We recently compiled a list of the Top 12 AI Stocks Taking Wall Street by Storm. In this article, we are going to take a look at where Fortinet, Inc. (NASDAQ:FTNT) stands against the other AI stocks.
Is heavy regulation the right approach toward artificial intelligence? According to U.S. Vice President JD Vance, not quite. Instead, Vance is convinced that “massive” regulations on artificial intelligence could strangle the technology, rejecting content moderation as “authoritarian censorship”. On a similar note, the US and the UK have declined to sign the final statement of a recently held AI summit that said AI should be inclusive, open, ethical, and safe.
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With the AI arms race in full swing, countries appear to prioritize competition rather than safety and inclusivity. Vance has said that the United States intends to remain the dominant force in AI, strongly opposing the European Union’s strict regulatory approach.
“We believe that excessive regulation of the AI sector could kill a transformative industry. We feel very strongly that AI must remain free from ideological bias and that American AI will not be co-opted into a tool for authoritarian censorship.”
-Vance told the summit of CEOs and heads of state in Paris, as reported by Reuters.
Vance also noted criticizing the “massive regulations” created by the EU’s Digital Services Act as well as Europe’s online privacy rules. According to him, these rules will only translate to endless legal compliance costs for smaller firms.
“Of course, we want to ensure the internet is a safe place, but it is one thing to prevent a predator from preying on a child on the internet, and it is something quite different to prevent a grown man or woman from accessing an opinion that the government thinks is misinformation”.
-Vance.
Judging by these discussions and the news that the UK and US have declined to sign the international AI declaration, UN Secretary-General António Guterres has rightly warned that AI is transforming our world already, but its power rests “in the hands of a few”.
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 cybersecurity company that provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products. On February 12, the company announced that it would be showcasing its groundbreaking sovereign SASE solution at the MWC Barcelona 2025. Secure access service edge (SASE) is a cloud-native architecture that integrates network security and connectivity to provide secure access to applications and data for users regardless of their location.
The company is offering service providers a unique opportunity to explore how Fortinet Sovereign SASE enables them to create their own dedicated private SASE service. The Fortinet Sovereign SASE solution is powered by one operating system, FortiOS, along with simple integration. This enables service providers to create dedicated private SASE services so that they can enhance flexibility and control over data. Those who have already invested in Fortinet Secure SD-WAN can naturally expand into sovereign SASE by tapping on their existing investments and expertise.
“Organizations with strict regional or regulated industry compliance requirements are often faced with the dilemma of having a strong need for improved security posture while also having a significant barrier to adoption for modern SASE architectures. Fortinet’s Sovereign SASE solution takes the compliance guesswork out of adoption and enables service providers to deliver a robust SASE platform and expand from SD-WAN, which includes the latest DEM, network visibility and AI-assisted security capabilities to the customers that need it most.”
-Pete Finalle, Research Manager, Security & Trust at IDC.
Overall FTNT ranks 10th on our list of the AI stocks that are taking Wall Street by storm. 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.