In this article, we discuss 10 AI news and ratings too important to miss.
Artificial intelligence is rapidly evolving and is shaping industries and global competition. Companies are developing advanced models, governments are exploring policies to regulate AI, and concerns over security and innovation keep growing. As AI becomes more integrated into everyday life, discussions around its impact, ethical considerations, and future developments remain at the forefront.
OpenAI’s Vision for AI Agents and US Leadership in AI Development
Kevin Weil, OpenAI’s Chief Product Officer, discussed the company’s AI advancements and its increasing engagement with the U.S. government. He highlighted the evolution of AI from simply answering queries to actively performing tasks in the real world and said that the current year is significant for agents. OpenAI recently introduced “Operator,” an AI agent capable of web-based tasks such as ordering groceries and filling out forms, with more agent-driven tools set to launch soon.
Weil also addressed concerns over China’s DeepSeek AI and acknowledged its technological improvements but emphasized that AI should align with democratic values rather than authoritarian ones. He stated that AI competition extends beyond companies to a broader U.S. and China rivalry. OpenAI has accused DeepSeek of intellectual property theft, but Weil maintained that the company’s focus remains on developing the most advanced models and ensuring U.S. leadership in AI.
Regarding infrastructure, Weil pointed to OpenAI’s $500 billion Stargate initiative, which is aimed at expanding U.S. energy and semiconductor capabilities to support AI growth. He also highlighted new government partnerships, including ChatGPT Gov, which is a secure AI model for federal agencies.
On the topic of open-source competition, Weil talked about OpenAI’s dual approach, which includes staying ahead with increasingly advanced models and building practical AI products that improve efficiency. He also acknowledged SoftBank’s role as a key partner in OpenAI’s expansion, especially in AI infrastructure investments.
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 Too Important to Miss
10. Stagwell Inc. (NASDAQ:STGW)
Number of Hedge Fund Holders: 15
Stagwell Inc. (NASDAQ:STGW) offers digital transformation, media, data, and creative services, including AI-enabled solutions and SaaS platforms for marketing and communications.
Stagwell’s agency Assembly has introduced STAGE AI, an advanced version of its STAGE operating system that integrates AI at its core for better efficiency and business impact. The system provides rapid, precise insights across data sources, which streamlines processes and improves decision-making. Features like ‘Brand Monitor’ help optimize media strategies, while AI-driven advancements improve customer experiences and boost conversion rates. Early results show a 30% increase in campaign relevance.
9. Ambarella, Inc. (NASDAQ:AMBA)
Number of Hedge Fund Holders: 30
Ambarella, Inc. (NASDAQ:AMBA) designs semiconductor solutions for HD video, image processing, and AI applications across industries such as automotive, security, robotics, and consumer electronics.
On January 30, Ambarella, Inc. (NASDAQ:AMBA) and Gauzy Ltd. announced that they have integrated AI into advanced driver assistance systems by improving Gauzy’s Smart-Vision camera monitor system with Ambarella’s CVflow AI chip. The system replaces traditional mirrors with high-resolution cameras, improving visibility and reducing blind spots. It features real-time hazard detection, predictive capabilities, and adaptability to weather conditions. It is already in use in Ford Trucks and this AI-powered camera monitor system aims to improve road safety, reduce costs, and support the growing demand for intelligent vehicle technology.
8. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 46
Corning Incorporated (NYSE:GLW) manufactures a wide range of products across display technologies, optical communications, specialty materials, environmental technologies, and life sciences
On January 30, HSBC upgraded Corning (NYSE:GLW) from Hold to Buy and raised its price target to $60 from $51. Analyst Stephen Bersey highlighted strong AI-driven demand in Corning’s optical business, with enterprise customers leading growth and signs of recovery in the carrier segment. The display segment is expected to remain stable due to price increases in late 2024 and favorable currency hedging for 2025. With improved visibility on main growth drivers and strong first-quarter 2025 guidance, HSBC sees potential for upward revisions at Corning’s upcoming investor meeting. The new price target is based on a P/E of 24x and a revised EPS forecast of $2.50.
7. ICON Public Limited Company (NASDAQ:ICLR)
Number of Hedge Fund Holders: 48
ICON Public Limited Company (NASDAQ:ICLR) provides outsourced clinical research and commercialization services, supporting all stages of clinical development for pharmaceutical, biotechnology, and medical device industries.
On January 30, ICON plc announced that it has expanded its portfolio of AI tools to improve efficiency across different stages of clinical trials. These include iSubmit, an AI-powered document management system; Mapi Research Trust COA, which keeps clinical outcome assessments current; FORWARD+ for resource forecasting; and AI-enabled capabilities for study startup and contract drafting. ICON’s AI Centre of Excellence consists of data scientists and domain experts and drives these innovations. With the support of Enterprise Ireland, ICON aims to improve its AI solutions, overcome challenges in drug development, and accelerate the delivery of new medicines.
6. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders: 50
GE HealthCare Technologies Inc. (NASDAQ:GEHC) develops and markets diagnostic, treatment, and monitoring products across imaging, ultrasound, patient care, and pharmaceutical diagnostics, with a focus on AI collaboration.
On January 28, it was announced that GE HealthCare (NASDAQ:GEHC) received FDA 510(k) clearance for its updated Voluson Expert Series ultrasound systems, which include the Voluson Expert 22, 20, and 18 models. These systems feature high-resolution imaging, AI-powered tools, and automation to improve the detection and management of complex pregnancies. The main innovations include the SonoLyst AI suite for faster exams, SonoPelvicFloor3.0 for quicker pelvic measurements, and SonoAVCfollicle2.0 for improved follicle detection. With advanced imaging and specialized probes, the systems aim to support better diagnoses and treatment decisions in women’s healthcare.
5. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 58
Lam Research Corporation (NASDAQ:LRCX) designs and manufactures semiconductor processing equipment, offering a wide range of products for various etch, deposition, and cleaning applications worldwide.
On January 30, Bernstein upgraded Lam Research Corporation (NASDAQ:LRCX) to Outperform from Market Perform and raised its price target to $91 from $85. The analyst noted that although Lam has lagged behind Applied Materials in performance due to its exposure to a weak NAND market, recent trends in the semiconductor equipment sector suggest an improvement. With the potential recovery in Lam’s NAND business, solid exposure to Gate-All-Around and packaging technologies, and a more normalized China business, the company’s risk-reward profile is now more attractive. The analyst raised the price target based on a 20x valuation of its fiscal 2026/2027 average earnings.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) creates AI platforms for data centers, self-driving cars, robots, and cloud computing.
On January 30, TipRanks reported that Senator Josh Hawley has introduced the Decoupling America’s Artificial Intelligence Capabilities from China Act, which aims to block U.S. chipmakers, especially Nvidia (NASDAQ:NVDA) and AMD from selling AI-related products to China. His proposal follows concerns over DeepSeek’s R1 model, which raised fears about China’s AI advancements and potential unauthorized use of OpenAI data. Hawley criticized companies like Microsoft for supporting Chinese AI and called for an immediate halt to AI technology transfers. The bill seeks to ban AI technology trade with China, prevent U.S. companies from conducting AI research there, and block American investment in Chinese AI development.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) offers AI-powered solutions for cloud services, business tools, and consumer products, focusing on advancing AI research.
On January 30, Bernstein raised Alphabet’s price target from $185 to $210 while maintaining a Market Perform rating. The firm remains cautious about Google due to concerns around DeepSeek’s potential impact but is optimistic about the Q4 outlook. It expects a steady 11% year-over-year growth in Search, with YouTube benefiting from political ad spend and connected TV trends. Cloud growth is still a key factor, although any slowdown in cloud revenue could dampen the outlook. Additionally, margin improvements and a possible reversal of a $1.7 billion European Commission fine are expected. Despite short-term positives, regulatory and competitive risks pose long-term challenges for the stock.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) provides AI-driven cloud, productivity, and business solutions, enhancing efficiency and security while making significant AI investments.
On January 30, JPMorgan analyst Mark Murphy said that the firm has a positive outlook on Microsoft, maintaining an Overweight rating with a $465 price target. Despite concerns over near-term Azure growth, which is expected to fall below consensus, Microsoft’s FQ3 guidance for Azure growth is in line with predictions. The firm highlighted a significant boost in Commercial Bookings, driven by OpenAI’s large commitment, which should alleviate concerns about Microsoft’s relationship with OpenAI. The launch of DeepSeek R1 and Microsoft’s plans for CapEx moderation indicate long-term strategic investments. Overall, JPMorgan sees Microsoft as a structural share gainer, focusing on efficiency and investments in AI, security, and automation. Murphy noted:
“While MSFT continues to encounter some AI capacity constraints and scale motion speed bumps modestly restricting Azure growth, we see it planting the longer-term seeds for success across Security, Teams, Power Apps and now the forward-looking OpenAI / ChatGPT investments. In addition, limited headcount growth shows the commitment to efficiency and alignment of OpEx to the new environment. In summary, we continue to see Microsoft as a structural share gainer, while the fundamental trends of modernization and automation remain intact long-term.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) integrates AI into shopping, entertainment, and operations while driving innovation through investments, AWS partnerships, and Tranium.
On January 30, Bernstein raised Amazon’s price target from $265 to $280, maintaining an Outperform rating. The firm expects AWS to keep accelerating in Q4, while retail will benefit from a strong holiday season and record viewership of Thursday Night Football. Despite slight adjustments to AWS and retail revenue estimates due to FX headwinds, the firm anticipates operating leverage in both AWS and retail, with margins improving. Overall, the company is expected to meet or exceed the higher end of management’s guidance for Q4.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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