In this article, we discuss the top 11 AI news and ratings you must take a look at.
AI is experiencing a shift from massive, resource-intensive models to more efficient and accessible alternatives. Sakana AI’s CEO, David Ha, discussed how this transition is shaping the future of AI, highlighting the role of compact models and the broader impact on computing demand on Bloomberg: The Asia Trade. As AI development diversifies, the market is moving away from reliance on a single dominant player, and companies are exploring innovative ways to optimize performance.
The Growing Role of Efficient AI Models in Everyday Technology
David Ha shared his perspective on the AI industry, emphasizing how models like China’s DeepSeek are fueling demand for GPUs. He explained that the traditional approach has been to develop increasingly large AI models requiring significant investments and energy, but companies like Sakana AI are focusing on making AI faster and more efficient. One example is Tiny Swallow, a compact AI model built using Sakana AI’s Tate distillation method, which maintains strong performance despite being 100 times smaller than large models. This model can run entirely on a smartphone or web browser without relying on an API, reflecting a broader trend toward efficient AI solutions in 2025.
Ha compared the current landscape of AI to early computing, where large mainframes eventually gave way to more accessible, optimized technologies like PCs and smartphones. He believes AI will follow a similar path, with smaller, specialized models becoming more widespread. He also expects a future where multiple AI models, including those from DeepSeek, Meta’s Llama, and Sakana AI, will be used across different applications rather than a single dominant player controlling the market.
When asked about Nvidia, Ha dismissed concerns that smaller, efficient AI models could reduce demand for GPUs. Instead, he argued that these advancements will expand GPU usage, especially for inference tasks rather than just training, and attract a more diverse global user base. He believes that the company is well-positioned to benefit from this growing demand for AI compute power.
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.
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Top 11 AI News and Ratings You Should Take a Look At
11. BlackSky Technology Inc. (NYSE:BKSY)
Number of Hedge Fund Holders: 7
BlackSky Technology Inc. (NYSE:BKSY) provides geospatial intelligence, satellite-based analytics, and mission systems for global government and commercial clients.
On February 4, BlackSky (NYSE:BKSY) announced that it secured a multi-year contract with EMDYN to provide space-based imagery services for international defense ministries. The partnership will integrate BlackSky’s satellite imagery with EMDYN’s platform, allowing real-time tasking, fusion of signals and intelligence, and faster decision-making. This AI-driven service aims to reduce latency across the tasking-to-dissemination process, delivering actionable intelligence more efficiently. BlackSky’s rapid revisit rates and advanced analytics platform will provide frequent, high-quality data to support tactical operations.
10. AudioCodes Ltd. (NASDAQ:AUDC)
Number of Hedge Fund Holders: 8
AudioCodes Ltd. (NASDAQ:AUDC) provides communication software, VoIP products, and managed services for enterprises, contact centers, and service providers worldwide.
On February 4, AudioCodes (NASDAQ:AUDC) reported Q4 non-GAAP EPS of $0.37, exceeding estimates by $0.14. Revenue reached $61.6 million, down 3.1% year-over-year but surpassing expectations by $0.08 million. The company held $93.9 million in cash, deposits, and investments as of December 31, 2024, down from $106.7 million a year earlier.
AudioCodes CEO Shabtai Adlersberg highlighted strong Q4 performance, driven by growth in main business areas as the company advances its shift toward cloud software and services. Enterprise UCaaS and CX contributed 92% of revenue, with Microsoft-related business growing 13% in the quarter and 6% for the full year, mainly due to a transition to recurring revenue.
Moreover, Adlersberg said that investments in Voice.ai and conversational AI have yielded strong results, with key business units establishing leadership in their markets. Rising demand for AI and Gen AI-driven voice applications and value-added services has expanded opportunities in Voice.ai Connect, Voca CIC, and Meeting Insights. The company expects AI business applications to grow 40% to 50% in 2025.
