We recently published a list of 9 AI News and Ratings on Investors’ Radar. In this article, we are going to take a look at where Rackspace Technology, Inc. (NASDAQ:RXT) stands against other AI news and ratings on investors’ radar.

According to a Reuters report posted on March 25, Chinese AI firms have made significant progress in closing the technology gap with the U.S., with some areas now only three months behind, according to 01.AI CEO Lee Kai-fu. He highlighted DeepSeek’s advancements in optimizing chip usage and algorithm efficiency, allowing China to compete more closely in AI development. Despite U.S. semiconductor sanctions, Chinese companies have adapted by improving their algorithms, with DeepSeek even surpassing expectations in certain areas like infrastructure software engineering.

As per the report, Lee emphasized that investing in proprietary models is becoming more challenging due to competition from major tech firms and open-source alternatives, leading 01.AI to focus on AI applications instead. The company recently launched Wanzhi, a platform for enterprise AI deployment, and expects substantial revenue growth in 2025.

China Advances AI Despite US Chip Export Controls

Senior foreign officials and major tech companies are urging the Trump administration to ease AI chip export restrictions. In a discussion on March 25, Bloomberg Intelligence analyst Mandeep Singh explained that initial U.S. controls began in 2022 under the Biden administration, limiting the semiconductor kingpin’s high-end chip shipments to China by restricting interconnect bandwidth. These measures expanded with a 168-page diffusion rule categorizing countries based on access levels. Despite restrictions, Chinese firms like Ant Group continue AI advancements by optimizing available resources, including Huawei and AMD chips, reducing pre-training costs by 20% through heterogeneous computing.

According to Singh, the semiconductor kingpin argues that these restrictions are cutting into its revenue, with its China exposure dropping from 20% to below 10%, while AI firms like OpenAI claim the market remains undersupplied, further driving demand for GPUs. Singh noted that U.S. AI models still outperform Chinese counterparts in reasoning and multimodal tasks, giving them a competitive edge. Furthermore, investors remain confident in the Mag 7 stocks, viewing market dips as buying opportunities. However, concerns are rising about data center expansion and energy supply challenges, especially in regions beyond traditional hubs like Virginia.

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For this article, 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 Q4 database of over 1000 hedge funds.

At Insider Monkey we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).Rackspace (RXT) Launches New AI Cloud Platform - Simplifying AI Adoption for Businesses

A futuristic multi-server data center, symbolizing the advanced multicloud services.

Rackspace Technology, Inc. (NASDAQ:RXT)

Number of Hedge Fund Holders: 15

Rackspace Technology, Inc. (NASDAQ:RXT) provides multi-cloud services, including infrastructure, security, data solutions, and managed cloud services across global markets.

On March 25, Rackspace Technology (NASDAQ:RXT) introduced Rackspace AI Business, a private cloud platform designed to support enterprises in managing AI workloads, including training and inferencing. The platform is built with Dell Servers and NVIDIA GPUs and offers secure, high-performance infrastructure to streamline AI deployment and scalability. It includes capabilities for distributed training, scalable inferencing, and fine-tuning pre-trained models while ensuring compliance and data protection. Rackspace (NASDAQ:RXT) aims to simplify AI adoption by removing technical hurdles, enabling businesses to focus on maximizing the value of their AI initiatives without managing complex infrastructure.

Overall, RXT ranks 6th on our list of AI news and ratings on investors’ radar. While we acknowledge the potential of RXT 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 time frame. If you are looking for an AI stock that is more promising than RXT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

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