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 Perfect Corp. (NYSE:PERF) 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 fashion model in a stunning and stylish outfit leveraging augmented reality beauty and fashion tech.
Perfect Corp. (NYSE:PERF)
Number of Hedge Fund Holders: 9
Perfect Corp. (NYSE:PERF) offers AI and AR beauty and fashion technology solutions. It works with hundreds of global partners to empower brands by revolutionizing shopping experiences through digital innovations like hyper-realistic virtual try-ons, AI-driven skin analysis, and ultra-personalize product recommendations.
On February 25th, Perfect Corp. (NYSE:PERF) announced a partnership with Skinworx, which is a provider of skincare and aesthetic treatments. This collaboration will allow Skinworx to improve the guest experience at its medspa location in Walnut Creek, California, using Perfect Corp.’s (NYSE:PERF) AI skin-scanning technology called Skincare Pro platform, which enables the analysis of diverse skin concerns in seconds and help in the accurate selection of treatment options.
“We’re excited to partner with Skinworx to help elevate their guest experience with our Skincare Pro technology. The technology provides fast, detailed, and accurate skin assessments, allowing providers like Skinworx to offer guests highly personalized treatment plans that deliver real results.”
-said Alice Chang, Founder and CEO of Perfect Corp.
Overall PERF ranks 7th on our list of AI stocks that investors likely missed. While we acknowledge the potential of PERF 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 PERF 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.
