In this article, we discuss the top 11 AI news and ratings you probably missed.
AI is rapidly evolving, with lower costs making it more accessible and shifting attention from infrastructure to real-world applications. As companies explore new ways to integrate AI, open-source models are gaining momentum, challenging proprietary systems. This shift is reshaping investment strategies and raising questions about the future of AI development and adoption.
The Future of AI Development and Market Trends
Big Technology’s Alex Kantrowitz and Alger’s Dan Chung joined CNBC Closing Bell to discuss AI’s growing power demand, investment trends, and changing perceptions around the technology. Kantrowitz highlighted that AI development is becoming more affordable as it is shifting the focus from infrastructure to practical applications. Companies integrating AI into their products stand to gain the most, while infrastructure-based businesses face uncertainty as models become more accessible. He emphasized the need for real-world applications to sustain AI’s momentum.
Chung shared an optimistic view and noted that lower costs could drive wider AI adoption. He acknowledged the need for further validation of DeepSeek’s claims but recognized its potential to reshape AI development. The conversation also explored the rise of open-source AI, which is challenging proprietary models by promoting collective advancements. While there is some skepticism remaining over DeepSeek’s reported costs, its results suggest a significant shift in AI’s evolution.
AI is evolving quickly, with advancements making it cheaper to develop and more accessible through open-source models. While early discussions centered on infrastructure and cloud computing, the focus is now shifting to real-world applications. Investors and tech leaders are watching closely to see if these breakthroughs will lead to meaningful innovation or if the excitement is outpacing reality. The next phase of AI will depend on how well companies turn these technologies into practical, widely used solutions.
For this article, 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.
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 11 AI News and Ratings You Probably Missed
11. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: N/A
Oklo Inc. (NYSE:OKLO) designs advanced nuclear plants that reuse waste to generate clean energy, meeting AI’s growing power needs.
Lightbridge Corporation has signed a Memorandum of Understanding with Oklo (NYSE:OKLO) to explore the feasibility of co-locating their commercial-scale fuel fabrication facilities and collaborating on nuclear waste recycling. Both companies aim to improve efficiency and reduce costs by sharing resources. Lightbridge’s CEO, Seth Grae, emphasized that this partnership aligns with their commitment to sustainable nuclear energy, while Oklo’s CEO, Jacob DeWitte, highlighted the potential for advancing innovation in the nuclear supply chain and contributing to carbon-free energy solutions.
10. Xiao-I Corporation (NASDAQ:AIXI)
Number of Hedge Fund Holders: N/A
Xiao-I Corporation (NASDAQ:AIXI) provides AI-driven software solutions in China, including conversational AI, data intelligence, automation, and computer vision for various industries.
On January 28, Xiao-I (NASDAQ:AIXI) announced that it successfully deployed its AI-powered HR system for a Hong Kong public sector client, which marks a significant milestone for the company. The system, built on Xiao-I’s Hua Zang Large Language Model, streamlined HR operations such as talent management and employee engagement with high accuracy and minimal resource usage, which reduced costs and deployment complexity.
The solution’s rapid implementation and cost-effective scalability make it suitable for public sector budgets. Xiao-I plans to expand into the U.S. market later this year, using this Hong Kong deployment as a model for showing how AI can improve public sector efficiency without heavy upfront investments.
9. Maris-Tech Ltd. (NASDAQ:MTEK)
Number of Hedge Fund Holders: 4
Maris-Tech Ltd. (NASDAQ:MTEK) develops digital video and audio solutions for security, defense, robotics, drones, and autonomous systems worldwide.
Maris-Tech Ltd. will host its first annual customer conference, “Edge of Tomorrow – Video & AI at the Frontier of Defense Innovation,” on February 27, 2025, in Rishon LeZion, Israel. The event will bring together industry experts, thought leaders and collaborators to explore advancements in edge computing, video, and AI technologies in defense operations. The conference will feature keynote speakers, technical sessions, live product demonstrations, and networking opportunities, offering attendees insights into how these innovations are transforming decision-making and functionality in defense.
