In this article, we discuss 10 AI news and ratings making waves on Wall Street.
US Energy Shortage Threatens AI Advancements
CNBC reported that the U.S. is facing a power capacity shortage as it races with China to lead in artificial intelligence, according to Caroline Golin, Google’s global head of energy market development. Speaking at a Nuclear Energy Institute conference, Golin highlighted the growing need for reliable energy to support AI advancements, with renewables causing grid instability and prompting the company to turn to nuclear power.
Last October, it partnered with Kairos Power to purchase 500 megawatts from small modular nuclear reactors, with the first reactor expected in 2030. Other Big Techs have also shown interest in nuclear energy, investing in projects to meet rising power demands. While nuclear is seen as a long-term solution, Golin emphasized the immediate need for more power to compete with China. President Trump declared a national energy emergency to fast-track power plant construction for AI data centers.
Stargate Project Aims to Strengthen US AI Leadership
While the energy needs look like a significant hurdle, the latest Stargate project is aiming to solve that problem. Reuters reported on February 6 that OpenAI announced it is assessing U.S. states for AI data center locations under the $500 billion Stargate project, aimed at strengthening the U.S. position in the global AI race against China. Chris Lehane, OpenAI’s chief global affairs officer, stressed the competition’s high stakes and noted that it could shape the future of democratic versus authoritarian AI. He commented:
“As news emerged about DeepSeek, it makes it clear this is a very real competition and the stakes could not be bigger… Whoever ends up prevailing in this competition is going to really shape what the world looks like going forward, whether we have democratic AI that’s free and open, or authoritarian AI that is autocratic.”
The initial Stargate data center is under construction in Abilene, Texas, with the potential for 5-10 campuses overall. However, China’s DeepSeek recently demonstrated that advanced AI models could be developed on less specialized, cheaper chips, challenging the assumption that large, costly data centers are necessary for AI progress, the report stated.
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 (see more details here).
10 AI News and Ratings Making Waves on Wall Street
10. Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 7
Tempus AI, Inc. (NASDAQ:TEM) provides healthcare technology services, including sequencing diagnostics, molecular testing, data analytics, and clinical trial matching, serving the healthcare and pharmaceutical industries.
On February 12, William Blair downgraded Tempus AI (NASDAQ:TEM) to Market Perform from Outperform due to valuation concerns. Despite shares rising 111% year-to-date, the firm believes the company is trading near fair value at $71.21, compared to an estimated value of $65. While recent momentum followed events like Pelosi’s call option purchase and the Trump administration’s AI investment, these are not expected to affect Tempus’ financials. The firm remains positive on Tempus’ business, strategy, and market, but sees limited upside given current revenue growth and AEBITDA guidance.
9. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 29
Energy Transfer LP (NYSE:ET) provides natural gas, crude oil, and NGL transportation, storage, processing, and marketing services across the U.S., along with fuel sales and other energy-related services.
On February 12, Stifel raised its price target for Energy Transfer LP (NYSE:ET) from $21 to $23 while maintaining a Buy rating. The company reported Q4 EBITDA of $3.88 billion, slightly below Stifel’s $3.99 billion estimate and the consensus of $3.98 billion. Energy Transfer also announced plans for $5 billion in 2025 growth capital expenditures, which could delay other capital returns due to project timing.
The company’s first natural gas supply contract with Cloudburst, serving a Texas data center, is expected to be well-received by investors, as it marks a significant milestone in midstream’s involvement with data centers. The firm wrote:
“Yesterday, ET announced its first natural gas supply contract with Cloudburst, supplying a Texas data center with ~450 MMcf/d, in what we view as midstream’s first data center related agreement. Today they expanded on the opportunity which we believe will be very well received by investors.”
