We recently published a list of Top 10 AI Stocks Trending On Wall Street. In this article, we are going to take a look at where Booz Allen Hamilton Holding Corporation (NYSE:BAH) stands against other top AI stocks trending on Wall Street.
The tech world may be steering in a new direction with the emergence of DeepSeek and the cheaper and more efficient models it promises. In the latest news, bulls from Europe have deemed that the sector may have further to run, despite the emergence of these Chinese copies. This news emerged after January 27, when the tech world witnessed a broad market sell-off driven by DeepSeek’s advancements, investors’ concerns regarding West’s huge investments in chipmakers and data centers, valuation risks, and increasing competition from alternative AI models. In short, DeepSeek sparked a rout in the tech world.
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With the emergence of these models, companies are readjusting their approaches, focusing more on efficiency rather than demand. Even big AI names such as OpenAI have been prompted to rethink their strategies. The AI startup is reportedly thinking of “figuring out a different open-source strategy” after DeepSeek released a lower-cost open-source AI model, Seeking Alpha reported Saturday. Moreover, OpenAI Chief Product Officer Kevin Weil recently unveiled that the company was considering open-sourcing older AI models. This reflects a broader industry shift toward efficiency and accessibility.
Nevertheless, since the sell-off, tech stocks have thankfully rebounded. European markets in particular are hitting new highs, Reuters reports. One economic theory, known as the “Jevons Paradox” seems to be the answer. According to the paradox, when a resource becomes more efficient to use, demand may increase rather than the other way around. This is because the price of using the resource drops.
“I hadn’t discussed it until Monday (last week), and then suddenly it’s everywhere. This paradox highlights one of the uncertainties at the moment,” said Jewell, flagging that a key question for European stock-pickers is whether data centres and their suppliers will be less in demand.”
-Helen Jewell, Chief Investment Officer at BlackRock Fundamental Equities, EMEA, as reported on Reuters.
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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Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Number of Hedge Fund Holders: 32
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a military-defense-focused AI stock and the leading provider of artificial intelligence (AI) services to the US government. On January 31st, the company reported its third-quarter fiscal year 2025 results. The company reported double-digit growth in both revenue and adjusted EBITDA for the third quarter. The adjusted EPS for the quarter was $1.55, topping the analyst consensus estimate of $1.51. Quarterly sales for the company were $2.92 billion, up 13.5% year-on-year, and beating the street view of $2.86 billion. Despite potential uncertainties related to the new presidential administration and its impact on the procuring environment, Booz Allen (NYSE:BAH) is optimistic about its operations on the back of its strong backlog and strategic partnerships. These factors position the company for continued growth, particularly in artificial intelligence. Following the earnings report, on February 3rd, TD Cowen analyst Gautam Khanna maintained a “Buy” rating on Booz Allen (NYSE:BAH) with an associated price target of $155.00. Khanna remains bullish on the AI stock due to its effective cost management strategies, high employee utilization rates, and potential for sales growth. Financial gains from the acquisition of the AI-powered cybersecurity platform SnapAttack have also contributed to the optimistic outlook for Booz Allen.
Overall, BAH ranks 8th on our list of top AI stocks trending on Wall Street. While we acknowledge the potential of BAH 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 time frame. If you are looking for an AI stock that is more promising than BAH 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.
