Once a niche concept, generative artificial intelligence has become an essential tool in various industries. The revolutionary technology is transforming healthcare, agriculture and the auto industry while also giving rise to game-changing innovation in the tech industry. Likewise, a study by Grand View Research indicates the global artificial intelligence market is poised to grow at a compound annual growth rate of 36.6% to $1.81 trillion between 2024 and 2030.
Breakthrough innovations, bullish investments, and increasing adoption across industries are catalysts fueling robust growth. Furthermore, the progress made in artificial neural networks (ANN) has dramatically enhanced the integration and utilization of artificial intelligence across various industries.
The diverse applications of ANNs, such as image recognition, natural language processing, predictive modeling, autonomous driving, and healthcare diagnostics, have been driving market expansion. For example, auto companies are employing ANN to refine autonomous driving functionalities, focusing on object detection, path planning, and decision-making processes.
The growing accessibility and availability of historical datasets have also accelerated the pace of advancements in artificial intelligence. Now, more unstructured datasets are available to researchers thanks to the development of cloud computing. Furthermore, as AI advances with each iteration, innovation has been spurred by the potential of next-generation computing power.
Amid the robust growth and game-changing innovations, artificial intelligence has become a key technology battleground between the US and China. The emergence of breathtaking AI models from China, such as DeepSeek, has once again underscored how nations are racing to challenge the US regarding AI dominance.
The enduring geopolitical rivalry and economic competition between China and the United States began to extend into artificial intelligence approximately ten years ago. However, this competition has significantly escalated with the swift rise of DeepSeek and other Chinese generative AI companies. The recent achievements of these Chinese firms have also prompted inquiries regarding the efficacy of strategies like export controls in curbing the technological advancements of foreign adversaries.
“China’s been doing AI for a very long time … and is probably just as good as the US or anybody else. It’s as simple as that,” said Alan Pelz-Sharpe, founder of AI analyst firm Deep Analysis.
China’s leading entrepreneurs and company executives, including the founders of DeepSeek and a robotics startup, have already held discussions with Chinese leader Xi Jinping. The discussions concerned maintaining a sense of national duty as they advance their technological initiatives. This gathering highlights China’s strategic preparations to compete with the United States in a technology sector expected to drive the next industrial revolution.
Furthermore, China has announced its commitment to nurturing emerging technologies, particularly open-source architectures for chip design. For years, China has sought to establish a semiconductor ecosystem centered around RISC-V, a significant open-source architecture, in an effort to diminish its dependence on technologies dominated by the United States.
On the other hand, the United States is shifting from close research collaboration with China towards a military competition likely to diminish or terminate cooperation, according to Jennifer Lind, an associate professor of government at Dartmouth College. While tensions with China began to escalate during former President Barack Obama’s tenure due to the increasing assertiveness of the Chinese government, Lind anticipates that the relationship will deteriorate further under President Trump as both nations compete in technological advancements.
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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 in Q4 2024.
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9. VEON Ltd. (NASDAQ:VEON)
Number of Hedge Fund Holders: 8
VEON Ltd. (NASDAQ:VEON) is a communication services provider that offers connectivity and internet services to corporations and individuals. It provides fixed-line broadband services using fiber optic networks and mobile telecommunications services under prepaid and postpaid subscriptions. On March 4, the company confirmed that its digital operator in Uzbekistan, Beeline Uzbekistan, is teaming up with P.I. Works, a global leader in AI-driven network automation.
The two are joining forces to enhance the deployment of customer experience management with predictive analytics. P.I. Works is to help Beeline Uzbekistan enhance service quality and proactively resolve network problems to improve customer satisfaction. With pinpoint accuracy of less than 100 meters, P.I. Works’ AI-driven method detects performance degradation using network system data and geo-location information. With the help of hyper-local insights, Beeline Uzbekistan will identify at-risk customers and take targeted corrective action before their discontent escalates into churn.
“This collaboration is a strong example of how mobile operators can leverage network AI and automation to enhance customer retention, maximize revenue, and strengthen brand loyalty,” said Başar Akpınar, CEO & Co-Founder of P.I. Works.
