In this article, we discuss 8 AI news and ratings investors should know about.
According to a report by market.us, the global agentic AI market is projected to grow from $5.2 billion in 2024 to $196.6 billion by 2034, with a CAGR of 43.8%. North America led the market in 2024, accounting for over 38% of revenue at $1.97 billion, while the U.S. market reached $1.58 billion.
The report states that the rising demand for improved efficiency and reduced human error is driving adoption, as businesses seek AI solutions to handle complex workflows and data-intensive tasks. Around 90% of companies expect agentic AI to impact their market standing within five years, aligning with Deloitte’s findings that firms using AI for strategic decisions see 15% higher market share and stronger growth.
Challenges and Opportunities in AI Agent Development
Grace Isford of Lux Capital discussed the evolving role of AI agents in a Bloomberg Technology interview with Caroline Hyde and Tim Stenovec, especially in enterprise applications like coding, customer support, and sales. She highlighted companies such as Maven AGI, which improves efficiency by integrating AI with legacy systems to resolve customer issues more quickly and affordably. However, AI agents still face challenges in areas requiring proprietary workflows, such as robotics and manufacturing, where integration remains complex.
Isford also talked about the consumer side and said that AI agents struggle with compounded errors, making seemingly simple tasks, like booking a flight, frustratingly difficult. Despite the dominance of major tech firms, smaller companies like TogetherAI are carving out opportunities by developing open-source AI solutions and using more cost-effective computing resources.
Isford also discussed global AI innovation, pointing to advancements in China, Japan, and France, where companies focus on efficiency and smaller AI models. She noted that China’s Deepseek AI demonstrated impressive hardware and engineering efficiency, influencing global AI development strategies. In the U.S., she sees increased investment in AI startups, especially in robotics, defense, and manufacturing, as the industry adapts to new technological and geopolitical dynamics.
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.
At Insider Monkey we are obsessed with 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).
8. POET Technologies Inc. (NASDAQ:POET)
Number of Hedge Fund Holders: 4
POET Technologies Inc. (NASDAQ:POET) develops and sells optoelectronic solutions, including its Optical Interposer platform for integrating electronic and photonic devices.
On March 20, POET Technologies (NASDAQ:POET) announced that it has delivered sample shipments of its POET Infinity optical transmit engines for 400G and 800G AI applications to three global technology firms. The samples, including 400G FR4, 800G 2xFR4, and 800G DR8 formats, were assembled in Malaysia and will enable customers to complete pluggable transceivers for qualification, with production orders expected in late 2025. According to the management, POET emphasizes its cost, reliability, and efficiency advantages in optical networking. Furthermore, the company has initiated a one-month trial with IR Agency, LLC to improve investor relations, with a $250,000 service contract.
7. Domo, Inc. (NASDAQ:DOMO)
Number of Hedge Fund Holders: 18
Domo, Inc. (NASDAQ:DOMO) provides a cloud-based business intelligence platform that connects people, data, and systems for real-time insights across different devices.
At Domopalooza 2025 (March 18 – 21), Domo introduced Agent Catalyst, a new addition to its AI platform designed to create autonomous AI agents that streamline business processes while ensuring security and governance. Unlike traditional AI assistants, these agents operate independently, adapting to different tasks using large language models.
Agent Catalyst simplifies AI deployment with a four-step framework, allowing users to select an LLM, set instructions, connect to data sources, and integrate tools. Improvements include DomoGPT for secure language processing, FileSets for unstructured data management, a Semantic Layer for understanding the business context, and upcoming AI Assistant and AI Agent Builders for easier AI customization.
6. Pure Storage, Inc. (NYSE:PSTG)
Number of Hedge Fund Holders: 30
Pure Storage, Inc. (NYSE:PSTG) provides data storage and management solutions, including enterprise-class software, integrated hardware systems, and cloud-native services.
On March 18, Pure Storage (NYSE:PSTG) announced that it has integrated the NVIDIA AI Data Platform reference design into its FlashBlade storage system, strengthening its AI-ready solutions to meet NVIDIA’s standards. It follows the launch of FlashBlade//EXA, designed for AI and high-performance computing needs.
The company also said that it has also received high-performance storage certification for NVIDIA Cloud Partner architectures and NVIDIA-Certified Storage Partner approval, showing its capability to support enterprise AI factories. The advancements help enterprises eliminate data bottlenecks, boost AI workload efficiency, and streamline large-scale AI deployments. Executives from Pure Storage, NVIDIA, and Cisco highlighted the importance of the innovations in accelerating AI-driven success.
5. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 55
Cloudflare, Inc. (NYSE:NET) provides cloud-based security, networking, and performance solutions for businesses across various industries worldwide.
On March 19, Cloudflare (NYSE:NET) introduced Cloudflare for AI, a suite of security and monitoring tools for AI applications, helping businesses manage risks such as data leaks, toxic prompts, and unauthorized AI use. As AI adoption accelerates, cyber threats are also increasing, making security essential. Cloudflare’s new offerings include AI application discovery, employee usage monitoring, data leak prevention, and harmful prompt detection. Moreover, Cloudflare Workers AI provides a secure and scalable platform for AI deployment. The company’s security and performance tools boost AI application resilience by preventing attacks and optimizing traffic, ensuring businesses can innovate without compromising security.
4. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including infrastructure, cybersecurity, and client devices, serving businesses worldwide.
On March 20, TipRanks reported that Morgan Stanley analyst Erik Woodring reaffirmed a Buy rating on Dell Technologies with a $128 price target, pointing toward its strong AI infrastructure position. Dell’s AI Factory and customizable system design have driven significant growth, securing deals with Tier 2 cloud providers and over 2,000 enterprises. Its partnership with NVIDIA and in-house component optimization, such as liquid cooling, improve its competitive edge. While competition from server ODMs exists, Dell’s ability to offer tailored AI solutions has helped maintain its market strength.
3. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 64
Elastic N.V. (NYSE:ESTC) provides AI-driven search and data analytics solutions for hybrid, public, and multi-cloud environments, enabling search, analysis, security, and monitoring.
On March 19, Elastic (NYSE:ESTC) expanded its partnership with Tines to integrate Workflow Automation with the Elastic Search AI Platform, streamlining security and observability operations. The collaboration improves security orchestration, automation, and response while improving incident response for observability teams. The integration helps organizations manage high data volumes, reduce response times, and improve operational efficiency through AI-driven automation. Some major benefits include faster issue resolution, reduced costs, and standardized workflows. Elastic and Tines aim to ease workloads for security analysts, SREs, and DevOps engineers by automating processes and providing real-time insights.
2. 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 systems.
On March 19, Nebius (NASDAQ:NBIS) announced it will be among the first AI cloud providers to offer NVIDIA’s Blackwell Ultra AI platform, providing high-performance computing for AI development. Customers will gain access to NVIDIA GB300 NVL72-powered instances, featuring 72 Blackwell Ultra GPUs, by late 2025. Nebius also joined NVIDIA’s Dynamo ecosystem, supporting large-scale AI inference with improved efficiency. The company’s upcoming New Jersey data center will focus on Blackwell GPUs, while its Kansas City location will deploy NVIDIA HGX B200 in Q2 2025. Pre-orders for these instances are available, and Nebius is presenting its AI Cloud at GTC 2025.
1. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 78
Arista Networks Inc (NYSE:ANET) develops and sells data-driven networking solutions for AI, cloud, data centers, and enterprises across various industries worldwide.
On March 17, JPMorgan analyst Samik Chatterjee added Arista Networks to the firm’s Analyst Focus List while maintaining an Overweight rating. The stock has declined due to worries about AI-related spending by cloud customers and potential market share loss to “White box” competitors. However, JPMorgan sees these issues as having minimal impact. The firm believes Arista has significant upside potential from both earnings growth and valuation expansion.
While we acknowledge the potential of Arista Networks Inc (NYSE:ANET) 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 ANET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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