We recently compiled a list of the Top 10 Trending AI News Updates That Investors Likely Missed. In this article, we are going to take a look at where BlackSky Technology Inc. (NYSE:BKSY) stands against the other AI stocks.
Just as the AI industry was catching up with the launch of the DeepSeek AI R1 model in January, sources divulged that the Hangzhou-based company is planning to release the R2 model as early as possible. The company was previously aiming to launch the R2 model in May.
DeepSeek expects the R2 model to exhibit better coding and reasoning capabilities in multiple languages. The R1 model, which was built cost-effectively using relatively less powerful GPUs, triggered a $1 trillion sell-off in US and European markets.
The speculation around the R2 model could potentially drive further volatility in America’s AI landscape as investors question the narrative that US-based AI companies require hundreds of billions of dollars to develop AI systems.
“The launch of DeepSeek’s R2 model could be a pivotal moment in the AI industry. DeepSeek’s success at creating cost-effective AI models would likely spur companies worldwide to accelerate their own efforts … breaking the stranglehold of the few dominant players in the field.”
-said Vijayasimha Alilughatta, COO Zensar.
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 satellite in mid-flight with its solar panels capturing the sun’s rays.
BlackSky Technology Inc. (NYSE:BKSY)
Number of Hedge Fund Holders: 10
BlackSky Technology Inc. (NYSE:BKSY) is a provider of an advanced space-based intelligence platform that enables real-time satellite imagery, analytics, and high-frequency monitoring of economic assets, important locations, and global events. The company utilizes AI-enabled systems for object detection, geospatial data processing automation, and extraction of actionable intelligence at machine speeds.
On February 25th, BlackSky Technology Inc. (NYSE:BKSY) announced it secured a multimillion-dollar Defense Innovation Unit Gen-3 Tactical GEOINT (TACGEO) launch integration contract, expanding on previous US government-funded R&D efforts to develop next-gen space-based tactical ISR capabilities. Under the contract, BlackSky Technology Inc. (NYSE:BKSY) will support end-to-end activities, including hardware and systems integration, launch site management, and commissioning services.
“BlackSky is on a mission to push the transformative advantage of space-based, real-time intelligence to the farthest corners of the battlefield. When combined with our BlackSky Spectra® platform, our Gen-3 constellation will deliver a next level of performance with low-latency AI-enabled analytics while a mission is ongoing.”
-said Brian O’Toole, CEO of BlackSky Technology Inc.
Overall BKSY ranks 6th on our list of AI stocks that investors likely missed. While we acknowledge the potential of BKSY 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 BKSY 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.