As the US and Asia, led by China, continue to make staggering advancements in AI, experts worry that Europe may fall behind as its extremely strict regulatory approach to AI puts it at risk of becoming a “museum.”
“I think we really need to step up in Europe…the American economy, Chinese economy have been growing far faster compared to the European economies over the last 20 years,” Sweden PM Ulf Kristersson told attendees of the Techarena event in Stockholm today. “If we don’t change that, Europe will actually become some kind of a museum compared to other parts of the world.”
“To be able to compete in the new geopolitical context, Europe needs to become a place where business and innovation can thrive. That means less regulation. That means more access to capital and talent,” Kristersson added. “As it stands now, we’ve got companies having troubles using the latest technology due to uncertainties with the European legislation, companies founded in Europe relocating to the U.S. due to the lack of access to capital. That is simply not good enough.”
Despite French President Emmanuel Macron’s $113.7 million investment in AI, which included commitments from UAE and Canadian investment funds, as well as European Commission President Ursula von der Leyen announcing that the EU would mobilize $208.6 billion for AI investments in Europe, US VP JD Vance said Europe is too focused on regulating AI rather than embracing its growth potential.
“To create that kind of trust, we need international regulatory regimes that fosters the creation of AI technology rather than strangles it, and we need our European friends in particular to look to this new frontier with optimism rather than trepidation,” Vance told attendees at the Paris Summit.
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A business executive in a modern office looking over reports detailing artificial intelligence.
8. Aurora Mobile Limited (NASDAQ:JG)
Number of Hedge Fund Holders: N/A
Aurora Mobile Limited (NASDAQ:JG) provides mobile big-data products and developer services focusing on core in-app functionalities to help leading internet firms and consumer brands drive customer engagement. The company gathers anonymous device-level mobile data for AI-driven modeling exercises.
On February 20th, Aurora Mobile Limited (NASDAQ:JG) announced it has integrated DeepSeek into its Adpub platform to transform app monetization. Adpub is the company’s app monetization platform, featuring an advanced real-time bidding system that can help developers maximize advertising revenue by an average of 20%. The DeepSeek integration will further boost Adpub’s capabilities further by helping the platform better perceive user behavior to deliver highly relevant ads to the targeted audiences for better click-through rates.
“We are thrilled to integrate DeepSeek into Adpub, marking a pivotal step in empowering developers with smarter monetization tools. This integration not only strengthens Adpub’s leadership in app monetization but also sets a new benchmark for innovation in the industry.”
-said Chris Lo, CEO of Aurora Mobile Limited
7. Cyngn Inc. (NASDAQ:CYN)
Number of Hedge Fund Holders: 1
Cyngn Inc. (NASDAQ:CYN) designs and supplies scalable, differentiated autonomous vehicle systems, AV fleet management, and analytics tools powered by AI for the industrial sector to enhance the productivity, adaptability, and efficiency of existing workforces by addressing labor shortages, safety incidents, and surging consumer demand for eCommerce.
On February 20th, Cyngn Inc. (NASDAQ:CYN) announced the deployment of DriveMod Tuggers and DriveMod Forklifts to deliver innovative autonomous vehicle solutions to diverse industries, including manufacturing, logistics, defense, and consumer packaged goods.
“The strong demand we’re seeing across industries like Manufacturing, Consumer Packaged Goods, Logistics, and Defense highlights the clear product-market fit of our DriveMod technology. From the rigorous standards of the defense sector to the high-volume operations of consumer packaged goods, our solutions have proven their ability to meet the unique demands of each environment. These deployments validate the need for scalable, autonomous solutions and reinforce the growing appetite for innovation in industrial automation.”
-said Lior Tal, CEO of Cyngn Inc.
6. Aclarion Inc. (NASDAQ:ACON)
Number of Hedge Fund Holders: 3
Aclarion Inc. (NASDAQ:ACON) is a healthcare technology firm that uses biomarkers and proprietary “augmented intelligence” algorithms within its “NOCISCAN” software application to help physicians identify the source of chronic low back pain by analyzing the chemical makeup of intervertebral discs in the spine, which enables them to offer targeted treatment plans.
