In this article, we discuss 10 AI news and updates investors shouldn’t miss.
The rapid expansion of AI has started an unexpected growth in energy demand, which raises concerns about power availability, grid capacity, and sustainability. As tech giants invest in large-scale data centers, the need for reliable electricity sources is becoming a major challenge. Experts highlight the urgency of expanding power generation, upgrading infrastructure, and balancing AI growth with clean energy goals. Policymakers, industry leaders, and energy providers must navigate these challenges to ensure a stable and sustainable energy future.
The Energy Race to Sustain AI’s Expanding Power Consumption
In an interview at Bloomberg Technology, Joseph Majkut, director of Energy Security and Climate Change at the Center for Strategic and International Studies, discussed the growing energy demands driven by AI expansion. He noted that data centers require substantial electricity, making them among the largest new energy consumers in the U.S. over the next decade. Meeting this demand would require significantly increasing power generation, a challenge that involves coordination between local, state, and federal authorities.
Majkut highlighted the strain on the electricity grid, emphasizing that the U.S. must add more capacity in five years than it did over the past 20. He suggested that while the federal government could support this through funding and permitting reforms, state and local cooperation is essential since large-scale power plants are not readily available.
Furthermore, Majkut said more clarity is needed on the US administration’s approach. While President Trump has proposed easing permitting and using coal plants, Majkut expects most new power sources to come from solar, wind, batteries, and natural gas. He stressed the importance of long-term planning beyond 2030, including investments in nuclear power and modernizing the grid.
Majkut also doubted new coal plants would be built for AI-driven energy needs, as major tech firms prefer clean energy investments. He noted that these companies have the financial capacity to accelerate innovation, including small modular reactors. Although nuclear power could play a larger role by the early 2030s, he expects near-term energy additions to focus on solar, natural gas, and battery storage.
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. Firefly Neuroscience, Inc. (NASDAQ:AIFF)
Number of Hedge Fund Holders: 2
Firefly Neuroscience, Inc. (NASDAQ:AIFF) develops AI-powered neuroscientific solutions, including Brain Network Analytics software, to assist in diagnosing and treating mental illnesses and neurological disorders.
On February 11, Firefly Neuroscience announced its acceptance into the NVIDIA Connect program, which provides access to NVIDIA’s advanced software tools, training, and hardware discounts. Firefly plans to use these resources to support its initiative of developing a proprietary foundation model of the human brain using its FDA-cleared Brain Network Analytics platform. The platform utilizes Resting EEG and Cognitive EEG data to improve brain health research and treatment. Executive Chairman Greg Lipschitz emphasized that this milestone strengthens Firefly’s ability to advance neurological and mental health solutions through AI-driven innovation.
9. Amplitude, Inc. (NASDAQ:AMPL)
Number of Hedge Fund Holders: 14
Amplitude, Inc. (NASDAQ:AMPL) provides a digital analytics platform that helps businesses analyze customer behavior, test new features, manage data, and improve product outcomes through real-time insights and user session analysis.
On February 11, Amplitude announced the launch of Guides and Surveys, new tools designed to improve user onboarding and engagement by delivering in-product guidance based on customer insights. Unlike traditional popups, these features use AI-driven targeting and “annoyance monitoring” to ensure relevant and timely interactions.
Guides and Surveys offer product tours, announcements, banners, tooltips, checklists, and surveys to improve feature adoption and customer experience. The launch follows Amplitude’s acquisition of Command AI, integrating its digital adoption technology. The tools are available as part of Amplitude’s platform and aim to help businesses personalize engagement and drive significant outcomes.
8. AvePoint, Inc. (NASDAQ:AVPT)
Number of Hedge Fund Holders: 24
AvePoint, Inc. (NASDAQ:AVPT) provides cloud-native data management and SaaS solutions, helping organizations manage and protect data across third-party cloud platforms like Microsoft, Salesforce, Google, and AWS.
On February 11, AvePoint announced the next generation of AvePoint Elements, an AI-powered platform designed to improve data security, IT management, and efficiency for managed service providers (MSPs). The update strengthens AvePoint’s channel business, which accounts for over half of its annual recurring revenue. The platform enables MSPs to streamline security, compliance, and multi-tenant management while automating tasks to improve profitability and scalability.
During a private preview, partners reported a 40% rise in average revenue per user and an 85% reduction in operational inefficiencies. The launch aligns with projections that over 90% of cybersecurity solutions will be partner-delivered in 2025.
7. TTM Technologies, Inc. (NASDAQ:TTMI)
Number of Hedge Fund Holders: 25
TTM Technologies, Inc. (NASDAQ:TTMI) designs and manufactures printed circuit boards (PCB), RF components, and mission systems for industries including aerospace, defense, automotive, medical, and data center computing.
