We recently published a list of 10 AI News And Ratings on Wall Street’s Radar. In this article, we are going to take a look at where Schrödinger, Inc. (NASDAQ:SDGR) stands against other AI news and ratings on Wall Street’s radar.
The launch of China’s DeepSeek AI app is prompting investors to question top AI US companies about their high capital spending over the years and negligible returns to show for it. Founded by former hedge fund manager Liang Wenfeng, DeepSeek’s r1 AI model is emerging as an alternative to ChatGPT’s o1 and Anthropic’s Claude AI models.
Furthermore, the Chinese company developed the open-source r1 AI model at a fraction of the costs for ChatGPT. It is estimated that the DeepSeek r1 model is 20 to 50 times more affordable to use than OpenAI’s o1 model, depending on the task.
Despite the lack of the latest GPUs and massive investments due to US export controls, DeepSeek achieved a significant milestone through innovative resource optimisation and maximizing software potential.
“DeepSeek’s r1 is an impressive model, particularly around what they’re able to deliver for the price,” OpenAI CEO Sam Altman said on X.com. “But mostly we are excited to continue to execute on our research roadmap and believe more compute is more important now than ever before to succeed at our mission.”
As DeepSeek continues to disrupt the global tech sector, companies across industries continue to achieve transformative breakthroughs. This article details the latest analyst stock ratings and upgrades on trending AI companies involved in quantum computing, renewable energy, biotech, AI cloud, and automotive firms.
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 biopharmaceutical executive discussing plans with a government laboratory.
Schrödinger, Inc. (NASDAQ:SDGR)
Number of Hedge Fund Holders: 17
Schrödinger, Inc. (NASDAQ:SDGR) utilizes quantum mechanics in medicine and material design to help biopharma companies as well as government labs in their research programs. Its drug discovery programs in various therapeutic areas lower drug development risks by identifying high-value targets backed by clinical validation. Declining computation costs, Schrödinger, Inc.’s (NASDAQ:SDGR) protein structure forecasting technology and AI integration are collectively expanding its capabilities to speed up physics simulations and develop technologies like machine-learned force fields for precise molecular property prediction.
On January 24th, KeyBanc hiked Schrödinger, Inc.’s (NASDAQ:SDGR) stock price target to $27 from $25 while reiterating an “Overweight” rating. The brokerage is of the view that the company deserves a more premium valuation multiple, given its recurring, high-margin revenue streams and massive internal pipeline of opportunities.
Overall, SDGR ranks 7th on our list of AI news and ratings on Wall Street’s radar. While we acknowledge the potential of SDGR 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 SDGR 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.
