As the global AI race heats up, the Trump Administration’s downsizing of federal agencies poses a risk to AI development in the US. His cost-cutting measures are already impacting AI research efforts. Yesterday, a key federal AI research agency witnessed layoffs and faced potential budget cuts. Several US National Science Foundation employees, with expertise in AI, were terminated, threatening the agency’s ability to sustain AI research.
The government’s latest move also affected the Directorate for Technology, Innovation, and Partnerships within the National Science Foundation. The department played a key role in funneling government grants related to AI. Industry experts heavily criticized the downsizing.
Meanwhile, Chinese buyers are circumventing US export curbs to acquire the latest AI chips from top US manufacturers, exacerbating Trump’s challenges in cutting off the transfer of American technology to China. Washington imposed export controls in 2022 to curb China’s access to semiconductors for training AI models, but underground brokers are still managing to bypass the controls.
“China will help bridge the technological divide and prevent technological innovation from becoming a game for the rich countries and the wealthy,” said Chinese politician and computer scientist, Lou Qinjian, at the start of the annual National People’s Congress.
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 database of over 1000 hedge funds.
Why are we interested in 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).
A broker trading stocks on a financial trading floor, representing the investment approach of the company.
9. Surf Air Mobility Inc. (NYSE:SRFM)
Number of Hedge Fund Holders: 1
Surf Air Mobility Inc. (NYSE:SRFM) is known for its leading regional air mobility platform. Its offerings include software and charter flight operator services, as well as the development of electric and hybrid powertrains for aircraft. The company is focusing on enhancing its AI-powered airline software operating system and working toward certification of electric powertrain technology for better safety, efficiency, and profitability.
On March 4th, Surf Air Mobility Inc. (NYSE:SRFM) announced agreements with six air operator beta customers to use its AI-powered software platform SurfOS, developed by AI leader Palantir Technologies (NASDAQ:PLTR). The launch customers will use SurfOS to improve charter flight distributions, flight pricing, and customer relationship management.
“We believe that SurfOS will be the category-defining technology platform for the advanced air mobility industry. We are creating an operating system that is addressing the needs of aircraft operators, brokers, and owners, all of whom have a real need for modern aviation software enhanced with AI and big data. Individually, those industry participants could not affordably develop this broad suite of customized applications or organize their data onto a single platform. Given that we work with over 400 air operators through our On Demand platform, we are well positioned to bring SurfOS to market at scale.”
-said Sudhin Shahani, co-founder of Surf Air Mobility Inc.
8. Primech Holdings Ltd. (NASDAQ:PMEC)
Number of Hedge Fund Holders: 1
Primech Holdings Ltd. (NASDAQ:PMEC) offers technology-based intelligent products and solutions for use in the cleaning and maintenance of public and private facilities.
On March 4th, the company’s subsidiary, Primech AI Pte. Ltd., announced the launch of its innovative Robotics as a Service (RaaS) business line, which uses proprietary AI-driven technology to address industry problems like labor shortages, hygiene standards, and operational overheads. Primech AI signed a two-year Memorandum of Understanding with CCG Property Services, a subsidiary of Hong Kong’s property developer Chinachem Group, to deploy its AI-powered automated cleaning robot HYTRON in select facilities managed by CCG Property Services.
“Beyond advancing automation in the traditional cleaning industry, this deployment marks a significant milestone for Primech Holdings Limited. It demonstrates our ability to expand internationally and provide cutting-edge cleaning solutions across borders. By working with esteemed partners like Chinachem Group and CCG Property Services, we are proving that our technology is not only effective but also scalable on a global level. This is just the beginning of our vision to redefine commercial cleaning through AI and robotics. This initiative underscores Primech Holdings’ commitment to transforming the cleaning industry through advanced technology while expanding its global footprint beyond its traditional Singapore base.”
-said Kin Wai Ho, CEO of Primech Holdings Ltd.
7. Iveda Solutions Inc. (NASDAQ:IVDA)
Number of Hedge Fund Holders: 2
Iveda Solutions Inc. (NASDAQ:IVDA) offers AI-based video search and IoT-driven surveillance technologies in its smart sensors and devices to improve public safety, senior care, and environment preservation.
