In this article, we discuss the 10 important AI announcements for investors.
Investment Shifts Highlight AI Spending Challenges
Blue Whale Growth, the investment fund supported by billionaire Peter Hargreaves, has reduced its holdings in major US tech firms, mentioning concerns over their substantial AI-related spending. Financial Times reported that fund manager Stephen Yiu highlighted a significant reduction in Microsoft shares, which dropped out of the fund’s top ten holdings for the first time since 2017. He noted that the return on invested capital for the company might decline due to AI investments and hinted at potentially exiting the stock entirely if AI costs exceed cash generation.
The “Magnificent Seven” tech giants have faced growing scrutiny over their rising capital expenditures on AI infrastructure, with Wall Street increasingly wary about returns. Yiu has also reduced stakes in Meta and previously exited Amazon and Alphabet, expressing concerns over AI-driven spending outpacing profitability, the report states.
While the fund remains optimistic about Nvidia, which now represents around 10% of its portfolio, Yiu expressed less confidence in the other six companies. He also supports Broadcom, benefiting from AI infrastructure development. According to the report, Blue Whale Growth, managing £1.3 billion, has returned 24% this year, outperforming peer funds, but has reduced its exposure to US tech stocks significantly compared to benchmarks.
READ ALSO: 13 AI News That Broke the Internet and Jim Cramer’s Game Plan for This Week: 8 Stocks in Focus.
Southeast Asia’s Growing Role in AI Innovation
In stark contrast to the caution seen in Western markets, Southeast Asia’s emerging economies are racing to establish themselves as key players in the global AI landscape. According to CNBC, the region benefits from a youthful, digitally savvy population and growing government support for AI initiatives. While Singapore has already made significant strides in AI adoption, other countries, such as Vietnam, Indonesia, and Malaysia, are also accelerating efforts to harness AI for a range of industries, from agriculture to manufacturing.
This growing focus on AI offers immense potential for economic growth, creating new jobs and boosting productivity. However, as these countries ramp up their AI strategies, they face challenges related to infrastructure, digital literacy, and the need for skilled workers. As experts point out, the AI race in Southeast Asia is not just about adoption but about tailoring technology to the region’s unique needs. Despite the hurdles, the region is positioning itself as a promising center for AI innovation, and many expect that ASEAN’s commitment to AI could help its economies thrive in the global tech ecosystem.
Massive AI Investment in the U.S.
Meanwhile, SoftBank Group CEO Masayoshi Son is making a bold move to accelerate AI development globally. Son plans to invest $100 billion in the U.S. over the next four years, with a significant focus on artificial intelligence and related infrastructure. His goal is to create 100,000 AI-related jobs before the end of President-elect Donald Trump’s term, as reported by Reuters. Known for his strong advocacy for AI, Son has already made notable investments in AI companies such as OpenAI and Graphcore, further signaling his commitment to the sector’s growth. This massive investment, paired with Southeast Asia’s rising AI ambitions, highlights the growing global momentum behind artificial intelligence.
For this article, we selected AI stocks by going through 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).
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
10. Webuy Global Ltd (NASDAQ:WBUY)
Number of Hedge Fund Holders: 1
Webuy Global Ltd (NASDAQ:WBUY) is an e-commerce retailer in Southeast Asia, offering a range of consumer goods and services. It integrates AI to improve community commerce, offering personalized travel planning, predictive demand analytics, and social interaction tools that optimize group decision-making.
Webuy (NASDAQ:WBUY) announced its progression to the next phase of NVIDIA’s AI Accelerator Program. Supported by Singapore’s Economic Development Board, Tribe, and Digital Industry Singapore, the program offers businesses access to NVIDIA’s advanced computing tools and expertise. The company’s CEO, Vincent Xue Bin remarked:
“We are thrilled to advance to the next stage of NVIDIA’s AI Accelerator Program…This achievement reflects our dedication to integrating AI-driven solutions into our platform to create unparalleled customer experiences. We look forward to exploring new possibilities with NVIDIA’s support.”
9. NICE Ltd. (NASDAQ:NICE)
Number of Hedge Fund Holders: 24
NICE Ltd. (NASDAQ:NICE) offers AI-powered cloud platforms that strengthen customer engagement, automate processes, and optimize decision-making.
NICE recently announced that Fulton Bank is advancing its digital transformation by adopting Enlighten-powered solutions, including CXone Mpower Copilot, Autopilot, and Expert. These tools leverage generative AI to improve self-service and agent support by integrating a unified knowledge base for faster customer resolutions. Autopilot enables omnichannel self-service, while Copilot provides real-time insights and next-best actions for agents, improving productivity and customer experience. Fulton Bank’s Krystal Davis highlighted the partnership’s role in boosting efficiency and innovation, aligning with the bank’s focus on delivering exceptional service. NICE (NASDAQ:NICE) President Dan Belanger praised the bank’s efforts to lead in customer service automation.
