (NYSE:PHG)
Number of Hedge Fund Holders: 12
Koninklijke Philips N.V. (NYSE:PHG) develops health technology solutions, including diagnostic imaging, patient care, and personal health products, serving global markets.
On February 21, Philips and Mass General Brigham partnered to develop advanced AI-driven data infrastructure for real-time healthcare insights. By integrating data from medical devices, electronic medical records, and lab results, the collaboration aims to improve patient care through improved efficiency, safety, and clinician support. Philips’ software platforms will process continuous data streams, enabling real-time monitoring and smart alerts for clinical intervention. An initial research program focuses on heart monitoring to improve early detection of cardiac events. The partnership combines Philips’ (NYSE:PHG) technology with Mass General Brigham’s expertise to advance predictive analytics in healthcare.
8. Navitas Semiconductor Corporation (NASDAQ:NVTS)
Number of Hedge Fund Holders: 13
Navitas Semiconductor Corporation (NASDAQ:NVTS) designs and sells gallium nitride and silicon carbide power chips for applications in electronics, energy, and transportation worldwide.
On February 21, Navitas Semiconductor (NASDAQ:NVTS) announced that it will attend APEC 2025 to present advancements in GaN and SiC power technologies for AI data centers, EVs, and mobile applications. A breakthrough in power conversion will be unveiled during a live-streamed event on March 12.
At its “Planet Navitas” booth (#1107), the company will highlight key innovations, including an 8.5 kW AI data center power supply with 98% efficiency, a high-power-density 4.5 kW AI power solution, and IntelliWeave digital control for improved efficiency. Other featured technologies include mid-voltage GaNFast FETs for AI, EVs, and robotics, GaNSlim power ICs for compact, high-density applications, and AEC-Q101-qualified Gen-3 Fast SiC MOSFETs for EVs and AI data centers.
7. Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 17
Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology, offering molecular diagnostics, clinical data insights, and trial-matching services for medical and research applications.
On February 21, Tempus AI partnered with Menarini Group and its subsidiary, Stemline Therapeutics, to improve metastatic breast cancer care using its AI-powered Next platform. The collaboration helps clinicians determine when ESR1 mutation testing is needed, following ASCO’s updated guidelines recommending liquid biopsy for better accuracy. Next will analyze patient data and alert physicians if testing is missing, ensuring timely treatment decisions. Tempus and Stemline executives highlighted the role of AI in improving precision medicine and optimizing patient care.
6. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 20
Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions globally, serving telecom providers, enterprises, and governments.
On February 20, Nokia, in collaboration with NTT and Anritsu Corporation, successfully demonstrated Elastic networking in a Proof of Concept (PoC) aimed at reducing energy consumption in mobile networks. Developed under the IOWN Global Forum, Elastic networking optimizes resource allocation by shifting network capacity from secondary to primary destinations, allowing radio and optical equipment to enter hibernation when demand is low. The approach maintains network performance while cutting energy costs and is expected to help operators like NTT manage future AI-driven bandwidth needs. Nokia’s optical solutions, including the 1830 TPS and 1830 PSS, were used in the PoC. Executives from Nokia and Anritsu emphasized their commitment to improving energy efficiency without compromising network performance.
5. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 44
Celestica Inc. (NYSE:CLS) provides supply chain solutions, manufacturing, and hardware platform services across various industries in North America, Europe, and Asia.
On February 21, JPMorgan initiated coverage on Celestica with an Overweight rating and a $166 price target for December 2025. The firm sees the company benefiting from AI infrastructure investments, particularly in custom ASIC servers and white box switches, due to its strong ties with major hyperscalers. Celestica’s higher R&D spending, around 1% of revenue compared to peers below 0.5%, is expected to drive revenue growth in higher-margin businesses within its HPS portfolio. The shift could lead to a valuation re-rating as investors recognize the potential for stronger earnings beyond the medium-term growth outlook.
4. Incyte Corporation (NASDAQ:INCY)
Number of Hedge Fund Holders: 49
Incyte Corporation (NASDAQ:INCY) develops and markets biopharmaceutical treatments for cancer, immune disorders, and other diseases across global markets.
On February 20, Incyte and Genesis Therapeutics formed a collaboration to develop novel small-molecule medicines using AI technology. Genesis will apply its GEMS platform to discover and optimize compounds, while Incyte holds exclusive rights for clinical development and commercialization. Incyte will pay Genesis $30 million upfront, with potential milestone payments of up to $295 million per target and tiered royalties on future sales. The partnership begins with two targets, with Incyte having the option to add a third for an additional fee. The goal is to accelerate drug discovery for severe diseases.
3. Talen Energy Corporation (NASDAQ:TLN)
Number of Hedge Fund Holders: 77
Talen Energy Corporation (NASDAQ:TLN) generates and sells electricity in U.S. wholesale markets, operating nuclear, fossil, solar, and coal plants while developing battery storage projects.
On February 21, Evercore initiated coverage on Talen Energy with an Outperform rating and a $287 price target. The firm sees opportunities in the divergence between power generation assets and load growth, particularly in independent power producers. Despite a 254% stock gain over the past year, Talen’s upside potential and strong free cash flow remain undervalued. Its AWS contract, though concentrated, is viewed as comparable to nuclear generation peers. Using a blended EV/EBITDA and free cash flow yield valuation, Evercore projects a 30% total return. From 2025 to 2027, over 50% of adjusted EBITDA is expected to convert to free cash flow, with more than 70% returned to shareholders through buybacks. Talen may further benefit from increasing electricity demand and higher power prices in “Data Center Alley.”
2. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 101
Spotify Technology S.A. (NYSE:SPOT) provides global audio streaming services through paid subscriptions and an ad-supported model.
On February 20, Spotify announced that it is now accepting audiobooks created with ElevenLabs, an AI-powered voice narration platform, making it easier for authors to produce and distribute their work. ElevenLabs offers narration in 29 languages with customizable voice and intonation. Authors can upload their completed audiobooks to Findaway Voices, which will handle distribution to Spotify and select other retailers. Digitally narrated titles will be clearly labeled for listeners, ensuring transparency about AI-generated narration.
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) operates in e-commerce, cloud computing, logistics, and digital media, serving both global and Chinese markets. The company is also a major player in AI investment and development.
On February 21, JPMorgan raised Alibaba’s price target from $125 to $170, maintaining an Overweight rating. Analyst Alex Yao expects the company’s fourth-quarter 2024 results to shift investor sentiment toward sustainable earnings growth. Near-term gains are expected from e-commerce monetization, while long-term profits may come from cloud and AI. With an estimated adjusted EPS CAGR of 29% for FY25-27, Yao believes this outlook could lead to a valuation re-rating. Alibaba is expected to remain central to China’s AI trade, attracting capital inflows. The December 2025 price target for Hong Kong shares is now HK$165.
While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) 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 timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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