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.
15. ZenaTech, Inc. (NASDAQ:ZENA)
Number of Hedge Fund Holders: 4
ZenaTech, Inc. (NASDAQ:ZENA) develops cloud-based enterprise software for various industries and manufactures drones.
On February 25, ZenaTech, Inc. (NASDAQ:ZENA) announced that its subsidiary, ZenaDrone, has finalized the third-generation design of its AI-powered ZenaDrone 1000, set as the production model for large-scale manufacturing. The upgraded drone features a 100-volt propulsion system and a carbon fiber body, improving speed, flight time, and payload capacity for U.S. defense and commercial markets. Production is scheduled to start in Q1 2025 at the company’s Sharjah, UAE facility, with at least ten units per month.
The ZenaDrone 1000 is a VTOL quadcopter with AI-driven capabilities and is built for defense and industrial applications, including aerial surveys and cargo transport. It has undergone trials with the U.S. Air Force and Navy for carrying critical supplies. ZenaDrone plans to manufacture DoD-specific units in Phoenix, Arizona and is working toward Green UAS and Blue UAS certification to meet U.S. defense and cybersecurity standards.
14. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 5
Rezolve AI Limited (NASDAQ:RZLV) develops AI-powered commerce solutions to help businesses engage with consumers across different locations and devices.
On February 24, Rezolve AI (NASDAQ:RZLV) announced a $1 billion Bitcoin treasury program, beginning with a $100 million investment. The initiative supports the company’s upcoming AI-powered crypto payment platform, developed in partnership with Tether.
By holding Bitcoin, Rezolve AI aims to strengthen its financial position, facilitate crypto transactions for retailers and consumers, and drive mainstream adoption of digital assets. The company plans to launch its payment platform later this year, offering Bitcoin, Tether, and other cryptocurrencies for everyday transactions while ensuring security, liquidity, and AI-driven efficiency in commerce.
13. Ondas Holdings Inc. (NASDAQ:ONDS)
Number of Hedge Fund Holders: 6
Ondas Holdings Inc. (NASDAQ:ONDS) provides private wireless networks, AI-powered drones, and automated data solutions for industrial and security applications.
On February 25, Volatus Aerospace and Ondas Holdings’ subsidiary, American Robotics announced that the companies have partnered to improve border security using the AI-powered Optimus System, a fully autonomous drone platform for continuous aerial monitoring. It is integrated with Volatus’ Operations Control Center and combines AI-driven surveillance, piloted aircraft, and ground sensors to detect threats and support emergency response. The collaboration aims to expand security solutions in North America, the UK, and Africa, improving border protection and infrastructure monitoring with real-time intelligence.
12. Banzai International, Inc. (NASDAQ:BNZI)
Number of Hedge Fund Holders: 6
Banzai International, Inc. (NASDAQ:BNZI) offers data-driven marketing and sales solutions, including webinars, social sharing, and event engagement platforms.
On February 25, Banzai International launched CreateStudio 4.0, the latest version of its video creation app developed by its Vidello subsidiary. The update introduces AI-powered tools, including a Video Sales Letter Builder, an Explainer Video Builder, and an AI Shorts Builder, which automate video scriptwriting and editing. Additional features include an Audio Visualizer, AI Hook Generator, Call to Action scenes, and UI improvements. The update also incorporates AI-driven tools for image generation, background removal, and voiceovers. CEO Joe Davy highlighted that CreateStudio 4.0 simplifies 3D animation, enabling users to produce high-quality videos for marketing and online content.
11. Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 17
Tempus AI, Inc. (NASDAQ:TEM) provides AI-driven healthcare solutions, including genomic testing, clinical data analysis, and clinical trial matching.
On February 24, TipRanks reported that TD Cowen analyst Daniel Brennan reaffirmed a Buy rating on Tempus AI (NASDAQ:TEM) with a $74 price target. His outlook is based on the company’s strong growth potential, with 2025 revenue guidance exceeding prior expectations. Despite lower genomic volumes, Tempus AI benefits from strong pricing in its AI-powered Insights business and plans to shift genomic testing to a higher-priced FDA-approved assay. The company’s recent sales team expansion further supports future growth. Although EBITDA margin guidance for 2025 is slightly below estimates, the overall financial outlook remains positive.
10. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 20
Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions, along with IP networking, optical transport, and technology licensing.
On February 26, Nokia introduced MX Context, an AI-powered solution using sensor fusion technology to improve contextual awareness in industrial settings. It is integrated into Nokia’s Edge Compute and AI platform and it processes real-time data from multiple sources to improve decision-making, automation, and operational efficiency.
MX Context helps industrial enterprises overcome data silos by unifying and analyzing sensor data. It supports Industry 4.0 applications through Nokia’s on-premise compute solutions and offers modular suites, including tracking and positioning for asset management and worker safety for real-time risk detection. Additionally, MX Context provides low-code tools for workflow design and integrates with Nokia’s AI assistant, MX Workmate. Nokia also plans to expand its industrial routers with advanced sensory and positioning capabilities to further improve operational insights.
9. Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI)
Number of Hedge Fund Holders: 25
Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) provides nucleic acid and biologics safety testing products for drug development, diagnostics, and vaccine research.
On February 24, Maravai LifeSciences announced that it completed its acquisition of Officinae Bio’s DNA and RNA business, integrating AI-driven mRNA design technology with its TriLink BioTechnologies manufacturing capabilities. Officinae Bio’s digital platform improves the rapid prototyping of mRNA drug candidates, improving sequence optimization and clinical progression.
The acquisition marks Maravai’s entry into the European market with a manufacturing presence, supporting growth across different product lines. Officinae Bio’s CEO, Davide De Lucrezia, highlighted the benefits of combining AI-driven tools with TriLink’s manufacturing expertise.
8. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 48
L3Harris Technologies, Inc. (NYSE:LHX) provides mission-critical aerospace, defense, and communication solutions for government and commercial sectors.
On February 26, L3Harris Technologies and Shield AI announced their collaboration on a demonstration to improve electronic warfare operations using AI-powered unmanned systems. The effort integrates L3Harris’ DiSCO, a software-based electromagnetic battle management system, with Shield AI’s Hivemind autonomy software.
The goal is to enable autonomous systems to detect, analyze, and respond to evolving threats in real time. Executives from both companies emphasized the importance of distributed, AI-driven solutions in modern warfare. Future demonstrations will continue, aiming to develop scalable, multi-domain capabilities for the U.S. and its allies.
7. Confluent, Inc. (NASDAQ:CFLT)
Number of Hedge Fund Holders: 49
Confluent, Inc. (NASDAQ:CFLT) provides a data streaming platform with cloud and self-managed solutions for real-time data integration and processing.
On February 26, UBS upgraded Confluent (NASDAQ:CFLT) from Neutral to Buy, raising the price target from $34 to $38. Analyst Karl Keirstead pointed to positive feedback from customer and partner discussions, indicating stronger spending growth for 2025 and 2026. UBS expects higher subscription revenue growth than consensus estimates. Additionally, early signs suggest generative AI is driving demand for Confluent’s services. The company’s competitive position against major cloud providers appears stable, and its expansion into analytics through offerings like Tableflow, Flink, and a Databricks partnership is seen as a long-term advantage.
6. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders: 55
Jabil Inc. (NYSE:JBL) offers global manufacturing services, including electronics design, product management, and assembly solutions across various industries.
On February 25, Jabil and Apptronik announced a partnership to pilot and manufacture Apollo humanoid robots, integrating them into Jabil’s production operations. The program will test Apollo robots in real-world factory environments, performing tasks like inspection, sorting, and assembly. Jabil’s expertise in robotics manufacturing will help scale Apollo’s production while optimizing its AI models. The collaboration also supports the goal of making humanoid robots more affordable by streamlining components and reducing costs. Apptronik aims to expand its use into retail, elder care, and home settings. Jabil will also evaluate Apollo’s impact on automation to improve efficiency and safety in its operations.
5. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 64
Analog Devices, Inc. (NASDAQ:ADI) develops and sells integrated circuits, software, and subsystems for industries including automotive, communications, and healthcare.
On February 24, TipRanks reported that DBS analyst Jim Hin Kwong Au reaffirmed a Buy rating on Analog Devices with a price target of $287. He expects revenue and earnings to recover, driven by demand in industrial and automotive markets, especially AI-powered solutions and China’s EV sector. The Maxim acquisition has strengthened ADI’s market position, expanding its product range for automotive and data centers. A diverse portfolio, solid cash flow, and a growing dividend also support the positive outlook.
4. Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Fund Holders: 66
Nebius Group N.V. (NASDAQ:NBIS) develops AI-focused cloud infrastructure, GPU clusters, and technology solutions, including AI data services, edtech, and autonomous driving. On February 24, DA Davidson started coverage on Nebius Group with a Buy rating and a $50 price target, including it in the firm’s DaVinci initiative for deep tech companies. The analyst sees Nebius as an early alternative to AI compute dominated by hyperscalers and considers the stock undervalued given the rising significance of neoclouds.
3. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 72
Amgen Inc. (NASDAQ:AMGN) develops and manufactures biopharmaceuticals for conditions like arthritis, osteoporosis, cancer, and cardiovascular diseases, distributing through healthcare providers and partnerships.
On February 24, Reuters reported that Amgen is investing $200 million in a new technology center in Hyderabad, India, with plans for further investments. The facility is focused on AI and data science for drug development and aims to employ around 2,000 people by the end of 2025, with 300 already onboard.
The announcement comes ahead of the BioAsia conference, where executives from major pharmaceutical companies, including Amgen, Eli Lilly, and Novartis, will participate. Amgen’s expansion aligns with broader U.S.-India efforts to strengthen collaboration in emerging technologies. Meanwhile, potential U.S. tariffs on pharmaceutical imports could impact Indian drugmakers, given their significant reliance on the American market, the report stated.
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
Intel Corporation (NASDAQ:INTC) develops and sells computing hardware, semiconductors, AI solutions, and self-driving technologies for various industries worldwide.
On February 24, TipRanks reported that DBS analyst Amanda Tan maintained a Hold rating on Intel with a $22 price target, pointing to mixed factors affecting the company. While recent earnings exceeded expectations, uncertainties remain for Q1 2025 due to seasonal trends, inventory adjustments, tariffs, and competition. Intel continues investing in its “IDM 2.0” strategy to regain its technological edge but faces challenges in AI, where it trails Nvidia and AMD. Its Gaudi AI accelerators have yet to gain traction, and Falcon Shores GPU delays add to concerns. High operating costs and Foundry division losses further pressure margins, contributing to the cautious outlook.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, automotive, and other industries worldwide.
On February 25, Micron Technology announced that it is the first to ship samples of its 1γ (1-gamma) DRAM, a sixth-generation 10nm-class DDR5 memory, to partners and select customers. The advancement builds on its previous DRAM nodes and aims to support AI applications across data centers, consumer devices, and Edge AI. The new DRAM offers up to 9200MT/s speeds, a 15% performance boost, and over 20% power savings. Using high-K metal gate technology and EUV lithography, it improves efficiency, bit density, and manufacturing scalability. Micron (NASDAQ:MU) plans to integrate 1γ DRAM across its portfolio to performance in AI PCs, mobile devices, automotive applications, and data centers.
While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU) 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 MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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