Just as the AI industry was catching up with the launch of the DeepSeek AI R1 model in January, sources divulged that the Hangzhou-based company is planning to release the R2 model as early as possible. The company was previously aiming to launch the R2 model in May.
DeepSeek expects the R2 model to exhibit better coding and reasoning capabilities in multiple languages. The R1 model, which was built cost-effectively using relatively less powerful GPUs, triggered a $1 trillion sell-off in US and European markets.
The speculation around the R2 model could potentially drive further volatility in America’s AI landscape as investors question the narrative that US-based AI companies require hundreds of billions of dollars to develop AI systems.
“The launch of DeepSeek’s R2 model could be a pivotal moment in the AI industry. DeepSeek’s success at creating cost-effective AI models would likely spur companies worldwide to accelerate their own efforts … breaking the stranglehold of the few dominant players in the field.”
-said Vijayasimha Alilughatta, COO Zensar.
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 over 1000 hedge funds.
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10. Safe Pro Group Inc. (NASDAQ:SPAI)
Number of Hedge Fund Followers: N/A
Safe Pro Group Inc. (NASDAQ:SPAI) integrates AI, computer vision tech, and proprietary ML in drone imagery processing solutions to facilitate the rapid identification of explosives threats. The company’s products are built on a cloud-based ecosystem and powered by Amazon Web Services to offer a much safer alternative to traditional human-based threat detection methods. The company claims that its AI models have analyzed 1 million drone images in Ukraine, locating over 20,000 explosive remnants of war across 4,355 hectares.
On February 25th, Safe Pro Group Inc. (NASDAQ:SPAI) announced that it signed a multi-year Memorandum of Understanding (MoU) with the Igor Sikorsky Kyiv Polytechnic Institute (KPI) to use the company’s patented AI-powered drone image processing technology, SpotlightAI, to innovate next-gen demining survey methodologies and training programs.
“Safe Pro is proud to collaborate with KPI, one of the foremost research institutions of its kind in Ukraine and with its talented team who are dedicated to leveraging cutting-edge innovations such as our AI-powered small object threat detection technology into a truly modern approach to demining.”
-said Dan Erdberg, Chairman and CEO of Safe Pro Group Inc.
9. Primech Holdings Ltd. (NASDAQ:PMEC)
Number of Hedge Fund Followers: 1
Primech Holdings Ltd. (NASDAQ:PMEC) is a leading provider of technology-driven, smart solutions and products used in the cleaning and maintenance of public and private facilities.
On February 25th, Primech Holdings Ltd.’s (NASDAQ:PMEC) subsidiary, Primech AI Pte. Ltd., announced it was accepted in THE GEAR Community Access Programme at The Kajima Lab, which will give it access to next-gen facilities, an evolving ecosystem of industry leaders, and the opportunity to demonstrate its autonomous clearing solutions and accelerate their development and adoption.
“Joining The GEAR Community Access Programme represents a significant opportunity for Primech AI to collaborate with industry leaders and further enhance our robotics solutions. This partnership aligns perfectly with our mission to revolutionize the cleaning industry through technological innovation, particularly through our HYTRON autonomous cleaning robots.”
-said Charles Ng, Chief Operating Officer of Primech AI.
8. Amesite Inc. (NASDAQ:AMST)
Number of Hedge Fund Followers: 1
Amesite Inc. (NASDAQ:AMST) uses proprietary AI in its NurseMagic tool to streamline documentation workflow, improve patient communication, and save time for nurses and caregivers. Their HIPAA-compliant B2C and B2B solutions are helping to enhance operational efficiency, uplift care quality, and boost overall financial performance in the home care, hospice, and healthcare segments.
On February 25th, Amesite Inc. (NASDAQ:AMST) announced the success of its automated sales flow for its enterprise solution, NurseMagic for Teams. The company claims that the new purchase flow has reduced the time to close an enterprise sale by 95%, as enterprise clients can complete their NurseMagic subscription in minutes. The result is higher sales conversion and technology adoption alongside lower audit risks and negative reviews for clients, as they now have the capability to onboard teams immediately on the platform.
“Speed matters in enterprise sales, especially in healthcare, where time saved translates directly to better patient care. With our successful, automated sales flow, healthcare organizations are onboarding employees onto the NurseMagic™ app in record time, ensuring their teams can start experiencing efficiency gains immediately.”
-said Dr. Ann Marie Sastry, Founder and CEO of Amesite Inc.
