We recently compiled a list of the 12 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other trending AI stocks.
DeepSeek may have astounded the tech world following its emergence, but not everyone seems to be a fan. In the latest news report, Reuters reported that South Korea’s industry ministry temporarily blocked access to Chinese artificial intelligence startup DeepSeek due to security concerns. The government urges caution on generative AI services, particularly calling out ministries and agencies about using AI services such as ChatGPT and DeepSeek at work.
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State-run Korea Hydro & Nuclear Power reported blocking the use of AI services including DeepSeek earlier this month. The defense ministry has done the same for its computers that are for military use, reported officials. Yonhap News Agency has further reported restricting access to DeepSeek in computers that connect to external networks. South Korea, however, isn’t the only country that despises DeepSeek for its security vulnerabilities.
BBC has also reported on the matter, stating that Australia has banned DeepSeek from all government devices and systems. The country is concerned over the security risk the Chinese artificial intelligence (AI) startup poses. Its government further insisted that the ban comes not because the startup is Chinese, but because of the “unacceptable risk” it poses to national security. The move specifically requires government entities to “prevent the use or installation of DeepSeek products, applications, and web services”, as well as remove any previously installed, on any government system or device. As a result, a wide range of workers won’t be able to use DeepSeek in the country.
Similarly, the US Navy has also banned the use of DeepSeek, as reported by CNBC last week. The Navy reportedly said that DeepSeek’s AI was not to be used “in any capacity” due to “potential security and ethical concerns associated with the model’s origin and usage.”
“We would like to bring to your attention a critical update regarding a new AI model called DeepSeek,” The memo said it’s “imperative” that team members do not use DeepSeek’s AI “for any work-related tasks or personal use.”
-The Navy’s warning to the distribution list OpNav, Operational Navy.
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.
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).
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Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On February 5th, Reuters reported that the company is set to release its long-awaited – and delayed – Alexa generative artificial intelligence voice service. The press event has been scheduled for later this month to preview. The report further elaborates that Amazon sent press invites on Wednesday to an event to be held on February 26 in New York. This event will be featuring the head of its devices and services team, Panos Panay. While the spokesperson said the event will be Alexa-focused, they declined to elaborate. The new generative AI-powered Alexa is designed to be able to converse with humans, and the company hopes it can eventually convert some of its hundreds of millions of users into paying customers. This is an attempt to generate returns for the unprofitable business. Company executives have said that AI service will be able to respond to multiple prompts in sequence and even act as an “agent” on behalf of users. February 14 marks a Go/ No Go meeting to make a final decision on the “street readiness” of Alexa’s generative AI revamp.
Overall AMZN ranks 1st on our list of the trending AI stocks on latest news and ratings. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some 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 AMZN 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 is originally published at Insider Monkey.