Why Xpeng (XPEV) and Schrodinger (SDGR) Are Advancing Today

Xpeng (XPEV) and Schrodinger (SDGR) are climbing 5% and 3.3%, respectively, today after Nasdaq.com reported that institutions had acquired many more shares in the companies than they had sold in recent quarters. Additionally, a number of institutions raised their stakes in XPEV and SDGR by large amounts in Q4.

China-based XPEV is an EV maker while SDGR uses physics and AI to speed up the drug discovery process and increase the percentage of drug candidates that are approved.

The Highlights of Institutional Purchases of XPEV Last Quarter

Institutions bought 53.095 million shares of XPEV in recent quarters while only selling 22.13 million shares of the name. Alibaba (BABA) increased its holdings of XPEV by 21.2% to 37.959 million shares. TMT General Partner bought shares of the automaker for the first time in Q4, acquiring 17.385 million units. Morgan Stanley increased its stake by 122.5% to 10.1 million shares while UBS’ holdings soared by 498.2% to 9.38 million units.

The Highlights of Institutional Purchases of SDGR Last Quarter

Institutions bought 6.598 million shares of SDGR in recent quarters while only selling 4.96 million shares of the name. Rubric Capital increased its holdings by 35.67% to 5 million units while Japan’s Sumitomo Mitsui increased its stake by 60.2% to 3.5 million units. Nikko Asset Management Americas raised its holdings by 108.7% to 2.46 million shares.

While we acknowledge the potential of XPEV, 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 XPEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: The author owns shares of XPEV and SDGR but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey