According to a spokesperson for China’s parliament, DeepSeek’s progress is a reflection of the rise of Chinese companies in artificial intelligence (AI). Lou Qinjian, responding to a question on China’s progress in AI, has deemed DeepSeek’s achievement as “commendable”, Reuters reported.
“DeepSeek adheres to an open-source approach and promotes the widespread application of AI technology globally which contributes Chinese wisdom to the world. Through the rise of companies like DeepSeek, we can see the innovation and inclusiveness of China’s technological development.”
– Lou Qinjian.
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Indeed, DeepSeek has sparked a state of unrest in the tech world ever since its arrival. Using distillation to achieve cheaper and more efficient AI models, this AI startup has ignited a fierce race in the artificial intelligence world ever since the birth of ChatGPT.
Such has been the intensity of competition that in recent news, it has come to light how Tencent Holdings has displaced DeepSeek as the most downloaded free app in China’s iOS App Store. Tencent’s Yuanbao has taken the top spot in the free app list on Monday, with DeepSeek in second place and ByteDance’s Doubao in fourth, the South China Morning Post noted.
Launched in May last year, Yuanbao gained popularity after Tencent’s move to integrate DeepSeek’s R1 reasoning model in February, providing users with an alternative to the tech giants’ Hunyuan model.
Developments like these illustrate how intense the global race in artificial intelligence is becoming. In this regard, China’s ambassador to the United States Xie Feng has even called for closer cooperation on artificial intelligence. According to him, the technology risks are “opening a Pandora’s box”.
“As the new round of scientific and technological revolution and industrial transformation is unfolding, what we need is not a technological blockade, [but] ‘deep seeking’ for human progress.”
-Xie said, making a pun on China’s star AI start-up DeepSeek.
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. The hedge fund data is as of Q4 2024.
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10. Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 17
Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology company that provides AI-enabled precision medicine solutions. On March 3rd, JPMorgan downgraded the stock to “Neutral” from overweight and raised the price target to $55 from $50.
The rating, issued after the earnings print, discussed how Tempus AI’s 2025 guidance demonstrates “sustainable” data and service revenue, “encouraging” average selling price traction, and boosting profitability. The firm is all in on its “unique combination” of diagnostics and data but stated that the shares are fully valued on a relative basis after the recent stock run.
“The recent artificial intelligence headlines and Nancy Pelosi call option buying have driven increased retail interest.”
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 42
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers. On February 28, TD Cowen maintained a “Hold” rating on the stock with a $20.00 price target. According to the firm, Bloom Energy is poised to benefit from the increasing focus on power demand driven by data centers.
The analysts have also highlighted certain concerns, such as a flat product backlog, status of safe harbor provisions, and the company’s Accounts Payable (AEP) status, drawing attention from investors. The firm concluded stating that it is becoming favorable toward Bloom’s story but chooses to remain on the sidelines until it gains more confidence about the company’s position within the data center market and execution of safe harbor activities.