8. Wipro Limited (NYSE:WIT)
Number of Hedge Fund Holders: 11
Wipro Limited (NYSE:WIT) provides IT services, consulting, and business solutions globally, serving industries like finance, healthcare, and manufacturing.
On January 30, Business Upturn reported that Wipro (NYSE:WIT) has secured a multi-million-dollar, five-year contract with Etihad Airways to drive IT transformation and cost optimization. The deal includes the deployment of Wipro FullStride Cloud for cloud-based solutions that improve operational agility and provide real-time resource insights.
Additionally, Wipro will integrate generative AI modules for efficient IT operations management, such as data center automation. Wipro’s Innovation Lab in the UAE will further support Etihad’s technology needs, building on Wipro’s long-standing presence in the region.
7. Extreme Networks, Inc. (NASDAQ:EXTR)
Number of Hedge Fund Holders: 29
Extreme Networks, Inc. (NASDAQ:EXTR) provides software-driven networking solutions, including cloud management, wireless, and SD-WAN for various industries.
On January 29, Extreme Networks (NASDAQ:EXTR) reported its third consecutive quarter of revenue growth, showing a recovering enterprise networking market. CEO Ed Meyercord credited the company’s success to its differentiated cloud networking platform and enterprise campus fabric solution, along with evolving competitive dynamics. The company introduced Extreme Platform ONE in December, an integrated networking and security platform with AI-driven automation to streamline IT operations. The firm said that early previews with partners and customers received strong positive feedback, with many emphasizing the substantial time savings their teams could achieve through AI integration and expert support.
Extreme Networks reported FQ2 non-GAAP EPS of $0.21, outperforming estimates by $0.03, and revenue of $279.4 million exceeded the estimates by $1.35 million. For Q3, the company guided its revenue toward the range of $276 million – $284 million and EPS to the range of $0.16 – $0.20.
6. Keysight Technologies, Inc. (NYSE:KEYS)
Number of Hedge Fund Holders: 36
Keysight Technologies, Inc. (NYSE:KEYS) provides electronic design and testing solutions for communications, aerospace, defense, automotive, and other industries worldwide.
On January 29, Keysight Technologies (NYSE:KEYS) and KD, Inc. announced their collaboration to develop a comprehensive test for Multigigabit Optical Automotive Ethernet, focusing on IEEE 802.3cz compliance. Their joint effort led to the creation of the Transmitter Distortion Figure of Merit or TDFOM measurement, which assesses signal quality in optical fiber transmission and ensures compatibility. The advancements in Multigigabit Optical Automotive Ethernet support high-speed data transmission, which is crucial for modern vehicles integrating AI-driven systems such as advanced driver-assistance systems.
The IEEE 802.3cz standard, introduced in 2023, supports data rates up to 50 Gb/s for advanced in-vehicle networking. By integrating KD’s software-based reference receiver with Keysight’s optical-to-electrical converter and oscilloscope technology, the new testing solution evaluates signal integrity and Bit Error Rate performance. This partnership aims to help OEMs and Tier-1 suppliers ensure reliable, high-speed optical communication in modern automotive systems.
5. Flex Ltd. (NASDAQ:FLEX)
Number of Hedge Fund Holders: 45
Flex Ltd. (NASDAQ:FLEX) provides manufacturing, design, and supply chain solutions for industries including automotive, healthcare, and consumer electronics worldwide.
Flex (NASDAQ:FLEX) reported Q3 non-GAAP EPS of $0.77, surpassing expectations by $0.14, with revenue of $6.6 billion, exceeding estimates by $400 million despite a 7% year-over-year decline. The company’s data center business grew 45% year-over-year. Revathi Advaithi, CEO & Director said:
“The trends in Q3 were largely as expected, with some additional strength coming from data center, from health solutions and consumer-related markets. This quarter, our data center business grew a robust 45% year-over-year despite increasingly difficult comps. We continue to see sustained demand in our hyperscale cloud integration programs and our power portfolio, resulting from AI-driven cloud expansion. We’re seeing hyperscalers place greater emphasis on tailored solutions and looking for more help from fewer suppliers.”
