The race to get ahead in artificial intelligence is compelling companies to intensify their efforts each day. In latest news, ChatGPT creator OpenAI has been considering developing its own web browser, according to a report by The Information. The report reveals that the company has spoken about the product with websites such as Redfin, Conde Nast, Priceline, and Eventbrite. Having already entered the market with SearchGPT, the move would be placing OpenAI head-to-head with Google, the company that holds the major share of the browser and search market.
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However, the company isn’t just delving into search and browsers. According to Tech Crunch, OpenAI is also researching algorithms that can predict human being’s moral judgments. OpenAI gave a grant to Duke University researchers for a project called “Research AI Morality.” When asked for more details, an OpenAI spokesperson referred to a press release stating that the grant is part of a larger $1 million, three-year funding effort for Duke Professors working on creating “moral AI.”
As per the press release, the OpenAI-funded project aims to develop algorithms capable of “predicting human moral judgments” when moral conflicts arise in fields like medicine, law, and business. However, it isn’t clear yet whether such kind of an achievement is possible with the current levels of technology.
In other news, AI firm Anthropic is getting another funding boost. Amazon is increasing its investment in Anthropic to $8 billion, strengthening its partnership in artificial intelligence, the companies announced Friday, the 22nd.
“We’ll keep pushing the boundaries of what customers can achieve with generative AI technologies.”
– Matt Garman, chief of AWS cloud computing division.
For this article, we selected AI stocks by going 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).
A business executive in a modern office looking over reports detailing artificial intelligence.
10. Palladyne AI Corp. (NASDAQ:PDYN)
Palladyne AI Corp. (NASDAQ:PDYN) is a developer of artificial intelligence software focused on autonomy for robotic systems.
On November 20, Palladyne AI Corp. (NASDAQ:PDYN) announced that it has expanded its partnership with Red Cat Holdings and its Teal Drones subsidiary, a drone technology company, for enabling joint sales and marketing for Palladyne AI’s artificial intelligence software on Teal drones. It is expected that the Palladyne Pilot will be available on all Teal drones. It will also be available in new drones shipped to customers who desire the platform’s features and functionality.
“We are extremely proud to be working with Teal on integrating our Palladyne Pilot artificial intelligence software into Teal’s drones and look forward to this expanded relationship to help deliver a best-in-class experience for their defense, public safety, and commercial customers. Furthermore, we congratulate them on their selection as the winner of the U.S. Army’s SRR Program of Record. This contract is extremely well-deserved as Teal sUAS systems exhibit superior capabilities across the board and particularly for complex military operations.”
– Ben Wolff, CEO, Palladyne AI.
9. Veritone, Inc. (NASDAQ:VERI)
Number of Hedge Fund Holders: 6
Veritone, Inc. (NASDAQ:VERI) is a leading enterprise AI software, applications and services provider.
On November 20, Veritone, Inc. (NASDAQ:VERI) announced that it has launched Veritone Data Refinery (VDR), a new cutting-edge tool that helps businesses turn massive, unstructured data into high-quality, AI-ready assets. The VDR will leverage Veritone’s proprietary aiWARE™ platform to help transform and manage video, audio, and text data for training sophisticated AI models and explore revenue opportunities through data monetization. High-quality data is the need of the hour, as it helps AI models advance. VDR will help tackle the challenge of this data constraint by converting unstructured data into structured datasets ready for training Large Language Models (LLMs) and Large Multimodal Models (LMMs).
“With Veritone Data Refinery, we’re bridging a critical emerging gap in the AI ecosystem by turning raw data into high-value assets that can power next-generation AI. Veritone’s decade-long commitment to advancing AI technology has uniquely positioned us to deliver an end-to-end solution that not only transforms data but does so securely, ethically and at scale. This commitment ensures that our clients can innovate responsibly while maximizing the potential of their proprietary data.”
-Ryan Steelberg, president and chief executive officer, Veritone.
8. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 17
C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.
On November 20, C3.ai, Inc. (NYSE:AI) announced that it has expanded its partnership with Capgemini, a global leader in business and technology transformation. The partnership integrates C3 AI’s Enterprise AI applications with Capgemini’s deep industry expertise and proven global implementation capabilities and capacity. It is aimed at accelerating and improving the delivery of Enterprise AI solutions across industries. Users will ultimately be able to avail significant benefits in productivity, costs, and efficiency.
“AI is reshaping the way we work and business leaders across industries are focused on leveraging its transformative potential. Our collaboration with Capgemini will empower organizations to operate more efficiently, innovate faster, and gain a competitive edge through Enterprise AI,” said Thomas M. Siebel, Chairman and CEO, C3 AI. “Our partnership with Capgemini dramatically expands our service and delivery capacity, ensuring the continued success of our growing customer base at global scale.”
7. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Number of Hedge Fund Holders: 22
DigitalOcean Holdings, Inc. (NYSE:DOCN) is a public cloud provider that can support AI workloads.
On November 21, DigitalOcean Holdings, Inc. (NYSE:DOCN) announced the launch of DigitalOcean Bare Metal GPUs. The DigitalOcean Bare Metal GPUs are a single-tenant infrastructure designed for artificial intelligence (AI) and machine learning (ML) workloads. Unlike shared GPU droplets, the Bare Metal GPUs are fully dedicated, offering customers full access to the entire GPU. This aspect makes them the ideal fit for customers who need direct control over their hardware and is designed for projects like large-scale model training, real-time inference, or complex orchestration.
“Our new GPU Droplets provide customers with simple scalability and quick provisioning, but we recognize that this isn’t what all of our customers require, leading to the introduction of our Bare Metal GPUs. Bare Metal GPUs give our customers the performance and control that they require to tackle large datasets with ease.”
