OpenAI CEO Sam Altman continues to forge alliances in Asia, visiting India on February 5th to meet industry leaders and prominent founders and discuss the company’s plans for the Indian market.
Yesterday, Sam Altman was in South Korea to sign a deal with tech giant Kakao to integrate ChatGPT features into Kakao’s diverse services. OpenAI’s investments and partnerships, backed by the Stargate program, could indicate the US AI industry is racing to capture emerging markets amid the growing popularity of cheap and effective Chinese AI models like DeepSeek R1 and Alibaba’s Qwen 2.5. Altman reportedly admitted in South Korea that OpenAI “hasn’t found a strategy yet” to respond to DeepSeek.
“India is an incredible market for AI in general, for us too. It’s our second biggest market after the US. Users here have tripled in the last year. The innovation that’s happening, what people are building [in India], it’s really incredible,” Altman said. “We’re excited to do much, much more here, and I think it’s (the Indian AI program) a great plan. And India will build great models.”
Meanwhile, US stock futures retreated after Alphabet’s Q4 cloud revenue missed estimates and AMD’s disappointing data center sales forecast heightened concerns about a slump in AI momentum despite hefty R&D spending. Overall, investors remained alert for new developments in the ongoing US-China trade war.
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.
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10. Sealsq Corp. (NASDAQ:LAES)
Number of Hedge Fund Holders: N/A
Sealsq Corp. (NASDAQ:LAES) offers digital security solutions, including data security, access control, anticounterfeiting, provisioning, and secure satellite IoT connectivity through its FIPS-certified semiconductors, managed PKI, and quantum innovation. The company’s Quantum Lab offers quantum-resistant secure microcontrollers and trust services to protect digital assets in the quantum computing era.
On February 5th, Sealsq Corp. (NASDAQ:LAES) announced allocating up to $20 million to invest in startups focusing on AI-driven semiconductor tech, quantum computing, and quantum-as-a-service offerings. The company believes this investment will help startups at the forefront of building quantum computing architectures, networking solutions, and cloud services fortified by Sealsq Corp.’s (NASDAQ:LAES) next-gen security protocols.
9. Aurora Mobile Ltd. (NASDAQ:JG)
Number of Hedge Fund Holders: N/A
Aurora Mobile Ltd. (NASDAQ:JG) offers mobile big-data solutions for app developers. The company’s developer services offer core in-app functionalities used by major internet firms and consumer brands like SINA and Starbucks. The company collects anonymous device-level mobile behavioral data, which is then structured and encrypted for AI-powered modeling exercises. It also applies AI and ML to its data repositories to refine its data solutions.
On February 5th, Aurora Mobile Ltd. (NASDAQ:JG) said its AI agent platform, GPTBots.ai, has integrated DeepSeek’s Janus-Pro into its ecosystem as an Open Tool, enhancing its AI capabilities. This integration follows the recent inclusion of DeepSeek’s R1 LLM, reinforcing GPTBots.ai’s position as a leading supplier of next-gen AI services tailored for enterprises.
8. Knightscope Inc. (NASDAQ:KSCP)
Number of Hedge Fund Holders: N/A
Knightscope Inc. (NASDAQ:KSCP) designs and supplies AI technologies and autonomous security robots that use lasers systems and new-age sensors to patrol public areas like corporate campuses and shopping malls. These robots can track suspicious activities and alert authorities to report security incidents.
On February 5th, Lake Street initiated coverage of Knightscope Inc. (NASDAQ:KSCP) with a “Buy” rating and a $17 stock price target. The brokerage believes the growing focus on shortages and costs in the labor market alongside an uptrend in property crime provider “solid tailwinds” as the company’s autonomous service robots “nicely complement law enforcement officers and security guards.” Analysts explained that Knightscope Inc. (NASDAQ:KSCP) is the only firm offering an end-to-end product suite and is well-positioned to capture market share.
7. Rezolve AI Ltd. (NASDAQ:RZLV)
Number of Hedge Fund Holders: 3
Rezolve AI Ltd. (NASDAQ:RZLV) offers GenAI-powered solutions for commerce and retail, such as “Brain Commerce,” “Brain Checkout,” and “Brain Assistant,” to improve customer engagement, innovate checkout processes, and enhance revenue growth. The goal is to deliver a personalized and frictionless shopping experience.
On February 5th, Rezolve AI Ltd. (NASDAQ:RZLV) announced strong 2025 momentum as leading brands like Dunkin’, Discount Tire, Phoenix Suns, and Coles Supermarkets are increasingly using its AI-driven technology to improve customer engagement and operational efficiency by ensuring faster order pickups, personalized digital menus, and contactless grocery pickups. With more than 16 million devices using the company’s AI tech every month, Rezolve AI Ltd. (NASDAQ:RZLV) continues to expand its market presence and tech capabilities in retail and sports entertainment.