On February 11, Stifel resumed coverage of TTM Technologies with a Buy rating and a $33 price target. The firm highlighted TTMI’s revenue diversification and focus on key customers and segments while reducing reliance on cyclical markets. Strategic acquisitions have shifted more than half of its aerospace and defense revenue toward engineered and integrated electronics. Meanwhile, PCB demand in the Data Center Computing segment grew 44% year-over-year, driven by AI-related applications. Stifel also sees TTMI’s new Malaysia facility as a long-term positive, as hyperscaler PCB production transitions from China to Penang.
6. nCino, Inc. (NASDAQ:NCNO)
Number of Hedge Fund Holders: 35
nCino, Inc. (NASDAQ:NCNO) offers cloud-based software solutions for financial institutions and offers a unified platform for banking operations, AI-driven analytics, and mobile-first mortgage solutions.
On February 11, nCino (NASDAQ:NCNO) announced the acquisition of Sandbox Banking for $52.5 million in cash, with a potential additional $10 million based on financial and product development milestones. The deal aims to strengthen nCino’s Integration Platform as a Service to enable banks and credit unions to streamline data connectivity, automate workflows, and improve interoperability between core and external banking systems.
By using AI-driven integration logic, the platform will accelerate project timelines, reduce manual processes, and improve compliance. The acquisition strengthens financial institutions’ ability to adopt AI and new technologies seamlessly while improving efficiency and customer experience.
5. Charles River Laboratories International, Inc. (NYSE:CRL)
Number of Hedge Fund Holders: 40
Charles River Laboratories International, Inc. (NYSE:CRL) provides drug discovery, non-clinical development, and safety testing services, including research models, preclinical assessments, and manufacturing support for pharmaceutical and biotechnology companies.
On February 11, Charles River Laboratories and Deciphex announced an expanded collaboration to enhance digital pathology through advanced image management and AI-powered tools for toxicologic pathology. The partnership integrates Deciphex’s Patholytix platform into Charles River’s operations, improving data management, efficiency, and global collaboration.
The initiative will expand AI applications to areas like acute toxicity and carcinogenicity screening, aiming to streamline workflows and accelerate drug development. The collaboration seeks to improve decision-making in pathology while supporting safer and faster drug discovery.
4. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Number of Hedge Fund Holders: 42
Willis Towers Watson Public Limited Company (NASDAQ:WTW) provides advisory, broking, and risk management solutions, offering consulting, insurance brokerage, investment management, and employee benefits services to businesses worldwide.
On February 11, WTW introduced Expert, an AI-powered assistant designed to support midsize U.S. businesses in managing HR, compensation, and benefits tasks. The tool assists with research, regulatory guidance, writing, and secure document searches, drawing from WTW’s extensive expertise and database of HR and benefits regulations. Expert offers insights on compensation trends, compliance matters, and best practices while streamlining tasks like drafting employee communications. Julie Gebauer, President of Health, Wealth & Career at WTW, highlighted its value in saving time for HR teams, especially in midsize companies, after positive feedback from beta testers.
3. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix, Inc. (NASDAQ:EQIX) provides digital infrastructure and interconnection services to help organizations scale, enhance digital services, and achieve sustainability goals.
On February 11, TipRanks reported that Bank of America Securities analyst David Barden reaffirmed a Buy rating on Equinix (NASDAQ:EQIX) with a $1,080 price target. He mentioned the company’s strong market position and growth potential and noted that Equinix now trades at a premium in the Communications Infrastructure sector. Some important factors include enterprise demand, pricing power, and expansion of its xScale data center business. The company is building a major xScale campus and pursuing land and power acquisitions through a joint venture, reinforcing its long-term growth strategy.
2. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) provides infrastructure, computing, storage, networking, and cybersecurity solutions for businesses, public institutions, and consumers worldwide.
On February 11, JPMorgan lowered Dell’s price target from $160 to $150 but maintained an Overweight rating. The firm noted that investor interest in AI servers has declined for U.S.-branded server companies. Concerns include margin pressure from advanced AI compute configurations, increased competition, and pricing challenges. Dell and Supermicro (SMCI), which initially benefited, now face competition from HP Enterprise (HPE) and Lenovo. Despite this, JPMorgan favors Dell over HPE and Supermicro.
1. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 91
Vertiv Holdings Co (NYSE:VRT) provides digital infrastructure solutions and lifecycle services for data centers, communication networks, and various industries worldwide.
On February 11, Vertiv introduced its Liquid Cooling Services that offer data center operators expert support for integrating and maintaining advanced liquid cooling systems. After refining its approach with early adopters, Vertiv now provides solutions to manage rising heat loads from AI workloads, where rack densities can reach 120 kW or higher.
The service includes installation, commissioning, preventive maintenance, and fluid management to ensure system reliability. It also offers spare parts availability, emergency support, and lifecycle management to optimize cooling performance. Backed by a global network of service centers and engineers, Vertiv aims to help businesses maintain efficiency and operational continuity in high-performance computing environments.
While we acknowledge the potential of Vertiv Holdings Co (NYSE:VRT) 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 VRT 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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