We recently compiled a list of the 12 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against the other trending AI stocks.
DeepSeek may have astounded the tech world following its emergence, but not everyone seems to be a fan. In the latest news report, Reuters reported that South Korea’s industry ministry temporarily blocked access to Chinese artificial intelligence startup DeepSeek due to security concerns. The government urges caution on generative AI services, particularly calling out ministries and agencies about using AI services such as ChatGPT and DeepSeek at work.
READ NOW: Top 10 AI Stocks Trending On Wall Street and 12 High-Flying AI Stocks This Week
State-run Korea Hydro & Nuclear Power reported blocking the use of AI services including DeepSeek earlier this month. The defense ministry has done the same for its computers that are for military use, reported officials. Yonhap News Agency has further reported restricting access to DeepSeek in computers that connect to external networks. South Korea, however, isn’t the only country that despises DeepSeek for its security vulnerabilities.
BBC has also reported on the matter, stating that Australia has banned DeepSeek from all government devices and systems. The country is concerned over the security risk the Chinese artificial intelligence (AI) startup poses. Its government further insisted that the ban comes not because the startup is Chinese, but because of the “unacceptable risk” it poses to national security. The move specifically requires government entities to “prevent the use or installation of DeepSeek products, applications, and web services”, as well as remove any previously installed, on any government system or device. As a result, a wide range of workers won’t be able to use DeepSeek in the country.
Similarly, the US Navy has also banned the use of DeepSeek, as reported by CNBC last week. The Navy reportedly said that DeepSeek’s AI was not to be used “in any capacity” due to “potential security and ethical concerns associated with the model’s origin and usage.”
“We would like to bring to your attention a critical update regarding a new AI model called DeepSeek,” The memo said it’s “imperative” that team members do not use DeepSeek’s AI “for any work-related tasks or personal use.”
-The Navy’s warning to the distribution list OpNav, Operational Navy.
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 closeup of a woman’s hands typing rapidly on a laptop in a corporate office setting.
International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products. On February 5, David Grossman from Stifel Nicolaus maintained a “Buy” rating on the stock with a price target of $290.00. IBM’s growth prospects and financial outlook have led to the buy rating for the stock. The company’s management has presented a new financial roadmap that focuses on moderate revenue growth, a projected annual expansion of operating margin, and free cash flow growth exceeding revenue growth. The analyst noted that IBM has several avenues for achieving revenue growth targets, especially through accelerated software growth. The company has already witnessed its software segment recording its biggest revenue jump in five years in Q4, with customers prioritizing spending on cloud infrastructure amidst a rush to adopt the data-intensive generative artificial intelligence technology. Additionally, its current trading position at a fair valuation combined with its dividend yield suggests potential price appreciation. Free cash flow generation is also improving, increasing IBM’s ability to invest in growth.
Overall IBM ranks 6th on our list of the trending AI stocks on latest news and ratings. While we acknowledge the potential of IBM 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 IBM 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.
