AI is transforming industries by enabling machines to learn, adapt, and make decisions based on data. As nations and companies invest more in AI infrastructure, collaboration and competition are shaping the future of this technology, which is making it a significant part of global progress. On Bloomberg Technology, Anjney Midha, general partner at Andreessen Horowitz (A16Z), highlighted discussions at the Paris Summit on how AI is becoming a general-purpose technology, similar to electricity or the printing press.
Leaders like French President Emmanuel Macron and Indian Prime Minister Narendra Modi emphasized the importance of AI infrastructure to national development, while U.S. policymakers stressed maintaining competitiveness in open-source AI across allied nations. Midha explained that as AI advances, countries outside the two major “hyper centers” which are the U.S. and China, are deciding whether to build, buy, or partner for infrastructure. He noted growing collaboration between allies, especially across AI’s “infrastructure stack,” from chips to applications.
How Global Partnerships Are Shaping AI’s Future
Midha talked about France and said the country is accelerating its data center expansion while working with American companies like NVIDIA to deploy frontier AI chips. Although Europe is still behind the U.S. in infrastructure, it aims to catch up by partnering with countries that share its values. He also commented on the closing gap between open and closed AI models, as well as between U.S. and Chinese AI development, pointing to the rapid launch of cutting-edge models like DeepSeek-R1 shortly after OpenAI’s latest innovations.
Midha also acknowledged Elon Musk’s significant influence in Washington but focused on the broader reassessment of assumptions in AI, especially around open-source competitiveness. Despite increased politicization, he stressed A16Z’s firm stance on the value of open-source AI in driving technological progress and democratizing access. He also noted the firm’s broader values, which center around advancing innovation for societal benefit.
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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9. BGM Group Ltd. (NASDAQ:BGM)
Number of Hedge Fund Holders: N/A
BGM Group Ltd. (NASDAQ:BGM) produces APIs, traditional Chinese medicine derivatives, and related products, including pharmaceuticals, fertilizers, and natural food items, serving different industries in China.
On February 19, BGM Group launched the Duxiaobao Management Committee to oversee the development of its AI-driven insurance ecosystem. The initiative marks the company’s strategic expansion into AI to modernize the insurance industry.
The committee includes industry experts, with Li Yuqing appointed as CEO. He brings experience in managing internet platforms and aims to improve AI-driven services for blue-collar workers. Other important members will focus on technology development, business operations, and AI innovations. CEO Xin Chen emphasized the significance of AI in transforming productivity, while Li Yuqing highlighted plans to streamline insurance processes, improving efficiency and reducing manual work for brokers.
8. iCAD, Inc. (NASDAQ:ICAD)
Number of Hedge Fund Holders: 4
iCAD, Inc. (NASDAQ:ICAD) provides AI-driven cancer detection and therapy solutions, including breast imaging and risk assessment tools, across its Detection and Therapy segments in the U.S.
On February 19, iCAD announced that it will present five studies on AI-powered breast health advancements at the European Congress of Radiology 2025 in Vienna. The studies focus on improving cancer detection, risk assessment, and breast arterial calcification analysis. iCAD will also introduce ProFound Cloud, a secure SaaS platform providing access to its AI solutions for healthcare providers.
Presentations will cover topics such as AI-based risk models, optimizing mammography screening programs, and improving workflow efficiency through AI case scoring. Additionally, a virtual abstract will highlight a new method for developing a breast arterial calcification detection algorithm.
7. Serve Robotics Inc. (NASDAQ:SERV)
Number of Hedge Fund Holders: 10
Serve Robotics Inc. (NASDAQ:SERV) develops AI-powered self-driving, low-emission robots for food delivery in public spaces across the U.S.
On February 19, Serve Robotics announced that it has expanded its autonomous sidewalk delivery service to Miami, partnering with Shake Shack and Mister O1. Customers in Brickell and Miami Beach ordering through Uber Eats may receive deliveries via Serve’s AI-powered robots.
Following its growth in Los Angeles and planned entry into Dallas-Fort Worth, the expansion aims to reduce emissions and traffic congestion while improving delivery efficiency. The company collaborated with city officials for a smooth rollout. Serve Robotics plans to deploy 2,000 AI-driven robots nationwide by the end of 2025.
6. Arteris, Inc. (NASDAQ:AIP)
Number of Hedge Fund Holders: 16
Arteris, Inc. (NASDAQ:AIP) provides semiconductor IP solutions, including Network-on-Chip products and SoC integration software, serving industries like automotive and consumer electronics.
