We recently compiled a list of the 12 High Flying AI Stocks This Week. In this article, we are going to take a look at where Fortinet, Inc. (NASDAQ:FTNT) stands against the other high flying AI stocks.
In the artificial intelligence world, the spotlight will be shifting to France next week as the world awaits the US and China to find common ground over the safe development of artificial intelligence. Judging by the measured response from China over the tariffs issue, there is a chance it might. That noted, a wide variety of countries are going to be attending an AI Action Summit in Paris next week to discuss how to put the technology to work. France is going to be hosting the summit alongside India on Feb 10 and 11, focusing on areas such as open-source systems and clean energy for powering data centers, Reuters reported.
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Meanwhile, the emergence of DeepSeek is increasingly turning into a game-changing event for AI development in China. The founder, Liang Wenfeng, is being hailed as a national hero. Indeed, his efforts have greatly helped the country to catch up with the US in the race toward AI supremacy. Chinese companies are increasingly rushing to support AI models coming from DeepSeek. Moore Threads and Hygon Information Technology, for instance, said on Monday that their computing clusters and accelerators will be able to support Deep Seek’s R1 and V3 models. Moore Threads, in particular, stated that progress by DeepSeek’s models using domestically made GPUs could set China’s AI industry “on fire”.
While many of the companies in China are rushing to adopt DeepSeek, yet many others are pushing their own AI models forward. Alibaba Cloud released Qwen 2.5-Max just after DeepSeek over the holidays, Beijing-based start-up Zhipu is also in the AI race with its AI assistant app released in October, Chinese start-up Moonshot AI released its own LLM the day DeepSeek released its r1 model, and more. These moves by Chinese companies, and the broader market reaction in the US after the emergence of DeepSeek, reflect on how grave the impact has been on the AI world.
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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Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT) is a technology company that provides cybersecurity and convergence of networking and security solutions worldwide. On February 5, BTIG analyst Gray Powell maintained a “Hold” rating on the stock. Powell’s hold rating suggests limited short-term upside for the stock. Even though there is an increase in interest for Fortinet’s SSE product in the mid-market, the overall demand trend continues to be steady compared to the previous quarter. The Security Service Edge is a cloud-based security service that incorporates artificial intelligence to enhance security, optimize performance, and detect threats. The firm noted that even though the company is expected to meet or slightly surpass Q4 estimates, street estimates for 2025 seem too optimistic. Additionally, despite the positive momentum in the mid-market and operational technology demand, there are concerns related to large enterprise traction.
Overall FTNT ranks 10th on our list of the high flying AI stocks this week. 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.