In this article, we discuss the 13 AI news investors should not miss.
As we look toward 2025, the AI investment landscape is evolving from a focus on general-purpose computing to custom-built solutions tailored to specific needs. This shift opens up opportunities for suppliers of specialized technology and software companies to incorporate AI into their offerings. Meanwhile, higher interest rates may push investors toward established players with strong growth potential in the AI space.
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Custom Silicon and AI Drive Market Shifts in 2025
At CNBC’s ‘Closing Bell,’ Doug Clinton of Intelligent Alpha and Deepwater Asset Management discussed the shifting dynamics of AI investments heading into 2025. He explained that while Nvidia has been a key beneficiary of AI-driven spending over the past two years, with companies investing heavily in general-purpose AI compute, the focus is now transitioning to custom silicon. Companies like Google, Microsoft, Meta, and Amazon have developed their own custom chips designed to handle their specific AI needs. Clinton believes that as these companies begin to deploy their custom chips more aggressively, suppliers like Broadcom, which works with most of these tech giants, and Marvell, another stock in Intelligent Alpha’s portfolio, could see growth.
He compared the current AI trend to the dot-com era, where Cisco was a dominant player. He stressed that the AI market is not solely about one company, and as the sector evolves, more companies will emerge as key players, broadening the scope of AI investments.
Regarding the impact of interest rates, Clinton noted that higher rates might push investors back to mega-cap stocks, but also highlighted that companies with strong AI growth potential, like Snowflake, could still thrive. The company has been expanding its AI offerings and could attract attention as more customers deploy its services for AI applications.
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 close-up of a complex network of integrated circuits used in logic semiconductors.
13. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: N/A
Oklo Inc. (NYSE:OKLO) is creating advanced nuclear plants that utilize nuclear waste to deliver clean and reliable energy. Its energy solutions could support AI’s growing power needs sustainably.
On December 19, Wedbush initiated coverage of Oklo (NYSE:OKLO) with an Outperform rating and a $26 price target. Oklo, a manufacturer of small modular reactors (SMRs) backed by Sam Altman, is focused on delivering SMRs directly to customers using a unique business model. The company aims to develop its first reactor, Aurora, a 15 MW passive compact fast microreactor, by 2027. This reactor will be one of the first to use HALEU (High-Assay Low-Enriched Uranium) and is designed to scale up to 50MW and 100MW, operating for over 10 years before requiring refueling. The project’s pipeline is 93% ahead of its 2027 deployment goal.
A day earlier, Oklo and Switch signed a non-binding agreement to deploy 12 gigawatts of Oklo’s Aurora nuclear power projects by 2044. The deal aims to provide clean energy to Switch’s data centers, supporting the growing demand for AI and cloud services. More details in our Why Oklo (OKLO) Stock and Sable Offshore (SOC) Are Advancing Today report.
12. Jet.AI Inc. (NASDAQ:JTAI)
Number of Hedge Fund Holders: 1
Jet.AI Inc. (NASDAQ:JTAI) operates in Software and Aviation, with its AI-driven CharterGPT app improving jet booking through natural language processing and machine learning.
On December 24, Jet.AI (NASDAQ:JTAI) launched an advanced AI model, “Ava,” designed to assist customers in booking private jets. By calling or texting, users can access real-time aircraft availability, transparent pricing, and expert guidance through SMS, while also using the CharterGPT app for trip management. The launch coincides with updates to the app, such as enhanced notifications, carbon tracking, and trip sheet deep linking. Mike Winston, Jet.AI’s Founder and Executive Chair, highlighted Ava’s efficiency and mentioned plans for future updates, including having Ava confirm availability and pricing with charter operators.
11. Bridgeline Digital, Inc. (NASDAQ:BLIN)
Number of Hedge Fund Holders: 3
Bridgeline Digital, Inc. (NASDAQ:BLIN) specializes in AI-powered marketing technology solutions. It provides tools for site search, natural language processing, SEO audits, and digital experience management, catering to industries like eCommerce, healthcare, and finance.
