AI stocks were hit hard by DeepSeek’s announcement, but it seems to be that DeepSeek is only causing more optimism in the long run for many AI companies. This is because cost has been a big problem for AI companies, and if they can make progress on this front, it will let AI companies make much more powerful models with the existing hardware they have.
DeepSeek is open source, so most AI companies can learn from its efficiency and integrate it. Moreover, companies and VCs are still willing to put money into AI companies and are doubling down on their bets. This likely means that AI companies will be able to make even more progress in the long run.
The real action has been spreading into many AI companies beyond the familiar names. Plus, we’re seeing the rise of agentic AI. These stocks crushed the market last year, and despite the DeepSeek catalyst this year, they are still doing well.
Here are 15 that have gained the most year-to-date.
A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels
Methodology
For this article, I screened the top-performing AI stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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).
15. Allot Ltd (NASDAQ:ALLT)
Number of Hedge Fund Holders In Q3 2024: 9
Allot Ltd (NASDAQ:ALLT) provides network intelligence and security solutions. It also sells to cloud service providers.
Allot Ltd reported solid results in Q3 2024. It reported its first non-GAAP operating profit in three years. Revenues grew to $23.2 million, up 3% year-over-year. Moreover, SECaaS revenue rose 69% to $4.7 million. It also achieved a positive OCF of $1.9 million.
Analysts now think the company will break even by 2026 and achieve a profit of $3 million in 2027. That said, it has had some muted revenue growth. Revenue declined 10% last year.
The consensus analyst price target of $13 implies 55.3% upside potential from here.
ALLT stock is up 35.2% year-to-date.
14. Agora Inc (NASDAQ:API)
Number of Hedge Fund Holders In Q3 2024: 7
Agora Inc (NASDAQ:API) is a tech company that lets developers integrate real-time voice, video, and AI functions into their apps.
The stock has risen sharply in 2025 due to senior management committing to a voluntary lock-up agreement until the end of 2025. Moreover, although Agora has seen a revenue decline in previous quarters, it has been recovering by focusing on higher-margin products. It expects revenue growth for Q4 2024 and GAAP breakeven this year.
Agora Inc. partnered with OpenAI to launch a conversational AI SDK, so that also improved market sentiment.
For Q3 2024, Agora reported $31.6 million in revenue, down 9.8% year-over-year due to the discontinuation of low-margin products and reduced demand in some sectors. But excluding these, revenue increased 2.3% sequentially. It also had $362.6 million in cash at the end of Q3 2024.
Agora projects Q4 2024 revenue between $34 million and $36 million.
The consensus price target of $6 implies -0.8% downside.
API stock is up 38.4% year-to-date.
13. OneConnect Financial Technology (NYSE:OCFT)
Number of Hedge Fund Holders In Q3 2024: 3
OneConnect Financial Technology (NYSE:OCFT) is a technology-as-a-service company. It specializes in cloud-based fintech solutions and integrates AI.
The company reported a net profit attributable to the parent company of about RMB 110 million for the first nine months. This is a 138.9% year-over-year increase. Revenue from overseas third-party customers grew 23.4%.
Moreover, the company sold its virtual banking business to Lufax for HKD 933 million in April 2024. This is to scale back low-margin businesses and concentrate on more profitable segments.
The average analyst price target of $7 implies 105.88% upside for the stock.
OCFT stock is up 41.15% year-to-date.
12. NetClass Technology (NASDAQ:NTCL)
Number of Hedge Fund Holders In Q3 2024: N/A
NetClass Technology (NASDAQ:NTCL) is a B2B smart education IT provider. It has AI-assisted learning tools.
The stock has been surging since its IPO in December 2024. It raised $9 million through its IPO and another $1.35 million from the full exercise of the underwriters’ allotment option. Moreover, it reported that revenue increased 48% year-over-year for the trailing twelve months ending March 2024.
The education tech sector is projected to reach $350 billion this year. However, despite the strong revenue growth, NetClass Technology remains unprofitable. Its net income margin is -9.32%.
NTCL stock is up 41.8% year-to-date.
11. Digital Turbine (NASDAQ:APPS)
Number of Hedge Fund Holders In Q3 2024: 19
Digital Turbine (NASDAQ:APPS) is a mobile growth platform. It has pre-installed app services and content monetization for device manufacturers and carriers. It also has products for advertisers and publishers.
The stock has gained significantly in 2025 due to its announcement of a program that aims to achieve over $25 million in annual cost savings. This includes a focus on alternative app ecosystems through its acquisition of ONE Store International.
Digital Turbine will be able to diversify its revenue and reduce its reliance on legacy products. It has also partnered up with Xiaomi.
In Q2 FY2025 (ended September 30, 2024), Digital Turbine reported $118.7 million in sales, down 17% year-over-year. It also reported a $25 million GAAP net loss, though this was an improvement over the $161.5 million loss in the same quarter the previous year. Non-GAAP adjusted net income came in at $5 million.