9. SK Telecom Co., Ltd. (NYSE:SKM)
Number of Hedge Fund Holders: 9
SK Telecom Co., Ltd. (NYSE:SKM) provides wireless, fixed-line, and digital services, including mobile, broadband, IPTV, and IoT solutions.
On February 3, SK Telecom announced its role as a founding member of the MIT GenAI Impact Consortium, an initiative aimed at studying the commercialization and societal impact of generative AI. Led by MIT’s School of Engineering Dean Anantha Chandrakasan, the consortium includes six global companies, such as OpenAI, Coca-Cola, and Tata Group. SK Telecom plans to collaborate on AI research and apply insights to its SK AI R&D Center, focusing on areas like ICT, semiconductors, and energy. CEO Ryu Young-sang said:
“Building on global collaborations, SK Telecom hope to leverage the AI capabilities of the SK Group, with the SK AI R&D Center at its core, to drive AI innovation across industries. Beyond generative AI, we will broaden our scope to encompass next-generation research areas and to convergent Vertical AI such as physical AI, manufacturing, and biotechnology.”
8. Domo, Inc. (NASDAQ:DOMO)
Number of Hedge Fund Holders: 15
Domo, Inc. (NASDAQ:DOMO) provides a cloud-based business intelligence platform for real-time data access and analytics across multiple devices.
On February 3, Domo (NASDAQ:DOMO) announced that its AI platform, Domo.AI, won the 2025 DEVIES Award in the Data Analytics & Visualization category. The platform was recognized for making it easier for developers to integrate data across businesses and manage AI and machine learning models, including Large Language Models. Matthew Payne, Domo’s VP of Engineering, highlighted the platform’s ability to simplify AI adoption for both developers and non-technical users. The award was given by an independent DevNetwork Advisory Board, which praised Domo’s role in driving innovation in the software industry.
7. Sunnova Energy International Inc. (NYSE:NOVA)
Number of Hedge Fund Holders: 22
Sunnova Energy International Inc. (NYSE:NOVA) provides energy services, storage, and system maintenance across the U.S.
On February 4, Sunnova announced that it has partnered with OpenSolar to integrate OpenSolar’s AI-powered solar design software into the Sunnova Catalyst dealer platform. This collaboration improves the platform with automated, highly accurate solar system designs, enabling Sunnova dealers to create proposals quickly and confidently. By streamlining the design process, the partnership aims to improve the efficiency and precision of solar installations, supporting a growing market in the U.S. worth an estimated $17 billion by 2030. The integration of OpenSolar’s technology into Catalyst will benefit both dealers and customers, improving energy decisions.
6. Rambus Inc. (NASDAQ:RMBS)
Number of Hedge Fund Holders: 34
Rambus Inc. (NASDAQ:RMBS) provides semiconductor products, memory interface chips, and security solutions for data centers, automotive, and government applications.
On February 3, Rambus reported Q4 GAAP EPS of 0.58 and revenue of $161.1 million, up 32% year-over-year. The company reported cash, cash equivalents, and marketable securities of $481.8 million as of December 31, 2024. The management said that in 2025 and beyond, the expansion of AI will drive advancements in hardware, increasing demands for power, performance, and security across various markets. To meet these evolving needs, the company has strengthened its market position, accelerated product development, and expanded its addressable markets, laying the groundwork for future growth.
Additionally, Rambus’ (NASDAQ:RMBS) silicon IP portfolio includes high-performance interface and certified security solutions designed to meet the needs of emerging applications. The company said that AI continues to drive strong growth in Silicon IP, contributing to a solid Q4 and supporting long-term expansion. Demand for customized AI solutions is benefiting high-performance IP, with Tier 1 custom silicon providers and startups showing interest. Some significant offerings like HBM4 and GDDR7 memory controllers, along with security IP, are essential for AI accelerators, graphics, and high-performance computing applications.
