We recently published a list of Weekend Roundup: Top 10 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Informatica Inc. (NYSE:INFA) stands against other AI stocks on latest news and ratings.
Elon Musk has recently been in the news for his vain attempt to buy the nonprofit that controls OpenAI, but that’s not all. It has recently come to light that Musk’s artificial intelligence company, xAI, is canvassing potential investors for a roughly $10 billion funding round. This could value the company at an estimated $75 billion.
According to media reports, existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, are in discussions to participate in the transaction. However, the terms of the round aren’t finalized yet and may change.
READ ALSO: 10 AI Stocks Analysts Are Watching: Latest Ratings and News and Top 14 AI Stocks on Wall Street: News and Analyst Ratings
According to data compiled by PitchBook, xAI was last valued at $51 billion. The startup was launched by Musk in 2023, a rival to OpenAI. xAI has recently revealed that Grok3, its AI chatbot, is in the final stages of development and will be released in a week or two.
“Grok 3 has very powerful reasoning capabilities, so in the tests that we’ve done thus far, Grok 3 is outperforming anything that’s been released, that we’re aware of, so that’s a good sign”.
-Elon Musk
With the competition in the AI world heating up fast, OpenAI CEO Sam Altman has recently revealed its plans around GPT-5, and how the company is going to work on simplifying its offerings. He stated that he realizes how the company’s models and product offerings are getting complicated, bringing a solution for user ease.
“We hate the model picker as much as you do and want to return to magic unified intelligence”.
-Sam Altman.
Currently, users are required to manually select various AI models for different tasks. According to Altman, GPT-4.5, internally known as Orion, will be the company’s final “non-chain-of-thought model.” After its release, the company will unify o-series and GPT-series models.
It will do so by offering a system that can use all of its features and determine when to take more or less time to think. The GPT-5 model will be launched as a comprehensive AI system that will incorporate o3 along with other technologies.
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 business executive in a modern office looking over reports detailing artificial intelligence.
Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 22
Informatica Inc. (NYSE:INFA) is a leader in enterprise AI-powered cloud data management. On February 14, BofA analyst Koji Ikeda downgraded the stock to “Neutral” from Buy with a price target of $20, down from $35. The rating follows Informatica’s “challenging” Q4 results and “soft” 2025 guidance. Even though the company’s adjusted earnings per share of $0.41 surpassed the consensus forecast of $0.38, revenue for the quarter came in at $428.3 million, considerably below the $456.86 million analysts were expecting.
The firm strongly believes that Informatica (NYSE:INFA) offers a proven enterprise-class solution that will benefit from artificial intelligence over the long term. However, challenges such as execution issues around renewals, revenue sensitivity, pushing professional services to partners, and foreign exchange are pushing the 2025 total revenue outlook 5% below the Street. The analyst told investors that they are “most concerned on the execution challenges”.
Overall, INFA ranks 10th on our list of AI stocks on latest news and ratings. While we acknowledge the potential of INFA as an investment, our conviction lies in the belief that some 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 INFA 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.
