In this article, we discuss the 14 AI news you should pay attention to.
A lot has been made of the recent efforts by the United States government to tighten chip exports to China. This coordinated effort, just before Donald Trump takes office, includes stricter license restrictions on US chip firms doing business with China, added scrutiny on those that assemble their hardware in China, and an appeal to allies in Europe and Asia to follow suit. These efforts have only served to further bolster the semiconductor index in China, which leaped to a record high on November 11 amid reports that a recent US order to halt TSM chip supplies to China would accelerate efforts in Beijing to set up advanced chip manufacturing companies in the Asian country.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Chinese brokerage Cinda Securities, in a note published on the China chip situation on November 10, has said that in the medium and long term it will force the reorganization of the supply chain, increase the demand for domestic advanced process production capacity, and promote technological breakthroughs in upstream semiconductor equipment and materials. Many Chinese firms are reliant on TSM chips – 11% of TSM revenue is linked to China – and analysts expect these firms to undergo short-term pain from the US measures, but back them to emerge stronger in the long term due to improvement of domestic chip manufacturing.
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).
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AI News You Should Pay 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, Barclays lowered the price target on the stock to $25 from $42 and kept an Equal Weight rating on the shares. The company missed September quarter revenue and the December quarter revenue guidance, implying low-single-digit quarter-over-quarter declines, the advisory told investors in a research note. The advisory added that Super Micro still hasn’t provided timing for when it will file the annual report as it is looking for a new auditor. It expects the lack of clarity to put the stock under pressure near term with the rising risk of Super Micro not meeting Nasdaq’s listing requirements.
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. The company recently opened a new data center in Salalah, Oman. The data center, named SN-1, was built in partnership with Omantel, a leading telecom and technology provider in the Middle East. The data center firm already has business operations in nearby Dubai and Abu Dhabi. Per the company, the new facility will reshape traffic flows across the Middle East and beyond, reducing latency and improving the resilience of global networks.
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 6, Citi analyst Asiya Merchant said that Dell Technologies, and to a lesser extent HP Enterprise, will likely benefit from improving artificial intelligence order momentum and competitive intensity in the quarters ahead given Super Micro’s woes. Super Micro provided a business update below estimates, attributing the shortfall to a demand air pocket as its customers await next-generation Blackwell chips which are on allocation, the analyst told investors in a research note.
11. Intel Corporation (NASDAQ:INTC)
Market Capitalization: $110 Billion
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Intel is one of the companies expected to receive billions in government funding through the CHIPS Act. The change of personnel in the White House has led to some concerns around the rebranding of the Act. Needham analysts Charles Shi and Ross Cole addressed these concerns through an investor note on November 11, noting that discussions with experts had led the advisory to believe that the Trump administration may not repeal the CHIPS Act, but will largely rebrand the bill and maintain the original essence of it. The analysts expect policy continuity of the CHIPS Act, which will be a positive for Semicap. Intel is likely to receive $20 billion in funding through the Act, per reports.
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 11, Loop Capital raised the price target on the stock to $180 from $130 and kept a Buy rating on the shares after its Q2 earnings beat. The biggest takeaway from the quarter is that the company is going to continue to have multifaceted pathways increasing momentum over the next few years in Smartphones, Data Centers, and very likely PCs, the advisory told investors in a research note. Arm looks well positioned to continue to drive strong growth despite softening Android and iPhone units, Loop added.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Market Capitalization: $185 Billion
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. As the company targets the PC market boom due to AI features, Akash Palkhiwala, the CFO of the firm, said during the fourth quarter earnings call that Qualcomm had established performance leadership in Windows devices with the Snapdragon X Plus 8-core chip, allowing access to the $700 price tier. Cristiano Renno Amon, the CEO of the firm, added that the number of platforms designed had increased nearly threefold, indicating strong market traction in the area.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. Latest reports, published by tech website PC Games N, indicate that new stock for the AMD Ryzen 7 9800X3D gaming CPU is not expected to hit shelves in the United Kingdom until next year. UK tech retailer Overclockers has admitted as much to customers looking to purchase the latest AMD tech, per the report. The same problems have been witnessed in the US. The report underlined that Best Buy says it’s working to get more inventory for the CPU while Newegg attributes the problem to high demand, which the company says it will replenish as soon as possible.
7. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $268 Billion
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. The company was among a host of semi-stocks that recently received letters from US lawmakers over their business deals with Chinese firms. In the letter, the chief of the House Select Committee on the Chinese Communist Party, John Moolenaar, and Ranking Member Raja Krishnamoorthi, voiced their concern that the semiconductor equipment firms could be used to give the People’s Liberation Army an advantage to build advanced processors and reinforce China’s domestic chip capacity.
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, investment advisory Needham released an investor note on the semiconductor market, noting that TSM was likely to be a key beneficiary of a rebranded CHIPS Act. The Trump administration, which initially drafted the Act, could pause and reassess the Act. Needham predicted near-term volatility for TSM stock but also highlighted that TSM was the first non-US semiconductor company that was pulled into the US to set up fabs during Trump’s first term.
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. The company recently revealed that the AI division of the firm had introduced FBDetect, an in-production performance regression detection system capable of identifying even the smallest regressions. The system is designed to monitor around 800,000 time series covering diverse metrics, such as throughput, latency, CPU, and memory usage, across hundreds of services operating on millions of servers. This would enable the tech giant to improve efficiencies in relation to application performance.
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. Investment firm Jefferies recently released an investor note on the AI accelerator market, noting that NVIDIA was likely to keep dominating the artificial intelligence accelerator market, but there was room for companies that made application-specific integrated circuits as well. In particular, the advisory highlighted the efforts made by Amazon which had outsourced the building of the Trainium 2 chip. According to Jefferies, this endeavor had been ramping well. Jefferies analysts expect the AI accelerator market to grow revenue at a 58% compound annual rate from 2023 to 2027, boosted by a 30% increase in volumes and a 22% increase in the average selling prices.
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 10, news publication Financial Times reported that tech giants like Alphabet had begun developing their own benchmarks to test the capabilities of their AI models as the pace of AI innovation outpaced existing evaluation methods. The report also highlighted that internal benchmarks would make it difficult for consumers and businesses to assess the quality and advancements of AI technology by these tech behemoths.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. In a recent appearance on the AI Copilot Podcast, Ray Smith, a senior AI executive at the tech giant, said that he was observing the success of AI agents for different customers, and those that had been the most successful wanted to do one thing really well, as opposed to those who wanted AI agents to run an entire department. He added that the successful use cases that had been a surprise included supply chain optimization and managing due diligence aimed at highlighting risks in mergers and acquisitions.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 11, Piper Sandler analyst Harsh Kumar raised the price target on Nvidia to $175 from $140 and kept an Overweight rating on the shares. The advisory also elevated Nvidia to its top large-cap pick given the company’s dominant positioning in artificial intelligence accelerators and the upcoming launch of the Blackwell architecture. The total addressable market for AI accelerators will continue to rise in 2025 by $70 billion, and Nvidia is well positioned to capture most of the incremental market increase while ceding only a small bit to its merchant chip competitors, Kumar told investors in a research note. On Nvidia’s Q3 report, Piper’s bull case projected a beat of roughly $1.3 billion in revenue for the October quarter and a beat of around $1.5 billion in a greatly supply-constrained January quarter.
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.
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