On February 20th, Aclarion Inc. (NASDAQ:ACON) announced it will participate in the 2025 Spine Summit where renowned orthopedic surgeon Nicholas Theodore will discuss how NOCISCAN is transforming spine surgery by combining cutting-edge MR Spectroscopy with augmented intelligence.
“Disruptive technologies require strong advocacy from physician luminaries, and the insights provided by Dr. Theodore and the Aclarion KOL team have been valuable as we strive to make NOCISCAN more broadly available. We look forward to Dr. Theodore’s presentation at the Spine Summit as he highlights how NOCISCAN empowers physicians to ‘see’ painful discs that are invisible with traditional imaging so they can develop tailored treatment plans for patients with chronic low back pain,”
-said Brent Ness, CEO of Aclarion Inc.
5. Youdao Inc. (NYSE:DAO)
Number of Hedge Fund Holders: 5
Youdao Inc. (NYSE:DAO) is a leading intelligent learning company that develops and leverages technologies to offer learning content to users of all ages via its popular online knowledge tools, including smart devices, STEAM courses, interactive learning apps, and education digitalization solutions.
On February 20th, Youdao Inc. (NYSE:DAO) posted a 9.5% YoY drop in Q4 net revenues to $183.6 million due to a 21.2% revenue decline from the learning services segment. However, the company’s earnings per share increased markedly to $0.10 YoY. For the full year 2024, total net revenues jumped 4.4% YoY to $770.7 million, buoyed by a 48.3% growth in the online marketing services segment and stable revenues from smart devices.
“We achieved a significant milestone of first-ever full-year profitability in 2024. In terms of products and services, our AI-based and differentiated services enhanced customer loyalty, with retention rate surpassing 70% in the fourth quarter for Youdao Lingshi. In addition, we strengthened collaboration with NetEase in online marketing services, facilitating the long-term development of this segment. AI-driven subscription services continued to upgrade, leading to elevated customer satisfaction and over 130% year-over-year increase in total sales. Looking ahead, we are launching our ‘AI Native’ strategy-integrating AI more comprehensively across our business lines, for example, automating our advertising platforms and introducing AI-driven tutoring for our course customers.”
-said Dr. Feng Zhou, CEO of Youdao Inc.
4. CGI Inc. (NYSE:GIB)
Number of Hedge Fund Holders: 16
CGI Inc. (NYSE:GIB) offers IT, business consulting, automation, intellectual property, and enterprise digitization services to industries such as banking, healthcare, manufacturing, energy, insurance, and logistics. Through its responsible use of AI methodology and consulting framework in its IP portfolio, the company offers a suite of AI solutions like the CGI PulseAI, Virtual Service Agent, Accelerate AI360, DigitaTrust360, and Machine Vision for better operational efficiencies, cost reductions, legal compliance, and assets monitoring activities.
On February 20th, CGI Inc. (NYSE:GIB) announced it secured the Select partner program status from AI company Databricks, underscoring the company’s commitment to advancing data analytics and AI capabilities for its global clients. The designation builds on five years of joint innovation by CGI Inc. (NYSE:GIB) and Databricks to offer data solutions designed to speed up digital transformation for clients in the financial services, public sector healthcare, and retail sectors.
“Achieving Select status with Databricks reinforces our position as a trusted leader in cloud and AI technologies. This designation not only strengthens our service portfolio but amplifies our ability to deliver transformative data solutions, ultimately helping our clients drive meaningful outcomes through data-driven insights.”
-said Vijay Srinivasan, CGI President of US Commercial and State Government operations.
3. Endava plc (NYSE:DAVA)
Number of Hedge Fund Holders: 16
Endava plc (NYSE:DAVA) is an IT services and consulting firm that offers software development, data analysis, cloud delivery, test automation, and AI solutions to diverse industries, including finance, telecom, insurance, media, retail, and healthcare.