Adjusted EBITDA was $15.3 million, down 45% year-over-year but up 6% sequentially. It had a cash balance of $32 million as of the quarter’s end.
The consensus price target of $2.38 implies 5.4% downside risk.
APPS stock is up 42.6% year-over-year.
10. Blackboxstocks (NASDAQ:BLBX)
Number of Hedge Fund Holders In Q3 2024: N/A
Blackboxstocks (NASDAQ:BLBX) is a fintech company and a social media hybrid platform with real-time proprietary analytics and news for stock and options traders. The Blackbox System is a subscription-based SaaS platform for traders.
The stock is up significantly in 2025 due to its financing and potential merger plans. Blackboxstocks announced a securities Purchase Agreement to secure up to $2 million in financing through convertible debentures.
This funding will support operations and anticipated expenses related to a potential merger transaction. The initial tranche of $250,000 has already been closed, and additional tranches are contingent on the merger’s progress.
The stock hasn’t been that great financially. It reported $3.1 million 2023 revenue, and this was down from $4.96 million in 2022. Operating expenses were reduced, but it still recorded a net loss of $4.66 million for the year.
BLBX stock is up 43.64% year-to-date.
9. Tuya Inc (NYSE:TUYA)
Number of Hedge Fund Holders In Q3 2024: 14
Tuya Inc (NYSE:TUYA) is an IoT company. Products include cloud products and some AI-related products too.
In Q3 2024, Tuya reported top-line growth of 33.6% to $81.6 million. It also reported a non-GAAP net profit margin of 24.7%, along with $23.9 million in OCF. The cash balance here is at $1.02 billion.
Moreover, Temasek’s 65 Equity Partners acquired a 13% stake in Tuya in late 2024. The company also showcased AI-powered IoT products at CES 2025, and it claims they can improve efficiency by over 35%.
There are no recent price targets on this stock, except one by Morgan Stanley in late August 2024 with a price target of $3.5. This implies 40% upside from here.
TUYA stock is up 44.83% year-to-date.
8. VNET Group (NASDAQ:VNET)
Number of Hedge Fund Holders In Q3 2024: 13
VNET Group (NASDAQ:VNET) is a carrier-neutral data center services provider. It has cloud services and server management products. It operates 50 data centers and is heavily investing in AI.
The stock has been surging in 2025 due to its focus on AI-driven services. It is committing a lot of CAPEX to expand AI computing. Moreover, VNET reported robust growth in its Internet Data Center (IDC) business. Revenue from this segment increased by over 86% year-over-year in Q3 2024. This contributed to 12.4% overall growth.
Total revenue was $302 million in Q3, and adjusted EBITDA grew by 17.1%. That said, it has a debt level and ongoing net losses on an annual basis. For Q3 2024, VNET posted $47.3 million in losses.
The consensus price target of $4.78 implies 36.1% downside.
VNET stock is up 47.8% year-to-date.
7. Semrush Holdings (NYSE:SEMR)
Number of Hedge Fund Holders In Q3 2024: 20
Semrush Holdings (NYSE:SEMR) is mainly an SEO company. It also has products for other web-related services.
The stock has climbed significantly in 2025 due to it raising its full-year 2024 revenue outlook to $375 million to $376 million. It has also enhanced its AI-powered features and managed to attract more paying users.
The broader recovery in digital advertising has also benefited Semrush. It reported Q3 2024 revenue at $97.4 million, up 24% year-over-year. Full-year revenue guidance implies 21% growth year-over-year.
Semrush also reached a non-GAAP operating margin of 12.4%. This is up from 9.5% the previous year. Non-GAAP net income for the full year of 2023 was $16.3 million.
The consensus price target of $17.13 implies 1.57% downside for the stock.
SEMR stock is up 48% year-to-date.
6. Cambium Networks (NASDAQ:CMBM)
Number of Hedge Fund Holders In Q3 2024: 7
Cambium Networks (NASDAQ:CMBM) provides broadband and Wi-Fi solutions. It also has cloud-based network management platforms.
The stock has surged significantly so far in 2025 due to several reasons. Firstly, analysts estimate Cambium’s revenue to grow by 14% in 2025. This outpaces the broader industry growth of 11%.
Moreover, Cambium reported sequential improvements in gross margins and cash flow despite ongoing losses. For instance, Q3 2024 GAAP gross margin improved to 39.9% and 42.3% non-GAAP.
That said, full-year revenue was projected between $180 million to $190 million. This is much lower than in prior years as demand is lower. It also reported a GAAP net loss of $9.7 million in Q3 2024 and a non-GAAP net loss of $3.8 million. Adjusted EBITDA losses also remained negative at $2.3 million.
Cambium had $46.5 million in cash on hand and generated a positive OCF of $8.9 million in Q3.
The consensus analyst price target of $3 implies 150% upside.
CMBM stock is up 53.85% year-to-date.
5. Interlink Electronics (NASDAQ:LINK)
Number of Hedge Fund Holders In Q3 2024: N/A
Interlink Electronics (NASDAQ:LINK) is a tech company that specializes in sensors.
