We recently compiled a list of the Top 8 Must-See AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Altair Engineering Inc. (NASDAQ:ALTR) stands against the other AI stocks.
On 17th February, xAI launched its updated Grok 3 AI model as part of efforts to stay at par with the evolving reasoning and search capabilities showcased by global competitor models. During an event live-streamed on X, xAI leaders claimed that the latest version of Grok 3 is better than Gemini, GPT-4o, Claude 3.5, and DeepSeek’s V3 models in terms of math, science, and coding benchmarks.
xAI also highlighted the tool’s latest features, which include advanced web searching with “deep search,” coding abilities for online games, and a “big brain” mode for complex problems. The xAI announcement comes as the global AI race heats up amid China’s advancements in this space.
While the cost-effective DeepSeek AI and the Qwen 2.5 models triggered a $1.3 trillion market rally in China, the mainland could witness further economic boost after recently announcing breakthroughs in quantum computing, focusing on quantum communications. However, analysts warn of data-driven surveillance and global data-centric authoritarianism in tandem with quantum advances.
“First, quantum computing is expected to eventually enable any state or non-state actor that possesses this technology to circumvent encryption that protects communications,” the analysts state. “Second, if the quantum communications providers who are first-movers in this space adopt cryptography standards and equipment that include backdoors for official government use, information conveyed over quantum networks will be vulnerable to state surveillance — potentially either by the governments that import these technologies, or by the home countries of companies that provide quantum services.”
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 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A computer programmer developing a software application for high-performance computing.
Altair Engineering Inc. (NASDAQ:ALTR)
Number of Hedge Fund Holders: 13
Altair Engineering Inc. (NASDAQ:ALTR) is a computational intelligence leader offering software and cloud products for simulation, HPC, data analytics, and AI to help organizations resolve complex engineering challenges through design optimization and data-driven decisions.
On February 19th, Altair Engineering Inc. (NASDAQ:ALTR) announced the launch of Altair HyperWorks 2025, a next-gen simulation platform that uses AI, HPC, and multiphysics simulation to optimize design in a virtual, zero-prototype world, fostering smarter and sustainable development solutions. The company also highlighted how its physics prediction models powered by new architectures, ML, and AI deliver precise simulation of non-linear systems faster, even with limited data for detailed insights early in the design process.
“Altair HyperWorks 2025 builds on four decades of Altair’s expertise in simulation, design, and optimization. By integrating advanced simulation technologies with AI and machine learning, automation, open architecture, and a connected digital thread, the platform accelerates design processes, fosters scalable cloud collaboration, and empowers teams to deliver smarter, faster, and more sustainable solutions. It is yet another leap in our vision of democratized computational intelligence.”
-said James R. Scapa, founder and CEO of Altair Engineering Inc.
Overall ALTR ranks 7th on our list of the AI stocks investors should not miss. While we acknowledge the potential of ALTR 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 ALTR 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. This article is originally published at Insider Monkey.
