We recently compiled a list of the Top 10 Trending AI News Updates That Investors Likely Missed. In this article, we are going to take a look at where Netscout Systems Inc. (NASDAQ:NTCT) stands against the other AI stocks.
Just as the AI industry was catching up with the launch of the DeepSeek AI R1 model in January, sources divulged that the Hangzhou-based company is planning to release the R2 model as early as possible. The company was previously aiming to launch the R2 model in May.
DeepSeek expects the R2 model to exhibit better coding and reasoning capabilities in multiple languages. The R1 model, which was built cost-effectively using relatively less powerful GPUs, triggered a $1 trillion sell-off in US and European markets.
The speculation around the R2 model could potentially drive further volatility in America’s AI landscape as investors question the narrative that US-based AI companies require hundreds of billions of dollars to develop AI systems.
“The launch of DeepSeek’s R2 model could be a pivotal moment in the AI industry. DeepSeek’s success at creating cost-effective AI models would likely spur companies worldwide to accelerate their own efforts … breaking the stranglehold of the few dominant players in the field.”
-said Vijayasimha Alilughatta, COO Zensar.
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 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A data engineer focusing intently on a glowing computer screen, with lines of code streaming down the screen.
Netscout Systems Inc. (NASDAQ:NTCT)
Number of Hedge Fund Followers: 26
Netscout Systems Inc. (NASDAQ:NTCT) offers performance management, cybersecurity, and DDoS attack protection solutions through its unique visibility platform to leading enterprises, service providers, and public sector companies.
On February 25th, Netscout Systems Inc. (NASDAQ:NTCT) announced enhancing its Arbor Threat Mitigation System Adaptive DDoS Protection solution with additional AI/ML functionality to detect and block malicious traffic and safeguard customers from infected hosts, compromised IoT devices, and related internal attack sources more efficiently. As a result, clients will be able to protect critical infrastructure while benefitting from better availability, lower downtime costs, and new revenue-generating avenues.
“With AI-driven attacks, ransomware, and nation-state threats impacting corporate governance, financial performance, and customer trust, corporate boards expect their IT teams to be proactive in adapting to emerging threats like DDoS. Implementing solutions that can adapt to threats helps minimize that risk.”
-said Chris Steffen, Vice President of Research – Information Security, Enterprise Management Associates.
Overall NTCT ranks 4th on our list of AI stocks that investors likely missed. While we acknowledge the potential of NTCT 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 NTCT 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.