In this article, we discuss the 14 AI news investors are paying attention to.
The release of ChatGPT by OpenAI, now the most valuable private firm in the world, back in November 2022 had widespread implications for the technology industry. In the two years since the release, technology valuations, which had hit a snag due to broader inflation and slowing growth concerns, have jumped back up. Technology giants have surpassed multi-trillion dollar valuations and OpenAI itself has crossed $150 billion in value. In this environment, technology firms have been pushing for greater capital expenditures on AI infrastructure, telling investors that adding more data and computing power will consistently lead to improved AI models.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
However, news agency Reuters reports that new techniques being used by AI firms to train their AI models could reshape the AI arms race, and have implications for the types of resources that AI companies have an insatiable demand for, from energy to types of chips. For example, Ilya Sutskever, a Canadian-Israeli computer scientist who was one of the founders of OpenAI, has said that results from scaling up pre-training have plateaued. The computer scientist claims that the 2010s were the age of scaling, and now we’re back in the age of wonder and discovery once again. Everyone is looking for the next thing, and scaling the right thing matters more now than ever.
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 financial analyst on a business call, studying a portfolio of stocks.
AI News Investors Are Paying Attention To
14. Super Micro Computer, Inc. (NASDAQ:SMCI)
Market Capitalization: $14 Billion
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions based on modular and open architecture. On November 6, JPMorgan analyst Samik Chatterjee downgraded Super Micro to Underweight from Neutral with a price target of $23, down from $50. The company issued a positive update in relation to the opinion of the Special Committee, but JPMorgan expects more uncertainty around both the company’s regulatory filings and business fundamentals, the advisory told investors in a research note. The advisory says Super Micro refrained from providing further transparency around the issues leading to the disagreement with the prior auditor even as it reaffirmed the Special Committee’s opinion that the Audit Committee had acted independently and that there is no evidence of fraud or misconduct. The company also offered limited commitments on leadership changes to address investor concerns and a lack of certainty around the timing of an appointment of a new auditor, adds JPMorgan.
13. Equinix, Inc. (NASDAQ:EQIX)
Market Capitalization: $89 Billion
Equinix, Inc. (NASDAQ:EQIX) is a California-based real estate trust that operates data centers and other technology assets. Latest reports indicate that Megaport, an Australian cloud services provider, has started operations in Brazil. The interconnection services of the Aussie firm are being hosted at the data centers of Equinix, Elea and Takoda, per news website BNAmericas. The SP-2 and SP-4 sites of Equinix are hosting the points-of-presence of the Australian company, the report detailed.
12. Dell Technologies Inc. (NYSE:DELL)
Market Capitalization: $95 Billion
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. On November 11, Morgan Stanley raised the price target on the stock to $154 from $136 and kept an Overweight rating on the shares. In an investor note, the advisory claimed that AI server momentum remained strong for the hardware firm and that the recent checks pointed to about $20 billion of AI server revenue in FY26, which was 56% higher than the prior forecast. The advisory now forecasts $110 billion of revenue and $10.50 of EPS in FY26 for Dell, or 5% and 12% above the Street views, respectively.
11. Intel Corporation (NASDAQ:INTC)
Market Capitalization: $110 Billion
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. News agency Reuters recently reported that investment firms Silver Lake and Bain Capital are among the interested parties that are likely to compete to acquire a minority stake in Altera, the programmable chips business that Intel has already taken steps to spin out as a separate company. The news agency, quoting sources, claimed that Intel kicked off a process for the stake sale in the unit in recent weeks, and talks are at an early stage, with the company preparing to receive initial bids from potential buyers in the coming weeks.
