10 AI Stocks Taking Wall Street by Storm

5. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 56

International Business Machines Corporation (NYSE:IBM) is a multinational technology company offering AI consulting services and a suite of AI software products. On December 9, the company announced that it has unveiled revolutionary research in optics technology that has the potential to improve how data centers train and run generative AI models. The process would enable co-packaged optics (CPO), the next generation of optics technology, to enable connectivity within data centers at the speed of light through optics that would complement existing short-reach electrical wires. The research innovation would enable various benefits including lower costs for scaling generative AI, faster AI model training, and increased energy efficiency for data centers.

“As generative AI demands more energy and processing power, the data center must evolve – and co-packaged optics can make these data centers future-proof. With this breakthrough, tomorrow’s chips will communicate much like how fiber optics cables carry data in and out of data centers, ushering in a new era of faster, more sustainable communications that can handle the AI workloads of the future.”

-Dario Gil, SVP and Director of Research at IBM.