In this article, we will look at the Top 10 Trending AI Stocks on Latest News.
The bloodbath that triggered one of the biggest routs in US stock markets appears to be under control. Even as people across China hail the success of their homegrown tech startup DeepSeek, it’s becoming increasingly clear there is room for everyone in the artificial intelligence race. That’s the sentiment echoed across the board as it becomes clear markets might have overreacted on reports China is at the forefront of developing AI models at the lowest costs possible.
A day after US stocks came under pressure amid the DeepSeek revelations, developers at leading US AI firms have already started praising DeepSeek AI models, touting them as Sputnik models. Some AI experts praised DeepSeek’s robust team and state-of-the-art research, but they were unconcerned by the development as concerns about competition rippled through the U.S. stock market.
“The dust is now settling after Monday’s long overdue AI reckoning, and while we still believe in the AI-driven productivity story, investing in this sector going forward may not be as easy as it was over the past two years,” said Emily Bowersock Hill at Bowersock Capital Partners. “We expect investors to be more discerning and selective when it comes to AI investing.”
OpenAI CEO Sam Altman wrote on X that R1, one of DeepSeek’s models, “is an impressive model, particularly around what they’re able to deliver for the price.” Nvidia also echoed the sentiments, stating DeepSeek’s achievement proved the need for more of its chips.
According to US President Donald Trump, the release of DeepSeek’s AI models should be a wake-up call on the need to be laser-focused on competing to win. The sentiments come from the Hype around the new AI models triggering over $1 trillion in US and European tech stocks.
The sentiments come at the backdrop of reports that AI presents a $15 trillion opportunity over the next few years, given the transformation it is poised to bring in various sectors. Therefore, there is room for every company to leverage technology to strengthen its competitive edge.
Barclays has already reiterated that companies offering advanced AI services are well poised to benefit from the availability of cost-effective AI models. In contrast, companies working on expensive hardware needed to enable and power AI should remain under scrutiny if DeepSeek’s revelations that it’s possible to develop AI models using common or cheap chips are anything to go by.
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Our Methodology
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.
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 Trending AI Stocks on Latest News
10. ZenaTech, Inc. (NASDAQ:ZENA)
Number of Hedge Fund Holders: N/A
ZenaTech, Inc. (NASDAQ:ZENA) is an enterprise software technology company that focuses on AI drones, drone-as-a-service (DaaS), enterprise SaaS, and quantum computing solutions. On January 23rd, the company confirmed the acquisition of KJM Land Surveying LLC. It is the company’s second acquisition as it moves to strengthen its growth prospects in the land survey industry while leveraging advanced technologies like AI.
Additionally, the acquisition will serve as the foundation for its national Drone as a Service (DaaS) business in the Southeast United States, which makes use of drone solutions from its subsidiary ZenaDrone. According to Business Research Insights, the US surveying and mapping services market is worth $10.3 billion and is expected to grow by at least 3% a year affirming tremendous opportunity for ZenaTech, Inc. (NASDAQ:ZENA). LiDAR (Light Detection and Ranging), GPS systems for taking high-resolution images and data, and remotely piloted drones equipped with a variety of sensors and cameras are transforming the land survey sector. The solutions are enabling the collection of aerial data over vast areas in a matter of hours rather than weeks or months using conventional techniques.
9. Quantum Corporation (NASDAQ:QMCO)
Number of Hedge Fund Holders: N/A
Quantum Corporation (NASDAQ:QMCO) is a technology company that provides products for storing and managing digital video and unstructured data. It has also emerged as a leader in providing AI and unstructured data solutions. On January 27th, the company inked a standby equity purchase agreement with Yorkville Advisors Global.
The strategic partnership provides the company with equity capital and liquidity at 3% and 4% discounted fees. The financial support also opens the door for the company to focus on its growth initiatives. For starters, it should concentrate on revolutionizing data management solutions for the AI industry. Quantum Corporation (NASDAQ:QMCO) offers the most complete and economical solutions, ranging from massive, long-lasting data lakes to power AI models to high-performance input that drives AI applications and demanding data-intensive workloads.
8. Bridgeline Digital, Inc. (NASDAQ:BLIN)
Number of Hedge Fund Holders: 3
Bridgeline Digital, Inc. (NASDAQ:BLIN) is a marketing technology company. It offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers. The AI-powered solution is already eliciting strong demand. On January 23rd, the company confirmed that a prominent industrial equipment supplier integrated marketing technology into its offerings to enhance customer’s digital experience.
The integration underscores HawkSearch’s ability and credibility in delivering data-driven search solutions for specialized industries. The supplier, who is well-known for their proficiency with sample dividing tools and particle size analysis, selected HawkSearch to improve product discovery and its e-commerce platform. Businesses can quickly implement a HawkSearch-powered search bar with Rapid UI’s user-friendly interface and pre-built configurations.
7. Rekor Systems, Inc. (NASDAQ:REKR)
Number of Hedge Fund Holders: 9
Rekor Systems, Inc. (NASDAQ:REKR) is a technology company that provides infrastructure solutions for transportation, public safety, and urban mobility markets. While the stock has been under pressure, it is receiving a boost as the company turns to artificial intelligence to reinvigorate its growth metrics. On January 21st, the company inked a strategic partnership with SoundHound AI to focus on enhancing vehicle technology.
