A consortium of investors led by Elon Musk recently offered $97.4 billion to buy the non-profit that controls OpenAI. Musk’s lawyer, Marc Toberoff, confirmed the news. He told Reuters that the offer was sent by email on Monday to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz. However, OpenAI has said that it has not yet received a formal bid from the Elon Musk-led consortium.
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According to Toberoff, the bid was in the form of a “detailed four-page Letter of Intent” to purchase OpenAI’s assets. It was signed by Musk and other investors and addressed to the board. Nevertheless, the news of not having received the bid adds confusion over Musk’s attempt to take control of the artificial startup that has seemingly started the AI arms race.
“Whether Sam Altman chose to provide or withhold this from OpenAI’s other Board members is outside of our control”
-Toberoff, referring to OpenAI’s CEO.
Whether or not an official bid has been sent to OpenAI from Musk, one thing remains clear. Sam Altman, CEO of OpenAI, is not interested in the offer. Altman told Reuters that the non-profit that controls OpenAI is not for sale. He also posted on X, counter-questioning if Musk wanted to sell Twitter for $9.74 billion instead.
“I have nothing to say. I mean, it’s ridiculous. The company is not for sale. It’s another one of his tactics to try to mess with us”.
-Altman said (on the sidelines) of an AI summit in Paris when asked about the offer.
Reuters also reported that Altman sent an internal message to OpenAI employees stating that the board, even though it had not officially reviewed the offer, would reject it based on the interest of OpenAI.
OpenAI is currently seeking a transition into a for-profit from a nonprofit entity. The company states that the transition is required to secure the capital needed for developing the best AI models. Musk, however, appears to have made the move to prevent this outcome. According to him, OpenAI’s transition to a for-profit entity would steer it away from its original mission of developing open-source, safety-focused AI that benefits humanity.
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. Lattice Semiconductor Corporation (NASDAQ:LSCC)
Number of Hedge Fund Holders: 32
Lattice Semiconductor Corporation (NASDAQ:LSCC) makes and sells semiconductor products. On February 11, Baird increased its price target for the stock to $68 and retained an “Outperform” rating. Analysts are bullish on Lattice Semiconductor based on its potential signs of recovery. In particular, the company’s book-to-bill ratio exceeded 1 over recent weeks, signifying a path towards inventory normalization at distributors by mid-2025. Its computing segment has also demonstrated growth over the past year, and there are anticipations for continued increases over the next quarters in the communications and computing sectors.
Management has also pointed to secular trends in favoring FPGA adoption, which is the use of Field Programmable Gate Array (FPGA) chips in more applications. These factors include swift time-to-market advantage in shorter design cycles, rising costs of ASICs and ASSPs, and the increasing expenses associated with advanced nodes. Moreover, evolving market requirements and the expansion of edge AI technologies are also boosting FPGA demand. Even though the fourth quarter was challenging, its forward-looking revenue and earnings projections for 2025 remain positive.
9. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 39
Astera Labs, Inc. (NASDAQ:ALAB) is engaged in the design, manufacture, and selling of semiconductor-based connectivity solutions for cloud and AI infrastructure. On February 11, Needham analyst Quinn Bolton maintained a “Buy” rating on the stock with a price target of $140.00. Bolton’s optimism for Astera Labs stems from the company’s strong performance and growth potential. The company’s financial results for the fourth quarter of 2024, reported on February 10th, exceeded expectations. Revenue grew 25% versus the previous quarter and the company also concluded 2024 with 242% revenue growth year-over-year. The firm noted the success of its Taurus SCMs, Aries SCMs, and Aries PCIe retimers behind the results, which in turn reflect upon the company’s effective product diversification.
Moreover, management anticipates a promising future for Astera, with its Scorpio family projected to become the primary revenue source by 2025. The Scorpio family, Astera’s purpose-built portfolio for deploying cloud-scale AI platforms, is likely to contribute over 10% of revenue. The company also plans on addressing potential concerns like those related to DeepSeek. It is doing so by highlighting favorable forecasts for high-speed data center AI capital expenditures. Additionally, anticipated contributions from custom ASIC and merchant GPU solutions in 2025 also boost the company’s growth prospects.
8. Confluent, Inc. (NASDAQ:CFLT)
Number of Hedge Fund Holders: 39
Confluent, Inc. (NASDAQ:CFLT) is a technology company that provides data streaming platforms. On February 11, the company announced that it had signed a strategic partnership with Jio Platforms Limited, an Indian multi-technology company, for Jio Cloud Services. This partnership marks a significant advancement in India’s digital capabilities. The agreement will allow Confluent Cloud, Confluent’s fully managed, cloud-native data streaming platform, to be available on Jio Cloud Services. This will in turn enable businesses to get started with data streaming. Meanwhile, Confluent Platform, its full-scale data streaming platform, will be offered as a managed service for India’s consumers and enterprises. The partnership will allow enhancing India’s data streaming capabilities as data streams are fundamental for real-time and GenAI use cases.