On February 20th, Endava plc (NYSE:DAVA) posted a 6.6% YoY increase in revenue to $246.7 million for the quarter ended December 31st, 2024. The company recorded a fall YoY EPS for the quarter to $0.14 from $0.18. For the current quarter, Endava plc (NYSE:DAVA) set a revenue guidance between $249.73 million and $252.25 million.
“Our results for the second quarter of FY25 were solid, with improved profitability. Gen AI adoption is becoming a key priority for clients. With our hands-on experience, coupled with deep industry expertise, we believe we are in a strong position to cut through the hype that our clients are exposed to regarding AI and to work with them to deliver real business value. Additionally, today, we announced our first share buyback program totaling $100 million as we reinforce our commitment to optimising our capital allocation.”
-said John Cotterell, Endava’s CEO.
2. Viavi Solutions Inc. (NASDAQ:VIAV)
Number of Hedge Fund Holders: 28
Viavi Solutions Inc. (NASDAQ:VIAV) offers AI-powered network testing, monitoring, and assurance solutions to enhance network performance and reliability in the cloud, telecommunications, enterprises, military, and aerospace industries. The company also offers light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, and automotive sectors.
On February 19th, Viavi Solutions Inc. (NASDAQ:VIAV) announced it will showcase its new-age network technologies at MWC Barcelona between March 3rd and 6th. These technologies include 6G Forward projects, AI-driven digital twins, Non-Terrestrial Network validation, AIOps, and AI-RAN scenario generation designed to drive the Telco-to-Techco transition.
“The past year has seen tremendous change, with 6G taking a significant leap forward in the lab, high-speed satellite networks becoming a reality, and AI increasingly being leveraged to enhance tools, simulations and operations. At the same time, the industry needs to be vigilant about the growing attack surface, including open interfaces, PNT and even quantum computing. In this dynamic landscape, network testing and optimization is becoming ever more critical and VIAVI is proud to support our partners in the delivery of these advances.”
-said Sameh Yamany, CTO of Viavi Solutions Inc.
1. Nice Ltd. (NASDAQ:NICE)
Number of Hedge Fund Holders: 28
Nice Ltd. (NASDAQ:NICE) offers AI-powered customer relationship management (CRM) software, including the CXone platform, which helps organizations enhance customer experience across diverse channels like calls, chats, and emails through automation and data analysis.
On February 20th, Nice Ltd. (NASDAQ:NICE) posted a 16% YoY jump in Q4 revenue to $721.6 million, boosted by revenue from the cloud segment. Meanwhile, fully diluted EPS for Q4 increased 24% YoY to $1.54 on the robust adoption of its AI solutions. For the full year 2024, the company’s revenues increased by 15% YoY to $2.73 billion. The company set a non-GAAP 2025 revenue guidance between $2.91 billion and $2.93 billion, considering a cloud revenue growth of 12% YoY.
“We’re pleased to report a strong finish to 2024 capped off by an exceptional fourth quarter with double digit growth in total revenue, cloud revenue and further acceleration of our industry leading profitability. Our full-year 2024 strong top-line results were fueled by a 25% year-over-year growth in cloud revenue, which reached $2 billion. Further, our leadership in CX AI was exemplified by the strong adoption of our advanced AI solutions which were included in 97% of our large enterprise CXone Mpower deals over $1 million ARR. AI is revolutionizing the CX industry, and CXone Mpower’s agentic AI is unlocking new levels of growth by delivering further efficiency and exceptional customer experiences…We will put our industry-leading platforms front and center, we will lead the CX-AI revolution and we will further scale through expansion of our ecosystem. Our decades of deep CX domain expertise, industry-leading AI platform, relentless innovation and great financial strength strongly positions us to capitalize on the opportunities ahead and accelerate into the future.”
-said Scott Russell, CEO of Nice Ltd.
While we acknowledge the potential of Nice Ltd. (NASDAQ:NICE) 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 NICE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
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