The AI race switched gears after Chinese AI startup DeepSeek announced on March 25th that it released a major upgrade to its V3 LLM, intensifying competition with US rivals like OpenAI and Anthropic.
The new model, DeepSeek-V3-0324, is available through the AI development platform Hugging Face as part of the company’s latest efforts to position itself as a leader in the global AI market. DeepSeek claims that the upgrade brings major improvements in reasoning and coding capabilities.
The development comes a day after OpenAI released updates for the Advanced Voice Mode AI feature, which allows for real-time conversation in ChatGPT.
“An OpenAI spokesperson said its new AI voice assistant for paying users is “more direct, engaging, concise, specific, and creative in its answers.”
Elsewhere, fintech Ant Group, backed by Jack Ma, claimed that it was able to develop methods using Chinese chips that trim AI training costs by 20%. This update could hint that Chinese AI developers might be able to gradually reduce reliance on top AI chips manufactured in the US.
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 Q4 2024 database of over 1000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
8. Predictive Oncology Inc. (NASDAQ:POAI)
Number of Hedge Fund Holders: N/A
Predictive Oncology Inc. (NASDAQ:POAI) leverages AI and ML to speed up drug discovery and enable drug development to benefit cancer patients. The company claims that its AI platform, PEDAL, can predict the efficacy of medicines on tumor samples with 92% accuracy, which helps in the informed selection of drug/tumor type combinations for in-vitro testing.
On March 25th, Predictive Oncology Inc. (NASDAQ:POAI) said it used its active machine learning platform in partnership with the Natural Products Discovery Core (NPDC) at the University of Michigan Life Sciences Institute to develop predictive models derived from 21 unique compounds. The company said that tumor types — breast, colon and ovary — were selected for testing with the compounds and a well-known anti-cancer drug. After measuring 7% of the possible wet lab experiments, the company’s predictive ML model made confident predictions to cover 73% of all experiments, virtually eliminating up to two years of laboratory testing.
“Three compounds consistently demonstrated strong tumor drug response across all tumor types tested and demonstrated a stronger response than Doxorubicin, a benchmark compound, across tumor types. A fourth drug showed a strong response in the ovary and colon models and three additional compounds demonstrated the most ‘hit responses’ across all three tumor types.”
-said Dr. Arlette Uihlein, SVP of Translational Medicine and Drug Discovery at Predictive Oncology Inc.
7. TEN Holdings Inc. (NASDAQ:XHLD)
Number of Hedge Fund Holders: N/A
Ten Holdings Inc. (NASDAQ:XHLD) offers event planning, production, and broadcasting services. It leverages the proprietary Xyvid Pro Platform to produce transformative virtual/hybrid as well as physical events.
On March 24th, Ten Holdings Inc. (NASDAQ:XHLD) announced plans to add conversational AI solutions to its service offerings via a new partnership with V-Cube Inc., its controlling shareholder. The development will enable it to help improve corporate virtual events for clients and help them scale operations while reducing operational overheads through automation. Furthermore, the conversational AI features are expected to provide clients with insights into attendee preferences so that they can curate more engaging experiences.
“At TEN Holdings, Inc., we are committed to delivering the most advanced and effective solutions for our clients. By now offering conversational AI solutions, we believe we can elevate the virtual event experience while empowering event companies to scale more effectively and make data-driven decisions.”
-said Randy Jones, CEO of TEN Holdings Inc.
6. Aurora Mobile Limited (NASDAQ:JG)
Number of Hedge Fund Holders: 1
Aurora Mobile Limited (NASDAQ:JG) is a provider of mobile big-data products and developer services that prioritize core in-app functionalities to drive customer engagement for leading internet firms and consumer brands. The company gathers anonymous device-level mobile data for AI-driven modeling exercises.
On March 25th, Aurora Mobile Limited (NASDAQ:JG) announced that its subsidiary EngageLab, an engagement solutions provider, upgraded its Marketing Automation functions with AI-based capabilities to offer real-time analytics that track user behavior, participation rates and revenue conversions for businesses to devise strategies and achieve maximum ROI.
5. Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI)
Number of Hedge Fund Holders: 7
Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI) uses AI and a proprietary variable platform architecture to design, manufacture, and market “TechLuxury” electric vehicles. The company also develops autonomous driving and intelligence systems within its intelligent mobility ecosystem.
On March 24th, Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI) announced securing $41 million in new cash financing commitments that will help it speed up R&D and AI development, advance the FX brand, and execute strategic projects to launch the first FX vehicle by 2025-end. The company added that the net proceeds will help it advance research and testing of autonomous driving capabilities, improve AI talent acquisition efforts, and accelerate infrastructure building.
“This new round of funding lays a solid foundation for not only FF but also our new FX brand as it continues to make important milestones in market strategy and in product development. I am optimistic about the opportunities that this new funding will bring, including supporting the ongoing production of our FF 91 2.0 and the growth of the FX brand in 2025.”
-said Matthias Aydt, Global CEO of FF.
