In this article, we discuss 12 AI News and Ratings Investors Probably Missed.
AI is increasingly shaping diverse industries, from healthcare and website design to cybersecurity. Companies are utilizing traditional AI and generative models to improve diagnostics, customer experiences, and business efficiency. While AI offers immense benefits, it also presents new challenges, especially in securing sensitive data. As businesses continue to innovate with AI, balancing its advantages and potential risks will be crucial for future growth.
READ ALSO: 15 AI News Investors Shouldn’t Miss and Jim Cramer Discussed 10 Stocks That Can Do Well in December.
Leveraging AI Across Sectors for Enhanced Efficiency
At the CNBC CFO Council Summit on December 4, Squarespace’s Nathan Gooden, Zoetis’s Wetteny Joseph, and Varonis’s Guy Melamed shared their insights on how artificial intelligence is being integrated into their businesses. From animal health and website development to cybersecurity, these executives discussed the ways AI is improving their operations, improving customer experiences, and addressing emerging challenges. They also explored the evolving role of generative AI and its potential impact on the future of their industries.
Wetteny Joseph discussed how AI is being used in animal health, noting the integration of traditional AI in diagnostic platforms for animals, such as a system that quickly analyzes slide images to identify health issues, with potential to expand into human healthcare. Nathan Gooden highlighted the long-standing use of machine learning in the platform, and the incorporation of generative AI to simplify the website design process for customers. Guy Melamed mentioned AI’s dual impact: improving customer protection while also presenting risks, such as exposing sensitive data via AI tools like co-pilot. His company focuses on securing data and preventing unauthorized access through these AI systems.
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.
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).
12 AI News and Ratings Investors Probably Missed
12. POET Technologies Inc. (NASDAQ:POET)
Number of Hedge Fund Holders: 5
POET Technologies Inc. (NASDAQ:POET) creates optoelectronic products, including photonic integrated components and the POET Optical Interposer, which facilitate rapid data transmission and processing. The company plays a key role in AI applications, particularly in data centers and IoT devices.
POET (NASDAQ:POET) recently expanded its Board of Directors to six members with the appointment of Bob Tirva, effective December 5, 2024. Tirva will also join the Audit Committee. He brings over 30 years of executive experience, having held roles at IBM, Broadcom, Dropbox, and Intermedia Cloud Communications, and served as President, COO, and CFO at Sonim Technologies until its acquisition in 2022. He currently serves on the board of Skyworks Aeronautics and has previously served on the boards of Costar Technologies and Resonant.
11. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 15
Symbotic Inc. (NASDAQ:SYM) develops automation technologies that improve efficiency in large warehouses and distribution centers. Its systems streamline the processing of pallets and cases, enhancing supply chain operations for retail companies. The company is a leading manufacturer of AI-enabled robots.
On December 5, The Fly reported that TD Cowen said Symbotic (NASDAQ:SYM) filed its annual report, which showed no significant changes. The company has addressed key issues, including confirming its backlog, securing audit approval, and implementing procedures to prevent future problems. The restatement within the previously estimated range offers some reassurance. TD Cowen maintained a Buy rating on Symbotic with a $50 price target. Symbotic (NASDAQ:SYM) was priorly under scrutiny from after it announced that it is delaying its 10K to fix FY24 reported numbers.
10. DocuSign, Inc. (NASDQ:DOCU)
Number of Hedge Fund Holders: 42
DocuSign, Inc. (NASDQ:DOCU) provides e-signature solutions and contract lifecycle management tools to automate agreement workflows. Its services also include identity verification, document generation, and remote notarization, helping businesses streamline and digitize transactions, including AI-driven contract management and analytics.
DocuSign (NASDQ:DOCU) reported its FQ3 2025 earnings on December 5, posting a non-GAAP EPS of $0.90, outperforming estimates by $0.03. The company’s revenue was up nearly 8% year-over-year at $754.82 million, which beat estimates by $9.5 million. For the next quarter, DocuSign (NASDQ:DOCU) guided its revenue above consensus estimates of $756.2 million. The company sees its revenue between the range of $758 to $762 million. For the fiscal year ending January 31, 2025, the company expects revenues of $2.959 billion to $2.963 billion compared to consensus of $2.95 billion.
The company also released new AI features in its Navigator platform across five major markets. CEO, Allan Thygesen said:
“Also, just this week, we released new AI features in Navigator across five major markets, Australia, Canada, France, Germany, and the UK. In these countries, we’ve created AI models that meet local regulatory and compliance requirements.”
9. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) offers integrated solutions across storage, servers, networking, and client devices, with a focus on AI-optimized infrastructure for businesses.
Dell Technologies has deployed tens of thousands of GPUs to support Elon Musk’s supercomputer project at xAI in Memphis, as reported by Bloomberg on December 5. The company rapidly scaled up its deployment, with the cluster continuing to grow. Musk’s startup is building a massive facility to enhance its AI computing capacity, with Nvidia, Dell, and Super Micro providing hardware for the project. The project will house at least 1 million GPUs, and Dell aims to capture a significant share of the infrastructure supply for the facility.
8. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 71
Datadog, Inc.’s (NASDAQ:DDOG) solutions enable businesses to manage cloud costs, automate workflows, and enhance security, with AI-driven capabilities to improve performance and security insights.