The partnership will integrate Rekor Systems, Inc.’s (NASDAQ:REKR) industry-leading vehicle recognition software, Rekor Scout®, with SoundHound’s cutting-edge voice and conversational AI. The ultimate objective is to improve safety, situational awareness, and operational efficiency for first responders and law enforcement by providing smooth, hands-free operation for ALPR and other vital vehicle systems. With plans to extend this cutting-edge audiovisual AI technology to other emergency vehicles like fire trucks and ambulances, the partnership will initially concentrate on police vehicles.
6. Tevogen Bio Holdings Inc. (NASDAQ:TVGN)
Number of Hedge Fund Holders: 10
Tevogen Bio Holdings Inc. (NASDAQ:TVGN) operates as a clinical-stage specialty immunotherapy company that develops off-the-shelf precision T-cell therapies for the treatment of infectious diseases, cancers, and neurological disorders. The company’s sentiments in the market have received a significant boost after announcing an expanded collaboration with tech giant Microsoft.
On January 28th, the biotech company confirmed that it is increasingly leveraging Microsoft AI and cloud capabilities to enhance the development of its proprietary technology, PredicTcell. With the help of Microsoft’s state-of-the-art AI, cloud computing, and health and life sciences domain expertise, this expanded partnership aims to strengthen Tevogen Bio Holdings Inc.’s (NASDAQ:TVGN) pipeline of novel immunotherapies by speeding up target identification and pre-clinical procedures. The partnership with Microsoft marks a significant turning point in Tevogen Bio’s quest to transform immunotherapy. The business will use AI to provide patients with more individualized and accurate treatments more quickly by working more closely with Microsoft domain experts.
5. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) is a technology company that provides applications, technology, and services. The company delivered solid fourth-quarter and full-year results on January 28th that topped analysts’ expectations. The results were better than expected as the technology company won new customers with new artificial intelligence capabilities and solutions.
Cloud revenue was up by 27% in the quarter to $4.9 billion as SAP SE (NYSE:SAP) benefited from promoting business services to incentivize clients to shift from legacy on-site servers to IT infrastructure on the cloud. According to CEO Christian Klein, half of the company’s deals in the fourth quarter had AI embedded. SAP is a software company that is increasingly developing AI agents that can complete tasks without human supervision as demand grows. Amid strong demand for AI-powered solutions, the company has increased its cloud revenue forecast for 2025 from €21.5 billion to €21.6 billion and from €21.9 billion. Sales that will be booked over the next 12 months are reflected in SAP’s current cloud backlog, which increased 29% in constant currencies to €18.1 billion.
4. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a software infrastructure company that provides cybersecurity solutions. Its unified platform offers cloud-delivered protection of endpoints, cloud workloads, identity, and data. The company’s AI-powered solutions are already eliciting strong interest. On January 27th, Commvauolt, a leading cyber resilience and data protection provider, integrated the CrowdStrike Falcon cybersecurity platform.
Commvault’s integration with the AI-native CrowdStrike Falcon platform represents a major advancement in tackling today’s quickly changing cyber threats. Organizations can expedite incident response and help customers achieve continuous business operations even in the face of sophisticated attacks by integrating an additional layer of enriched threat insights from the Falcon platform into Commvault Cloud. Administrators can see the alert in Commvault Cloud when CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stops and identifies malicious activity or a questionable occurrence.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company’s service includes sales to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and artificial intelligence. It is one of the stocks edging higher even as Chinese AI startup DeepSeek continues to rattle the markets with groundbreaking revelations.
On January 27th, analysts at Barclays reiterated that Salesforce, Inc. (NYSE:CRM) is one of the few companies offering AI services such as AI copilots and agents well poised to benefit even as DeepSeek kicks off debate for more cost-efficient and accessible AI models. The stock rallying by more than 4% underscores investors’ confidence in the company’s AI offering as investors react to the introduction of cheaper AI models. Salesforce’s ability to adapt and offer valuable AI services seems to be a key factor in its resilience in the market.
2. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 123
Adobe Inc. (NASDAQ:ADBE) is a diversified software company worldwide that offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content. The company has sought to strengthen its product portfolio by integrating artificial intelligence to empower filmmakers at all levels. The integration was one of the catalysts behind the company’s revenue in the digital media segment, growing by 12% in the fourth quarter.
On January 28th, the company unveiled Adobe Premiere Pro, After Effects, and Frame.io, designed to streamline workflows and address common pain points for frequent software users. The AI-powered tools will make it easier for editors to locate specific footage by identifying objects, locations, camera angles, and metadata. Additionally, Adobe Inc. (NASDAQ:ADBE) announced a $5 million investment in the Adobe Film & TV Fund to help underrepresented filmmakers and creators pursue careers behind and on screen.
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 136
Uber Technologies, Inc. (NYSE:UBER) is a technology company that offers solutions that enable mobility through ridesharing and provide delivery services for retailers and restaurants. It is one of the companies benefiting from the artificial intelligence frenzy as it invests in solutions that enhance mobility. On January 28th, analysts at Needham and Company reiterated a Buy rating on the stock with a $90 price target.
The buy rating comes on the heels of the company inking a strategic partnership with Nvidia to enhance the development of autonomous driving technology. Uber Technologies, Inc. (NYSE:UBER) will leverage the chip giant’s AI platforms and extensive data from its ridesharing segment to develop more robust AI models. Goldman Sachs has also taken notice of Uber and reaffirmed its Buy rating on the business, citing the company’s medium-term revenue growth and the implications of autonomous vehicle technology. Over the past 12 months, the company’s revenue has increased by 16.7% to $41.95 billion.
While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) to grow, 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 UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
