We recently compiled a list of the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts. In this article, we are going to take a look at where SentinelOne, Inc. (NYSE:S) stands against the other AI stocks.
Consumer Electronics Show (CES) 2025 revolved around AI. If not, it’s all that exhibitors could show. Talking about the highlight of the show, it was undoubtedly the keynote from Jensen Huang. The keynote included new products to advance gaming, autonomous vehicles, robotics, and agentic AI. Huang kicked off his talk by reflecting on the company’s 3-decade journey. Later on, he highlighted several significant advancements.
Takeaways From CEO Jensen Huang’s Keynote at CES 2025
As per Huang, AI has been advancing at an ‘incredible pace.’ It started with perception AI, meaning understanding images, words, and sounds. Then it came to generative AI, meaning creating text, images, and sound. And now, it’s the era of physical AI, meaning AI that can proceed, reason, plan, and act. The AI giant introduced GeForce RTX 50 Series GPUs, which are powered by Blackwell architecture. These GPUs provide significant improvements in AI-driven rendering, enhancing gaming and creative workflows. Furthermore, Huang unveiled “Cosmos,” which is a suite of foundational AI models capable of generating photorealistic video. The models have been designed in such a way that train robots and automated systems more efficiently, further advancing robotics and autonomous technologies.
The company and its partners have rolled out AI Blueprints for agentic AI, which includes PDF-to-podcast for efficient research and video search and summarization for assessing significant quantities of video and images — allowing developers to build, test, and run AI agents anywhere.
Agentic AI- Road Ahead in 2025
TechInformed interviewed experts from leading technology companies to explore predictions about Agentic AI. As per Steven Webb, UK chief technology and innovation officer, Capgemini, 2025 will see wider adoption of small language models (SLMs) and AI agents as an era of Agentic AI is fast approaching. Using multiple SLMs throughout a toolchain is expected to play a critical role in the AI evolution. This will include going beyond the already familiar LLMs such as GPT.
Furthermore, Alan Jacobson (chief data and analytics officer at Alteryx) believes that 2025 will see the rise of Gen AI agents used to solve problems. This is an approach that is made possible by reducing costs and improving the performance and speed of LLMs. Frameworks for orchestrating Agentic AI work are expected to emerge. Notably, a large percentage of use cases are expected to start to employ this approach.
Our Methodology
To list the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts, we conducted extensive research and sifted through numerous online rankings. After getting an initial list of 25-30 stocks, we chose the ones that were popular among hedge funds and that analysts saw upside to. Finally, the stocks were arranged in ascending order of their average upside potential, as of 14th January. We also mentioned hedge fund sentiments around each stock, as of Q3 2024.
At Insider Monkey we are obsessed with 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).
An engineer typing on a computer, developing the latest cybersecurity application.
SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 37
Average Upside Potential: 37.3%
SentinelOne, Inc. (NYSE:S) is an AI-driven cybersecurity firm leveraging AI and ML to offer advanced endpoint protection, threat detection, and response solutions. The company’s strategic focus on AI-driven security and expansion into cloud-native solutions places it well with current market trends. With organizations adopting cloud computing and facing sophisticated cyber threats, the demand for advanced, AI-powered security solutions is anticipated to grow. SentinelOne, Inc. (NYSE:S)’s investments in areas like Purple AI and Cloud Native Security place it well to capitalize on these trends.
The success of such initiatives is expected to diversify the company’s revenue streams and create higher-margin business opportunities. If SentinelOne, Inc. (NYSE:S) establishes itself as a leader in AI-driven cloud security, it can fuel sustainable long-term growth and achieve a competitive edge against both traditional security vendors and cloud-native challengers. SentinelOne, Inc. (NYSE:S)’s ability to address increased demand for AI-driven data management solutions and facilitate cloud migrations for large enterprises places it well in the dynamic environment.
Since organizations have been adopting AI across industries, the complexity and volume of cyber threats targeting AI systems and other digital assets have been increasing. SentinelOne, Inc. (NYSE:S)’s AI-powered Singularity platform remains well-placed to address this demand with advanced features. Baron Funds, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“We are huge believers in the practical uses of AI, and we have several investments in companies that adapt AI models to enhance their products and services. These include companies like GitLab Inc., Sentinelone Inc. (NYSE:S), and Couchbase, Inc., which were among our top detractors at one point in the second quarter (GitLab and SentinelOne recovered significantly in the last week of the quarter). As of the second quarter at least, the market has just not been ready to reward AI companies beyond those providing “picks and shovels.” This led to all three of these companies trading at or near all-time low valuation levels during the quarter. Nevertheless, we believe that in the coming quarters the market will broaden its level of interest from AI hardware to “adaptive AI” investments like GitLab, SentinelOne, and Couchbase. In that scenario, all three of these stocks have significant upside potential.
GitLab is a subscription software company that enables enterprise software developers to develop new software applications rapidly and securely for their firms. GitLab uses AI to help with code suggestions, to check for holes in security, and to automate collaboration among the many developers within an enterprise. GitLab recently launched a product called Duo that we believe will provide revenue upside for the company and enhance the competitiveness of their product of offerings. SentinelOne is a cybersecurity company that provides endpoint protection (a much more advanced version of legacy “anti-virus” software) both at customers’ physical sites and in the cloud. It uses AI to detect anomalous behavior on the network and to automate the remediation of the security flaws that led to the intrusion. Both companies are recurring revenue entities, with high gross margins (78% for SentinelOne and 90% for GitLab) and are growing rapidly (revenue growth of 25% or more). Yet both are trading at or near all-time low valuation levels. SentinelOne slightly beat full-year revenue guidance but guided to an operating loss that was $7.5 million worse than consensus (entirely accounted for by the increased operating expense pulled in from acquisitions – including PingSafe which allows SentinelOne to scan cloud-based workloads without the need to install a software agent). This led to a one-day stock drop of as much as 31% which we attribute purely to market skittishness. By quarter end, SentinelOne’s shares had fully recovered. We believe the company can grow revenues by 25% from 2024 through 2028 and that free cash flow will go up over 10-fold in this period. We see the stock at least doubling from its current price.”
Overall S ranks 10th on our list of the best AI stocks to buy according to analysts. While we acknowledge the potential of S as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than AI 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.
