In this article, we discuss the 18 AI news and ratings making waves on Wall Street.
In a recent discussion at CNBC’s ‘Squawk on the Street’, NYU professor and AI expert, Gary Marcus shared his perspective on the limitations of current AI models, the hurdles in enterprise adoption, and the financial sustainability of major AI companies. His insights raise important questions about the future of AI and whether it can truly deliver on its ambitious promises.
AI’s Future Faces Hurdles in Reliability, Costs, and Enterprise Use
Gary Marcus challenged the idea that AI will significantly boost GDP growth in the near future, as suggested by Microsoft CEO Satya Nadella. While Nadella sees AI driving efficiency and benefiting multiple platforms, Marcus argued that the current technology remains unreliable, with persistent hallucinations and logical errors that have yet to be resolved. Despite advancements like Grok 3, which underwent extensive training and required large-scale infrastructure, the fundamental problems of AI accuracy are still there.
He expressed skepticism about AI’s readiness for enterprise adoption and noted that while models may appear impressive, they still make subtle but costly mistakes, which undermine their reliability. He highlighted examples where AI-generated outputs contained factual errors that could go unnoticed at first but would pose risks for businesses relying on accuracy. Marcus also critiqued AI’s so-called “reasoning” abilities, arguing that they rely more on pattern recognition from training data than true logical reasoning, limiting their real-world applicability.
Additionally, he warned that generative AI is increasingly shifting toward data collection and surveillance as a business model. He pointed toward government monitoring programs and OpenAI’s access to vast amounts of personal and business data, suggesting that AI companies may monetize data rather than achieve widespread enterprise integration due to reliability concerns.
While OpenAI is experiencing rapid user growth and generating billions in revenue, Marcus pointed out its high operational costs and continued financial losses. He argued that, unlike traditional software companies, AI firms face significant expenses in building and running models, making long-term profitability uncertain despite their rising valuations.
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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18. reAlpha Tech Corp. (NASDAQ:AIRE)
Number of Hedge Fund Holders: 1
reAlpha Tech Corp. (NASDAQ:AIRE) develops AI-driven tools for property analysis, investment, and short-term rentals.
On February 24, reAlpha Tech announced that it acquired GTG Financial, a mortgage brokerage operating in seven states, including California. The move expands reAlpha’s reach to 28 states and improves its mortgage operations by integrating GTG Financial’s expertise and workforce into its AI-driven real estate platform.
GTG Financial will continue under founder Glenn Groves while using reAlpha’s AI capabilities to improve loan processing and home financing. The company will operate under reAlpha’s subsidiary, Be My Neighbor. Leaders from both firms emphasized shared values and the goal of streamlining the homebuying process through technology.
17. Renovaro Inc. (NASDAQ:RENB)
Number of Hedge Fund Holders: 1
Renovaro Inc. (NASDAQ:RENB) develops AI-driven cancer detection technology and therapeutic vaccines for cancer and HIV.
On February 26, Renovaro Biosciences announced a merger agreement with BioSymetrics, an AI-driven company specializing in drug discovery and biomarker identification. The partnership aims to improve Renovaro’s research capabilities, especially in cancer diagnostics and precision medicine. BioSymetrics’ Elion platform uses AI and machine learning to accelerate biomarker discovery, target identification, and drug development.
The merger will integrate Elion into Renovaro’s workflow, improving research efficiency and therapeutic advancements. Leaders from both companies highlighted the potential to improve precision medicine and accelerate clinical applications. The transaction is expected to close in March 2025, pending regulatory approvals and standard closing conditions.
16. iCAD, Inc. (NASDAQ:ICAD)
Number of Hedge Fund Holders: 4
iCAD, Inc. (NASDAQ:ICAD) develops AI-powered solutions for cancer detection, breast density assessment, and risk analysis.
On February 26, iCAD and Koios Medical announced that they have formed a reseller partnership to offer an AI-powered breast cancer detection suite that integrates iCAD’s ProFound AI for mammography with Koios SmartUltrasound. The collaboration aims to provide radiologists with a streamlined AI-driven pathway from screening to diagnosis. Executives from both companies highlighted the growing adoption of AI in breast imaging, emphasizing improved accuracy, efficiency, and patient outcomes. Koios SmartUltrasound uses AI to advance cancer detection in ultrasound exams, especially to benefit patients with dense breast tissue by enabling faster diagnoses and reducing unnecessary procedures.
