China and the US have been at a crossroads over the past year over access to advanced chips and semiconductor equipment as technological rivalry heats up. While the US has been the most aggressive, it might have to rethink its export controls amid reports that Chinese buyers have found a way around them. Therefore, gaining access to its advanced artificial intelligence chips.
In order to limit China’s access to semiconductors for training and powering cutting-edge artificial intelligence, Washington has enforced export controls since 2022. President Joe Biden’s administration issued several directives and export controls that sought to stop China from acquiring the most cutting-edge chips. In the interest of national security, it also prevented China from obtaining sophisticated semiconductor equipment.
However, according to the Wall Street Journal, a clandestine network of brokers has emerged and is increasingly circumventing the restrictions. The report indicates that Chinese buyers might have the upper hand on routing advanced chips through third parties. The report further indicates that six AI servers with restricted Hopper chips have been delivered to at least two Chinese universities in Shenzhen and Wuhan since December.
Singapore’s government has already charged three men in a case that involves the sale of semiconductors that may violate US export laws. “We will not tolerate individuals and companies violating our laws or taking advantage of their association with Singapore to circumvent export controls of other countries,” Home Affairs Minister K Shanmugam told a press briefing.
As it stands, the new administration under President Donald Trump faces an uphill task of finding ways to curb access to advanced technologies through third parties as the technological rivalry heats up. In a research note to investors, analysts at Jefferies reiterated that the US could tighten chip export controls, a development that could escalate the US-China tech war.
The analysts said that Trump has specifically instructed them to use export controls to close any gaps in existing regulations and guarantee and improve the U.S. technological edge. According to Jefferies, this sets the stage for the United States to impose more stringent export regulations on China.
The push for stringent and aggressive restrictions comes as China changes its approach from employing symbolic legal and regulatory changes to investing in advanced technologies. According to an analysis at the Emerging Technology Observatory (ETO), China is currently producing the majority of the fundamental research that may support future computer hardware. If those efforts become commercially viable, the US may soon be unable to use export restrictions to maintain its competitive edge in the design and manufacturing of high-performance microchips.
By doing this, Beijing is indicating that it has taken the time to assess its own economic advantages, disadvantages, and vulnerability to US sanctions and is now more assured of its ability to compete on an equal footing with the US. There are some distinctive features to China’s strategy, such as the establishment of an economic early-warning system, even though some of it can be viewed as mimicking US export restrictions against Chinese tech firms.
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 in Q4 2024.
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 portfolio manager in a skyscraper office with global financial markets projected on the walls.
10. Aurora Mobile Limited (NASDAQ:JG)
Number of Hedge Fund Holders: 1
Aurora Mobile Limited (NASDAQ:JG) is a software infrastructure company that provides customer engagement and marketing technology services. The company utilizes artificial intelligence and machine learning to gain actionable and practical insights from its data and refine its data solutions. On March 3, the company affirmed plans to enhance artificial intelligence innovation in the Middle East, through its enterprise AI agent platform, GPTBots.ai, on strengthening its collaboration with Qatar Science and Technology Park.
Aurora Mobile Limited’s (NASDAQ:JG) partnership with Qatar Science & Technology Park (QSTP) underscores its dedication to advancing AI technology in the MENA region. By integrating DeepSeek into GPTBots.ai, the platform now offers more affordable and accessible AI solutions for Middle Eastern enterprises. This enhancement, coupled with GPTBots.ai’s no-code platform, enables rapid and localized AI application deployment across industries, potentially expanding the customer base and driving revenue growth.
9. Gorilla Technology Group (NASDAQ:GRRR)
Number of Hedge Fund Holders: 4
Gorilla Technology Group (NASDAQ:GRRR) provides security, network, business intelligence, and Internet of Things (IoT) technology solutions. It also offers intelligent video analytics AI model solutions to scan video for patterns and distinguish specific items using AI algorithms and metadata. On March 3, the company confirmed the signing of a $1.8 billion agreement to leverage artificial intelligence solutions to spearhead Thailand’s largest-ever energy digitization and infrastructure transformation initiative.
The digitization drive seeks to establish a new international standard for AI-driven modernization as Thailand starts a national energy revolution. Under Gorilla Technology Group’s (NASDAQ:GRRR) direction, the initiative will combine automation, data-driven intelligence, and cutting-edge technology to build a more intelligent and robust energy ecosystem. The deal places Gorilla at the nexus of three crucial technological areas: advanced energy management, cybersecurity for vital national assets, and AI-based grid infrastructure.