-Bratin Saha, Chief Product & Technology Officer at DigitalOcean.
6. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Bloom Energy Corporation (NYSE:BE) is engaged in the design, manufacture, selling, and installation of solid-oxide fuel cell systems for on-site power generation. It is a key player in meeting the rising energy demands of AI data centers.
Jefferies analyst Dushyant Ailani raised the firm’s price target on Bloom Energy (BE) to $22 from $12 and kept a “Hold” rating on the shares. Current valuations and recent developments have led to this rating. The analyst believes the AEP deal is a positive step, but its success is dependent on certain tax incentives known as the ITC safe harbor provisions. Anticipated revenues on the AEP deal are also likely not to materialize until 2026. Even though there is strong potential for growth in 2025, Bloom Energy’s elevated valuation metrics suggest limited risk/reward potential at this time. The recommendation remains cautious until further deals are announced or materialized.
5. SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 37
SentinelOne, Inc. (NYSE:S) is a leading artificial intelligence-powered cybersecurity provider.
On November 21, SentinelOne, Inc. (NYSE:S) announced new AI security posture management (AI-SPM) features to help businesses protect the AI services that they use at work. It is built on SentinelOne’s cybersecurity platform called Singularity, where customers can gain visibility and protection both from known and shadow AI cloud services running in their environment. Customers can look into the entire inventory of AI applications and models that are being used, detect and pinpoint any misconfigurations and vulnerabilities, and also gain insight into potential attack paths related to AI workloads.
“The power and benefits of generative AI are undeniable. Yet, the very tools and cloud services that simplify and accelerate GenAI adoption are simultaneously opening up a brand new attack surface and potential regulatory risk. With AI-SPM, we’re empowering customers to unleash the distinct advantages of GenAI, while giving security teams the visibility, insight, and tools needed to protect the sensitive data behind these powerful cloud applications.”
-Ely Kahn, Vice President of Product Management at SentinelOne.
4. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 64
Hewlett Packard Enterprise Company (NYSE:HPE) is an American multinational technology company offering high-performance computing (HPC) systems, AI software, and data storage solutions that help run complex AI workloads.
On November 20, Hewlett Packard Enterprise Company (NYSE:HPE) announced key updates to HPE GreenLake cloud, HPE’s hybrid cloud solution that allows organizations to run computing services with a public cloud experience within their on-premise data centers, at the HPE Discover Barcelona 2024. The advancements aim to simplify management across complex hybrid IT environments, enabling speed and innovation. Key advancements include tools for easier management of virtualized workloads, easier data storage and retrieval, solutions for organizations in regulated environments, and expanded partner ecosystems and solutions for specialized AI use cases.
“To realize the full potential of hybrid cloud and AI, enterprises need a hybrid-by-design approach. Today, we are proud to announce the most complete HPE GreenLake portfolio to date. With these new offerings, HPE GreenLake cloud delivers a future-proof cloud operating model for virtualized, cloud-native and AI workloads.”
– Fidelma Russo, executive vice president and general manager, Hybrid Cloud and CTO at HPE.
3. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 71
Snowflake Inc. (NYSE:SNOW) is an artificial intelligence data cloud company.
On November 21, Loop Capital maintained a “Buy” rating on Snowflake Inc. (NYSE:SNOW) and a $185 price target. According to the firm, the company beat on every metric that was tracked. These include product revenue of $900M which was 5% ahead of its Street-high estimate, RPO – (remaining performance obligations) that accelerated 54% y/y, the addition of 18 new Forbes 2K customers, and non-GAAP operating margins of 6.3% which topped Loop’s expectation by 280 bps. The company is poised for growth driven by a robust product cycle, growth due to go-to-market changes, and Generative AI tailwinds.
2. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 89
GE Vernova Inc. (NYSE:GEV) is a global energy company and a soaring AI stock driven by the demand for energy to power artificial intelligence technology.
On November 21, Wells Fargo analyst Michael Blum initiated coverage of the power-generation technology company with an “Overweight” rating and a $385 price target. This is the second-highest price target listed by FactSet, as reported by Barrons. According to Blum, GE Vernova can help meet the massive energy demands from artificial intelligence through its power generation and grid products. Blum further states that GE Vernova’s transformers, HVDC, and grid software offerings are well-positioned to benefit from growing power demand.
“As power demand grows and more distributed generation is added to the mix, aging grids will require significant investment to manage the increasingly complex and dynamic environment,” Blum said. “GEV’s transformers, HVDC [High-voltage direct current], and grid software offerings are well positioned to benefit from this growing demand”.
-Wells Fargo analyst Michael Blum
1. Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM software company that has gained significant attention after the launch of Agentforce, its AI-powered platform.
On November 20, Salesforce Inc (NYSE:CRM) announced that it has introduced new tools for testing out Agentforce, its artificial intelligence platform, through the Agentforce Testing Center. This is a first-of-its-kind management tool designed for testing autonomous AI agents at scale. The testing process will enable teams to test, deploy, and monitor AI agents so that they can achieve their full potential once they go live.
“Agentforce is helping businesses create a limitless workforce. To deliver this value fast, CIOs need new tools for testing and monitoring agentic systems. Salesforce introduced the concept of Application Lifecycle Management back in 2006 with Force.com. This new category of Agentic Lifecycle Management requires unique tools, and Salesforce is meeting the moment again with Agentforce Testing Center, which will help companies roll out trusted AI agents with no-code tools for testing, deploying, and monitoring in a secure, repeatable way.”
– Adam Evans, EVP and GM for Salesforce AI Platform.
While we acknowledge the potential of CRM 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 CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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