In this article, we discuss the 10 AI news updates you should not miss.
Latest reports, published by MIT News, suggest that researchers at the Massachusetts Institute of Technology have developed a more efficient algorithm, called Model-Based Transfer Learning (MBTL), to improve AI decision-making in tasks like traffic control, which involves high variability. Reinforcement learning models, commonly used for AI decision-making, often fail when facing minor changes in their training tasks. MBTL strategically selects the most impactful tasks to train on, improving overall performance while reducing training costs.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
For example, controlling traffic in a city involves numerous intersections with varying conditions. Instead of training separate algorithms for each intersection or one generalized algorithm for all, MBTL identifies and trains on a subset of key intersections. It leverages zero-shot transfer learning, allowing trained models to perform well on untrained, similar tasks. Per the report, this technique could revolutionize complex systems, reducing costs and improving AI reliability. The research received funding from NSF, Amazon Robotics, and others.
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).
A technician observing a complex fiber-optic networking set-up in a laboratory.
AI News Updates You Should Not Miss
10. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. Jeff Clarke, the COO of the firm, recently expressed confidence in the future growth potential of the firm. Clarke stated during the earnings call that AI is a huge opportunity with interest levels at an all-time high. He added that his firm sees no signs of this growth slowing down. He also noted that it is important to acknowledge this growth is not going to be linear, particularly as customers adapt to shifting semiconductor requirements.
9. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 64
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. On November 29, Bernstein lowered the price target on the stock to $767 from $815 and kept an Outperform rating on the shares. The advisory took down its 2025 wafer fab equipment estimate to $107 billion, down 1% year-over-year, from $115 billion, and 2026 spending estimate to $116 billion from $122 billion. The WFE cut reflects lower China spending given potential US restrictions and a weaker outlook on NAND and logic, the advisory told investors in a research note.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. The company recently finalized a $7.8 billion grant with the US government under the CHIPS Act. The deal will speed up the development and production of chips at Intel plants in Ohio. Reacting to this development, Steve Stivers, CEO of the Ohio Chamber of Commerce, recently told WOSU Public Media that $1.5 billion of the grant is earmarked for Ohio, and the whole supply chain for the new fab was going to develop in central Ohio.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The company is at the forefront of AI innovation, and interest by Wall Street titans is a reminder that it is successfully monetizing this innovation and creating value for shareholders. Latest disclosures from hedge fund billionaire Steve Cohen, who leads Point72 Asset Management, reveal that Cohen has invested $143 million in the chipmaker over the past three months. His stake in AMD comprises more than 870,000 shares and represents his first significant investment in the company since the third quarter of 2022, before the advent of ChatGPT.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. Latest reports suggest that TSM could be one of those impacted by a recent Japanese government decision to allocate nearly $10 billion towards the research and development of chips and quantum computing. According to a report by news platform Bloomberg, Japan plans to rival American and Taiwanese dominance in chip manufacturing. A substantial portion of the award would go towards Rapidus, a Japanese chip manufacturer that aims to achieve mass production by 2027.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. The company recently launched an AI-powered search experiment called Learn About. Per a report by tech news platform Tron Weekly, the experiment offers a new way for users to explore content and deepen their understanding of various topics. The initiative is part of the larger Learning Initiative by Google, and introduces an interactive, conversational search experience designed to engage users in a dynamic, learning-centric environment. Per the report, it allows users to explore subjects through a series of Interactive Lists, offering progressively granular summaries, related content, and subtopic support.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 29, finance platform Benzinga reported, quoting an analysis from investment advisory Trefis Team, that chipmaker AMD could emerge as a more attractive investment option compared to rival NVIDIA as the artificial intelligence chip market evolves. Per the analysis, the premium valuation of 48 times projected fiscal 2025 earnings for the latter could limit future gains. AMD, trading at a more modest 28 times forward earnings, offers investors exposure to AI growth at a more reasonable entry point, it contends. Another factor is the AI market shift from model training to inference, where AMD processors are stronger than NVIDIA, it notes.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. On November 29, Indian news publication Pune Pulse reported that a Meta-commissioned study showed the rapidly growing trend of online shopping in tier-2 and tier-3 cities in the Asian country. Per the report, this trend was driven by AI-driven personalization, social media influencers, and the utilization of messaging apps. The report added that while grocery and personal care items were the most frequently purchased, niche categories such as skincare, wellness, and hair care were also becoming more popular.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 28, electronics giant Siemens announced that it had partnered with Microsoft to scale industrial AI tech. Per Siemes, the partnership has improved Industrial Copilot, enabling it to handle the most demanding environments at scale. The Copilot combines the unique domain know-how across industries of the former with the Azure OpenAI Service of the latter. Over 100 companies are currently using the Siemens Industrial Copilot to streamline processes, address labor shortages, and drive innovation.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. On November 29, storage news platform Block & Files reported that the scalable file storage service Amazon FSx for Lustre, provided by AWS, was promising GPU throughputs 12 times faster to aid AI learning workloads and reduce costs. The platform noted that FSx for Lustre now supports Amazon’s Elastic Fabric Adapter and the NVIDIA GPUDirect Storage system. With this combination, FSx for Lustre can deliver up to 12x higher throughput per client instance – 1200 Gbps – compared to previous FSx for Lustre systems.
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.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