8. Tevogen Bio Holdings Inc. (NASDAQ:TVGN)
Number of Hedge Fund Holders: 12
Tevogen Bio Holdings Inc. (NASDAQ:TVGN) is a clinical-stage specialty immunotherapy company that develops off-the-shelf precision T-cell therapies for treating infectious diseases, cancers, and neurological disorders. The company also leverages artificial intelligence through the Tevogen.AI initiative to accelerate drug discovery and development. The company confirmed on March 3 that it had secured the remaining $8 million non-dilutive funding from KRHP LLC (“Grantor”).
The $8 million funding that completes the $10 million total grant, comes on the heels of Tevogen Bio Holdings Inc. (NASDAQ:TVGN) achieving significant milestones on its AI initiatives under Tevogen.AI. The validation affirms meaningful technological development progress as the company accelerates PredicTcell Platform advancement. Tevogen’s progress in artificial intelligence through its AI division represents a strategic diversification beyond traditional biotech development. Microsoft’s partnership provides critical technical infrastructure and potential enterprise-level validation, significantly enhancing AI development capabilities.
“Tevogen Bio’s disciplined business model is designed for long-term success without reliance on excessive capital raises or shareholder dilution. This additional $8 million in non-dilutive funding reinforces the efficiency and sustainability of our approach, which we believe must be the new standard in biotech,” commented Ryan Saadi, MD, MPH, Founder and CEO of Tevogen Bio.
7. Himax Technologies, Inc. (NASDAQ:HIMX)
Number of Hedge Fund Holders: 13
Himax Technologies, Inc. (NASDAQ:HIMX) is a semiconductor company that designs and manufactures display imaging processing technologies. It also provides products for consumer electronics, automotive, and industrial displays. On March 5, the leader in fabless display driver ICs confirmed signing a memorandum of understanding with Tata Electronics and Powerchip Semiconductor Manufacturing Corporation.
The companies are joining forces to support the development of India’s display and ultralow power AI sensing ecosystem. The consortium will concentrate on the development of ‘Made in India’ innovations while capitalizing on Himax Technologies, Inc.’s (NASDAQ:HIMX) proficiency in display semiconductor technology and WiseEye ultralow power artificial intelligence sensing. The companies aspire to provide all-encompassing display semiconductor solutions, covering chip design, manufacturing, and packaging, with the objective of serving both Indian and international markets.
Dr Randhir Thakur, CEO and MD of Tata Electronics, said, “. Together, we will drive innovation and develop next-generation technologies to meet the growing demands of display and ultralow power AI sensing technologies across key industries while contributing to a resilient semiconductor supply chain.”
6. TELUS Corporation (NYSE:TU)
Number of Hedge Fund Holders: 13
TELUS Corporation (NYSE:TU) is a Canadian telecommunications company that offers wireless, internet, TV, and healthcare services. On March 5, MCE Systems confirmed the expansion of its strategic partnership with TELUS, focused on delivering better customer experience while leveraging generative artificial intelligence.
The partnership paves the way for the integration of generative AI into the Mobile Klinik Device Checkup mobile app to create actionable insights that drive customer behavior. The integration is also expected to solve fundamental problems that telecom companies face and create in-store revenue opportunities. TELUS Corporation (NYSE:TU) has identified a specific use case that turns customer service interactions into sales leads by turning troubleshooting mobile devices into revenue-generating opportunities.
“The results of the generative AI proof of concept test are clear in demonstrating generative AI’s value to not only streamline delivery of remote, on-device customer service but also achieve quantifiable business results,” says Braden St. John, VP of Products, Marketing and Logistics at Mobile Klinik.
5. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)
Number of Hedge Fund Holders: 14
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is a communication equipment company that provides mobile connectivity solutions for telecom operators and enterprise customers in various sectors. On March 4, the company confirmed that Vonage, its unit focused on helping businesses accelerate digital transformation, had expanded its collaboration with SAP SE to enhance the delivery of agentic AI-driven experiences for enterprises globally.
The partnership combines Vonage’s communications and network APIs with the SAP Business Technology platform. The combined solution should enable a differentiated offering in the competitive enterprise software market. By integrating communications features into SAP’s processes, Ericsson sets itself up to earn recurring API fees from business clients looking to improve operations with AI-powered communications.
