In this article, we discuss the top 10 AI news and ratings you probably missed.
As per a CNBC report, billionaire investor Steve Cohen remains confident in the long-term potential of artificial intelligence, despite recent volatility. He views AI as a transformational shift that could take 10 to 20 years to fully unfold, which will impact businesses and daily life. Cohen acknowledged that the AI market may experience ups and downs, with periods of doubt fueled by misinformation and uncertainty. His comments followed a major sell-off in U.S. tech stocks, triggered by the competitive advancements of the Chinese startup DeepSeek. Despite this, Cohen’s firm plans to raise $1.5 billion for an AI-focused hedge fund to take advantage of the sector’s growth.
Embracing the AI Future in the U.S.
Steve Cohen’s support for AI’s long-term growth and President Donald Trump’s recent push for rapid AI infrastructure development highlight the U.S. emphasis on dominating the global AI race. However, Cohen stresses a more measured approach while Trump favors fewer regulatory constraints to accelerate progress.
In his first days back in office, Trump reversed Biden’s executive order on AI, removing key safety and transparency measures for AI development, Bloomberg reported. Trump introduced a $100 billion joint venture with SoftBank, OpenAI, and Oracle, focused on AI infrastructure like data centers. He emphasized reducing environmental regulations, which could relax clean energy requirements for powering AI operations. While tech leaders expressed optimism about Trump’s pro-tech stance, experts warned about the risks of unregulated AI growth. Trump’s focus on outpacing China in AI development could shift U.S. policy toward faster, less regulated progress, raising concerns about long-term consequences, the report stated.
For this article, 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).
Top 10 AI News and Ratings You Probably Missed
10. WiMi Hologram Cloud Inc. (NASDAQ:WIMI)
Number of Hedge Fund Holders: 2
WiMi Hologram Cloud Inc. (NASDAQ:WIMI) offers augmented reality-based holographic services, including advertising, entertainment, and semiconductor solutions, across various industries in China.
On January 27, WiMi Hologram Cloud Inc. (NASDAQ:WIMI) announced plans to develop AI applications using DeepSeek, an advanced open-source AI model known for its capabilities in mathematics, code generation, and natural language reasoning. By integrating DeepSeek’s API and algorithms, WiMi aims to advance its products with natural language processing, text generation, and intelligent coding tools. These tools will assist programmers with code completion, quality analysis, and optimization. The company plans to expand its AI research and collaborate with leading AI firms to drive innovation and improve user experiences across various industries.
9. Sangoma Technologies Corporation (NASDAQ:SANG)
Number of Hedge Fund Holders: N/A
Sangoma Technologies Corporation (NASDAQ:SANG) offers voice and data connectivity solutions, including cloud and on-premises communications platforms, security services, and hardware for businesses worldwide.
On January 28, Sangoma Technologies Corporation unveiled important AI advancements within its Sangoma GenAI platform, focusing on optimizing communication operations. New features include an improved Conversational IVR system, a Patient Relationship Management system integrated with Electronic Health Records, and a Sangoma Scribe for transcription and sentiment analysis.
Additionally, AI-driven tools like chatbots, virtual assistants, and AI Assist improve contact center efficiency. Sangoma continues to invest in open-source projects like Asterisk and FreePBX, with ongoing innovations. The company will also showcase its AI integration at the upcoming AstriCon conference.
8. Lytus Technologies Holdings PTV. Ltd. (NASDAQ:LYT)
Number of Hedge Fund Holders: N/A
Lytus Technologies Holdings PTV. Ltd. (NASDAQ:LYT) provides cable streaming and telemedicine services, along with fintech product development in India.
On January 28, Lytus Technologies launched its subsidiary, Lytus HealthTech, to address challenges in India’s healthcare system. The new platform aims to improve patient care by integrating advanced technologies with personalized solutions. It features AI-powered analytics and real-time data insights to improve decision-making, streamline workflows, and reduce wait times, particularly in underserved areas. The platform is designed to boost efficiency, reduce operational costs, and improve healthcare accessibility. Lytus plans to roll out the platform within two years, recruiting talent to support this initiative and set a new standard in health tech innovation in India.
7. Vuzix Corporation (NASDAQ:VUZI)
Number of Hedge Fund Holders: 5
Vuzix Corporation (NASDAQ:VUZI) designs and sells smart glasses and AR technologies for various markets, including enterprise, medical, and defense, with a portfolio of patents and optical products.
On January 21, Vuzix Corporation announced that it entered a distribution agreement with Evantek Pte Ltd, a system integrator offering advanced technology solutions across the Asia Pacific region. Under this partnership, Evantek will distribute Vuzix M400 smart glasses to industries such as healthcare, field services, and manufacturing. The companies aim to help clients improve their digital transformation through AI and AR technologies.
