We recently compiled a list of the Why These 15 AI Stocks Are Plunging So Far in 2025. In this article, we are going to take a look at where ZJK Industrial Co., Ltd. (NASDAQ:ZJK) stands against the other AI stocks.

Investors have been turning sour on the AI industry. Many have expected AI stocks to decline for the past two years, but that did not turn out to be the case and AI companies proved bears wrong in each of the past eight or so quarters.

Microsoft has canceled its data center contracts and Trump’s tariff plans are increasingly complicating the AI narrative, especially for semiconductor companies that derive a good portion of their revenue from China.

Perhaps AI could prove the bears wrong again, but considering even Nvidia’s recent earnings beat failed to overpower the cautiousness investors now have about AI, it is worth looking into some bearish arguments.

A good way to do that is by looking into AI stocks that have corrected the most so far this year. The AI industry is quite broad and you’ll be able to gain useful insight into some major AI sectors and their challengers if you look into why these stocks have been declining.

Methodology

For this article, I screened the worst-performing AI stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A metal fabricator welding a steel structure.

ZJK Industrial Co., Ltd. (NASDAQ:ZJK)

Number of Hedge Fund Holders In Q4 2024: 1

ZJK Industrial Co., Ltd. (NASDAQ:ZJK) makes fasteners and metal parts for industries, including for AI-related clients.

The stock is down significantly so far in 2025 despite some good news. It announced an expansion of its collaboration with Nvidia. It included some new projects and a specialized engineering team that will be dedicated to Nvidia.

Also, preliminary financial results for fiscal year 2024 showed continued revenue growth of over 30% year-over-year. Gross margins also improved to 46.57%. It was 34.34% a year ago.

The stock has still declined since its collaboration with Nvidia may not be “good news” in the eyes of the market right now. Investors are scrutinizing AI-related stocks and have been especially careful after Microsoft canceled some of its data center contracts. Many think the negative effects could spill over into companies like ZJK.

Story Continues

On top of that, early investors are becoming eligible to sell shares after the lock-up period following its September 2024 IPO.

ZJK Industrial Co., Ltd. (NASDAQ:ZJK) is down 19.36% year-to-date.

Overall ZJK ranks 7th on our list of the AI stocks that are plunging so far in 2025. While we acknowledge the potential of ZJK as an investment, our conviction lies in the belief that some 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 ZJK 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 Why These 15 E-Commerce Stocks Are Skyrocketing So Far In 2025

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

View Comments