In the artificial intelligence world, the spotlight will be shifting to France next week as the world awaits the US and China to find common ground over the safe development of artificial intelligence. Judging by the measured response from China over the tariffs issue, there is a chance it might. That noted, a wide variety of countries are going to be attending an AI Action Summit in Paris next week to discuss how to put the technology to work. France is going to be hosting the summit alongside India on Feb 10 and 11, focusing on areas such as open-source systems and clean energy for powering data centers, Reuters reported.
READ NOW: Top 10 AI Stocks Trending On Wall Street and 9 AI Stocks Investors Are Monitoring
Meanwhile, the emergence of DeepSeek is increasingly turning into a game-changing event for AI development in China. The founder, Liang Wenfeng, is being hailed as a national hero. Indeed, his efforts have greatly helped the country to catch up with the US in the race toward AI supremacy. Chinese companies are increasingly rushing to support AI models coming from DeepSeek. Moore Threads and Hygon Information Technology, for instance, said on Monday that their computing clusters and accelerators will be able to support Deep Seek’s R1 and V3 models. Moore Threads, in particular, stated that progress by DeepSeek’s models using domestically made GPUs could set China’s AI industry “on fire”.
While many of the companies in China are rushing to adopt DeepSeek, yet many others are pushing their own AI models forward. Alibaba Cloud released Qwen 2.5-Max just after DeepSeek over the holidays, Beijing-based start-up Zhipu is also in the AI race with its AI assistant app released in October, Chinese start-up Moonshot AI released its own LLM the day DeepSeek released its r1 model, and more. These moves by Chinese companies, and the broader market reaction in the US after the emergence of DeepSeek, reflect on how grave the impact has been on the AI world.
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.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An investor analyzing the performance of the Midstream/Energy stocks at a trading desk.
12. Navitas Semiconductor Corporation (NASDAQ:NVTS)
Number of Hedge Fund Holders: 8
Navitas Semiconductor Corporation (NASDAQ:NVTS) is a small-cap chip designer. Its next-generation power solutions support energy-efficient AI data centers. On February 5th, the company announced that it has adopted both technologies, i.e. next-generation GaNFast gallium nitride (GaN) and GeneSiC silicon carbide (SiC) power semiconductors, into Dell’s family of notebook adapters, from 60 W to 360 W. Navitas technologies will enable Dell to offer high-speed charging, featuring highest efficiency, coolest temperature, and that too, in a smaller and lighter design. The technologies will support Dell’s AI-powered notebooks, building on its portfolio as the broadest GaN adapter offering for notebooks. Furthermore, the adapters will help Dell achieve sustainability goals, using 50% less plastic and cutting CO2 emissions and energy usage.
“Since Dell’s first GaN adapter was enabled by Navitas back in 2020, we’ve worked closely with Dell engineering to further improve charging speed, efficiency, size, weight, and now environmental footprint. Dell’s new adapters are an optimal solution for speed, portability, and sustainability. Our clients achieve a win-win for both the market and environment by deploying Navitas GaNFast power ICs and GeneSiC power devices.”
-Gene Sheridan, CEO and co-founder of Navitas.
11. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On February 4th, the stock received a new Street-high price target of $125 from BofA analyst Perez Mora. Mora raised the price target to $125 from $90 and kept a “Buy” rating after Palantir’s Q4 beat.
“The company sees the world ripe for an AI and technology revolution. We see PLTR enabling and leading this revolution in both Commercial and Defense markets”.
To reflect the company’s “sustained high-growth and profitability profile”, the firm is moving toward a longer-term valuation methodology. Moreover, Palantir is seen as a leader in commercial and defense markets, with another growth avenue being the Department of Government Efficiency (DOGE). The firm said that (DOGE) presents a significant opportunity for “Government efficiency enablers,” and that Palantir is an “enabler of efficiency and a clear winner.” Considering DOGE initiates commercial-style contracting, digital-first development, and open, agnostic architecture needs, Palantir’s portfolio and “approach to government contracts is already in line.” The analyst further told investors in a research note that with the proliferation of more commoditized solutions in the artificial intelligence market, Palantir’s value proposition is only becoming “more pronounced”. It further asserted that AI-value adders will gain more market value and that Palantir is a value-adder.
