We recently published a list of Top 10 Trending AI Stocks on Latest News. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against other top trending AI stocks on latest news.
The bloodbath that triggered one of the biggest routs in US stock markets appears to be under control. Even as people across China hail the success of their homegrown tech startup DeepSeek, it’s becoming increasingly clear there is room for everyone in the artificial intelligence race. That’s the sentiment echoed across the board as it becomes clear markets might have overreacted on reports China is at the forefront of developing AI models at the lowest costs possible.
A day after US stocks came under pressure amid the DeepSeek revelations, developers at leading US AI firms have already started praising DeepSeek AI models, touting them as Sputnik models. Some AI experts praised DeepSeek’s robust team and state-of-the-art research, but they were unconcerned by the development as concerns about competition rippled through the U.S. stock market.
“The dust is now settling after Monday’s long overdue AI reckoning, and while we still believe in the AI-driven productivity story, investing in this sector going forward may not be as easy as it was over the past two years,” said Emily Bowersock Hill at Bowersock Capital Partners. “We expect investors to be more discerning and selective when it comes to AI investing.”
OpenAI CEO Sam Altman wrote on X that R1, one of DeepSeek’s models, “is an impressive model, particularly around what they’re able to deliver for the price.” Nvidia also echoed the sentiments, stating DeepSeek’s achievement proved the need for more of its chips.
According to US President Donald Trump, the release of DeepSeek’s AI models should be a wake-up call on the need to be laser-focused on competing to win. The sentiments come from the Hype around the new AI models triggering over $1 trillion in US and European tech stocks.
The sentiments come at the backdrop of reports that AI presents a $15 trillion opportunity over the next few years, given the transformation it is poised to bring in various sectors. Therefore, there is room for every company to leverage technology to strengthen its competitive edge.
Barclays has already reiterated that companies offering advanced AI services are well poised to benefit from the availability of cost-effective AI models. In contrast, companies working on expensive hardware needed to enable and power AI should remain under scrutiny if DeepSeek’s revelations that it’s possible to develop AI models using common or cheap chips are anything to go by.
Our Methodology
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 136
Uber Technologies, Inc. (NYSE:UBER) is a technology company that offers solutions that enable mobility through ridesharing and provide delivery services for retailers and restaurants. It is one of the companies benefiting from the artificial intelligence frenzy as it invests in solutions that enhance mobility. On January 28th, analysts at Needham and Company reiterated a Buy rating on the stock with a $90 price target.
The buy rating comes on the heels of the company inking a strategic partnership with Nvidia to enhance the development of autonomous driving technology. Uber Technologies, Inc. (NYSE:UBER) will leverage the chip giant’s AI platforms and extensive data from its ridesharing segment to develop more robust AI models. Goldman Sachs has also taken notice of Uber and reaffirmed its Buy rating on the business, citing the company’s medium-term revenue growth and the implications of autonomous vehicle technology. Over the past 12 months, the company’s revenue has increased by 16.7% to $41.95 billion.
Overall, UBER ranks 1st on our list of top trending AI stocks on latest news. While we acknowledge the potential of UBER to grow, 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 UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