5. Electronic Arts Inc. (NASDAQ:EA)
Number of Hedge Fund Holders: 46
Electronic Arts Inc. (NASDAQ:EA) develops, publishes, and distributes video games. On February 4, EA SPORTS announced the acquisition of TRACAB Technologies, a company known for its advanced sports tracking and data analysis solutions. The acquisition will improve EA SPORTS’ ability to use AI, machine learning, and real-time sports data to improve animation and gameplay realism. TRACAB’s technology captures 600 million data points per game, tracking player movements, ball positioning, and referee actions at 60Hz. The data will help refine player stats, team AI, and in-game animations. Additionally, EA SPORTS plans to integrate TRACAB’s capabilities into the EA SPORTS App, expanding interactive features such as predictive simulations, reimagined highlights, and alternative broadcasts. The acquisition is expected to be finalized in EA’s first fiscal quarter of FY26.
4. CyberArk Software Ltd. (NASDAQ:CYBR)
Number of Hedge Fund Holders: 51
CyberArk Software Ltd. (NASDAQ:CYBR) provides software-based identity security solutions, including privileged access management, workforce identity, and secrets management for various industries globally.
On February 4, CyberArk reported that it partnered with SentinelOne to integrate their platforms, combining SentinelOne’s endpoint security and CyberArk’s identity protection. This integration improves threat detection and response by providing unified AI-driven analytics and context for identifying and mitigating threats like credential theft and ransomware. The combined solution offers continuous monitoring, faster response times, and better protection against privileged access misuse. Organizations benefit from simplified deployment, strong security policies, and improved visibility into potential cyber threats, helping to safeguard identities and endpoints in a multi-cloud environment.
3. International Flavors & Fragrances Inc. (NYSE:IFF)
Number of Hedge Fund Holders: 52
International Flavors & Fragrances Inc. (NYSE:IFF) develops and sells ingredients for flavors, fragrances, health products, and pharmaceuticals worldwide.
On February 4, IFF introduced ScentChat, an AI-powered research tool designed to improve fragrance development by integrating real-time consumer feedback. The app connects with popular messaging platforms like WhatsApp and Facebook Messenger, allowing direct interaction between consumers and perfumers. Using advanced AI and Natural Language Processing, ScentChat analyzes feedback to generate insight reports, helping formulators refine scents efficiently. The tool streamlines consumer research, making the process more cost-effective and scalable while supporting collaboration between fragrance creators and consumers. It also marks a significant step in applying AI to perfumery.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells semiconductor devices, providing a range of fabrication processes for diverse industries worldwide.
According to Beth Kindig of I/O Fund, Taiwan Semiconductor Manufacturing Company’s (NYSE:TSMC) CoWoS-L packaging technology is projected to capture 50-60% of the market this year, a significant increase from its 15% share in 2024. This growth is driven by strong demand for Nvidia’s Blackwell GPUs.
CoWoS-L is a chip-last packaging technology within the CoWoS platform, integrating features from CoWoS-S and InFO for flexible design. It uses Local Silicon Interconnect (LSI) chips to enable high-density die-to-die connections through multiple copper layers. These LSI chips support various architectures, including SoC-to-SoC, SoC-to-chiplet, and SoC-to-High Bandwidth Memory, and can be reused across different products.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, compute, and networking solutions for gaming, data centers, automotive, and professional visualization markets worldwide.
On February 4, Bank of America maintained a Buy rating on NVIDIA with a $190 price target, calling it a top pick ahead of its FQ4 2025 earnings on February 26. The firm expects a slight beat or in-line sales guidance and a lower gross margin in FQ1 due to the Blackwell transition and China restrictions. However, the firm believes that this earnings call could mark a turning point for sentiment as NVIDIA is likely to reassure on Blackwell execution, express confidence in FY26/CY25 growth with data center sales expected to rise over 60% year-over-year and build excitement for the GTC Conference on March 17. The stock is seen as attractively valued at around 26x CY25 estimated earnings.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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