The World Trade Organization (WTO) recently released a report that examines how artificial intelligence may shape the future of international trade. The report projects global real trade growth could rise by nearly 14 percentage points by 2040 under optimistic scenarios of universal AI adoption, but only 7 percentage points under uneven adoption. Digitally delivered services could grow 18 percentage points in the best-case scenario. While high-income economies may gain the most productivity, lower-income economies stand to reduce trade costs more effectively, it contends.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
However, the report also warns of growing AI divides, data governance challenges, and intellectual property concerns. It advocates for global coordination through the WTO to address these risks and ensure AI fosters inclusive, equitable trade. Based on the conclusions drawn from the report, WTO underlines that AI has the potential to reduce trade costs, reshape service trade, increase AI-related goods and services trade, and redefine comparative advantages across economies.
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 young professional in a suit examining stocks on a tablet computer in a mid-town office building.
AI News That Broke The Internet This Week
14. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 15
Symbotic Inc. (NASDAQ:SYM) is an automation technology company that engages in developing technologies to improve operating efficiencies in modern warehouses. The AI business focuses on automating supply chain and warehouse operations. On November 27, the share price of the firm nosedived by close to 40% after it lowered its quarterly guidance and said it needed more time to file its annual report after finding an error in revenue recognition. The company is evaluating the financial effects of correcting the error and on internal controls over financial reporting.
13. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 39
Zoom Video Communications, Inc. (NASDAQ:ZM) provides a unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Following third-quarter earnings results, the firm announced it is rebranding as an AI-first platform. On November 26, Stifel raised the price target on the stock to $90 from $70 and kept a Hold rating on the shares. Results presented no significant surprises, but rather a continuation of stabilization trends in both Enterprise and Online, Stifel told investors in a post-earnings note. Stability in both cohorts and share repurchase authorizations in the billions justify the stock’s greater than 60% move from its August lows, but greater than mid-single digit growth seems unlikely near-to-mid-term, the advisory added.
12. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 42
HP Inc. (NYSE:HPQ) provides personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services worldwide. The firm markets next gen AI PCs and laptops. On November 27, Barclays raised the price target on the stock to $35 from $32 and kept an Equal Weight rating on the shares. The company’s fiscal Q4 was in-line, the advisory noted, though the forward earnings outlook was a bit softer as both Print and PC recovery was pushed out. Barclays says HP’s PC margins are pressured on commodities and mix in the near term.
11. 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. John Roese, the Global CTO at Dell Technologies, recently spoke to tech platform ITpro, stressing that business leaders needed to focus more on the return on investment from AI projects, prioritizing those with definable value. Roese added that in the past year and a half, Dell Technologies narrowed down its AI projects from a potential 800 to 360, then again down to four key areas that could benefit most from AI transformation. These are global supply chain, global services, global sales, and global engineering, per the CTO.
10. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 63
Analog Devices, Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. The firm provides high performance solutions that integrate analog, digital and memory in a reduced form factor. This helps companies in various sectors, including the industrial, where AI is fueling extraordinary demand for high bandwidth memory and high performance compute solutions. On November 27, Bank of America analyst Vivek Arya raised the price target on the stock to $250 from $245 and kept a Buy rating on the shares after Q4 results were slightly better than expected on China auto strength and consumer and the Q1 sales outlook was inline with consensus, down 4% quarter-over-quarter.
9. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. The stock has rallied in light of recent reports that the US government is considering a fresh set of export restrictions on chip business with China. Tech news platform Wired has reported that the new measures would include the blacklisting of at least 200 Chinese semiconductor equipment manufacturers as the US aims to slow down AI development in Beijing. Intel rivals like NVIDIA and AMD have deep business ties with Chinese firms and could be impacted by these curbs.
8. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 70
Autodesk, Inc. (NASDAQ:ADSK) provides 3D design, engineering, and entertainment technology solutions worldwide. The firm markets generative design AI is used to optimize building designs, improve structural integrity, and enhance energy efficiency. The cloud-based platforms of the firm, like Autodesk Forge, incorporate AI to enable real-time collaboration across teams and provide actionable insights from design and project data, improving decision-making. Investment advisory HSBC recently downgraded the stock to Hold from Buy with a $290 price target.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Cristiano Amon, the CEO of the firm, recently spoke to finance news platform Barron’s, highlighting the long term plan of the company to diversify away from smartphones and into the AI, automotive, and IoT markets. Per Amon, the mobile-focused technology that had been developed by his company is useful for several industries undergoing AI-based transformation, including personal computing and automotive.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. On November 27, hardware news platform Phoronix reported that AMD software engineers have begun ramping up their open-source and upstream-focused Linux driver support in anticipation of the launch of the Versal2 evaluation kits. Earlier this year, the chipmaker announced the Versal Gen 2 Adaptive SoCs for AI-driven embedded systems. The SoCs focus on providing end-to-end acceleration for embedded systems.
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. On November 27, as the smog season engulfed the subcontinent, Google announced that it would be launching Air View+, an artificial intelligence-based solution that can help the government and the people with useful hyperlocal air quality information. According to the tech giant, Air View+ is powered by Google AI and works in collaboration with local climate tech firms. The ecosystem can provide valuable air quality insights to government agencies responsible for environmental monitoring and urban planning, said Google in a blog post.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Young Liu, the CEO of tech firm Foxconn Technology, recently told reporters that the firm expects a relatively low impact from potential new tariffs from US President-elect Donald Trump due to a global manufacturing footprint. Foxconn investors are concerned about the impact of increased tariffs on Chinese goods being exported to the US. Foxconn is based in China but has large production hubs in the US and Vietnam. The firm is also building a large manufacturing facility in Mexico to make NVIDIA GB200 AI servers.
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. Arun Srinivas, a senior figure of the ad team of the tech giant in India, recently gave an interview to news platform Business Standard. In the interview, Srinivas revealed that AI-powered personalization was giving brands more visibility on Meta, noting that more than 50% of content on platforms like Instagram was now recommended by AI algorithms.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 28, the company announced a new AI training initiative in Poland that will provide one million people with competencies in the field of artificial intelligence by the end of 2025. The tech giant detailed in a blog post that the new program is a continuation of Microsoft’s investment in the development of the Polish Digital Valley, under which the company has already trained over 430,000 IT specialists, business representatives, partners and students, and opened the cloud computing region Azure Poland Central.
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. Anthropic, the AI startup that just received $4 billion in funding from the tech giant, has announced that it is launching major upgrades to the Claude AI assistant. The updates include a feature called customizable writing styles. This feature empowers users with greater control over the responses of the chatbot, with the option to switch between formal, concise, and explanatory styles. Anthropic rivals like Gemini by Google and Apple Intelligence already offer these features.
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.
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 insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
