In this article, we discuss the 10 AI news and ratings investors should not miss.
As demand for AI-powered applications grows, major tech firms are investing in alternative energy solutions to support data center requirements. Amazon, for instance, has committed to nuclear energy projects with X-energy and Dominion Energy, focusing on building small modular reactors (SMRs) to meet the intensive energy needs of its data centers while striving for carbon neutrality. This shift to nuclear energy is expected to help the AWS parent reach its net-zero goals by 2040 while managing the escalating power demands driven by AI and cloud services.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, Apple has previewed several AI enhancements, including integration with ChatGPT for more advanced on-device tasks, such as text generation and question-answering in iOS 18.1. This addition aligns with its approach to cautiously integrate AI, emphasizing user experience improvements while enhancing privacy through device-based processing. The company’s developments aim to increase iPhone appeal and could impact the smartphone market by encouraging upgrades for new AI capabilities.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among 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).
Stocks
10. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. On November 7, TD Cowen raised the price target on Arm to $165 from $150 and kept a Buy rating on the shares. The advisory said Licensing upside drove the Sep 2024 quarter beat and F4Q25 weighted signings could imply FY25 licensing growth of high-20% year-over-year.
9. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) is an American company that specializes in software platforms for big data analytics. On November 6, Goldman Sachs analyst Gabriela Borges raised the price target on Palantir to $41 from $16 but kept a Neutral rating on the shares. The advisory has underestimated the significant momentum Palantir would see in 2024 as it applied its core technology competencies – data stitching, ontology building – to solving custom AI software challenges across enterprise customers, Goldman analysts told investors in a research note. The note added, however, that the neutral stance reflects the stock that is already pricing in significant success with AIP as it looks to do further work to better understand the durability of Palantir’s competitive advantage.
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 47
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. On November 6, Mizuho suspended the rating and price target on Super Micro citing the lack of full financial details and audited statements. While Super Micro is growing its sales 100% year-over-year as an artificial intelligence leader positioned to ramp on Nvidia’s Blackwell, there are near-term uncertainties with the November 16 Nasdaq approval and audited annual filing, the advisory told investors in a research note.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 100
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. On November 7, Bernstein raised the price target on the stock to $215 from $200 and kept an Outperform rating on the shares. The advisory noted the company’s Q4 results were strong on solid QCT sales especially in Auto and IoT. Q1 2025 guidance was also good, driven sequentially by handsets and licensing, offset by seasonally weaker IoT, the investment advisory added.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 156
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. On November 7, news publication DigiTimes Asia reported that Chinese tech giant Huawei was offering triple salaries to engineers from TSM in order to attract them to work for Huawei. Per the reports, Huawei has sent out recruitment emails to these engineers amid mounting US sanctions on chip exports to China. TSM is also reportedly limiting production of advanced chips for Chinese firms.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 7, Jensen Huang, the CEO of the firm, appeared on the No Priors podcast, affirming that he sees AI employees taking on all kinds of roles, including in areas like marketing, chip design, and supply chain, in the coming years. He said that AI workers will be prompted the same way as human employees are today, such as by asking them to perform a mission, providing them with context, and engaging in back-and-forth conversations. Huang further added that companies that use AI to become more productive will likely see better earnings or growth.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. On November 8, investment advisory Evercore released a post-election investor note, detailing that Apple could be one of the stocks to watch as a second term for Donald Trump would affect IT hardware and networking firms in multiple ways. Analysts led by Amit Daryanani wrote in a note to clients that the potential for Trump tariffs could negatively affect some companies with large exposure to China, other proposed policies should provide benefits. These include lower corporate tax rates and fewer regulations. Companies who source many components or assemble a large percentage of their products in China face risks, per the analysts.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. On November 5, news publication Financial Times reported that plans by the company to build a nuclear-powered data center have hit a snag as the land earmarked for the project was found populated by a rare species of bees. Meta rivals like Microsoft, Amazon, and Alphabet are all already aggressively investing in AI data centers powered by nuclear energy. A company source told Financial Times that the firm was still exploring deals for carbon-free energy.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 5, Tevogen Bio, a New Jersey-based biotech firm, announced that Tevogen AI, the AI department of the company, had partnered with technology titan Microsoft to tap into the advanced AI tools marketed by the latter for biotech research. Just last month, Microsoft announced an array of health-related AI tools, including medical imaging models, a health-care agent service, and an automated documentation solution for nurses. The tools aim to help health-care organizations build AI applications quicker and save clinicians time on administrative tasks.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. Earlier this week, news publication Bloomberg reported that the tech giant had doubled on a previous commitment to build a data center right next to a Pennsylvania nuclear plant. The reports came merely hours after federal authorities turned down a request by Texas-based energy firm Talen that would have increased the amount of power that the nuclear power plant could provide to the data center. Duncan Neasham, an Amazon spokesperson, confirmed the company intended to go forward with the Talen project.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 timeframe. If you are looking for an AI stock that is more promising than Amazon.com, Inc. (NASDAQ:AMZN) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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