Investors continue to pour back into Big Tech stocks after the US government announced temporary tariff relief. For many, this is a signal that the technology sector may not suffer much, and further relief could follow. This is moving the major tech stocks and, with it, the index. The S&P and Nasdaq indices are both up over 4% in the last five trading sessions.
Apart from the tariff developments, some companies are moving based on company-specific news as tech players continue to race ahead in the race for AI supremacy. Some of these companies are surging considerably and still have ample room to go, so you need to look at these developments before the market prices them in.
To come up with our list of top 5 AI news you may have missed, we carefully considered the recent news reports and press releases while ordering the list based on hedge fund sentiment.
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5. ARB IOT Group Limited (NASDAQ:ARBB)
Number of Hedge Fund Holders: 2
ARB IOT is a little-known company from Malaysia that provides Internet of Things (IoT) and AI services. The company’s stock was up over 22% yesterday, but is already up 30% today as investors absorb the news of a new contract just secured by the company.
ARBB’s wholly owned subsidiary, ARB R1 Technology Sdn Bhd, has signed an agreement with the Whizzi Group to supply AI servers. The deal is expected to be worth $53 million, an amount that is considerably higher than the company’s current market cap of $14 million.
The servers included in this deal are the ARB-222 AI servers that are critical to modern-day data centers, powering data-intensive operations demanded by various industries. This sizeable deal will go a long way in helping the company strengthen its foothold in the industry and expand at a faster rate than previously thought.
Just last month, the company also secured a deal for the same AI servers, worth well over $45 million. ARBB continues to be an attractive option for penny stock investors as the stock closed at a lower price than it was trading just one month ago, suggesting there may still be considerable upside.
4. Skillsoft Corp. (NYSE:SKIL)
Number of Hedge Fund Holders: 11
Skillsoft Corp. offers a global platform for instructor-led training services. The company has two main segments: Instructor-Led Training and Content & Platform. It is known for the Percipio platform, which is an AI-powered learning platform that delivers learning through SaaS solutions. The firm has just announced its earnings report, and its AI initiatives are starting to gain investor attention.
According to the management, SKIL is set for growth in 2026 after successfully implementing its transformation strategy. The firm’s CAISY AI-powered coach is already gaining traction with over 1 million launches so far. SKIL is now integrating it with customer feedback and planning a rollout in the latter half of this fiscal year.
Similar measures have been taken at the integration level, allowing integration with platforms like Oracle, Docebo, and SAP Talent Intelligence Hub. This is also expanding SKIL’s ecosystem, which would eventually help it down the road.
FY2026 revenue is expected to come in between $530 million and $545 million. This is welcome news for investors as the YoY decline in Q4 revenue had some worried about the company’s topline. Free Cash Flow has nearly doubled in a year to $13.2 million, and the management is confident it will land somewhere between $13 million and $18 million in FY2026.
3. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 42
Applied Digital Corporation serves the AI infrastructure and high-performance computing (HPC) industries. It operates through three segments: HPC, Cloud Services, and Data Center Hosting Business. After more than quadrupling in share price last year, the company has already lost half its value in 2025. Things are now getting worse, with the stock set to open down as much as 15% today.
The reason for the price crash is the company’s quarterly earnings report. The firm reported $52.9 million in revenue, driven largely by the $35.2 million contributed by its data center segment. The revenue came in lower than expectations as clients continue to delay renewing their data center leases. The rising power costs are also impacting the firm’s margins negatively.
The first building of the company’s Ellendale campus is set to come online by the end of this year. APLD could lease out parts of the building in order to maximize the utilization of the equipment installed at the facility. The enhanced HPC data center capacity should continue to drive the company’s growth in the near term.
Management was also confident about the Cloud Services Business segment, though a potential sale of this part of the business could negatively impact the firm’s relationship with its clients. Apart from the delay in lease renewal from some clients, APLD is also finding it hard to acquire clients for its Ellendale campus, something that continues to worry analysts.
2. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 74
Verizon is a critical part of the US communications infrastructure, providing technology, information, communications, and entertainment products to a global clientele. The company’s stock has surged 7% over the last 5 trading sessions, an impressive performance for a stock that is usually considered a boring dividend investment.
The recent optimism is due to the company’s use of AI in improving its sales. Last week, CEO Sampath Sowmyanarayan impressed shareholders when he announced that the company had boosted its sales by 40% since deploying Google’s AI tools. These tools have helped the company improve customer service quality by 95%, the positive effects of which will keep coming as we move forward.
Verizon’s AI product called ‘Personal Research Assistant’ is currently being used by 28,000 different retail stores and customer care centers. The real-time personalized answers to customer queries have helped businesses streamline their support operations and brought about a positive impact on their businesses.
Verizon created these products by feeding over 15,000 company documents to a Gemini LLM, showcasing how AI can be used to improve business performance without having to spend outrageous amounts of money.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon is in the news again thanks to its stake in the AI startup Anthropic. Anthropic has just announced a $200 per month subscription plan for its Claude Chatbot. The news comes a few months after ChatGPT launched a similar subscription at $200 per month for its users.
The new subscription plan comes in two tiers, with the first costing $100 per month. This tier is meant for the average user looking to improve their workflows with AI. The second tier consists of the $200 per month subscription plan, ideal for users who depend heavily on Claude for most of their daily tasks.
Amazon’s total stake in the startup is closing in on $14 billion, with future capital raises likely to further increase the value of this stake. Apart from Amazon, Google and Salesforce are also some of the major backers of the company.
While we acknowledge the potential of AMZN 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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