In this article, we discuss the 10 trending AI stocks on latest news and ratings.
Latest reports suggest that the United Kingdom is launching a Laboratory for AI Security Research (LASR) to strengthen national security and cyber defense in response to evolving threats in the AI arms race. Backed by an initial £8.22 million in government funding, LASR will unite industry, academia, and government experts to explore the impact of AI on security. This initiative complements the UK’s broader cybersecurity strategy, including the upcoming Cyber Security and Resilience Bill and the designation of data centers as critical infrastructure.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The laboratory will adopt a catalytic model to attract further investment and collaboration. The announcement follows heightened global concerns about state actors leveraging AI for malicious purposes, such as North Korea’s use of AI for cyberattacks. Additionally, the UK government has also unveiled a £1 million incident response initiative to bolster allied cyber defense capabilities, highlighting AI’s dual potential as both a security risk and a tool for good.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among 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 technician observing a complex fiber-optic networking set-up in a laboratory.
Trending AI Stocks on Latest News and Ratings
10. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. The company recently took part in the SuperComputing 2024 conference where it showcased its latest high-compute-density multi-node solutions which are optimized for high intensity HPC workloads. These systems include the purpose-built HPC architecture and the industry leading SuperBlade with a range of storage drive options. Per the firm, each SuperBlade can accommodate an NVIDIA GPU per node, accelerating specific applications.
9. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. David Schmidt, the senior director of PowerEdge product management at Dell, recently spoke to news platform theCube, noting that his company could deliver AI on compute as well as purpose-built, large-scale AI solutions. Per the senior executive, Dell was doing this with systems built on fifth-generation AMD Turin. Schmidt also noted that the new rack-based servers of the firm were supporting latest-generation Turin processors.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Arun Gupta, the vice president and general manager of developer programs at Intel, recently spoke to news platform theCube, highlighting how open-source artificial intelligence projects were gaining popularity, and Intel was taking advantage of the momentum with a composable AI platform called Open Platform for Enterprise AI, or OPEA. It was launched by Intel this year as a vendor-neutral project with the Linux Foundation. Gupta said that the potential for OPEA was immense, noting the firm launched OPEA with 15 partners but now had 45 onboard.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The AI-capable chips of QUALCOMM are now making their way into cars and IoT devices, after powering smartphones globally. Taiwan-based media firm DigiTimes recently reported that Xiaomi, the Chinese electronics manufacturer that completed the design of a 3nm chip earlier this year, plans to launch the new chip sometime next year. The new chip could power the AI-capable upcoming phones from the firm, challenging QUALCOMM dominance in the sector.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. Latest reports, published by news platform Business Insider, claim that chip experts believe that some US businesses are likely to continue depending on TSM chips made in Taiwan for the foreseeable future, even as the company builds factories in Arizona. Chris Miller, a nonresident senior fellow at the American Enterprise Institute, recently told the news platform that companies that prefer to use the most cutting-edge technology — like Nvidia, Apple, Qualcomm, and AMD — will likely continue to source chips from Taiwan for many years in the future.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. Taiwan-based semiconductor analyst Dan Nystedt recently revealed on social media that Samsung, the South Korean electronics giant, was reportedly in talks with Microsoft-backed OpenAI to integrate the AI technologies of the latter into Galaxy devices. Per the analyst, this marked a potential shift in the competitive landscape against Google. Technology news platform The Information has also previously reported the same.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 23, news publication Bloomberg reported, quoting NVIDIA CEO Jensen Huang, that the chipmaker was fast-tracking the certification of Samsung AI memory chips. Huang said his company is assessing both 8-high and 12-high HBM3E chips from Samsung, which are designed to enhance AI processing capabilities. Earlier this year, Samsung had announced progress in supplying these advanced memory chips to the chipmaker.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. The company is planning to build an AI data center in Louisiana. Local news outlets report that District 5 Public Service Commissioner Foster Campbell has said that the AI facility in Richland Parish will be a game changer for the region. Per the local reports, the project is estimated to cost $5 billion, and public filings show it will be hiring 300 to 500 people with an average salary of $82,000.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The US-China trade war is intensifying. Following US curbs on export of AI chips to Chinese firms, Microsoft recently alerted authorities in the US about the Salt Typhoon hack, according to a report by news publication The New York Times. The report claims that hackers closely linked to the Chinese government lurked undetected inside the networks of the biggest American telecommunications firms for more than a year and got a nearly complete list of phone numbers the Justice Department monitors in its lawful intercept system. It further adds that officials now believe that the hack has gone beyond phone companies, to internet service providers, potentially allowing the Chinese to read some email.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. On November 25, technology company IBM announced that it would be announcing a series of key AI partnerships with Amazon at the upcoming AWS re:Invent learning conference. These include the launch of the most powerful Granite AI models on the Amazon Bedrock and Amazon SageMaker JumpStart services, as well as various full-stack observability tools for leading Amazon AI platforms.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ: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 Amazon.com, Inc. (NASDAQ:AMZN) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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