“This agreement represents a defining moment for Gorilla Technology and for Thailand’s energy sector. By combining our AI and advanced analytics expertise with the country’s vision for the future, we are embarking on a transformative journey that will reshape how energy is distributed and consumed across the nation,” Viraphan Paiboolsilp, Technology Specialist, stated.
8. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 5
Rezolve AI Limited (NASDAQ:RZLV) is a software infrastructure company that provides AI solutions for commerce. Its platform empowers retailers, brands, and manufacturers to create dynamic connections with consumers, transcending barriers of location and device. On March 3, the company echoed its support for President Donald Trump’s landmark announcement that designated cryptocurrencies as part of the US strategic reserve.
The landmark designation marks a transformative milestone for blockchain technology at a time when Rezolve is forging its initiative with Tether and maintaining a Bitcoin (BTC) treasury. Rezolve says stablecoins like USDT are extremely important for cross-border transactions and reserve diversification. Rezolve AI Limited’s (NASDAQ:RZLV) cryptocurrency integration into its AI-powered payment ecosystems aims to guarantee smooth, legal liquidity for businesses and governments.
“The U.S. government’s endorsement of cryptocurrencies as strategic reserves is a resounding validation of Rezolve’s roadmap. Our collaboration with Tether and proactive BTC treasury strategy were designed precisely for this moment – where digital assets transition from speculative tools to foundational pillars of economic infrastructure. This policy shift accelerates opportunities for Rezolve to empower businesses and institutions with AI-driven solutions that bridge traditional finance and the blockchain future,” Daniel M Wagner, CEO of Rezolve AI Limited, remarked.
7. Tuya Inc. (NYSE:TUYA)
Number of Hedge Fund Holders: 13
Tuya Inc. (NYSE:TUYA) is a technology company that offers a purpose-built Internet of Things (IoT) cloud development platform. It provides a platform-as-a-service that enables businesses, original equipment manufacturers, and brands to develop, launch, manage, and monetize software-enabled smart devices and services. On February 28, the company confirmed integrating DeepSeek’s large language model into its AIoT. The integration is part of the company’s bid to help global developers create a new generation of smart home management robots.
The integration of DeepSeek will allow Tuya AIoT to offer more intelligent upgrade solutions for global developers in the home management robots sector. The robots will have sophisticated features like bio-level interaction and cognitive enhancement, enabling precise recording and reaction to user commands. This will turn them into personal butlers, providing users with a very convenient and customized home lifestyle.
6. Viavi Solutions Inc. (NASDAQ:VIAV)
Number of Hedge Fund Holders: 28
Viavi Solutions Inc. (NASDAQ:VIAV) is a communication equipment company that provides network test, monitoring, and assurance solutions for communications service providers, hyperscalers, and network equipment manufacturers. On March 3, the company confirmed signing an agreement to acquire Spirent Communication’s high-speed ethernet and network security business lines for a base cash of $410 million and an additional $15 million contingent cash consideration.
The acquisition is poised to expand and strengthen Viavi’s solutions in ethernet testing and network security. It should also provide a synergistic product portfolio across various verticals, including AI and digital infrastructure. Viavi Solutions Inc. (NASDAQ:VIAV) is in a strong position to take advantage of opportunities in the growing markets of artificial intelligence, digital infrastructure, and network security by incorporating Spirent’s experience and product line. The acquisition should also improve the company’s capacity to cater to various market niches, such as government, NEMs, businesses, and service providers.
5. Amdocs Limited (NASDAQ:DOX)
Number of Hedge Fund Holders: 29
Amdocs Limited (NASDAQ:DOX) is a software infrastructure company offering software and services to providers of communications, entertainment, and media. It offers CES24, a set of embedded GenAI-driven assistants powered by the amAIz platform that allows service providers to transform their businesses. On March 3, the company confirmed the launch of Amdocs Studios, a digital service that empowers service providers in the telecommunications industry.
The new solution should cover every stage of the digital transformation process by combining expertise from experience design, generative AI, cloud services, and quality engineering. Launching the AI-powered solution should expand Amdoc’s footprint beyond the traditional telecom software market and into high-margin digital services. Additionally, the diversification approach should allay investor worries about Amdocs’ traditional market growth cap. Additionally, the integration of GenAI throughout all studios shows the company’s dedication to adding cutting-edge technologies to its service offering.
