As the DeepSeek-driven sell-off in US AI stocks started to fade, China is claiming advances in another new-age technology that can impact quantum computing stocks globally. Origin Quantum Computing Technology’s prototype received over 20 million remote visits worldwide, marking a major milestone in the mainland’s quantum computing landscape.
Although China has been viewed as lagging behind the US in quantum computing, it could be leading the race when it comes to quantum communications (quantum networking). China has consistently tested secure quantum communications in fiberoptic and satellite networks.
Elsewhere, physicists working in Google’s laboratory developed a new digital-analog quantum simulator that can study and calculate complex physical processes with unprecedented precision. The milestone has the potential to solve different challenges in diverse fields, from solid-state physics to astrophysics.
“Our research demonstrates that it is possible to create superconducting analog-digital quantum processors on a chip and that these are suitable as quantum simulators,” said Andreas Läuchli, one of the theoretical scientists involved in the breakthrough.
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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The trading floor of Pacific Investment Management Company LLC with traders focusing on the global fixed income markets.
10. Safe Pro Group Inc. (NASDAQ:SPAI)
Number of Hedge Fund Holders: N/A
Safe Pro Group Inc. (NASDAQ:SPAI) offers AI solutions powered by proprietary ML, computer vision technology, and Amazon Web Services for drone imagery processing to rapidly identify explosives threats.
On February 18th, Safe Pro Group Inc. (NASDAQ:SPAI) announced that its Safe Pro AI subsidiary will showcase its patented Drone AI-Powered SpotlightAITM technology at the XPONENTIAL Europe trade fair for autonomous technologies and robotics, which is scheduled between February 18th and 20th in Germany. Safe Pro AI’s lead software and AI developer, Gabriel Steinberg, will highlight how the company’s AI-powered mine and UXO detection capabilities could aid international peacekeeping forces by facilitating safer operations within any potential DMZ. Safe Pro’s proprietary AI models have analyzed over 945,000 drone images in Ukraine, identifying over 19,000 explosive remnants of war across 4,355 hectares.
“We are honored to present our disruptive American AI capabilities to leading international authorities at this pivotal point in time as global leaders are meeting in Europe to discuss the future security needs of Ukraine. Being chosen to present at flagship global events such as XPONENTIAL affords us the opportunity to bring greater attention to our firm and how our technology can support our allied nations in their global missions.”
-said Dan Erdberg, Chairman and CEO of Safe Pro Group Inc.
9. Predictive Oncology Inc. (NASDAQ:POAI)
Number of Hedge Fund Holders: N/A
Predictive Oncology Inc. (NASDAQ:POAI) uses AI and ML to accelerate early drug discovery and facilitate drug development to benefit cancer patients. The company’s AI platform, PEDAL, can forecast the efficacy of medicines on tumor samples with a 92% accuracy, enabling informed selection of drug/tumor type combinations for in-vitro testing.
On February 18th, Predictive Oncology Inc. (NASDAQ:POAI) announced that it built a registry of promising candidates using drug datasets abandoned or discontinued by pharma companies that can be repurposed to achieve efficacy in treating ovarian, colon, and breast cancer.
“Early results show that by running our platform for just eight weeks, we were able to identify compounds for use in one or more tumor types. By precisely measuring only 92 combinations of laboratory experiments on patient tumor samples, the predictive model was capable of making an additional 964 confident predictions, covering a total of 79% of all possible experiments,” said Dr. Arlette Uihlein, Medical Director at Predictive Oncology Inc. “Our active learning AI platform enabled us to efficiently and confidently predict an additional 10x the number of measured experiments, eliminating at least 18 months of wet lab testing and identifying two drugs as having very promising results for use in one or more tumor types. Both of these drugs outperformed a known standard of care drug used to treat colon cancer.”
8. Aurora Mobile Limited (NASDAQ:JG)
Number of Hedge Fund Holders: N/A
Aurora Mobile Limited (NASDAQ:JG) offers mobile big-data products and developer services that prioritize core in-app functionalities for customer engagement to leading internet firms and consumer brands. The company gathers anonymous device-level mobile data for AI-driven modeling exercises.
On February 18th, Aurora Mobile Limited (NASDAQ:JG) announced that its mobile push notification service, JPush, completed the DeepSeek integration. This integration embeds AI capabilities in the notifications ecosystem for real-time analysis of user behavior, preferences, and contextual data, allowing developers to craft more personalized and efficient push notifications for users, resulting in better engagement and conversion rates.
