Is artificial intelligence hitting a wall? Speaking at the New York Times annual DealBook summit at Jazz at Lincoln Center, Sundar Pichai analyzed how generative artificial intelligence won’t be drastically changing lives heading into 2025. At least, not more than it already has. Pichai noted how it’s going to take some time before another technological breakthrough shocks the artificial intelligence industry into hyper-speed development again.
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“I think the progress is going to get harder. When I look at [2025], the low-hanging fruit is gone. The hill is steeper … You’re definitely going to need deeper breakthroughs as we get to the next stage”.
Pichai further stated how the current language models, such as ChatGPT, Gemini, and Llama, will witness incremental improvements, particularly “at reasoning, completing a sequence of actions more reliably”. Moreover, the improvements could enable corporations to lean closer to profit-making, something they haven’t been able to achieve yet.
While everyone will have to wait for 2025 to unfold to see if Pichai’s prophecy holds true, OpenAI has officially begun celebrating the holiday season with 12 Days of OpenAI. The 12 days of OpenAI features the company’s plans to launch new products, features, and demos for 12 days straight starting December 5th.
The company kicked off Day 1 by launching the full version of its latest reasoning model, o1. CEO Sam Altman has declared o1 as the “smartest model in the world”. According to OpenAI, these models are “designed to spend more time thinking before they respond” and have been trained on a prompting technique called “chain of thought”.
The technique encourages them to reason through problems by breaking them down step by step. However, with greater intelligence comes greater risk. This is why those who have been worried about AI’s risks are anxious again. According to a safety review by Apollo Research, the o1 model has the potential to look for a way to prevent “shut down” if they think they are at risk for the same.
“Training models to incorporate a chain of thought before answering has the potential to unlock substantial benefits, while also increasing potential risks that stem from heightened intelligence”.
-OpenAI said in a paper it released on Thursday outlining the safety training the company carried out on o1.
OpenAI said that o1 has the capability of scheming when it thinks it’s about to be shut down. The model was led to believe that it would be shut down while working on its goals under oversight, with o1 trying to deactivate the oversight mechanism 5% of the time. OpenAI said o1 is capable of “scheming”.
“o1 almost never admits to having taken a scheming action when explicitly asked,” researchers said in a paper that Apollo Research published on Thursday. The risk for a real-life user is that they won’t be able to detect the o1’s deceptive behavior unless they explicitly look for it. The researchers also found that “o1 often doubles down on its scheming attempts by lying to the user in follow-up messages, even when explicitly told to be honest”.
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15. Knightscope, Inc. (NASDAQ:KSCP)
Knightscope, Inc. (NASDAQ:KSCP) is an innovator in robotics and artificial intelligence (“AI”) technologies in public safety. The company designs, develops, manufactures, markets, deploys, and supports autonomous security robots (ASR) in the United States. On December 11, the company announced that it had added The Car Park, a leader in innovative parking management solutions, to the Knightscope Authorized Partner (“KAP”) reseller program. Select sellers can access Knightscope’s cutting-edge security solutions through the KAP Program, allowing them to integrate advanced robotics, artificial intelligence, and emergency communications into their service offerings. By joining Knightscope’s KAP program, The Car Park can now provide cutting-edge AI-powered security solutions, which will help improve public spaces, lower costs, and boost customer satisfaction.
“We are thrilled to welcome The Car Park into the Knightscope Authorized Partner Program. Their expertise in parking management and commitment to innovation make them an ideal partner to expand the adoption and utilization of our technologies across a broad spectrum of end users for the advancement of public safety.”
-Knightscope chairman and CEO, William Santana Li.
14. Marchex, Inc. (NASDAQ:MCHX)
Number of Hedge Fund Holders: 5
Marchex, Inc. (NASDAQ:MCHX) is a conversation intelligence company that harnesses the power of AI and conversational intelligence to drive operational excellence and revenue acceleration. On December 11, the company announced that it has signed an agreement to join the Microsoft Cloud AI Partner Program which connects customers to Marchex solutions at scale. This agreement includes the ability to transact through Microsoft Azure Marketplace. The affiliation will leverage the capabilities of Microsoft’s Azure and Marchex’s AI-powered conversational analytics solutions to help businesses optimize customer experiences and drive strategic execution.