Philipp Herzig, CTO and Chief AI Officer at SAP SE said, “This collaboration with Vonage is a great example of how powerful AI agents will be able to handle multi-step processes, interacting with humans when there is the need and otherwise solving issues autonomously.”
4. Viant Technology Inc. (NASDAQ:DSP)
Number of Hedge Fund Holders: 16
Viant Technology Inc. (NASDAQ:DSP) is an advertising software company that helps marketers plan, buy, and measure advertising campaigns. It offers software that helps marketers and media owners reach target audiences across various channels. The leader in AI-powered programmatic advertising delivered record fourth quarter and full year 2024 results on March 4 that surpassed the high end of guidance.
Revenue in the fourth quarter was up 40% year-over-year to $90.1 million as net income increased 133% to $7.72 million. The robust growth came as Viant Technology Inc. (NASDAQ:DSP) achieved a record quarter for total advertiser spend on its platform. The company also achieved double-digit growth across its digital ad channels driven by Household ID technology, the Direct Access program and the ViantAI product suite.
“Additionally, we continue to empower advertisers with ongoing AI innovations, most recently through the launch of ViantAI, which has attracted interest from advertisers and agencies of all sizes. We are encouraged by recent momentum and well positioned to capture incremental market share in 2025,” said Tim Vanderhook, Co-Founder and CEO of Viant.
3. Franklin Covey Co. (NYSE:FC)
Number of Hedge Fund Holders: 17
Franklin Covey Co. (NYSE:FC) provides solutions that help organizations and individuals improve their performance. It offers training and consulting services in execution, sales performance, productivity, customer loyalty, leadership, and educational improvement for organizations and individuals worldwide. On March 4, the company confirmed the launch of FranklinCovey AI Coach, a virtual mentor providing personalized learning recommendations to help users develop leadership skills.
The new service functions as a virtual mentor offering practice opportunities and tailored recommendations, and it is only accessible to All Access Pass clients who use the Impact Platform. The AI Coach seems to have been purposefully created to make Franklin Covey Co.’s (NYSE:FC) content library more approachable and tailored in order to boost user engagement. The company made a strategic decision to add artificial intelligence capabilities to its leadership training platform with the launch of its AI Coach. Emphasis on applying AI specifically to well-established leadership principles may help the company strengthen its prospects in the corporate leadership development market.
2. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 41
NetApp, Inc. (NASDAQ:NTAP) is a technology company that offers a range of enterprise software, systems, and services that customers use to transform their data infrastructures. It also provides data management infrastructure necessary for AI applications, enabling organizations to effectively manage the entire lifecycle of AI data. On March 4, Loop Capital Markets reiterated a Buy rating on the stock but cut the price target to $130 from $150.
The bullish stance comes against the backdrop of NetApp, Inc. (NASDAQ:NTAP) delivering solid third-quarter results for fiscal 2025. Revenues in the quarter increased 2% year-over-year to $1.64 billion, benefiting from robust demand for the company’s all-flash storage solutions. The better-than-expected results came as NetApp emerged as a key supplier of choice for AI and other data-driven workloads. Furthermore, NetApp has achieved more than 100 victories in data lake modernization and AI infrastructure, demonstrating the high demand for workloads driven by AI.
1. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 70
Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer that offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances for seasonal and outdoor living. On March 5, the company affirmed its push into conversational AI with the launch of Mylow, its first AI-powered home improvement virtual advisor.
Developed in partnership with OpenAI, Mylow is designed to provide real-time answers to home improvement questions. It will also provide project guidance, complementing more than 300,000 associates. With the ability to customize suggestions according to location and budget, the AI assistant can assist clients in locating and acquiring the right equipment and supplies.
“The development and introduction of Mylow exemplifies the tech-forward vision of the Lowe’s brand,” said Lowe’s Senior Vice President of Technology, Chandhu Nair. “We’re doubling down with emerging technology collaborators like OpenAI to solve problems for our customers and because we want the home improvement experience at Lowe’s to be a cut above.”
While we acknowledge the potential of Lowe’s Companies, Inc. (NYSE:LOW) 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 LOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
