We recently published a list of 10 AI News and Ratings You Should Not Miss. In this article, we are going to take a look at where Extreme Networks, Inc. (NASDAQ:EXTR) stands against other AI news and ratings you should not miss.
AI Expansion Continues as Startups Receive Major Funding Rounds
On February 19, CNBC reported significant funding rounds for multiple AI-focused startups, highlighting the quick expansion of AI innovations across industries like healthcare, cloud computing, and model deployment. Baseten, a San Francisco-based company founded in 2019, raised $75 million at an $825 million valuation to improve its AI model deployment services. Using cloud infrastructure from Amazon and Google, Baseten helps clients access GPUs for AI inference, reducing costs by over 40% while supporting the cost-effective DeepSeek-R1 reasoning model. Its revenue increased sixfold in the last fiscal year, and its clients include over 100 enterprises and companies such as Descript, Patreon, and Writer.
OpenEvidence, an AI health-tech startup in Cambridge founded by Daniel Nadler, raised $75 million from Sequoia, bringing its valuation to $1 billion, as per CNBC. The company’s AI chatbot, trained on data from The New England Journal of Medicine and peer-reviewed journals, assists doctors with clinical decisions and is already used by a quarter of U.S. physicians. The chatbot avoids inaccuracies through tailored training and has grown rapidly due to word-of-mouth recommendations among doctors. OpenEvidence will also use its new funding to establish partnerships, including one with NEJM Group, and Nadler views the company as a solution to doctor burnout and the projected physician shortfall.
Lambda, a cloud computing firm specializing in AI development, raised $480 million in a Series D round co-led by Andra Capital and SGW, reaching a $2.5 billion valuation and total funding of $863 million. Lambda rents out Nvidia GPU-powered servers and offers software to train and deploy AI models, including open-source ones like DeepSeek-R1. CEO Stephen Balaban highlighted Lambda’s ability to repurpose its 25,000 GPUs for open-source AI models, which has fueled demand for H200 chips. The company will use the funding to expand its GPU inventory and further develop its software, including its Model Inference API and Chat AI Assistant. Lambda is positioned to meet the surging demand for AI infrastructure and is serving over 5,000 customers across industries such as manufacturing and finance.
For this article, 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 Q4 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A customer service person helping a client with a complex network issue, illustrating the customer support of the communication equipment company.
Extreme Networks, Inc. (NASDAQ:EXTR)
Number of Hedge Fund Holders: 30
Extreme Networks, Inc. (NASDAQ:EXTR) provides global software-driven networking solutions, including cloud-based network management, wireless and wired infrastructure, and SD-WAN services.
On February 19, Extreme Networks (NASDAQ:EXTR) announced the upcoming release of Extreme Platform ONE for Managed Service Providers (MSPs), offering a multi-tenant, AI-driven architecture with consumption-based billing and poolable licensing. The platform enables MSPs to manage licenses, performance, and service issues from a centralized workspace, improving network visibility and security while reducing operational complexity. Extreme’s AI Core automates tasks with conversational and autonomous agents to improve productivity. Its consumption-based model eliminates large upfront costs, allowing MSPs to scale flexibly and predict costs. MSP partners highlighted the platform’s benefits in improving financial management, scaling services, and boosting operational efficiency.
Overall, EXTR ranks 5th on our list of AI news and ratings you should not miss. While we acknowledge the potential of EXTR 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 EXTR 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.