7. Perfect Corp. (NYSE:PERF)
Number of Hedge Fund Holders: 9
Perfect Corp. (NYSE:PERF) offers AI and AR beauty and fashion technology solutions. It works with hundreds of global partners to empower brands by revolutionizing shopping experiences through digital innovations like hyper-realistic virtual try-ons, AI-driven skin analysis, and ultra-personalize product recommendations.
On February 25th, Perfect Corp. (NYSE:PERF) announced a partnership with Skinworx, which is a provider of skincare and aesthetic treatments. This collaboration will allow Skinworx to improve the guest experience at its medspa location in Walnut Creek, California, using Perfect Corp.’s (NYSE:PERF) AI skin-scanning technology called Skincare Pro platform, which enables the analysis of diverse skin concerns in seconds and help in the accurate selection of treatment options.
“We’re excited to partner with Skinworx to help elevate their guest experience with our Skincare Pro technology. The technology provides fast, detailed, and accurate skin assessments, allowing providers like Skinworx to offer guests highly personalized treatment plans that deliver real results.”
-said Alice Chang, Founder and CEO of Perfect Corp.
6. BlackSky Technology Inc. (NYSE:BKSY)
Number of Hedge Fund Holders: 10
BlackSky Technology Inc. (NYSE:BKSY) is a provider of an advanced space-based intelligence platform that enables real-time satellite imagery, analytics, and high-frequency monitoring of economic assets, important locations, and global events. The company utilizes AI-enabled systems for object detection, geospatial data processing automation, and extraction of actionable intelligence at machine speeds.
On February 25th, BlackSky Technology Inc. (NYSE:BKSY) announced it secured a multimillion-dollar Defense Innovation Unit Gen-3 Tactical GEOINT (TACGEO) launch integration contract, expanding on previous US government-funded R&D efforts to develop next-gen space-based tactical ISR capabilities. Under the contract, BlackSky Technology Inc. (NYSE:BKSY) will support end-to-end activities, including hardware and systems integration, launch site management, and commissioning services.
“BlackSky is on a mission to push the transformative advantage of space-based, real-time intelligence to the farthest corners of the battlefield. When combined with our BlackSky Spectra® platform, our Gen-3 constellation will deliver a next level of performance with low-latency AI-enabled analytics while a mission is ongoing.”
-said Brian O’Toole, CEO of BlackSky Technology Inc.
5. CGI Inc. (NYSE:GIB)
Number of Hedge Fund Holders: 16
CGI Inc. (NYSE:GIB) offers IT, business consulting, automation, and enterprise digitization services to diverse industries, including banking, healthcare, energy, insurance, and logistics. Using its responsible use of AI methodology and consulting framework in its IP portfolio, the company provides AI solutions like the CGI PulseAI, Virtual Service Agent, Accelerate AI360, DigitaTrust360, and Machine Vision designed to improve operational efficiencies, enable cost reductions, ensure legal compliance, and enhance asset monitoring activities.
On February 25th, CGI Inc. (NYSE:GIB) announced it completed the acquisition of BJSS, which is a top UK-based tech and engineering consultancy firm. The acquisition aligns with CGI Inc.’s plans to grow its consulting services and drive innovation in AI, cloud, and data analytics for commercial and public sector clients.
“We are really pleased to welcome all of the new joiners from BJSS, whose deep expertise in digital engineering enhances CGI’s collective ability to deliver industry-leading technology solutions and advisory services to clients across the UK. With the integration of BJSS’s deep technical expertise and strong market presence, CGI continues to strengthen its ability to help clients navigate complex digital transformations, accelerate innovation and achieve measurable outcomes aligned with their strategic goals.”
-said Tara McGeehan, President of CGI UK & Australia.
4. Netscout Systems Inc. (NASDAQ:NTCT)
Number of Hedge Fund Followers: 26
Netscout Systems Inc. (NASDAQ:NTCT) offers performance management, cybersecurity, and DDoS attack protection solutions through its unique visibility platform to leading enterprises, service providers, and public sector companies.
On February 25th, Netscout Systems Inc. (NASDAQ:NTCT) announced enhancing its Arbor Threat Mitigation System (TMS) Adaptive DDoS Protection solution with additional AI/ML functionality to detect and block malicious traffic and safeguard customers from infected hosts, compromised IoT devices, and related internal attack sources more efficiently. As a result, clients will be able to protect critical infrastructure while benefitting from better availability, lower downtime costs, and new revenue-generating avenues.
“With AI-driven attacks, ransomware, and nation-state threats impacting corporate governance, financial performance, and customer trust, corporate boards expect their IT teams to be proactive in adapting to emerging threats like DDoS. Implementing solutions that can adapt to threats helps minimize that risk.”