4. Global Mofy AI Limited (NASDAQ:GMM)
Number of Hedge Fund Holders: 7
Global Mofy AI Limited (NASDAQ:GMM) is a GenAI-driven technology solutions provider involved in virtual content production and digital asset development for the digital content sector. The company leverages its proprietary “Mofy Lab” tech platform, comprising interactive 3D and AI technology, to develop high-definition virtual versions of physical world objects in 3D for different applications, including gaming, movies, AR/VR, animation, and advertising.
On March 24th, Global Mofy AI Limited (NASDAQ:GMM) announced the launch of Gauss AI Lab, developed under its subsidiary Gauss Intelligence (Beijing) Technology Co. Ltd. This AI ecosystem unifies the company’s current technologies, products, and R&D efforts into an AI-powered content solution. Global Mofy’s R&D team is integrating Gausspeed, AI Agent technology, and GenAI tools into a scalable AI-powered platform for content creation and automation to optimize workflows and enhance production efficiency.
“Gauss AI Lab is the culmination of years of innovation, research, and industry collaboration. This is not just another AI tool—it is the full realization of our strategic milestone to unify our most advanced technologies into a single, powerful ecosystem. By bringing together Gausspeed, AI Agents, and cutting-edge foundational AI tools, we are eliminating inefficiencies, scaling production capabilities, and redefining the way AI shapes the digital content industry, smart city developments, gaming, and XR. Our deep engagement with industry partners at NVIDIA GTC 2025 reinforced what we already knew—AI integration at scale is the future. With the foundation already in place, we are accelerating full-scale deployment to transform the digital content landscape.”
-said Haogang Yang, CEO of Global Mofy AI Limited.
3. Pony AI Inc. (NASDAQ:PONY)
Number of Hedge Fund Holders: 20
Pony AI Inc. (NASDAQ:PONY) utilizes its full-stack, vehicle-agnostic Virtual Driver technology with its proprietary software and hardware offerings to sustainably drive large-scale commercialization of autonomous mobility for various transportation use cases.
On March 25th, Pony AI Inc. (NASDAQ:PONY) reported a 29.8% drop in its Q4 revenue to $35.5 million from $50.6 million a year earlier. Its robotaxi services segment recorded a 61.9% year-over-year revenue drop to $2.6 million from $6.7 million due to lower service fees. The company’s losses per diluted share widened to $0.99 from $0.23 a year earlier.
“2024 marked a milestone year for Pony.ai as we transitioned to a public company. Our robotaxi-first, China-first, and tier-one cities-first approach has positioned us at the forefront of the race towards large-scale commercialization. The strategic partnerships with OEMs we have developed, also empower us to rapidly scale production of our seventh-generation robotaxi. In 2025, we aim to build upon this momentum and accelerate beyond the inflection point of scaled commercialization, building a world with safer, more efficient, and accessible autonomous mobility.”
-said James Peng, CEO of Pony AI Inc.
2. FTI Consulting Inc. (NYSE:FCN)
Number of Hedge Fund Holders: 25
FTI Consulting Inc. (NYSE:FCN) is a global firm specializing in business advisory, helping companies navigate markets and transformations with services like corporate finance, economic consulting, strategic communications, risk and compliance, as well as investigations and cybersecurity.
On March 25th, FTI Consulting Inc. (NYSE:FCN) announced that its tech unit introduced new capabilities within the IQ.AI by FTI Technology suite of AI solutions that help clients tackle issues related to investigations, antitrust, data breach, and legal matters. The new capabilities include IQ.AI for Review for cost savings and expedited timelines across the document review lifecycle. It is designed to streamline first-level review workflows and optimize privilege classification regardless of challenging document formats and data types. Furthermore, the company announced additional updates to the suite, including the IQ.AI for emerging data sources, enrichments, and contracts.
“IQ.AI for Review provides an extensive suite of AI capabilities across the document review lifecycle, including first pass review and extending to privilege identification, quality control and solving complex data challenges. In expanding our IQ.AI framework to address document review end-to-end, we’re providing clients with impactful, tested, logical uses of generative AI to enrich their understanding of critical matters and reduce the burden of uncovering information within large document populations. These expanded AI capabilities are a testament to our innovation team’s rapid response to client needs and represent our continued investment in delivering expert-led, reliable, defensible, AI-powered solutions that can be applied holistically or to targeted challenges.”
-said Sophie Ross, Global CEO of FTI Technology.
1. Keysight Technologies Inc. (NYSE:KEYS)
Number of Hedge Fund Holders: 51
Keysight Technologies Inc. (NYSE:KEYS) uses AI in its electronic design, manufacturing, and testing solutions to streamline complex testing data analysis and achieve faster and more accurate identification of signal and power integrity issues in the automotive, aerospace, and communications industries.
On March 24th, Keysight Technologies Inc (NYSE:KEYS) announced that it would showcase its emulation and testing solutions at the OFC 2025 between April 1st and 3rd. The latest innovations around optical transmission and data center interconnect will include its 448 Gbps AWG-driven transmission capabilities as well as photonic IC and 1.6 Interconnect testing systems, which are designed to optimize AI data center performance.
While we acknowledge the potential of Keysight Technologies Inc. (NYSE:KEYS) 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 time frame. If you are looking for an AI stock that is more promising than KEYS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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