OpenAI published the report just days prior to President-elect Donald Trump's inauguration, with CEO Sam Altman having previously contributed around $1 million to Trump's inaugural fund to encourage a positive relationship. "An estimated $175 billion is currently held in global funds waiting to be invested in AI projects, and if the U. S. fails to attract this capital, it will likely support China-backed initiatives — thereby enhancing the global influence of the Chinese Communist Party. ” For this article, we identified AI stocks by reviewing news reports, stock analysis, and press releases. These stocks also attract interest from hedge funds. What drives our interest in stocks favored by hedge funds?The answer is straightforward: our research indicates that emulating the top stock choices of leading hedge funds allows us to outperform the market. Our quarterly newsletter employs a strategy that selects 14 small-cap and large-cap stocks each quarter and has achieved a 275% return since May 2014, surpassing its benchmark by 150 percentage points (find more details here). A software engineer managing an extensive network of code on virtual screens. **Palantir Technologies Inc. (NASDAQ:PLTR)** **Number of Hedge Fund Holders: 43** Palantir Technologies Inc. (NASDAQ:PLTR) is a prominent provider of artificial intelligence systems. On January 14, the Biden administration announced an executive order enabling private sector AI firms to lease federal sites for developing frontier AI infrastructure rapidly and on a large scale. “The United States currently leads the global frontier in artificial intelligence (AI). Advanced AI presents significant implications for national security and holds tremendous potential for improving the quality of life for Americans if utilized responsibly, from aiding in disease treatment to enhancing community safety through climate change mitigation. However, we must not become complacent.

We cannot allow America to be outpaced in developing the technology critical for the future, nor should we compromise essential environmental standards or our collective objectives for clean air and water. Therefore, I am signing an unprecedented Executive Order to expedite the construction of next-generation AI infrastructure in America, promoting economic competitiveness, national security, AI safety, and clean energy. This order will instruct the Department of Defense and the Department of Energy to lease federal properties where the private sector can establish frontier AI infrastructure efficiently. These initiatives aim to enhance the clean energy transition in a responsible manner, considerate of local communities, without imposing additional costs on American families. Additionally, they aim to solidify America's position as a leader in clean energy deployment amid global strategic competition. Some of this new capacity will also be allocated for small businesses and startups. This renewed collaboration between government and industry will guarantee that the United States continues to spearhead the age of AI. ” The Fly highlighted that Palantir is among the companies engaged with artificial intelligence or AI, positioning the executive order as an opportunity for Palantir to expand its involvement in U. S. government partnerships. Overall, PLTR ranks 7th on our list of top AI stocks based on analyst ratings and news. While we recognize PLTR’s potential as an investment, we are more convinced that other AI stocks may offer better chances for higher returns in a quicker timeframe. If you're searching for a more promising AI stock than PLTR, which trades at under five times its earnings, explore our report on the most affordable AI stock. **READ NEXT:** 20 Best AI Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.