For Q4 FY25, the company projects revenue between $6.0 billion and $6.4 billion, with adjusted EPS ranging from $0.65 to $0.73, compared to the $0.66 consensus. Full-year FY25 guidance was updated, forecasting revenue between $25.4 billion and $25.8 billion, with adjusted EPS of $2.57 to $2.65, exceeding the $2.45 consensus.
4. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 64
ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.
ASML reported Q4 earnings with a GAAP EPS of €6.85, exceeding estimates by €0.12, and revenue of €9.26 billion, up 27.9% year-over-year and surpassing expectations by €200 million. Net bookings for the quarter totaled €7.1 billion, including €3.0 billion from extreme ultraviolet or EUV. For 2025, ASML projects total net sales between €30 billion and €35 billion, with a gross margin of 51%-53%. Q1 2025 sales are expected to range from €7.5 billion to €8.0 billion, with a gross margin of 52%-53%. Christophe Fouquet, President and Chief Executive Officer of ASML said:
“As we have witnessed in 2024, AI has created a shift in the market dynamics that is not benefiting all customers equally in the short term.
If AI demand continues to be strong and customers are successful in bringing on additional capacity online to support that demand, there is potential opportunity towards the upper end of our range. On the other hand, there are also risks related to customers and geopolitics that could drive results towards the lower end of the range.”
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) designs, manufactures and markets a wide range of computing products and services, including processors, memory, AI solutions, and advanced driver assistance systems, serving diverse industries globally.
On January 30, Intel (NASDAQ:INTC) reported Q4 non-GAAP EPS of $0.13, surpassing estimates by $0.01, with revenue of $14.26 billion, down 7.4% year-over-year, but beating expectations by $430 million. For Q1 2025, the company forecasts revenue between $11.7 billion and $12.7 billion, below the consensus of $12.86 billion. Intel expects Q1 EPS of $(0.27) and non-GAAP EPS of $0, compared to the consensus estimate of $0.09.
Bernstein analyst Stacy Rasgon views Intel’s Q4 results as decent, with stronger-than-expected performance in Client Computing Group and Network and Edge Group. However, the company’s Q1 guidance is weak, with key segments expected to decline, and gross margins projected to fall. Despite a slight earnings beat, Intel faces ongoing challenges, including structural concerns, delays in projects, and increased outsourcing. The company’s aggressive pricing strategy, especially in AI and data centers, poses margin risks. While the stock rose briefly, Rasgon maintained a Market Perform rating with a $25 price target and advised caution.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) develops AI-driven cloud services, business tools, and consumer products while advancing AI research. On January 30, Oppenheimer raised Alphabet’s price target to $225, maintaining an Outperform rating. The firm sees strong advertising trends, with Meta’s AI-driven ad pricing growth benefiting Alphabet. While some investors have concerns about Meta’s future revenue and earnings growth, Alphabet could become a more appealing option, especially with expectations of higher margins and continued AI advancements.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 297
Microsoft Corporation (NASDAQ:MSFT) delivers AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
On January 29, Microsoft (NASDAQ:MSFT) announced that DeepSeek R1 is now available on Azure AI Foundry and GitHub, offering businesses a scalable and secure platform to integrate advanced AI. As part of Azure’s extensive model catalog, which includes over 1,800 AI models, DeepSeek R1 enables rapid development with built-in evaluation tools for benchmarking and optimization. The model has undergone rigorous safety assessments and includes content filtering for secure deployment. Developers can quickly access and deploy it via Azure AI Foundry’s model catalog. Future updates will introduce distilled versions for local use on Copilot+ PCs, expanding accessibility for enterprises and developers.
While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) 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 MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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