In this article, we discuss 12 trending AI stocks on latest news and ratings.
Addressing Power Shortages for AI Data Centers
The demand for energy-intensive AI data centers is outpacing supply, and while solutions like crypto site conversions, and nuclear power are promising, substantial action is needed to prevent significant power shortages in the near future.
In an interview on CNBC’s ‘The Exchange,’ Stephen Byrd from Morgan Stanley discussed the potential for converting crypto mining sites into data centers to address the power shortage for AI data centers. He noted that while Bitcoin mining companies have lucrative options, including converting sites into data centers, the high price of Bitcoin complicates decisions.
Byrd estimated a significant power shortfall of over 30 gigawatts by 2028, with solutions like Bloom Energy’s fuel cells and crypto site conversions offering partial relief. However, he warns that connecting new data centers to the grid could take years, and prices for electricity are likely to rise, creating potential political challenges. Other solutions include nuclear power and natural gas turbines, especially in regions like West Texas.
READ ALSO: Top 15 AI Stock News and Ratings Dominating Wall Street and Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024.
Oil Giants Explore Power Solutions for AI Data Centers
Major U.S. oil companies are considering entering the electricity market by supplying natural gas-powered electricity with carbon capture technologies to meet the growing energy demands of AI data centers. Reuters reported that Chevron has been in talks for over a year to provide natural gas-fired power combined with carbon capture solutions, while Exxon plans to offer low-carbon electricity to data centers by the end of the decade.
The move comes as the rise of AI technologies is driving a significant increase in electricity demand, prompting the need for new energy infrastructure. The companies plan to use their expertise in natural gas and carbon capture to help meet this demand, potentially reshaping the power market.
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).
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12. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 15
Symbotic Inc. (NASDAQ:SYM) uses AI-driven automation technology to optimize warehouse operations, focusing on pallet and case processing for retail distribution centers.
On December 13, Symbotic (NASDAQ:SYM) announced the completion of its acquisition of OhmniLabs, a robotics innovator specializing in healthcare solutions. OhmniLabs, known for its autonomous disinfection and telepresence robots, will contribute its talent and innovation to further improve Symbotic’s automation offerings across industries. According to Rick Cohen, Executive Chairman and CEO of Symbotic, the merger combines Symbotic’s expertise in large-scale automation with OhmniLabs’ mobile robots, AI, and vision systems. Cohen Said:
“Combining Symbotic’s expertise in large-scale automation with OhmniLabs’ ground-breaking mobile robots, vision, and A.I solutions will enable the development of unparalleled automation innovations across different settings… We were drawn to OhmniLabs for its impressive talent and industry experience that will enable our expansion beyond the four walls of the warehouse.”
11. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 17
C3.ai, Inc. (NYSE:AI) provides enterprise AI software, including the C3 AI platform for developing AI applications and C3 Generative AI for data retrieval and integration.
It was reported on December 11 that C3.ai (NYSE:AI) and Collins Aerospace have expanded their partnership to develop AI solutions for the defense and intelligence sectors. The collaboration aims to provide federal agencies with advanced AI tools for better decision-making, readiness, and national security. Key initiatives include deploying applications from C3 AI’s Defense and Intelligence Suite, such as C3 AI Readiness and C3 Generative AI for Defense. This partnership is focused on equipping federal agencies with the technology necessary to improve situational awareness and drive national security efforts.