6. Blackbaud, Inc. (NASDAQ:BLKB)
Number of Hedge Fund Holders: 13
Blackbaud, Inc. (NASDAQ:BLKB) provides cloud-based software solutions for nonprofits, educational institutions, and healthcare organizations, focusing on fundraising, financial management, and social responsibility.
On January 28, Blackbaud (NASDAQ:BLKB) partnered with True Impact to strengthen its AI-powered reporting platform, Blackbaud Impact Edge, for corporate clients using YourCause. This integration will provide predictive, outcome-based impact data, allowing companies to move beyond tracking basic data points and gain evidence-based insights on how their CSR initiatives drive real-world results.
The partnership will enable clients to visualize and measure the impact of their philanthropic efforts, from donations to volunteerism, through AI-driven dashboards. Main features include real-time insights, predictive forecasting, and integrated storytelling tools, all designed to improve decision-making and transparency. This innovation will be available to clients later this year.
5. Altair Engineering Inc. (NASDAQ:ALTR)
Number of Hedge Fund Holders: 13
Altair Engineering Inc. (NASDAQ:ALTR) provides software and cloud solutions for simulation, design, data analytics, and AI, serving industries like automotive, aerospace, and more globally.
On January 28, Altair and Cranfield University announced that they signed an MoU to advance the use of AI, simulation, and data analytics in the aerospace and robotics sectors. The collaboration aims to support students, researchers, and startups by exploring how these technologies can drive innovation. This partnership builds on Cranfield’s expertise in aerospace and its unique capabilities, including its own airport and runway, with the goal of accelerating developments in fields like autonomous space exploration, telecommunications, and defense.
4. Infosys Limited (NYSE:INFY)
Number of Hedge Fund Holders: 26
Infosys Limited (NYSE:INFY) provides consulting, technology, and digital services, including AI, cloud, blockchain, and more, across various industries worldwide.
On January 29, Infosys (NYSE:INFY) and Siemens AG announced that they are expanding their partnership to advance Siemens’ digital learning initiatives using generative AI. The collaboration will provide over 250,000 Siemens employees with personalized upskilling through the My Learning World platform, which now integrates Infosys’ AI technologies like Topaz and Wingspan. The main features include an AI-powered knowledge assistant, content authoring tools, a chatbot for real-time support, and a virtual tutor for customized learning experiences. This expansion builds on their existing platform, which has over 216,000 active users and offers skill-based learning opportunities to Siemens’ global workforce.
3. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 66
Western Digital Corporation (NASDAQ:WDC) designs and sells data storage solutions for various applications globally.
Western Digital (NASDAQ:WDC) reported its FQ2 2025 results on January 29. The second quarter revenue reached $4.29 billion, reflecting a 5% sequential increase. Cloud revenue grew by 6%, while Client revenue declined by 3%, and Consumer revenue rose by 14%. GAAP EPS for the quarter was $1.63, with non-GAAP EPS at $1.77. For the fiscal third quarter of 2025, the company expects revenue between $3.75 billion and $3.95 billion, with non-GAAP EPS projected between $0.90 and $1.20. David Goeckeler, Western Digital CEO said:
“We expect that our strong performance in HDD and our strategic approach to managing our Flash business within the New Era of NAND will allow each company to capture the growing demand for storage driven by the AI Data Cycle.”
2. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 90
Eaton Corporation plc (NYSE:ETN) is a global power management company offering electrical, aerospace, vehicle, and eMobility solutions.
On January 29, TipRanks reported that Andrew Obin from Bank of America Securities reaffirmed a Buy rating on Eaton (NYSE:ETN) with a price target of $410. While fourth-quarter earnings expectations are modest, Eaton’s cautious guidance could create opportunities for positive revisions throughout the year. The transition to new CEO Paulo Ruiz is expected to support strategic adjustments and potential stock gains.
Additionally, Eaton’s connection to rising AI investment trends suggests strong growth potential, especially in the electrical sector. Despite recent stock fluctuations linked to DeepSeek-related news, Eaton’s solid order growth outlook reinforces its favorable position among industry peers.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) creates AI solutions for data centers, self-driving vehicles, robotics, and cloud technologies.
On January 29, WSJ reported that DeepSeek’s rise poses a risk to Nvidia’s dominance in the AI chip market. While Nvidia has benefited from the AI boom, its stock dropped following DeepSeek’s success. DeepSeek’s efficient AI model could reduce demand for Nvidia’s chips, raising concerns about U.S. export restrictions to China. Some analysts believe DeepSeek’s model could benefit Nvidia by expanding AI adoption, as per WSJ. Despite this, skepticism about DeepSeek’s claims persists, and major tech companies continue investing heavily in AI infrastructure.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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