On March 4th, Iveda Solutions Inc. (NASDAQ:IVDA) announced the launch of the Iveda Pinpoint solution, an AI-driven Real-Time Location System (RTLS) to help hospitals avoid spending time and resources locating misplaced IV pumps, medical devices, and wheelchairs. The company has already deployed its new product at the Changhua Christian Hospital (CCH) medical institution in Taiwan, and has seen significant improvements in managing critical medical equipment.
“At Changhua Christian Hospital, one of the biggest resource drains was missing wheelchairs. They needed a platform to track and manage these assets, helping them determine where they were going. With Iveda Pinpoint, they discovered that patients were unintentionally taking hospital-owned wheelchairs home. By implementing Iveda Pinpoint’s Geo-Fencing feature, they now receive instant alerts whenever a wheelchair moves beyond the designated area. As a result, the hospital has significantly reduced equipment loss, saving both time and money.”
-said Spencer Shih of Realink, one of Iveda’s key systems integrator partners in Taiwan.
6. Mobilicom Ltd. (NASDAQ:MOB)
Number of Hedge Fund Holders: 3
Mobilicom Ltd. (NASDAQ:MOB) offers field-tested, end-to-end cybersecurity, software, and hardware solutions to power, guide, and secure AI-driven drones, industrial robotics, and related devices in defense markets.
On March 4th, Mobilicom Ltd. (NASDAQ:MOB) announced a partnership with Aitech Systems, to deliver AI-driven autonomous computing services for aerospace and defense uncrewed aircraft systems (UAS). Aitech Systems specialises in developing rugged computing systems for mission-critical environments. The collaboration will combine Mobilicom Ltd.’s (NASDAQ:MOB) OS3 cybersecurity platform and Aitech’s Nvidia-based computing system to offer UAS manufacturers next-gen tools to overcome operational and security challenges.
“We believe this partnership is a significant step in advancing mission computing for next-generation uncrewed systemsWe are proud to partner with Aitech, an established and renowned provider of advanced, rugged hardware computing solutions for the aerospace and defense industry. Their solutions are field-proven and embedded within defense and commercial programs and platforms by numerous Tier-1 OEMs worldwide.”
-said Oren Elkayam, CEO of Mobilicom Ltd.
5. Opera Ltd. (NASDAQ:OPRA)
Number of Hedge Fund Holders: 16
Opera Ltd. (NASDAQ:OPRA) is a software firm offering top-notch internet browsing experience on a range of devices. Since early 2024, the company has prioritized its AI Feature Drops program to test experimental AI features like local LLMs, image creation, and AI Tab Commands.
On March 3rd, the company announced at the MWC in Barcelona that its browser had become the first agentic AI browser that could perform user browsing tasks. Opera Ltd. (NASDAQ:OPRA) said its native AI agent, Browser Operator, is currently being demoed and is expected to change how users browse the internet while protecting their privacy. The native AI agent allows users to explain their requirements in natural language so that it can perform tasks for them. Users have complete control over any automated browser tasks the AI agent implements, which they can override at any time.
“For more than 30 years, the browser gave you access to the web, but it has never been able to get stuff done for you. Now it can. This is different from anything we’ve seen or shipped so far. The Browser Operator we’re presenting today marks the first step towards shifting the role of the browser from a display engine to an application that is agentic and performs tasks for its users.”
-said Krystian Kolondra, EVP of Opera Ltd.
4. BlackBerry Ltd. (NYSE:BB)
Number of Hedge Fund Holders: 23
BlackBerry Ltd. (NYSE:BB) offers intelligent, high-performance software and services to clients in diverse industries, such as the automotive and industrial sectors, to help them generate new revenue streams and innovate business models safely and reliably. The company’s expertise in offering secure communications services enables it to deliver operational resiliency through a certified portfolio for mobile fortification and critical events management.
