We recently compiled a list of the Top 10 AI Stocks News: Latest Analyst Ratings And Upgrades. In this article, we are going to take a look at where Reddit Inc. (NYSE:RDDT) stands against the other AI stocks.

On January 27th, US and European tech stocks witnessed a $1 trillion sell-off, with most of the “magnificent seven” stocks trading in red as China’s new DeepSeek AI model rattled investors. The AI model was supposedly built for less than $6 million, which is a stark contrast to the billions spent by rivals. The DeepSeek app, launched late last week, has become the top-rated free app on the Apple App Store in the US and the UK.

As investors question America’s dominance in AI, the sector continues to drive innovation and rapidly achieve milestones across diverse industries. The Global Artificial Intelligence Industry Forecast revealed that the global AI market was worth almost $62.35 billion in 2020 and will grow at a 40% CAGR between 2021 and 2026. Most importantly, AI is helping the world achieve the net-zero emissions goal, playing a key role in the global energy transition through greater operational efficiency.

“Academia needs to be a player here, as a neutral ground to recognize some of these issues and develop systems in a different way,” said Stanford HAI Vice Director James Landay during the 2025 WEF in Davos. “Academia is also an interdisciplinary player—we have experts in law, medicine, history, social sciences, computer science, art, and design, coming together to ask questions, rather than tech companies focused primarily on a profit motive. We need academia and non-government organizations to have a say and play in this game and question this power dynamic.”

This article focuses on the latest stock ratings and analyst calls on AI companies involved in digital advertising, drone technology, and cloud providers to cybersecurity, telecom, defense, and energy generation.

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).

People interacting with a travel website, searching for the perfect destination.

Reddit Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 52

Reddit Inc. (NYSE:RDDT) is a social news aggregation, content rating, and forum social network that gained massive popularity in the new decade, prompting the company to go public in early 2024. The social media firm has data-licensing deals with both OpenAI and Google, where companies pay Reddit Inc. (NYSE:RDDT) for access to its data they use to enhance respective AI models. The social media platform is testing and implementing several AI-powered features, including the new AI Answers feature built on the firm’s existing search architecture to help users swiftly find answers sourced from posts across subreds.

On January 27th, JMP Securities increased Reddit Inc.’s (NYSE:RDDT) price target to $190 from $160 and maintained an “Outperform” stock rating. The brokerage is "broadly positive" about the company’s Q4 digital advertising earnings based on expectations that the advertising environment is healthy due to positive consumer spending over the holiday period, the contribution of political ad spend, and improved business sentiment. Meanwhile, the uncertainty around and disruption to TikTok also likely aided the coverage universe. Analysts expect operational momentum to continue for the social media platform.

Overall RDDT ranks 3rd on our list of the top AI stocks in latest analyst ratings and upgrades. While we acknowledge the potential of RDDT 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 RDDT 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.