On December 19, Bridgeline Digital (NASDAQ:BLIN) introduced a new Smart Response feature for HawkSearch that uses AI to analyze PDF content and provide specific answers to user queries. This feature includes tools for extracting content from large PDF collections and utilizing Generative AI (GenAI) to create useful search functions, such as PDF thumbnails, page summaries, and metadata extraction. The PDF Data Capture tool is designed to improve user experience by offering detailed, relevant responses, particularly for lengthy PDFs. The full document is also made available for users who want to explore it further. John Murcott, EVP of Product and Strategy, emphasized that this innovation helps businesses extract insights more efficiently from complex content.
10. Roadzen, Inc. (NASDAQ:RDZN)
Number of Hedge Fund Holders: 6
Roadzen, Inc. (NASDAQ:RDZN) leverages AI to revolutionize auto insurance. Its technology aids in product development, claims processing, and improving road safety, serving insurers, automakers, and other industry players.
Roadzen (NASDAQ:RDZN) announced a partnership with Bosch to integrate its drivebuddyAI platform into Bosch’s mobility solutions. This collaboration strengthens Roadzen’s global presence, with drivebuddyAI being included in Bosch’s Logistics Operating System (L.OS) for commercial vehicles. The platform uses AI-powered cameras to offer 360-degree vision, blind spot detection, and driver monitoring, improving safety for trucking fleets. CEO Rohan Malhotra highlighted Bosch’s extensive reach in the automotive sector as a key advantage, while drivebuddyAI CEO Nisarg Pandya noted the selection followed rigorous testing and pilot programs.
9. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
Number of Hedge Fund Holders: 7
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) specializes in sustainable blockchain and AI infrastructure powered by renewable energy.
HIVE (NASDAQ:HIVE) announced a $30 million investment to expand its AI and HPC capabilities with NVIDIA H100 and H200 GPU clusters in Quebec, leveraging renewable energy. The H100 cluster, consisting of 248 GPUs, will be operational by year-end, while the H200 cluster, with 508 GPUs, is set for Q1 2025 deployment. Combined, these systems are expected to generate over $35 million in annualized revenue by mid-2025. HIVE aims to address growing AI demand with sustainable infrastructure, advancing applications in healthcare, education, and creative industries while projecting $100 million in revenue by 2025.
8. Tevogen Bio Holdings Inc. (NASDAQ:TVGN)
Number of Hedge Fund Holders: 10
Tevogen Bio Holdings Inc. (NASDAQ:TVGN) is a clinical-stage company specializing in immunotherapy, creating targeted T-cell treatments to meet unaddressed medical needs. The company owns a portfolio of patents and applications related to AI, developed without relying on third-party licenses.
Tevogen Bio (NASDAQ:TVGN) announced it will host an AI-focused panel at the 43rd Annual J.P. Morgan Healthcare Conference in San Francisco. Titled “AI in Biopharma: Next Frontier of Medical Innovation,” the panel will feature experts from Tevogen.AI, Microsoft, and Rubix Health, discussing AI’s role in transforming biopharma. Topics will include advancements in drug discovery, faster development, improved patient access, and cost efficiency, with a focus on Tevogen’s AI-driven efforts to improve precision T-cell therapies.
7. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Number of Hedge Fund Holders: 32
Booz Allen Hamilton Holding Corporation (NYSE:BAH) delivers AI-driven solutions, including machine learning, predictive analytics, and decision-making tools, to governmental bodies, corporations, and nonprofit organizations both in the U.S. and globally.
Booz Allen Hamilton and Safe Security have launched a next-generation Integrated Risk Management-as-a-Service (IRMaaS) suite aimed at helping organizations continuously monitor and manage cyber risks amid evolving threats. By combining Safe Security’s AI-powered CRQM platform, SAFE One, which integrates the FAIR™ CRQ framework, with Booz Allen’s deep expertise in cybersecurity strategy and digital transformation, the suite offers innovative solutions for measuring and managing cyber risk in financial terms.
Key benefits for clients include continuous cyber risk assessments, optimized cybersecurity investment strategies, regulatory compliance and reporting, and comprehensive third-party risk management services. The collaboration aims to empower business and security leaders to make objective, data-driven decisions that improve cyber resilience. Early pilot programs have already demonstrated measurable success, such as cost savings through automation and optimized risk management strategies.
6. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Number of Hedge Fund Holders: 39
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) offers AI-driven services such as analytics, robotic process automation, and customer experience solutions.
As of December 16, Cognizant (NASDAQ:CTSH) has become the first global IT services company to receive ISO/IEC 42001:2023 certification for its artificial intelligence management system. This certification highlights the company’s commitment to responsible AI development and its role as a trusted partner in digital transformation. ISO/IEC 42001 is the first international standard for AI management systems, focusing on managing AI risks and ensuring ethical AI deployment. Cognizant’s achievement reflects its efforts in creating AI systems with transparency, fairness, and security, aligning innovation with sustainable and responsible practices.
5. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix, Inc. (NASDAQ:EQIX) supports digital infrastructure, facilitating seamless connectivity and AI-powered advancements for businesses.
Equinix agreed to acquire BT’s data center business in Ireland for EUR 59 million, which includes two facilities in Dublin. The deal, expected to close in the first half of 2025, follows BT’s asset-light strategy and transition away from owning datacentres. The acquisition will allow Equinix to expand its services in Ireland, leveraging its global platform. BT will focus on its core strengths in cloud, networking, and security while ensuring a smooth transition for customers. Equinix plans to integrate the facilities into its global network, maintaining operations without disruption.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) designs and manufactures products for AI workloads, including processors, accelerators, and optimization solutions.
Karma Automotive and Intel Automotive are advancing their collaboration on Software Defined Vehicle Architecture (SDVA), which will power Karma’s upcoming vehicles, starting with the 2026 Karma Kaveya super-coupe. At CES 2025, they will showcase how SDVA improves powertrain performance and range efficiency. Karma President Marques McCammon will join Intel’s Jack Weast to highlight how SDVA, combining AI-driven computing, power management, and open ecosystem software, supports a sustainable automotive future. Karma will also demonstrate an Intel co-branded inverter to improve powertrain efficiency, showcasing energy savings and increased range through real-time tests.
3. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes technologies for AI, including investments in AI-driven industries such as automotive, IoT, and cloud computing.
JPMorgan highlights that the Delaware District Court’s decision in favor of Qualcomm (NASDAQ:QCOM) reduces investor concerns about potential financial risks and license cancellations from the lawsuit with Arm. While further litigation from Arm remains possible, Qualcomm may adopt a more cooperative stance to adjust ALA license terms in the future. The ruling, however, gives Qualcomm a strong advantage for any upcoming legal disputes. The analyst maintains an Overweight rating on Qualcomm shares.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, automated driving, robotics, and cloud-based computing.
NVIDIA (NASDAQ:NVDA) is partnering with Olympian Motors to support the development of the Olympus Platform, an AI-powered, modular electric vehicle (EV) system. Using NVIDIA’s DRIVE AGX Orin™ and the NVIDIA Inception Program, this collaboration enables advanced capabilities like real-time data processing, predictive safety, and seamless integration of AI models. The Olympus Platform promotes innovation with its open architecture, allowing developers and technology providers to shape the future of EVs. A California pilot program in 2025 will demonstrate its potential, emphasizing modularity, efficiency, and safety powered by NVIDIA’s cutting-edge AI solutions.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) provides AI-driven solutions across various platforms, improving cloud services, enterprise collaboration, and consumer products, while also focusing on advancing AI research.
Citi analyst Ronald Josey highlighted that Alphabet’s (NASDAQ:GOOGL) Google has filed its Proposed Final Judgment in response to the August court ruling, which found certain agreements related to search distribution and browser defaults in violation of the Sherman Act. The filing is narrower in scope compared to the remedies proposed by the DOJ. Google intends to appeal the decision. While acknowledging regulatory challenges affecting the stock, Citi notes that recent AI innovations, including Gemini 2, Veo, and Imagen 3, demonstrate Google’s ongoing focus on innovation alongside improving profitability. The analyst maintains a Buy rating with a $232 price target for Alphabet.
While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) 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 GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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