In this article, we discuss 10 AI news you should not miss.
AI Growth Takes Center Stage in Trump’s Administration
While we are still in the first week of President Donald Trump’s second term, he has made several significant moves toward the development of AI. President Trump recently announced plans to fast-track the construction of power plants dedicated to AI under an emergency declaration, bypassing lengthy approval processes, as per CNBC.
Speaking at the World Economic Forum, he focused on flexibility in fuel use and suggested that coal as a backup source for emergencies. The move follows his declaration of a national energy emergency, aimed at accelerating energy infrastructure projects. Trump also unveiled Stargate, a joint venture with OpenAI, Oracle, and SoftBank, to invest heavily in AI infrastructure.
READ ALSO: 10 Important AI News on Investor Radars and 10 AI News You Should Definitely Take a Look At.
Transformative Potential of AI Across Industries
In an interview on CNBC’s ‘Squawk Box,’ Sasha Ostojic, venture partner at Playground Global discussed the current phase of AI development, emphasizing the focus on building infrastructure and tools necessary for future AI applications. He likened the U.S. government’s Stargate program and its $500 billion investment, to the Apollo program and noted its potential to drive economic activity and innovation.
Ostojic highlighted AI’s transformative potential in areas like healthcare, drug discovery, and finance as he envisioned a future where AI tools become widely accessible, similar to how smartphones made graphic design accessible to everyone. Regarding the recent changes in U.S. AI policy, Ostojic noted that while there is significant attention on AI safety and responsible development, the direction under President Trump’s administration remains unclear. He also acknowledged the growing competition from China’s AI advancements, which achieve efficiency with lower costs, and suggested that innovation will occur at both the high and low ends of the market.
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 You Should Not Miss
10. Bit Digital, Inc. (NASDAQ:BTBT)
Number of Hedge Fund Holders: 6
Bit Digital, Inc. (NASDAQ:BTBT) provides cloud infrastructure services tailored for AI applications, in addition to its core business of digital asset staking and mining.
On January 24, Bit Digital, Inc. (NASDAQ:BTBT) announced a new agreement with a key customer to provide 58 Nvidia B200 servers with 464 GPUs for 18 months, generating approximately 15 million dollars in annual revenue. The contract replaces a prior deal involving 2,048 H100 GPUs and includes a two-month prepayment, with service fees deductible from a 30 million dollar non-refundable deposit already paid. Scheduled to begin on June 30, 2025, the GPUs will be deployed in Iceland. Bit Digital has ordered the servers for 21 million dollars, funded by cash and customer deposits, and will retain full ownership of the servers.
9. Tevogen Bio Holdings Inc. (NASDAQ:TVGN)
Number of Hedge Fund Holders: 10
Tevogen Bio Holdings Inc. (NASDAQ:TVGN) is a clinical-stage firm focused on immunotherapy, developing targeted T-cell treatments for unmet medical needs, with an independent portfolio of AI-related patents and applications.
On January 24, Tevogen Bio expanded its partnership with Microsoft to improve its AI-driven PredicTcell technology and accelerate immunotherapy development. Through Microsoft’s AI tools and Azure platform, Tevogen aims to advance target identification, pre-clinical processes, and its ExacTcell technology pipeline. Some significant efforts include developing algorithms to study HLA-T cell interactions and preparing HPV-specific treatments using ExacTcell for its oncology candidate, TVGN 920.
8. FiscalNote Holdings, Inc. (NYSE:NOTE)
Number of Hedge Fund Holders: 13
FiscalNote Holdings, Inc. (NYSE:NOTE) is a technology company that combines AI, machine learning, and analytics to provide public policy tools, workflow management, and advocacy solutions for various sectors.
On January 15, FiscalNote launched PolicyNote, a new AI-powered policy management solution designed to help global organizations track and respond to legislative, policy, and regulatory changes more efficiently. The platform uses FiscalNote’s extensive data, proprietary AI, and expert analysis to accelerate tasks such as tracking bills, summarizing policy, and generating reports.
Key features include AI-generated policy summaries, a chat assistant for policy inquiries, customizable dashboards, and a comprehensive stakeholder database. PolicyNote aims to advance decision-making by providing faster, more reliable insights, ultimately supporting organizations in managing risks, identifying opportunities, and aligning actions with business goals.
7. Riot Platforms, Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 19
Riot Platforms, Inc. (NASDAQ:RIOT) focuses on Bitcoin infrastructure while also exploring potential opportunities in AI.
Piper Sandler reaffirmed its Overweight rating on Riot Platforms with a $23 price target. The firm highlighted Riot’s evaluation of using 600 MW of uninstalled capacity at its Corsicana site for AI and high-performance computing (HPC) tenants, which could significantly boost earnings. Riot recently announced a formal feasibility process for this opportunity, following a management shift toward AI/HPC projects and a significant position taken by an activist investor. Piper Sandler estimates the site could add approximately $6.73 per share in value.