10. Arm Holdings plc (NASDAQ:ARM)
Market Capitalization: $149 Billion
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. On November 7, Barclays analyst Tom O’Malley raised the price target on the stock to $145 from $125 and kept an Overweight rating on the shares post the earnings report. The company’s reaffirmed outlook points to the fiscal year at least as good as previously thought, but there’s still upside ahead amid a solid v8/v9 transition and new data center ramps, the advisory told investors in a research note.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Market Capitalization: $185 Billion
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. On November 7, JPMorgan analyst Samik Chatterjee raised the price target on Qualcomm to $200 from $195 and kept an Overweight rating on the shares. The advisory said better revenue and margins drove earnings ahead of consensus. The analyst increased revenue and earnings expectations for the company, and expects the IOT and autos performance highlights to refocus investors on the long-term expectations around end-market diversification to be outlined by Qualcomm at the upcoming investor day.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. On November 11, investment advisory Jefferies highlighted AMD in an investor note about the AI industry. Analysts at the advisory were of the opinion that the stock was something of a show-me story, noting that they were starting to see customers react positively on the AI front, including Meta and Microsoft. AMD is now starting to produce meaningful volumes, the analysts added, as evidenced by the fact the Dr. Lisa Su-led company recently upped its revenue guidance for AI products to $5 billion for 2024.
7. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $268 Billion
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. An IT outage at the company late last week impacted the ability to communicate with suppliers and caused issues with cleanrooms, offices, and support departments. A spokesperson for the firm told news agency Reuters that the outage was reported on Friday and was brought under control the same day. However, the cause of the outage was still under investigation, per the company. This is the second time in a month that the firm has had technical problems. It released its third-quarter earnings half a day earlier than expected because of a technical issue in October.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Market Capitalization: $851 Billion
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. On November 11, news agency Reuters reported that the United States government had ordered the chipmaker to stop shipping advanced chips used in artificial intelligence applications to customers in China. The reports come merely days after media reports indicated that TSM had stopped production of advanced AI chips for Chinese firms. According to the Reuters report, the Commerce Department in the US sent a letter to TSM that imposed restrictions on the export of sophisticated chips – of 7 nanometer or more advanced designs – to China which power AI accelerators and graphic processing units.
5. Meta Platforms, Inc. (NASDAQ:META)
Market Capitalization: $1.5 Trillion
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. On November 10, investment firm Jefferies released an investor on the AI industry, highlighting the ramp of the Meta Training and Inference Accelerator chip, and noting that hyperscalers were accelerating their spend on GPUs but also their internal ASIC programs. The advisory further added that it expected that these ramps would exceed current expectations, and provide a solid upside to current estimates.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization: $2.1 Trillion
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the e-commerce business. On November 11, IT company Comviva announced that it would be partnering with tech giant Amazon to develop an AI-driven cloud strategy that would help the former with non-linear revenue growth, as well as faster to-market times. As part of the partnership, Comviva will offer Communication Service Providers next-generation software products and platforms that are built on Amazon Cloud through a Software-as-a-Service (SaaS) model. The two firms are also collaborating in areas like product modernization, competency development, and culture transformation.
3. Alphabet Inc. (NASDAQ:GOOG)
Market Capitalization: $2.2 Trillion
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. On November 9, tech website Android Authority reported that the AI-capable Tensor processors developed by Google for the Pixel line of smartphones had failed to meet financial targets. The report highlights that the financial goal for the tech titan is about $65 per chip to make the business viable. For additional context, the tech website claims that Qualcomm’s latest flagship chips cost around $150. Google released the latest Pixel phones earlier this year. The phones feature the on-device artificial intelligent assistant Gemini Nano and an array of generative AI features.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 11, Piper Sandler analyst Harsh Kumar released an investor note on the AI market, noting that the CapEx trends at the big hyperscalers, such as Microsoft, continued to be favorable. Kumar also added that all else equal, the advisory saw at least sustained levels of capex through 2025, if not accelerated with a shift towards chips & servers and spending away from buildings and other fixed property.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 11, Melius Research raised the price target on the stock to $185 from $165 and kept a Buy rating on the shares. The advisory cited higher estimates for its target increase, noting it had higher conviction in long-term estimates for Nvidia vs. any other semis/systems company.
While we acknowledge the potential of NVDA 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 NVDA 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.
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