6. AudioCodes Ltd. (NASDAQ:AUDC)
Number of Hedge Fund Holders: 8
AudioCodes Ltd. (NASDAQ:AUDC) develops and supplies communication software, Voice over IP (VoIP) solutions, and managed services for enterprise and global service providers. The company’s Voice.AI Connect integrates cognitive voice service and bot framework with any voice or telephony channel, thus allowing customers to talk naturally with chatbots for an audio-centric user experience. The service essentially extends text-based chatbot functionality to voice communications.
On February 5th, Barclays increased AudioCodes Ltd.’s (NASDAQ:AUDC) target price to $10 from $9 and maintained an “Underweight” stock rating post-Q4 report. The brokerage attributed the positive growth outlook for fiscal 2025 to the opportunities in the company’s Voice.AI and Live managed services.
5. Clover Health Investments Corp. (NASDAQ:CLOV)
Number of Hedge Fund Holders: 12
Clover Health Investments Corp. (NASDAQ:CLOV) is a Medicare Advantage provider that uses AI products like the Counterpart Assistant to reduce healthcare costs and support primary care physicians in decision-making for better patient outcomes.
On February 5th, Clover Health Investments Corp.’s (NASDAQ:CLOV) subsidiary, Counterpart Health, an AI-powered physician enablement platform, revealed a multi-year agreement with healthcare delivery leader Southern Illinois Healthcare (SIH). The agreement will equip SIH’s care teams with the AI-driven Counterpart Assistant to deliver real-time, patient-specific insights directly into physicians’ workflows, facilitating better clinical decisions and enhanced value-based care delivery.
4. Bitdeer Technologies Group (NASDAQ:BTDR)
Number of Hedge Fund Holders: 19
Bitdeer Technologies Group (NASDAQ:BTDR) offers crypto mining solutions, turnkey AI datacenter solutions, and an end-to-end AI ecosystem for large-scale HPC and AI/ML workloads. It eliminates the complexities of AI infrastructure by seamlessly managing complex computations in demanding scenarios.
On February 5th, Rosenblatt analyst Kevin Cassidy increased Bitdeer Technologies Group’s (NASDAQ:BTDR) target price to $30 from $22 and maintained a “Buy” rating after meeting with management. The brokerage said its takeaway from the engagement was that the company has a clear path to becoming the largest vertically integrated Bitcoin miner. Analysts added that the company has “great potential” to diversify into AI with expanding access to power.
3. Vishay Intertechnology Inc. (NYSE:VSH)
Number of Hedge Fund Holders: 25
Vishay Intertechnology Inc. (NYSE:VSH) manufactures semiconductors and passive components for consumer products, automotive parts, and medical equipment. The company is powering AI devices and is a leading supplier of polymer tantalum capacitors, current shunt resistors, MOSFET modules, DrMOS components, and Schottky barrier diodes for Nvidia’s (NASDAQ:NVDA) Blackwell AI servers and RTX 50 series graphics cards.
On February 5th, Vishay Intertechnology Inc. (NYSE:VSH) posted Q4 revenue of $714.7 million, slightly missing revenue estimates.
“Our fourth quarter results came in as expected, slightly below the third quarter. Nevertheless, we saw many promising indicators, including a positive book-to-bill for the first time in nine quarters, strong order intake for smart grid infrastructure projects, and initial shipments for AI servers,” said CEO Joel Smejkal. “For 2025, we are well positioned to support a market upturn as capacity, print position, and customer engagements have been key priorities under Vishay 3.0.”
2. Pure Storage Inc (NYSE:PSTG)
Number of Hedge Fund Holders: 31
Pure Storage Inc. (NYSE:PSTG) offers leading data storage and management solutions to simplify data storage for businesses through its unified platform powered by automated features. The company’s products focus on all-flash storage arrays, which enable efficient storage and management of large data volumes across diverse applications, including cloud-based environments.
On February 5th, Pure Storage Inc. (NYSE:PSTG) launched an updated Reseller Partner Program to improve the profitability opportunity for partners by enabling them to lead customers to data storage transformation. Amid the growing transition to flash from hard disk, the updated program offers partners the tools to address customers’ data storage requirements and customize the Pure Storage Platform to address solution-specific use cases, including AI and cyber resilience.
1. Varonis Systems Inc. (NASDAQ:VRNS)
Number of Hedge Fund Holders: 42
Varonis Systems Inc. (NASDAQ:VRNS) is a supplier of cybersecurity solutions. Its software platform safeguards and automates unstructured data management using patented AI and ML technologies. The AI software features attributes like user behavior analytics and forensic analysis via interfaces like data advantage, data privilege, and the data classification engine for automated threat identification and remediation for enterprises.
On February 5th, Wells Fargo trimmed Varonis Systems Inc.’s (NASDAQ:VRNS) stock price target to $46 to $48 and retained an “Equal Weight” rating. Company shares declined after mixed Q4 results. The brokerage said that although the SaaS transition is gaining traction, GenAI impact remains small and ARR growth is slowing down to 15% in CY25, which doesn’t yet warrant a premium valuation.
While we acknowledge the potential of Varonis Systems Inc. (NASDAQ:VRNS) 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 VRNS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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