We recently published a list of 10 AI News Making Waves on Wall Street. In this article, we are going to take a look at where Fortinet, Inc. (NASDAQ:FTNT) stands against other AI news making waves on Wall Street.
OpenAI has previously been dependent on Nvidia for its chip supply, but it looks like it may not be for long. As reported by Reuters, the artificial intelligence startup is all set to develop its first generation of in-house artificial intelligence silicon.
According to sources, the startup is finalizing the design for its first in-house chip in the next few months. It then plans to send it for fabrication at Taiwan Semiconductor Manufacturing Co in a “taping out” process.
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This training-focused chip will be used as a strategic tool to strengthen OpenAI’s negotiating leverage with other chip suppliers. If all goes smoothly, the company will be able to mass-produce its first in-house AI chip and potentially test an alternative later this year.
Meanwhile, big tech companies have struggled to produce satisfactory chips over the years. Nevertheless, DeepSeek has raised questions about whether fewer chips will be needed in developing powerful models in the future.
Google DeepMind boss Demis Hassabis has recently dismissed DeepSeek’s claims that its popular chatbot and AI model is using far less money than US rivals.
DeepSeek “seems to have only reported the cost of the final training round, which is a fraction of the total cost.”
– Hassabis told Bloomberg Television
He also stated that DeepSeek’s emergence doesn’t upend the economics of AI development.
“We don’t see any new silver bullet technologies. DeepSeek is not an outlier on the efficiency curve.”
-Hassabis said at the Artificial Intelligence Action Summit.
The Chinese startup has reportedly spent around $5.6 million on computing costs to train its models. OpenAI and Microsoft are currently investigating these claims, searching if anyone tied to DeepSeek has obtained data from OpenAI through a process known as distillation.
According to Hassabis, DeepSeek seems “to have relied on some Western models to distill from”.
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.
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Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT) is a cybersecurity company that provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products. On February 10, Susquehanna raised its price target for the stock to $110 from $90 and kept a “Neutral” rating on the shares. The firm has cited Fortinet’s solid Q4 driven by strength in its hardware business, and it is also positive about the growth potential from its upcoming refresh cycle. In particular, FortiGate firewalls, which are next-generation firewalls backed by FortiGuard AI-Powered Security Services, are expected to reach end-of-support status in 2026. Approximately 25% of Fortinet’s installed base—around 650,000 units—will reach end-of-support by 2026. The impending refresh cycle is anticipated to generate $400–$450 million in additional revenue from these upgrades over two years.
“FTNT reported a solid [fourth quarter] driven by strength in its hardware business, and management remains optimistic about the growth potential from its upcoming firewall refresh cycle. That said, the company expressed some caution with regards to the outlook due to tariff uncertainty and impacts of a new US administration taking over. While we like the company, its market opportunity, and large looming firewall refresh cycle, the risk/rewards appears balanced at current levels.”
-Analyst Shyam Patil wrote in a note to clients.
Overall, FTNT ranks 10th on our list of AI news making waves on Wall Street. While we acknowledge the potential of FTNT 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 FTNT 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.