“Confluent with Jio will enable more organizations in India to harness the power of data streaming to fuel their businesses with real-time data and provide better services to its citizens. Partnering with one of India’s most influential and innovative companies is a huge leap forward for making data streaming easily accessible and pervasive. We look forward to partnering with Jio to help organizations advance their digital capabilities with streams of constantly flowing data.”
-Erica Schultz, President of Field Operations, Confluent.
7. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 49
monday.com Ltd. (NASDAQ:MNDY) develops software applications globally, offering a cloud-based Work OS for creating work management tools. On February 11, Scotiabank analyst Allan Verkhovski raised the firm’s price target on the stock to $400 from $300 and kept an “Outperform” rating on the shares. The analyst told investors that the company provided FY25 revenue growth guidance ahead of consensus and also delivered a larger revenue beat compared to last quarter. The company has also closed one of the largest deals in its history with a multinational healthcare company, increasing its largest seat count to 80,000. The firm also added that the company has introduced a pricing model for its AI blocks and that the Monday service is now generally available. Additionally, the company’s U.S. enterprise segment was particularly strong in December.
6. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 58
Lam Research Corporation (NASDAQ:LRCX) is a semiconductor stock that offers semiconductor equipment and services used in the making of integrated circuits. On February 12, U.S.-based chip toolmaker company Lam Research announced that it will be investing over 100 billion rupees ($1.2 billion) over the next few years in India’s southern Karnataka state. The move marks the latest push toward India’s plans to strengthen its semiconductor ecosystem.
Lam Research reported signing a memorandum of understanding (MoU) with the Karnataka Industrial Area Development Board (KIADB) for the investment during an ‘Invest Karnataka’ event. According to India’s IT minister, Lam Research’s investment is “one more milestone” in the country’s semiconductor journey. Global chip firms are increasingly investing and setting up facilities in India as the country races to build up its semiconductor industry. The country expects its semiconductor market to be worth $63 billion by 2026.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. One of the biggest analyst calls on Wednesday, February 12, was for Tesla. Morgan Stanley reiterated the stock as “Overweight” and kept its $430 price target, noting that Tesla is a key player in US manufacturing. The firm advises investors to buy the dip in Tesla and that it’s well positioned for US manufacturing, particularly as artificial intelligence (AI) increasingly integrates into physical production. Tesla is “one of the most diversified expressions of physical AI”, noted the firm, and the company stands at the center of the transformation from a knowledge economy to a physical economy.
“We believe Tesla is well positioned in the metamorphosis of US manufacturing in the AI era. Data is defining the software.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL) is a technology company. On February 12, Morgan Stanley maintained an “Overweight” rating on the stock with a $275 price target. The firm stands by the stock after getting to know that it is partnering with Alibaba to roll out its artificial intelligence features in China. It is positive that Apple’s partnership with Alibaba could help solve China’s smartphone problem and help iPhone users in the country avail Apple Intelligence.
“If confirmed, we would view this as a critical catalyst for Apple’s competitive standing in China. … .Could a potential Alibaba AI partnership help solve Apple’s China smartphone problem? Yes, it could, in our view.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On February 11, Benchmark Co. analyst Cody Acree reiterated a Buy rating on the stock and set a price target of $195.00. The firm stated that it sees new growth opportunities for Nvidia in autos.
“Still with all that success, the company isn’t resting on its laurels, instead Nvidia is working to parlay its leadership into new opportunities. In the Automotive market, we believe the company has identified just such a case.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On February 11, the company announced an expanded partnership with Anduril, an American defense technology company, to steer the next phase of the U.S. Army’s Integrated Visual Augmentation System (IVAS) program. The partnership agreement, after gaining approval from the Department of Defense, will allow Anduril to oversee the production and future development of hardware and software, as well as delivery timelines.
The partnership will also enable Microsoft Azure to be Anduril’s preferred hyperscale cloud for all workloads related to IVAS and Anduril AI technologies. The program will be leveraging Microsoft’s advanced cloud infrastructure and AI capabilities, offering seamless data integration and real-time insights essential to soldier effectiveness. AI will serve as the foundation for all technical innovations in national security missions, while the cloud will allow the successful delivery of AI where needed.
“We are incredibly proud of the work our teams have put in to help the U.S. Army transform its concept of a soldier-borne, AR headset into reality with the IVAS program. Our Soldier-Centered Design approach helped reimagine technology development with the Army that continuously took in real-world soldier feedback to develop a product that soldiers love. We are excited to partner with Anduril for the next phase of IVAS and leverage our combined strengths to meet our commitments on this vital program and deliver a game-changing capability for every U.S. soldier.”
-Robin Seiler, corporate vice president, Mixed Reality, Microsoft.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com Inc (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On February 12, Loop Capital raised the firm’s price target on the stock to $285 from $275 and kept a “Buy” rating on the shares.
The rating follows Amazon’s Q4 beat last week, reflecting upon the firm’s confidence that Amazon’s bullish thesis is playing out and demonstrates a meaningful upside ahead. The firm noted that it is not the only one having a bullish outlook on AWS. Analysts also told investors in a research note that accelerated cloud migration and gen AI-driven use cases is a massive, multi-year growth cycle that is anticipated to push the stock higher.
While we acknowledge the potential of 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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