“Amdocs Studios represents our commitment to driving transformative results at scale,” said Ronen Levkovich, Group President of Amdocs Global Services. “By harnessing industry-leading expertise spanning experience design, digital engineering, GenAI, data, cloud, and quality engineering, we empower our customers to redefine their digital transformation journeys, unlocking new possibilities for the future.”
4. IDEAYA Biosciences, Inc. (NASDAQ:IDYA)
Number of Hedge Fund Holders: 34
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is a precision medicine oncology company that discovers and develops targeted therapeutics for patient populations selected using molecular diagnostics. On March 3, the company announced a strategic collaboration with ATTMOS to build a physics-based computational small molecule discovery platform.
The strategic partnership seeks to engineer and optimize a workflow solution to enhance the development of first-in-class drug candidate molecules. IDEAYA Biosciences, Inc.’s (NASDAQ:IDYA) partnership with ATTMOS represents a substantial technological advancement in enhancing AI-driven drug discovery capabilities. The partnership will combine ATTMOS’s software development and high-performance computing strengths with IDEAYA’s unique and demonstrated structural biology capabilities.
“Current AI/ML-enabled drug discovery approaches have been largely applied to either already drugged targets or well-understood biological target classes and often fail when applied to first-in-class target opportunities. IDEAYA continues to enhance its computational drug discovery capabilities to pursue first-in-class oncology targets that are perceived as undruggable,” said Michael White, Ph.D., Chief Scientific Officer, and IDEAYA Biosciences.”
3. TeraWulf Inc. (NASDAQ:WULF)
Number of Hedge Fund Holders: 43
TeraWulf Inc. (NASDAQ:WULF) is a digital asset technology company that develops and operates sustainable facilities for Bitcoin mining and AI/HPC applications. The company provides data center infrastructure designed for Artificial Intelligence (AI) and High-Performance Computing (HPC) applications. On March 3, Kevin Cassidy of Rosenblatt reiterated a Buy rating on the stock with a $10 price target.
The Buy rating comes just days after TeraWulf Inc. (NASDAQ:WULF) delivered solid fourth quarter and full year 2024 results on achieving significant financial and operational milestones. Full-year revenue was up by 102%, amounting to $140.1 million, driven by increased bitcoin production. Adjusted EBITDA nearly doubled to $60.4 million from $31.9 million delivered in 2023. During the year, TeraWulf expanded into the digital infrastructure market, focusing on AI and HPC hosting. The expansion and diversification drive is part of the company’s bid to generate $1 billion in cumulative revenue over 10-year contract terms.
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 105
Oracle Corporation (NYSE:ORCL) is a computer technology company that creates software and hardware products and offers services to help businesses manage data. It also integrates artificial intelligence capabilities into its cloud platform and various business applications, allowing companies to leverage AI for tasks like data analysis. The company unveiled new AI agent capabilities on March 3, focusing on providing real-time support to help subcontractors with payment applications.
The integrated AI agents should allow subcontractors to quickly check payment status, access required forms, and complete necessary documentation through simple text queries. In addition to offering contextualized answers, the system helps users with follow-up tasks like locating particular projects and finishing outstanding compliance paperwork. The implementation aligns with Oracle Corporation’s (NYSE:ORCL) overarching enterprise strategy of integrating functional AI capabilities into workflow applications.
“By adding agentic AI capabilities, we are taking even more time and hassle out of the payment process, especially in that vital subcontractor ‘draw weeks.’ With the ability to get in-app, real-time assistance 24/7, we are helping our general contractor customers improve the relationships with their subcontractors while reducing costly support calls,” said Mike Antis, global vice president of Textura.
1. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 110
ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise. It also provides artificial intelligence solutions that help with human resource and customer service management. On March 3, it unveiled AI agents for the telecom industry, affirming its evolution from workflow automation to intelligent orchestration.
Built with NVIDIA AI Enterprise software, the AI agents are designed to drive productivity across the entire service lifecycle in the telecommunication industry. The AI agents will be employed by communications service providers (CSPs) to solve some of the most prevalent, time-consuming customer service and network operations workflows on their own.
“The launch of new AI agents developed specifically for the telecom industry demonstrates our continued commitment to building solutions that help solve the biggest challenges facing business leaders. ServiceNow has been at the forefront of AI innovation for years, and this collaboration with NVIDIA marks the next step in delivering agentic AI-powered automation that transforms how CSPs operate and serve their customers,” said Rohit Batra, general manager and vice president for manufacturing, telecommunications, media, and technology at ServiceNow.
While we acknowledge the potential of ServiceNow, Inc. (NYSE:NOW) 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 NOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