“We are thrilled to integrate DeepSeek into JPush, further solidifying our commitment to innovation and developer success. This integration not only enhances the capabilities of JPush but also opens up new possibilities for developers to create meaningful and impactful user experiences.”
-said Chris Lo, CEO of Aurora Mobile Limited
7. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 6
D-Wave Quantum Inc. (NYSE:QBTS) is the parent company of D-Wave Systems and DPCM Capital. The company works to advance quantum AI computing systems, software, and services to improve optimization capabilities of annealing quantum computing for clients to develop energy-efficient AI and ML workloads. D-Wave Quantum Inc.’s (NYSE:QBTS) quantum computers enable clients to address real-world business hurdles across industries like logistics, AI, materials science, and drug discovery.
On February 18th, D-Wave Quantum Inc. (NYSE:QBTS) and Staque, a top consulting leader in AI, blockchain, and quantum computing, announced they have jointly built a commercial hybrid-quantum application that simulates and streamlines the movements of autonomous agriculture vehicles at scale. The companies expect the solution to speed up autonomy in agriculture and optimize agricultural operations in real-time.
“We believe that nearly every industry can benefit from the computational power of quantum optimization, and we’re excited to see one of the first hybrid-quantum applications related to agriculture. As farmers increasingly adopt autonomous agriculture machines to scale and increase the output of their fields, we believe quantum computing can provide the analysis, speed, and accuracy necessary to maximize production and minimize costs.”
-said Dr. Alan Baratz, CEO of D-Wave Quantum Inc.
6. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
Number of Hedge Fund Holders: 7
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) mines and sells digital currencies like Bitcoin and Ethereum. The firm also builds and operates data centers that power cryptocurrency mining, high performance computing, and AI.
On February 18th, HIVE Digital Technologies Ltd. (NASDAQ:HIVE) announced the appointment of Craig Tavares as President and chief operating officer of Buzz HPC to oversee the company’s GPU Cloud and HPC data center division. Tavares has over two decades of experience in the AI, big data, data center, cloud, HPC, energy, and telecom industries. He is known for building one of the first HPC data centers in the US connected to a power plant.
“I’m thrilled to join Buzz to scale the HPC cloud and data center business, leveraging both new and existing high-quality assets to cater to the most demanding workloads,” said Tavares. “Buzz already provides one of the industry’s highest-performance Sovereign AI GPU platforms powered by renewable energy, and we will expand it through vertically integrated infrastructure and a suite of differentiated HPC service offerings.”
5. Rekor Systems Inc. (NASDAQ:REKR)
Number of Hedge Fund Holders: 9
Rekor Systems Inc. (NASDAQ:REKR) develops next-gen roadway intelligence systems using AI-enabled computer vision and ML to collect and organize global mobility data. The company’s flagship Rekor One Roadway Intelligence Engine helps collect and refine trillions of data points using proprietary software and big data analytics to extract actionable insights for government and businesses, enhancing roadway safety and sustainability.
On February 18th, Rekor Systems Inc. (NASDAQ:REKR) announced it secured a European patent for its new-age technology that uses data from in-vehicle sensors and roadway detectors to detect and quantify irregular traffic congestion and improve traffic flow, advancing the company’s mission to improve roadway safety and efficiency. Earlier, Rekor Systems Inc. (NASDAQ:REKR) secured patents to protect personally identifying information while making vehicle recognition efficient using image-processing techniques.
“These US and European patents reflect our relentless commitment to innovation and our focus on delivering meaningful, scalable digital infrastructure solutions for roadways. Traffic congestion isn’t just a frustration—it’s a global challenge that impacts safety, economic productivity, and environmental sustainability. Providing this to all of our customers, we are equipping governments and communities with the tools to more quickly and accurately predict, manage, and mitigate traffic issues in real time, transforming how roadways are planned and operated. Rekor is proud to lead the charge toward a future of safer, smarter, and more efficient mobility for everyone.”
-said David Desharnais, President and CEO of Rekor Systems Inc.
4. Sapiens International Corporation N.V. (NASDAQ:SPNS)
Number of Hedge Fund Holders: 12
Sapiens International Corporation (NASDAQ:SPNS) leverages AI and advanced automation in its intelligent insurance software products, enabling insurers to support core solutions for property and casualty, workers’ compensation, and life insurance alongside enhancing decision management and data analytics capabilities.
