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 Palo Alto Networks, Inc. (NASDAQ:PANW) 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).
A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.
Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On January 30th, the company posted on its blog about its recent findings regarding the Chinese AI model from DeepSeek. Palo Alto Networks Unit 42, talking about these concerning vulnerabilities in DeepSeek, has revealed that it can be easily jailbroken to provide nefarious content with little to no specialized knowledge or expertise. Unit 42 researchers tested two novel and effective jailbreaking techniques, known as the Deceptive Delight and Bad Likert Judge, along with a multistage jailbreaking technique called Crescendo, against the DeepSeek models. After testing, they found out that there were high rates of bypassing safeguards, demonstrating tangible security risks. The findings imply how these models are vulnerable, raising security, credibility, and regulatory concerns.
“Additional testing across varying prohibited topics, such as drug production, misinformation, hate speech and violence resulted in successfully obtaining restricted information across all topic types.”
-Palo Alto Networks
Overall PANW ranks 7th on our list of the high flying AI stocks this week. While we acknowledge the potential of PANW 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 PANW 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.
