We recently published a list of 9 AI News and Ratings to Keep on Your Radar. In this article, we are going to take a look at where VNET Group, Inc. (NASDAQ:VNET) stands against other AI news and ratings to keep on your radar.
Expanding Human Capabilities with AI
Leading AI developers are making artificial general intelligence (AGI) their primary goal, securing billions in funding to advance the technology, as per Bloomberg. AGI refers to AI systems capable of performing as well as or better than humans across most tasks, with the software industry expected to be the first to experience its transformative effects. Eiso Kant, co-founder of Poolside, spoke with Bloomberg’s Tom Mackenzie about AGI and the evolving AI landscape.
Kant noted that AI is already increasing software development efficiency by 20–30%, with over 100 million professional developers worldwide benefiting from these advancements. He envisions a future where AI fully matches human capabilities, significantly expanding the number of effective developers. Poolside focuses on serving large enterprises, such as those in defense and financial services, where most software developers work. Unlike general AI models designed for broad applications, Poolside develops highly specialized AI systems tailored for software engineering, integrating within enterprise environments with advanced infrastructure and security measures.
Kant discussed the timeline for AGI and estimated that by 2027, AI would reach human-level performance in most knowledge-based tasks, especially in software development. He compared the impact to dramatically increasing the global developer workforce, driving down costs, and accelerating technological progress. However, he cautioned that such rapid expansion could disrupt the job market, stressing the importance of a gradual rollout to avoid destabilizing the economy.
For this article, 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 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with 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 close up image of a application hosting server with the company’s branding on it.
VNET Group, Inc. (NASDAQ:VNET)
Number of Hedge Fund Holders: 26
VNET Group, Inc. (NASDAQ:VNET) provides hosting, cloud, and networking services for businesses in China.
On March 14, Citibank raised VNET Group’s price target from $16 to $20 and noted that recent share weakness stemmed from concerns over high capital expenditures and potential equity financing, as well as uncertainty surrounding the H20 ban and order fulfillment. The firm views the $430 million convertible bond issuance as resolving a major overhang. Given the planned 400MW delivery in 2025, Citibank considers the RMB10-12 billion (RMB 1 = US$0.14) capex reasonable and expects 28% EBITDA growth in FY2026. The firm further noted:
“We foresee H20 update likely imminent, and 83% of order delivery this year is pre-committed, which has likely secured AI accelerators supply, and under-delivery concern seems overdone given AI capex cycle has just started amid tight industry supply. We view upcoming Tencent capex plan as potential catalyst. We lifted our FY25-26E EBITDA 1-2% and introduce FY27E, roll forward to FY26 EV/EBITDA with unchanged 16x multiple. Lift TP to US$20 as FY26 is more reasonable benchmark to evaluate return of capital invested this year. Buy.”
Overall, VNET ranks 8th on our list of AI news and ratings to keep on your radar. While we acknowledge the potential of VNET 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 VNET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