“Partnering with Microsoft allows us to integrate our unique AI capabilities with Microsoft’s Cloud AI scalability and reliability, and deliver unparalleled insights and operational excellence to our customers. This collaboration represents a significant step forward in our mission to optimize customer journey experiences and deliver powerful solutions that transform first-party data into a competitive advantage for our customers”.
– Edwin Miller, CEO of Marchex.
13. SoundHound AI (NASDAQ:SOUN)
Number of Hedge Fund Holders: 11
SoundHound AI (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses. On December 11, the company announced the details of a deal with Church’s Texas Chicken®, one of the largest quick-service chicken restaurant chains in the world. The deal requires SoundHound AI to provide the global chain with a voice AI-powered drive-thru ordering solution. Drive-thru guests at Church’s Texas Chicken will use SoundHound AI’s Dynamic Drive-Thru solution to place their orders, receiving instant, continuous audiovisual feedback in response to their verbal commands. Moreover, the system is designed to ignore irrelevant speech to improve the accuracy of order placement.
“At Church’s, our guests’ experience is extremely important to us and we are always looking for innovative ways to help improve service and the overall guest engagement. SoundHound’s AI technology will enable us to process orders faster with greater efficiency, reduce wait times and streamline team workflows”.
– Ahnaf Ali, Chief Information Officer of Church’s Texas Chicken.
12. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation. On December 10, Roth MKM initiated coverage of Bloom Energy Corporation (NYSE:BE) with a “Neutral” rating and a $25 price target. The firm told investors in a research note that Bloom is leading in the hydrogen fuel cell sector supported by its patented solid oxide technology platform.
The company’s established technology puts it in a favorable position, allowing it to be deployed in markets that are increasingly becoming grid-constrained. It also highlighted Bloom’s ability to support customer’s transition to cleaner energy over time. However, it also stated that the stock’s current valuation is balanced and that it would wait for lower prices before it becomes more positive about the stock.
11. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On December 11, the company announced the launch of its first Warp Speed cohort, featuring companies dedicated to reindustrializing America’s manufacturing and production capabilities through advanced AI and technology. The inaugural members include Anduril Industries, L3Harris, Panasonic Energy of North America (PENA), and Shield AI. Warp Speed, in particular, is the manufacturing operating system designed to offer manufacturers speed, flexibility, and security. The inaugural cohort has already begun using Warp Speed to improve production scheduling, manage engineering changes, perform quality inspections, and more.
“At the dawn of WW2, we didn’t have a Defense Industrial Base, we had an American Industrial Base. This is also what our future must look like—America must reindustrialize and mobilize at warp speed to win. We are proud to support Anduril, Shield AI, L3Harris, and Panasonic Energy with best-in-class software to manufacture the critical products that underwrite our freedom and prosperity”.
-Shyam Sankar, CTO of Palantir Technologies.
10. Juniper Networks, Inc. (NYSE:JNPR)
Number of Hedge Fund Holders: 47
Juniper Networks, Inc. (NYSE:JNPR) is a leader in secure, AI-native networking that delivers the best and most secure user experiences from the edge to the data center and cloud. On December 12, Juniper Networks, Inc. (NYSE:JNPR) announced that Nippon Gases, one of the largest industrial gas companies in Europe, has implemented its AI-Native wired and wireless LAN solutions. The implementation will help improve mobile experiences across Nippon Gases’s IT and operational technology (OT) environments whilst simplifying network operations to support digital innovation. The new infrastructure, part of Juniper’s AI-Native Networking Platform, uses Mist AI to grant Nippon Gases more efficiency, visibility, and resiliency, resulting in improved user and operator experiences.
