A10 Networks (ATEN): AI & Security Investments Fuel Growth in High-Performance Networking

Yahoo

05-02-2025

We recently published a list of . In this article, we are going to take a look at where A10 Networks, Inc. (NYSE:ATEN) stands against other AI news and ratings investors are keeping their eye on.
Josh Wolfe, co-founder of Lux Capital, discussed the current AI space and the increasing importance of both capital and human talent in the field as he joined Caroline Hyde and Mike Shepard on 'Bloomberg Technology.' He highlighted how investments in large foundation models, previously seen as groundbreaking, are being overshadowed by more cost-effective open-source models and the rise of novel AI applications, especially in physical intelligence, robotics, and biology.
Wolfe pointed out the significance of AI models' geopolitical implications, especially regarding the competition between the U.S. and China. He stressed that U.S. leadership in AI is at risk due to China's rapid advancements and its ability to produce a significant portion of AI talent globally. Wolfe also highlighted concerns about China's state-backed companies, such as TikTok and Huawei, which he views as extensions of the Chinese government, posing national security risks. He emphasized the importance of attracting top international talent to the U.S. to maintain a competitive edge, as China produces a large percentage of AI researchers and students.
Additionally, Wolfe noted the growing significance of AI infrastructure, especially in hardware and inference. He predicts a shift toward on-device AI processing, which could reduce reliance on cloud-based systems and change the competitive landscape in AI. On national security, Wolfe praised initiatives that foster collaboration between technologists, policymakers, and venture capitalists to strengthen U.S. competitiveness. He also expressed concern about potential challenges to scientific research funding under the current administration, urging more federal investment in basic science and research to promote innovation, especially in physical sciences, robotics, and space exploration.
Wolfe concluded by stressing the need for more support for young researchers, as significant breakthroughs often come from ambitious and unconventional ideas, and called for a stronger focus on advancing U.S. leadership in these fields.
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 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 ().
A computer network engineer operating a control panel with a view of a server room in the background.
Number of Hedge Fund Holders: 20
A10 Networks, Inc. (NYSE:ATEN) offers networking solutions, including load balancing, security, and DDoS protection, serving various industries globally.
On February 4, A10 Networks reported a Q4 non-GAAP EPS of $0.31, surpassing estimates by $0.09. The company's revenue reached $74.2 million, a 5.4% year-over-year increase, exceeding expectations by $2.38 million. A10 Networks is seeing a positive outlook driven by its strong competitive position, especially with security and AI-related investments. Demand for AI data centers is increasing, and A10's products offer efficient performance with integrated security, giving the company a competitive edge.
A10 continues to invest in cybersecurity and AI solutions, including Bot Protection, DDoS mitigation, and AI infrastructure for GPUs. The company is focused on internal investments, shareholder returns, and strategic opportunities, ending the year with nearly $200 million in cash and marketable securities.
Overall, ATEN ranks 7th on our list of AI news and ratings investors are keeping their eye on. While we acknowledge the potential of ATEN 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 ATEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.