On February 18th, Sapiens International Corporation (NASDAQ:SPNS) posted a 2% year-over-year revenue jump to $134 million in Q4 2024, driven by robust execution across key regions, core Life business growth, and a growing clientele. The company’s full-year 2024 earnings per share increased to $1.29 YoY from $1.12. For 2025, Sapiens International Corporation (NASDAQ:SPNS) has set a non-GAAP revenue guidance of up to $558 million and operating margin between $98 million and $102 million.
“Our continued investment in a future-proof, modular, open insurance platform-integrating core capabilities with advanced data analytics and AI is set to drive further growth. We are well positioned to deepen relationships with existing customers, capture additional market share, and strengthen growth across all regions.”
-Roni Al-Dor, President and CEO of Sapiens International Corporation N.V.
3. InterDigital Inc. (NASDAQ:IDCC)
Number of Hedge Fund Holders: 23
InterDigital Inc. (NASDAQ:IDCC) is a global R&D firm that develops foundational technologies for AI, wireless, and video processing and encoding. The company’s technologies enable immersive experiences across diverse communications and entertainment solutions. Their innovations are used by manufacturers of wireless communications devices, consumer electronics, IoT devices, cars, and cloud-based service providers.
On February 18th, InterDigital Inc. (NASDAQ:IDCC) announced it will showcase its AI-enabled sensing innovations in wireless communications at the Mobile World Congress 2025. The company believes its next-gen solutions that boost 6G potential will improve content diversity and the services delivered over wireless mediums. Furthermore, they will demonstrate smartphone energy savings through AI-powered pixel value reduction solutions as well as Integrated Sensing and Communication (ISAC)-enabled 6G networks driven by AI that can empower an autonomous robot’s navigation in diverse environments, like a smart factory.
“In this stage of technology evolution, as we leverage the efficiencies of AI and innovate solutions to support the growth and diversity of media delivered over wireless networks, InterDigital is at the forefront of innovation that is both enhancing our communications and unlocking new wireless services and capabilities.”
-said Rajesh Pankaj, CTO at InterDigital Inc.
2. GDS Holdings Ltd. (NASDAQ:GDS)
Number of Hedge Fund Holders: 32
GDS Holdings Ltd. (NASDAQ:GDS) develops and operates data centers, offering services like colocation, managed hosting, and cloud services to internet firms, telecom carriers, financial institutions, IT service providers, and large enterprises.
On February 14th, Citi analyst Louis Tsang increased GDS Holdings Ltd.’s (NASDAQ:GDS) price target to $51.2 from $25.1 and maintained a “Buy” stock rating. The brokerage’s due diligence signaled growing AI data center-related spending from China cloud service providers. The analyst believes that the AI capex up-cycle is in the early stage and GDS Holdings Ltd. (NASDAQ:GDS) will benefit from rising overseas data center deployment from “domestic giants.” Furthermore, Citi sees the “encouraging development” of DeepSeek driving AI inference demand from small to medium-sized enterprises.
1. Keysight Technologies Inc. (NYSE:KEYS)
Number of Hedge Fund Holders: 36
Keysight Technologies Inc. (NYSE:KEYS) integrates AI in its electronic design, manufacturing, and testing solutions to simplify complex testing data analysis and ensure faster and more accurate identification of signal and power integrity issues for clients in the automotive, aerospace, and communications industries.
On February 18th, Keysight Technologies Inc. (NYSE:KEYS) and InterDigital Inc. (NASDAQ:IDCC) announced they will showcase dynamic AI-enabled sensing capabilities at the Mobile World Congress (MWC) 2025. They will demonstrate a sensing solution that uses existing 3GPP signals to show how AI improves sensing accuracy in dynamic environments for real-time, non-intrusive monitoring and smooth integration of the sensing data into various applications. The companies expect the new offering to unlock use cases, like intruder detection for smart homes, eHealth monitoring, and autonomous vehicles in connected environments.
“As we enter a new era of connectivity, the integration of AI in wireless communications is poised to transform the industry. Our strategic collaboration with InterDigital started in the SNS JU project CENTRIC supported by 6G-SANDBOX and enables us to push the limits of innovation with AI and wireless technologies’ convergence, paving the way for innovative applications and smarter networks.”
-Michael Dieudonné, R&D manager, 6G and Next Generation Technology at Keysight.
While we acknowledge the potential of Keysight Technologies Inc. (NYSE:KEYS) 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 KEYS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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