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 CGI Inc. (NYSE:GIB) 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).
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CGI Inc. (NYSE:GIB)
Number of Hedge Fund Holders: 16
CGI Inc. (NYSE:GIB) offers IT, business consulting, automation, and enterprise digitization services to diverse industries, including banking, healthcare, energy, insurance, and logistics. Using its responsible use of AI methodology and consulting framework in its IP portfolio, the company provides AI solutions like the CGI PulseAI, Virtual Service Agent, Accelerate AI360, DigitaTrust360, and Machine Vision designed to improve operational efficiencies, enable cost reductions, ensure legal compliance, and enhance asset monitoring activities.
On February 25th, CGI Inc. (NYSE:GIB) announced it completed the acquisition of BJSS, which is a top UK-based tech and engineering consultancy firm. The acquisition aligns with CGI Inc.’s plans to grow its consulting services and drive innovation in AI, cloud, and data analytics for commercial and public sector clients.
“We are really pleased to welcome all of the new joiners from BJSS, whose deep expertise in digital engineering enhances CGI’s collective ability to deliver industry-leading technology solutions and advisory services to clients across the UK. With the integration of BJSS’s deep technical expertise and strong market presence, CGI continues to strengthen its ability to help clients navigate complex digital transformations, accelerate innovation and achieve measurable outcomes aligned with their strategic goals.”
-said Tara McGeehan, President of CGI UK & Australia.
Overall GIB ranks 5th on our list of AI stocks that investors likely missed. While we acknowledge the potential of GIB 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 GIB 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.
