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 PagerDuty, Inc. (NYSE:PD) 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 closeup of a software engineer working in their office, overlooking a city skyline.
PagerDuty, Inc. (NYSE:PD)
Number of Hedge Fund Holders: 32
PagerDuty, Inc. (NYSE:PD) offers digital operations management tools via the PagerDuty Operations Cloud platform to help clients improve operational efficiency at scale. The cloud suite combines AIOps, automation, customer service operations, and incident management solutions assisted by a GenAI assistant designed to boost innovation velocity and revenue while lowering overheads and mitigating operational failure risks.
On February 25th, PagerDuty, Inc. (NYSE:PD) announced its plans to add new agentic AI functionality, focused on site reliability engineering, operational insights, and scheduling optimization across its cloud platform. This will enable enterprises to reduce operating costs through automation, mitigate risks with autonomous incident responses, and ramp revenue by facilitating seamless customer experiences.
“Operations leaders have high expectations for the business value of AI and automation. With the AI-powered PagerDuty Operations Cloud, teams can make smarter decisions, resolve critical issues faster and focus on top-level business priorities. We are excited to bring PagerDuty AI agents to market that will enable operations teams to gain time and efficiency, enabling them to focus on increasing revenues and improving customer satisfaction, while reducing operating costs.”
-said Jeffrey Hausman, chief product development officer at PagerDuty Inc.
Overall PD ranks 1st on our list of AI stocks that investors likely missed. While we acknowledge the potential of PD 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 PD 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.