Barclays increased its price target for Datadog (NASDAQ:DDOG) to $187 from $155, maintaining an Overweight rating on the stock, as reported by The Fly on December 6. The analyst noted that with software stocks gaining favor again, Datadog’s valuation has returned to historical averages. However, the firm believes there is still potential for further growth, as earnings estimates have yet to be adjusted and valuations are expected to shift into 2026.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company offering products like microprocessors, GPUs, and system-on-chip solutions across multiple segments including data centers, gaming, and embedded systems.
Advanced Micro Devices (NASDAQ:AMD) EVP and GM of the Data Center Group, Forrest Norrod joined UBS Global Technology and AI Conference on December 3. Norrod outlined the company’s growth and strategic focus on AI optimization. He emphasized AMD’s broad portfolio, including CPUs, GPUs, and networking, with an integrated approach for AI solutions. AMD supports both liquid-cooled and air-cooled solutions, offering flexibility for data center deployments. While the MI400 will be AMD’s first fully rack-scale product, the MI350 will perform well in data centers in the meantime.
Norrod also provided an update on AMD’s acquisition of server builder ZT Systems, which will close by mid-2025, improving system design capabilities for high-density environments. The company is focusing on ultra-Ethernet networking for large-scale clusters, and its MI325X and MI350 products are positioned to compete effectively with NVIDIA.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and semiconductor devices, offering various fabrication processes. Its products are used in industries like high-performance computing, smartphones, automotive, and consumer electronics.
According to a report by Reuters, Taiwan Semiconductor (NYSE:TSM) is in talks with Nvidia to produce its Blackwell AI chips at TSMC’s Arizona facility, which is set to begin volume production in 2025. The chips, currently made in Taiwan, are in high demand for generative AI and computing tasks. While the Arizona plant will handle the chips’ front-end process, packaging will still take place in Taiwan due to the absence of CoWoS technology in the U.S. facility. Taiwan Semiconductor’s (NYSE:TSM) Arizona plant already serves customers like Apple and AMD. This expansion is part of TSMC’s significant investment in Phoenix, supported by U.S. government subsidies to boost domestic chip production.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides a wide range of graphics, computing, and networking solutions. Its products serve industries such as gaming, professional visualization, data centers, and automotive markets.
As reported by Reuters on December 5, Italian startup iGenius is collaborating with Nvidia to launch one of the largest deployments of Nvidia’s GB200 NVL72 servers, featuring 72 Blackwell chips each, at a data center in southern Italy by mid-2025. Named “Colosseum,” the project will utilize Nvidia’s software tools, including the NIM platform, to enable seamless deployment of AI models. iGenius, which focuses on open-source AI models for industries like banking and healthcare, has raised €650 million this year and is seeking additional funding for the project. Some models developed with Colosseum could reach 1 trillion parameters, showcasing its advanced capabilities.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) is one of the most prominent tech companies in the world. It has made significant strides in the AI market with its Gemini AI model and TPU chips.
NBC News reported on December 5 that Waymo, owned by Alphabet (NASDAQ:GOOGL), will expand its robotaxi service to Miami, starting with human-supervised testing in 2025 and rider access via the Waymo One app in 2026. This move reflects Waymo’s progress in operating autonomous vehicles in challenging weather conditions, building on earlier Miami tests in 2019. Initially, operations will cover parts of the Miami metropolitan area, home to over 6 million people.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) develops products for global connectivity and focuses on enabling communication and shared experiences across various devices. The company is investing heavily in AI, using NVIDIA GPUs and developing the Llama AI model to improve user and advertiser experiences as it works to monetize AI technology.
On December 4, Reuters reported that Meta (NASDAQ:META) plans to invest $10 billion to build its largest AI data center in Richland Parish, Louisiana. Designed to handle vast data volumes for AI workloads, the facility’s electricity use will be offset with renewable energy in collaboration with Entergy. Construction of the data center is set to begin in December and continue through 2030. Meta is also exploring nuclear power options, seeking up to 4 gigawatts of new capacity by the 2030s to support its AI and sustainability goals.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) develops software, services, devices, and solutions. It integrates AI across its products to improve business processes and development and invests in AI technologies through partnerships.
OpenAI is considering removing a provision that would prevent Microsoft (NASDAQ:MSFT) from accessing its most advanced models once the company achieves artificial general intelligence (AGI), as per The Financial Times. Currently, the provision prohibits Microsoft from using AGI technology, which could limit the value of its partnership with OpenAI, especially given Microsoft’s (NASDAQ:MSFT) significant investment of over $13 billion. OpenAI is restructuring to become a public benefit corporation and is discussing new terms with investors, including Microsoft.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational tech company mostly known for its e-commerce business. It also offers a full AI stack, including custom processors and Amazon Bedrock for AI development.
On December 5, Keppel, a global asset manager, and operator, partnered with Amazon Web Services (AWS) under a multi-year agreement to collaborate on data centers, renewable energy, and AI solutions. The partnership, formalized during AWS re:Invent in Las Vegas, will see Keppel using AWS’s cloud services, including Amazon Bedrock, to advance its AI platform and operational capabilities.
Keppel will support AWS with AI-enabled data center capacity, renewable energy access, and enhanced connectivity via subsea cables like the Bifrost Cable System. It will also collaborate on sustainability efforts and develop an AI platform using AWS tools to boost efficiency and innovation in Keppel’s operations.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
