We recently compiled a list of the 8 AI Stocks on Investors’ Radar. In this article, we are going to take a look at where Axon Enterprise, Inc. (NASDAQ:AXON) stands against the other AI stocks.
As the US stock markets were catching up with the tech disruption led by cheap Chinese AI models, US President Donald Trump’s decision to impose tariffs against countries, including a 10% tariff on China, is driving market volatility.
On February 4th, the US stock index futures were marginally lower as investors refrained from risky assets after China announced retaliatory tariffs against America. Futures tied to the Dow Jones Industrial Average were down 0.2% or 77 points. Beijing slapped tariffs of up to 15% on US coal imports and 10% higher duties on crude oil, farm equipment, and some cars, effective February 10th.
Trump also announced a 25% tariff on goods from Mexico and Canada but later agreed to a 30-day pause on February 3rd in return for concessions on border and crime from both countries.
Elsewhere, in the world of AI, OpenAI CEO Sam Altman inked a deal with tech giant Kakao in South Korea on February 4th as part of plans to create new alliances after DeepSeek’s impact on the global AI industry.
“We’re excited to bring advanced AI to Kakao’s millions of users and work together to integrate our technology into services that transform how Kakao’s users communicate and connect,” said Altman. However, Altman reportedly admitted at a closed meeting with South Korean AI developers that Open AI “hasn’t found a strategy yet” to respond to DeepSeek.
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 database of 900 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 technician in a white coat testing an in-car system on a modern military vehicle.
Axon Enterprise, Inc. (NASDAQ:AXON)
Number of Hedge Fund Holders: 46
Axon Enterprise, Inc. (NASDAQ:AXON) is a weapons and surveillance technology firm known for its stun guns, bodycams, and dashcams used by police departments, prison agencies, immigration personnel, and private security globally. The company is also integrating AI in its Axon Evidence software to efficiently manage and store surveillance cam footage data that is helping minimize report writing time, accelerate evidence review and license plate scanning, and ultimately enhance incident response time.
On February 4th, JMP Securities increased Axon Enterprise Inc.’s (NASDAQ:AXON) target price to $725 per share from $610 and retained an “Outperform” stock rating. The brokerage favours the company due to positive industry checks, such as steady sales attainment as well as the company’s product story around improving officer efficiency and measurable time savings, facilitated by the firm’s software solutions. Analysts foresee growing attention and demand for counter-unmanned aerial system/counter-drone products for domestic and military/defense use cases.
Overall AXON ranks 4th on our list of AI stocks on investors’ radar. While we acknowledge the potential of AXON 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 timeframe. If you are looking for an AI stock that is more promising than AXON 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.