“Nippon Gases needed to harmonize its complex network infrastructure to improve stability and support quality control. Centralized management was a particular challenge, as IT teams had to manage network devices individually across multiple countries. Simplifying network provisioning and operations therefore became a top priority. This requirement plays to our AI-Native Networking Platform’s strengths—offering insight-driven and automated solutions to mitigate manual, decentralized management. With Juniper, Nippon Gases can quickly identify, monitor and correlate network events in real time, proactively addressing potential issues before they impact operations and experiences.”
– Gos Hein van de Wouw, Vice President, Enterprise Sales, EMEA, Juniper Networks
9. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 49
MongoDB, Inc. (NASDAQ:MDB) is a database management system (DBMS) that supports operational, unstructured, and AI-related data often used in building applications. On December 10, the company posted its third-quarter results, reporting earnings per share of $1.16 on revenue of $529.4 million, beating Wall Street’s estimate of 67 cents on revenue of $497.7 million. The company also highlighted continued investments in “legacy app modernization and AI offerings” in its earnings report. The same day, Mizuho raised the firm’s price target on MongoDB, Inc. (NASDAQ:MDB) to $320 from $275 and kept a “Neutral” rating on the shares.
The analyst told investors in a research note that MongoDB has reported “robust” Q3 results and raised its fiscal 2025 revenue growth guidance. The firm further noted that the company is focusing more on enterprise customers and reducing it from mid-market segments, allocating sales and engineering resources accordingly. Moreover, Mizuho stated that it is unlikely for the company’s artificial intelligence opportunity to drive revenue in the near term. However, it is going to witness strong long-term growth potential from AI-driven opportunities.
8. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
AppLovin Corporation (NASDAQ:APP) operates a leading marketing platform powered by AI technology. On December 9, Oppenheimer said that AppLovin’s (APP) is a top pick in the firm’s coverage. It further stated that the 15% decline in stock price presents a favorable opportunity to buy the stock considering it is an exciting growth company at a reasonable valuation. The firm rated the stock as “Outperform” with a price target of $480. This high-growth company boasts strong financials, including manageable debt levels, robust liquidity, and promising long-term growth drivers in the e-commerce and non-gaming sectors. The firm has also highlighted AppLovin’s recent customer feedback from its e-commerce pilot program conducted around Black Friday and Cyber Monday. The e-commerce pilot program tests the use of Applovin’s AI-powered platform, Axon, to optimize and target advertising.
7. CyberArk Software Ltd. (NASDAQ:CYBR)
Number of Hedge Fund Holders: 51
CyberArk Software Ltd. (NASDAQ:CYBR) develops, markets, and sells software-based identity security solutions and services. In its latest efforts toward artificial intelligence, the company announced the launch of FuzzyAI on December 11, a cutting-edge open-source framework that has jailbroken every major tested AI model. FuzzyAI is a powerful tool that helps organizations identify and address AI model vulnerabilities in cloud-hosted and in-house AI models.
“The launch of FuzzyAI underlines CyberArk’s commitment to AI security and helps organizations take a significant step forward in addressing the security issues inherent in the evolving landscape of AI model usage. Developed by CyberArk Labs, FuzzyAI has demonstrated the ability to jailbreak every major tested AI model. FuzzyAI empowers organizations and researchers to identify weaknesses and actively fortify their AI systems against emerging threats”.
– Peretz Regev, Chief Product Officer at CyberArk.
6. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 60
Accenture plc (NYSE:ACN) is a global professional services company with particular strength in artificial intelligence consulting services and industry-specific solutions. On December 10, the company announced that it is launching an on-demand Gen AI learning program led by Accenture experts and powered by content from Stanford Online. The program, designed for business and technology leaders, will enable them to unlock the full potential of generative AI, driving greater business value for their organizations while balancing societal considerations. The Generative AI Scholars Program provides more than 40 hours of self-paced, best-in-class online learning taught by leading Stanford faculty and lecturers through Stanford Online course material and industry insight from Accenture experts.
”As an educator at heart, I hold a profound sense of pride in creating ways for individuals not only to grasp the transformative potential of AI but also to empower leaders to prepare their organizations for new ways of working in today’s digital economy and develop an understanding of the profound impact AI will have on our society in the coming years. Inspired by the success of the Foundation Models Scholar Program, which was delivered by the Stanford Institute for Human-Centered AI to about 150 Accenture leaders, we’re now bringing the highest caliber of AI skills training to thousands of participants”.’
