zSpace Inc. (ZSPC) Gains Analyst Attention with ‘Buy’ Rating and $20 Target Amid AR/VR Innovations in Education

We recently compiled a list of the 10 Trending AI Stocks That Analysts Are Monitoring. In this article, we are going to take a look at where zSpace Inc. (NASDAQ:ZSPC) stands against the other trending AI stocks.

As the global AI race heated up last month with the launch of DeepSeek R1 and Alibaba’s Qwen 2.5 AI models, US AI firms are working to enhance existing models at a record pace. As a result, OpenAI announced yesterday that it has added a new “deep research” mode to ChatGPT for users to carry out multi-step research on the web for complex tasks.

Deep Research is OpenAI’s second AI agent powered by the latest o3 reasoning model, which is optimized for web browsing and data analysis. The new feature can search, interpret, and analyze vast amounts of texts on the web to create a detailed report close to the level of a research analyst.

However, queries made using the “Deep Research” feature will take up to 30 minutes to return results. The chatbot will automatically notify users when the research is complete.

Furthermore, Nvidia CEO Jensen Huang said in a January 27th interview with journalist Cleo Abram that everyone carry an AI tutor with them for learning diverse topics and assistance with coding, writing, analysis, and reasoning.

“If there’s one thing I would encourage everybody to do, is to go get yourself an AI tutor right away,” he said. “The knowledge of almost any particular field, the barriers to that understanding, have been reduced. I have a personal tutor with me all of the time.”

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 database of 900 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).

Ontrak Inc. (OTRK): AI-Powered Healthcare Solutions Under $2 Billion

A patient wearing a virtual reality headset, experiencing the immersive world of virtualized healthcare.

zSpace Inc. (NASDAQ:ZSPC)

Number of Hedge Fund Holders: N/A

zSpace Inc. (NASDAQ:ZSPC) offers augmented reality and virtual reality products for education to help learners interact with virtual objects in simulated environments. The company launched the zSpace AI tool to provide personalized assistance to teachers and students and a trove of curated content for students powered by data-driven insights for a better learning experience. Furthermore, the Career Coach AI is the company’s AI-driven assistant for students, helping them learn about various career paths and make well-informed decisions for their educational journey.

On February 3rd, Roth MKM analyst Rohit Kulkarni initiated coverage of zSpace Inc. (NASDAQ:ZSPC) with a “Buy” rating and a $20 stock price target. The brokerage highlighted that the company stock has jumped over 300% since the IPO and is valued at a premium versus peers, but “presents a significant opportunity for medium/long-term investors” due to a growing total addressable market and “significant catalysts” like the recently launched laptop.

Overall ZSPC ranks 10th on our list of the trending AI stocks that are being monitored by analysts. While we acknowledge the potential of ZSPC 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 timeframe. If you are looking for an AI stock that is more promising than ZSPC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.