On February 18, Arteris introduced FlexGen, a smart network-on-chip interconnect IP designed to accelerate SoC development while improving efficiency. FlexGenis built on the FlexNoC 5 platform, and it automates NoC design using AI, cutting manual work by over 90% and reducing design time from days to hours. It improves power usage by shortening wire length by up to 30% and improves performance with up to a 10% reduction in latency.
Companies like Dream Chip Technologies have successfully implemented FlexGen, significantly speeding up automotive AI chip design. AMD also sees potential in its ability to meet efficiency and project demands for AI and high-performance computing. Arteris CEO K. Charles Janac highlighted FlexGen’s role in streamlining semiconductor design, allowing faster innovation cycles in AI, 5G, and industrial IoT.
5. Axos Financial, Inc. (NYSE:AX)
Number of Hedge Fund Holders: 25
Axos Financial, Inc. (NYSE:AX) provides consumer and business banking, mortgage lending, and investment services across the U.S. through its banking and securities segments.
On February 19, Ascendion and Axos Bank announced their partnership to improve the Zenith platform using AI-driven engineering, aiming to improve banking and accounting for high-net-worth clients. Zenith is a comprehensive financial management solution that integrates accounting, cash management, bill pay, payroll, and relationship management into one platform, catering to business managers and family offices.
The partnership integrates AI and predictive analytics to create personalized customer experiences, improve efficiency, and reduce costs. Some important features include a modern architecture, self-healing algorithms, and AI-enhanced development using Ascendion’s AVA+ platform. Both companies aim to redefine digital banking by making financial interactions faster and more intuitive.
4. Box, Inc. (NYSE:BOX)
Number of Hedge Fund Holders: 39
Box, Inc. (NYSE:BOX) offers a cloud content management platform for secure collaboration, workflows, and custom app development across various industries worldwide.
Box (NYSE:BOX) announced that Box AI Studio API is now generally available as of February 19, 2025, for Box Enterprise Advanced plan users. The API allows developers to build and deploy custom Box AI agents to meet their specific needs, such as acting as a consulting expert for IT-related questions. Major features include simplified agent creation, customizable prompts for tailored responses aligned with business needs and branding, and access to secure AI models from trusted providers. Box AI Studio API helps organizations streamline workflows and improve content-driven business processes with custom AI agents.
3. Gen Digital Inc. (NASDAQ:GEN)
Number of Hedge Fund Holders: 40
Gen Digital Inc. (NASDAQ:GEN) provides cyber safety solutions offering protection for devices, identity, privacy, and online security globally.
On February 19, Gen Digital’s (NASDAQ:GEN) brand, Norton launched improved AI-powered scam protection features across its Cyber Safety products, now available in the US. The new features, including Genie Scam Protection and Genie Scam Protection Pro, offer advanced protection against scams across texts, emails, calls, and websites. Norton Genie AI analyzes word patterns to detect hidden scams and is integrated into products like Norton AntiVirus Plus and Norton 360 plans. Genie Scam Protection Pro also includes Safe Call, scam reimbursement, and Safe Email features. Norton plans to expand these features to the UK, Australia, and New Zealand and is developing future innovations for deepfake and scam detection.
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
Intel Corporation (NASDAQ:INTC) develops and sells computing products, including processors, GPUs, memory, and AI solutions, serving global manufacturers and cloud providers.
According to a Bloomberg report posted on February 18, Silver Lake Management is in advanced discussions about buying a majority stake in Intel’s programmable chips division, Altera. Although the size of the stake is not finalized, the deal is part of Intel’s ongoing restructuring efforts after acquiring Altera for $17 billion in 2015. Intel had previously expressed interest in selling a stake, attracting attention from Lattice Semiconductor and private equity firms, the report states.
1. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 84
Lam Research Corporation (NASDAQ:LRCX) develops and services semiconductor processing equipment used in fabricating integrated circuits, offering a range of deposition, etch, and cleaning solutions.
On February 19, Lam Research introduced ALTUS Halo, the first atomic layer deposition tool using molybdenum for advanced semiconductor manufacturing. The technology enables precise, low-resistivity, void-free metallization, supporting the next generation of AI, cloud computing, and smart devices. The shift from tungsten to molybdenum improves efficiency by reducing process steps and enhancing chip speed.
ALTUS Halo is in volume production, with early adoption by major 3D NAND manufacturers in Korea and Singapore, along with advanced logic fabs. Micron credited the tool for enabling mass production of molybdenum in its NAND products, enhancing storage capacity and I/O bandwidth.
While we acknowledge the potential of Lam Research Corporation (NASDAQ:LRCX) 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 LRCX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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