-said Chris Steffen, Vice President of Research – Information Security, Enterprise Management Associates.
3. RadNet Inc. (NASDAQ:RDNT)
Number of Hedge Fund Followers: 29
RadNet Inc. (NASDAQ:RDNT) is a leading provider of fixed-site diagnostic imaging services in the US. The company is increasingly focusing on delivering radiology IT and AI solutions through its wholly-owned subsidiary, DeepHealth Inc., to clients in the evolving diagnostic imaging industry. DeepHealth leverages AI and its cloud-native operating system, DeepHealth OS, to boost efficiency and enhance clinical outcomes related to lung, breast, prostate, and brain health.
On February 25th, RadNet Inc. (NASDAQ:RDNT)-owned DeepHealth Inc. announced a partnership with clinical AI and imaging advanced visualization specialist ConcertAI’s TeraRecon to integrate capabilities that will facilitate the advancement of imaging tools and radiology workflow. The goal is to develop a seamless AI-enabled diagnostic experience for imaging experts by combining TeraRecon’s advanced visualization technology with DeepHealth OS for accurate and timely diagnostic interpretations.
“At DeepHealth, we are committed to leveraging advanced AI to enhance radiology workflows, elevate the experience of care teams, and improve patient care. Partnering with TeraRecon allows us to integrate industry-leading visualization and clinical AI technology, equipping radiologists with the tools to improve efficiency and reduce variability. This collaboration strengthens DeepHealth OS, driving innovation in medical imaging.”
-said Kees Wesdorp, President and CEO of RadNet Inc.’s Digital Health division.
2. Bitdeer Technologies Group (NASDAQ:BTDR)
Number of Hedge Fund Holders: 31
Bitdeer Technologies Group (NASDAQ:BTDR) offers blockchain and HPC solutions. The company’s crypto-mining solutions include data center design, equipment procurement, and hosting services. Bitdeer AI, part of Bitdeer Technologies Group (NASDAQ:BTDR), provides AI cloud services for developers to train and scale AI and HPC workloads through AI infrastructure supported by the NVIDIA DGX SuperPOD with H100 GPUs, DDN Storage, and InfiniBand Networks.
On February 25th, Bitdeer Technologies Group (NASDAQ:BTDR) posted a drop in year-over-year (YoY) revenue for Q4 to $69 million from $114.8 million. The company’s loss per share in Q4 also increased YoY to $3.22 per share from $0.05. Bitdeer’s chief business officer, Matt Kong, attributed the results to limited hashrate growth as the company focused more on the development of proprietary ASIC technology.
“In terms of our energy assets, our global power capacity now exceeds 2.6 GWs, following the Foxcreek, Alberta acquisition, and over 1 GW is scheduled to be energized over the course of 2025. This puts us in an advantageous position to deploy our SEALMINER machines for self-mining and also capitalize on the significant demand for HPC and AI datacenters. We are actively working with top datacenter developers and advisors to establish long-term partnerships, which will position Bitdeer to play a significant role in addressing the shortage of reliable power for AI datacenters.”
-said Matt Kong, Chief Business Officer at Bitdeer Technologies Group.
1. PagerDuty Inc. (NYSE:PD)
Number of Hedge Fund Holders: 32
PagerDuty Inc. (NYSE:PD) offers digital operations management tools via the PagerDuty Operations Cloud platform to help clients improve operational efficiency at scale. The cloud suite combines AIOps, automation, customer service operations, and incident management solutions assisted by a GenAI assistant designed to boost innovation velocity and revenue while lowering overheads and mitigating operational failure risks.
On February 25th, PagerDuty Inc. (NYSE:PD) announced its plans to add new agentic AI functionality, focused on site reliability engineering, operational insights, and scheduling optimization across its cloud platform. This will enable enterprises to reduce operating costs through automation, mitigate risks with autonomous incident responses, and ramp revenue by facilitating seamless customer experiences.
“Operations leaders have high expectations for the business value of AI and automation. With the AI-powered PagerDuty Operations Cloud, teams can make smarter decisions, resolve critical issues faster and focus on top-level business priorities. We are excited to bring PagerDuty AI agents to market that will enable operations teams to gain time and efficiency, enabling them to focus on increasing revenues and improving customer satisfaction, while reducing operating costs.”
-said Jeffrey Hausman, chief product development officer at PagerDuty Inc.
While we acknowledge the potential of PagerDuty Inc. (NYSE:PD) 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 PD 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.
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