“Artificial Intelligence is the new frontier for Big Tech”, notes Rachna Dhanrajani when speaking to CNBC about tech spending on artificial intelligence. Tech giants have pledged to spend over $200 billion on AI-related capital expenditures this year, marking an all-time high. To add to the equation, the US presidential elections have drawn to a close and Donald Trump has emerged as the winner. Silicon Valley should brace for a starkly different relationship with the US government than it had with its predecessor.
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Wedbush Securities analyst Daniel Ives anticipates that the Trump Administration will focus on strengthening the US’ position in artificial intelligence.
“We would expect significant AI initiatives from the Beltway within the U.S. that would be a benefit for tech players…Under a Trump Administration, we would expect major AI initiatives within the U.S. government including the Department of Defense that would also be a major tailwind (for) AI players”.
-Ives said in a client note Wednesday.
The Latest Developments in AI
No matter how the future unfolds, artificial intelligence is already reshaping industries and businesses at an unprecedented pace. While robots are already part of the landscape, AI is poised to propel them into the mainstream. Physical Intelligence, a startup developing foundational software for robots, has raised $400 million in early-stage funds from big names such as Jeff Bezos and OpenAI. The company is seeking to make software that can work on any robot. The company has previously showcased how one of its software enables robots to do tasks such as folding laundry and bagging groceries.
Another Singapore-based startup is making waves in the culinary space. ProfilePrint uses patented digital fingerprint technology for analyzing the quality and identity of ingredients, thereby helping agribusinesses save time.
“ProfilePrint digitalizes food ingredients so that buyers and sellers no longer need to ship samples physically, allowing us to have a significant reduction in logistics costs, overheads as well as carbon footprint”.
– Alan Lai, CEO and founder of ProfilePrint, speaking to CNBC’s “CNBC Tech: The Edge.”
In other news, Sam Altman, founder of OpenAI, recently took to Reddit to answer all the pressing questions users have had surrounding ChatGPT and OpenAI. While ChatGPT-5 isn’t going to come around this year, another user asked a primarily important question: Is AGI achievable with known hardware? Answering in the affirmative, Altman responds that he believes it is possible with current hardware. AGI, or artificial general intelligence, is the type of AI that would possess the ability to perform any intellectual task that a human can. It is known to be a quantum leap beyond the AI systems that are known today.
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.
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10. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 9
BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides decision intelligence solutions for national security, digital identity, supply chain and logistics, enterprise operations, and manned-unmanned teaming in autonomous systems.
On November 6th, H.C. Wainwright reiterated a Buy rating on BigBear.ai Holdings, Inc. (NYSE:BBAI) with a price target of $3.00. Despite slightly missing third-quarter revenue expectations, the management’s disciplined approach to cost control and maintenance of full-year revenue guidance demonstrates resiliency in BigBear.ai’s business model, noted the analyst.
Another key factor contributing to the buy rating is the company’s recent $165 million contract with the US Army. The contract will require BigBear.ai to deliver the U.S. Army’s Global Force Information Management – Objective Environment (GFIM-OE), an enterprise-wide intelligent automation platform that will help senior leaders and combatant commanders to man, equip, train, ready, and resource the Army more effectively. The contract is expected to begin revenue production in Q4 2024.
9. Lumen Technologies, Inc. (NYSE:LUMN)
Number of Hedge Fund Holders: 18
Lumen Technologies, Inc. (NYSE:LUMN) is a facilities-based technology and communications company connecting people, data, and applications. Its AI-driven fiber deals and other digital services are helping it ride the wave of AI growth.
On November 5, Lumen Technologies, Inc. (NYSE:LUMN) announced a partnership with Google Cloud to improve its operations using advanced AI technology. The partnership will allow Lumen to leverage Google Cloud’s infrastructure and databases to create an AI-driven network technology called Lumen® Digital Twin. The Lumen Digital Twin will provide proactive insights across the Lumen network, helping it detect and resolve network issues before they reach its customers. Moreover, Google Cloud’s Vertex AI platform and Gemini models will help the company develop applications to reduce unnecessary technician visits, improve customer support, and enhance website search functionality.
“We’re transforming our operations top to bottom to deliver outstanding customer service and operate a more efficient business. Google Cloud’s expertise and AI technologies are key enablers for our company, allowing us to use our Lumen Digital Twin network technology to test new capabilities and improvements before we deploy them”.
– Dave Ward, Lumen Chief Technology and Product Officer.