The stock has surged significantly so far in 2025 due to it revealing several products at CES 205. This includes industry-first odor sensors and a new series of carbon monoxide sensors. These sensors are targeting high-growth markets like indoor air quality monitoring and wildfire detection.
Moreover, Interlink received a $150,000 Small Business Innovation Research (SBIR) Phase 1 grant from NASA. And in December 2024, Interlink acquired two UK-based companies that specialize in e-textiles and wearable tech.
For Q3 2024, it reported $2.7 million in sales, down 13% year-over-year. However, full-year 2023 revenue grew 86% to $13.9 million.
It ended Q3 2024 with $3.8 million in cash and a cash runway of over six years with the current burn rate.
The consensus price target of $7 implies 29% downside risk,
LINK stock is up 61.3% year-to-date.
4. DHI Group (NYSE:DHX)
Number of Hedge Fund Holders In Q3 2024: 12
DHI Group (NYSE:DHX) provides an AI-powered career marketplace.
It has been rising sharply so far in 2025 due to DHI Group announcing a major restructuring of its business. It will be separating its operations into two distinct divisions for Dice and ClearanceJobs. This is expected to save $4-6 million annually and reduce workforce overlap.
DHI Group has also adopted a shareholder rights plan to protect $109 million in net capital loss carryforwards. This will prevent ownership changes that could jeopardize these tax assets. Plus, it announced a $5 million stock repurchase program starting in February 2025.
Q3 2024 revenue declined 6% to $35.3 million and ClearanceJobs revenue grew by 6%, while Dice revenue declined by 12%. Adjusted EBITDA was $8.6 million, down 8% year-over-year.
The consensus price target of $4.5 implies 52% upside.
DHX stock is up 69.1% year-to-date.
3. Cerence Inc (NASDAQ:CRNC)
Number of Hedge Fund Holders In Q3 2024: 10
Cerence (NASDAQ:CRNC) is a tech company that specializes in AI-powered virtual assistants. It is mainly geared towards the automotive and transportation markets, for things like speech recognition.
The stock has been surging so far in 2025 due to its announcement of a collaboration with Nvidia to make its large language models better for automotive applications. Cerence will use Nvidia’s AI Enterprise platform to improve the performance of its CaLLM solutions.
Moreover, it has pivoted significantly to generative AI technologies and launched six of these AI solutions. That helped it secure 10 customer wins in FY2024. Cerence also implemented a plan aimed at saving $35 million to $40 million annually.
FY 2024 revenue is at $331.5 million for the full year, up from $294.5 million in 2023. However, Q4 revenue declined year-over-year to $54.8 million from $80.8 million. It also posted a significant GAAP net loss of $588 million for FY24 due to goodwill impairment charges.
Adjusted EBITDA was -$1.9 million for Q4.
It expects $236 million to $247 million in FY25 revenue.
The consensus price target of $11.6 implies 14.3% downside risk.
CRNC stock is up 70.74% year-to-date.
2. Oklo Inc (NYSE:OKLO)
Number of Hedge Fund Holders In Q3 2024: N/A
Oklo Inc (NYSE:OKLO) is a nuclear technology company that specializes in fission power plants and nuclear fuel cycling.
The stock is up significantly so far in 2025 due to optimism about AI and its power consumption. It could be a major beneficiary of the $500 billion Stargate project, which is expected to increase power demand significantly.
Oklo has already secured significant agreements. It has a non-binding framework with Switch to supply up to 12 gigawatts of power over the next two decades, and it also has other deals with data center operators like Equinix.
In 2024, Oklo posted a net loss of $63.3 million.
The consensus price target of $40 implies 4.56% downside risk.
OKLO stock is up 91.81% year-to-date.
1. Boxlight Corp (NASDAQ:BOXL)
Number of Hedge Fund Holders In Q3 2024: 1
Boxlight Corp (NASDAQ:BOXL) is a tech company that makes products for education. They sell things like interactive displays, whiteboards, and auto systems for classrooms. They also have digital signage and STEM products like 3D printers and robotics kits.
The stock has jumped significantly so far in 2025. The recent rally was sparked by Microsoft’s announcement that it will be investing $80 billion into AI and data center development this year. Some of this spending could spill into Boxlight Corp.
Apart from that announcement, Boxlight unified its global display brand as Clevertouch by Boxlight and launched the IMPACT Max 2 interactive panel. It also partnered with CrisisGo for integrated school safety.
Q3 2024 results showed that net loss fell to $3.1 million, compared to $17.8 million in Q3 2023, and a positive adjusted EBITDA of $2.2 million. Q3 revenue came in at $36.3 million, down 26.9%, and it had $10.5 million in cash.
The consensus price target of $1 implies 18% upside potential.
BOXL stock is up 111.75% year-to-date.
While we acknowledge the potential of BOXL 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 BOXL 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 was originally published at Insider Monkey.