On March 4th, QNX, a division of BlackBerry Ltd. (NYSE:BB), announced that FERNRIDE deployed the QNX OS for Safety to improve the security and operational reliability of its autonomous terminal tractor solution. QNX offers a robust foundation for software-defined businesses through operating systems, hypervisors, development tools, and support services. Its software is used in automotive, medical devices, industrial, robotics, vehicles, and aerospace industries. Meanwhile, FERNRIDE offers scalable automation solutions for port and yard logistics, revolutionizing container terminal operations. With the QNX embedded software, FERNRIDE can advance its product development while addressing logistical challenges like labor shortage and tight deadlines and complying with strict EU safety regulations.
“We are proud to collaborate with FERNRIDE to deliver its cutting-edge autonomous solution, especially at a time when the logistics industry is urgently seeking ways to reduce costs while not compromising on meeting safety goals. By leveraging the capabilities of safety certified software and engineering services, FERNRIDE is helping to drive the future of autonomy and empowering their customers to achieve next-level efficiency and safety. This collaboration demonstrates our commitment to working with companies at the forefront of innovation who prioritize safety, security, reliability, and performance.”
-said Grant Courville, SVP of Products and Strategy at QNX.
3. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 31
Sabre Corporation (NASDAQ:SABR) is a global travel technology firm that offers software to help airlines, hotels, and travel partners manage reservations and revenue as well as power mobile apps, airport check-in kiosks, and online travel websites.
On March 4th, Sabre Corporation (NASDAQ:SABR) announced a multi-year agreement with Coforge Ltd., a global digital services provider, to accelerate product delivery and launch new AI-enabled solutions to modernize the travel industry.
“2025 is a pivotal year for Sabre. Laser focus, ruthless prioritization and key technology investments have positioned us to intensify innovation and reinforce our pursuit of being the most valued global technology platform in travel. Sabre is in an advantaged position to pioneer, build, and deploy the next generation of solutions alongside our continuously expanding travel marketplace, and we look forward to Coforge’s partnership in expediting the process.”
-said Kurt Ekert, CEO and President of Sabre Corporation.
2. Kyndryl Holdings Inc. (NYSE:KD)
Number of Hedge Fund Holders: 41
Kyndryl Holdings Inc. (NYSE:KD) is a leading IT infrastructure services provider for global enterprise clients. It is known for developing, designing, and managing mission-critical information systems.
On March 4th, Kyndryl Holdings Inc.’s (NYSE:KD) philanthropic arm, Kyndryl Foundation announced that 12 nonprofits from 11 countries were awarded its second-year grants, which is expected to elevate the lives of 55,000 over the next two years through cybersecurity and AI skills developments alongside job placement initiatives.
“As the largest IT infrastructure services provider, we are committed to addressing the critical shortage of cybersecurity and AI professionals. We are proud to offer second-year funding to our grantees and look forward to the positive impact that can be achieved through our continued and expanded work together to drive innovation and build a new generation of skilled professionals.”
-said Una Pulizzi, President of the Kyndryl Foundation.
1. Accenture Plc (NYSE:ACN)
Number of Hedge Fund Holders: 79
Accenture Plc (NYSE:ACN) offers diverse services ranging from agile transformation and data analytics to intelligent automation, AI, and software engineering. The company is prioritizing R&D and AI agent deployment using Nvidia’s (NASDAQ:NVDA) AI solutions for accelerated placement of multi-agent networks and seamless integration into enterprise systems. It is overhauling its core banking modernization capabilities through platform acquisitions, facilitating data unification from legacy and modern banking architectures for product innovation.
On March 4th, Accenture Plc (NYSE:ACN) announced the acquisition of Denmark-based Halfspace, which helps organizations make informed and accurate decisions at faster speeds by using AI to streamline business workflows and through data science and analytics tools. The acquisition is expected to improve Accenture Plc’s (NYSE:ACN) AI capabilities. Furthermore, the development will enable the company to extend its Center for Advanced AI into the Nordics to help customers capture and generate value from AI.
“AI adoption is accelerating across the enterprise faster than any prior technology. Our research shows that 69% of executives believe it brings new urgency to reinvention. As one of the largest pure-play AI companies in Northern Europe, Halfspace expands and complements our AI capabilities and talent and enhances our ability to help our clients benefit fully from the potential of AI.”
– said Carsten Sachmann, Accenture’s lead for the Nordic region.
While we acknowledge the potential of Accenture Plc (NYSE:ACN) 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 ACN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