6. TAL Education Group (NYSE:TAL)
Number of Hedge Fund Holders: 29
TAL Education Group (NYSE:TAL) provides K-12 tutoring services in China, offering small-class, personalized, and AI-powered learning solutions, along with online platforms and educational products.
On January 23, TAL (NYSE:TAL) posted strong earnings with President and CFO Alex Peng highlighting a strong year-over-year revenue growth, driven by the rapid expansion of AI learning devices and positive market feedback. The company reported FQ3 2024 non-GAAP EPADS of $0.06, exceeding estimates by $0.01, with revenue reaching $606.4 million, a 62.4% year-over-year increase, beating expectations by $65.04 million. As of November 30, 2024, the company held $3.84 billion in cash, cash equivalents, and short-term investments, up from $3.3 billion in February 2024. Operating activities generated $378 million in net cash during the quarter.
5. Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Holders: 50
Blackstone Inc. (NYSE:BX) is an alternative asset management firm specializing in private equity, real estate, hedge funds, credit, and multi-asset strategies and has significant investments toward AI development.
On January 24, Blackstone (NYSE:BX) announced that it agreed to acquire Potomac Energy Center, a 774-megawatt natural gas power plant in Loudoun County, Virginia. The move supports the growing energy needs of data centers and AI, with Northern Virginia hosting about 25% of U.S. data center capacity.
Potomac is located near over 130 data centers and is recognized for its efficiency and potential to incorporate hydrogen fuel in the future. Blackstone highlighted the plant’s role in meeting increasing power demand and emphasized its importance for reliable, high-quality energy infrastructure. Financial details of the transaction were not disclosed.
4. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 69
NextEra Energy, Inc. (NYSE:NEE) generates and distributes electricity using a mix of clean energy sources, operates renewable energy projects, and serves millions of customers across North America.
As reported by Bloomberg on January 24, NextEra (NYSE:NEE) has requested a licensing change from U.S. regulators to potentially restart the Duane Arnold nuclear plant in Iowa, aiming for operation by late 2028. The move reflects the growing power demand from AI, data centers, and green energy efforts. The plant, which closed in 2020 after losing its main customer and suffering storm damage, is considered by NextEra to have simpler technology that might facilitate its revival. However, analysts caution that restarting the facility could be expensive and economically uncertain, the report states.
At the company’s earnings call on January 24, NextEra also announced a partnership with GE Vernova to develop natural gas-powered generation solutions. The collaboration aims to support multiple gigawatts of energy for data centers, manufacturing, industrial electrification, and various utility and commercial customers. By combining NextEra Energy’s operational expertise with GE Vernova’s advanced gas and electrification technologies, the partnership seeks to integrate low-cost renewables with gas-fired generation to meet growing energy demands.
3. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) provides global payment solutions through transaction processing, card products, and digital services, serving merchants, financial institutions, and government entities. The company is heavily investing in AI infrastructure and also uses it to prevent fraud.
On January 24, Piper Sandler raised Visa’s (NYSE:V) price target to $368 from $322 and maintained a Buy rating, highlighting its ability to benefit from AI advancements. Analyst Arvind Ramnani emphasized Visa’s strong position due to its proprietary data, financial resources, and over $3 billion in AI and data infrastructure investments in the last decade. Visa’s AI-driven efforts to improve network security and prevent fraud have already blocked approximately $40 billion in fraud during fiscal year 2023. The company is expected to further reduce fraud through improvements to its Visa Account Attack Intelligence offering and the integration of generative AI into its systems.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) provides AI-driven solutions across various platforms, improving cloud services, business tools, and consumer products, while prioritizing the advancement of AI research.
Truist analyst Youssef Squali reiterated a Buy rating on Alphabet (NASDAQ:GOOGL) with a price target of $225, expecting fourth-quarter 2024 results to show continued strength in Search, YouTube, and Cloud, along with operating margins exceeding 30% due to cost controls. Revenue is projected to grow in the low double digits, driven by strong engagement and ad growth in sectors like health, consumer goods, retail, and politics. While concerns over AI developments in Search and regulatory issues persist, Squali emphasized Google’s strong position in the AI-driven Search space.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) applies AI to improve its shopping experience, entertainment offerings, and operations, while also advancing AI through investments in projects like Anthropic, collaborations with AWS, and the development of Tranium.
Scotiabank raised Amazon’s price target to $306 from $246, driven by expectations of accelerating growth in AWS, supported by secular trends and contributions from generative AI. While retail revenue estimates remain unchanged, there is potential for growth as e-commerce continues to expand its share of total U.S. retail sales. Operating margins are projected to improve due to cost discipline and efficient execution, though increased capital expenditures and depreciation slightly offset the estimate adjustments.
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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