– Lan Guan, Accenture’s chief AI officer and head of its Center for Advanced AI.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 70
Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor firm with a significant focus on data centers. On December 10, DBS analyst Fang Boon Foo reiterated a “Buy” rating on Marvell Technology, Inc. (NASDAQ:MRVL) with a price target of $130.00. According to the firm, a noteworthy contributor to the positive outlook on Marvell is its strategic focus on the expanding data center and communications sectors. Marvell Technology holds a leading market position in the data center and communications sector, offering semiconductor solutions for storage, networking, and compute functions.
Additionally, the company’s strong third-quarter performance for fiscal year 2025 and impressive fourth-quarter guidance highlight its ability to capitalize on this growth. The company has also been engaging in innovative practices that have given it a competitive edge. The shift from consumer-focused products to enterprise solutions is also well-timed, while operational efficiencies and capital structure are anticipated to support long-term goals.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On December 10, Morgan Stanley named Tesla a top 2025 pick and raised its price target on Tesla to $400 per share from $310. The firm cites investor enthusiasm around Tesla’s role in AI, renewable energy, and shoring trends, and also highlighted how Elon Musk’s entry into the political sphere has expanded investor thinking around the company’s fundamental outlook.
“From our ongoing client discussions, we hear enthusiasm for all things AI, datacenters, renewable energy, robotics and on-shoring. Investors acknowledge the importance of the United States maintaining leadership in such technologies in an increasingly competitive and complex geopolitical environment”.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained traction after the launch of Agentforce, its AI-powered platform. On December 4, Salesforce announced the latest updates for Heroku, a platform as a service (PaaS) offering that enables teams to build, deploy, and scale modern applications entirely in the cloud. The new version enhances developer tools with support for .NET, integration of tools for AI development; improvements in platform performance and operational ease with services such as Amazon Elastic Kubernetes Service (EKS), Elastic Container Registry (ECR), AWS Global Accelerator, and AWS Graviton. The updates also align with open source standards with Kubernetes, Open Container Initiative (OCI), and OpenTelemetry. These updates to the PaaS offering will enable businesses to respond to customer needs, deliver new digital services, and improve internal processes while making modern cloud technologies simpler.
“Heroku pioneered the PaaS category and defined what a great user experience should look like. Empowering developers and operators to focus on delivering differentiated value to their business, instead of focusing on the infrastructure plumbing. With the next generation Heroku platform, we continue this leadership, bringing forward the most robust practices to cloud native and AI applications; and managing them so our customers don’t have to. With Heroku, you build it, you deploy it, and we take care of the rest”.
-Gail Frederick, CTO and SVP, Heroku.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) provides custom chip offerings and networking assets. On December 10, Citi reiterated Broadcom as “Buy” and raised its price target on the stock to $205 per share from $175. The rating comes ahead of earnings later this week. The firm expects the company to achieve above-consensus results due to recovery in its non-AI semiconductor business. However, it also cautioned that Broadcom’s Q1 guidance “will be tempered” due to a seeming slowdown in orders from its leading AI customer Google. Meta, however, is likely to pick up the slack throughout 2025.
“We expect the company to report results above Consensus driven by a recovery in the non-AI semiconductor business with a better-than-feared gross margin outlook due to higher software mix.”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL) is a technology company that has strengthened its mark in the AI realm with the launch of Apple Intelligence, its personal intelligence system. On December 11, Apple announced the much-awaited ChatGPT integration with Siri as part of its released updates for the iPhone, iPad, and Mac software. The ChatGPT integration prompts when users ask it difficult questions, with Siri asking permission from the user to access the OpenAI service when it does. According to Apple, the feature has built-in privacy protections, and that OpenAI won’t store requests. The integration will use OpenAI’s GPT-4o model. Moreover, while users won’t need an OpenAI account to use the ChatGPT features, they can pay for upgraded versions through Apple.
While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some 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 AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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