In this article, we discuss the 15 AI news and ratings trending on financial media.
Latest reports from finance news publication The Wall Street Journal reveal that xAI, the AI startup founded by billionaire Elon Musk, is on track to surpass $100 million in annual revenue and could release a standalone app for its Grok chatbot as soon as next month. Per the report, the vast majority of the revenue comes from other companies that Musk chairs, as Grok is only available to users of the X social network, and it has been used as a customer service feature for the Starlink internet service. Grok is competing with other AI chatbots like ChatGPT and Gemini, among others.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, Chinese firm ByteDance, the parent company of social media platform TikTok, is reportedly suing a former intern for $1.1 million, alleging he deliberately attacked its artificial intelligence large language model training infrastructure. According to a report by news agency Reuters, the case has drawn attention due to its focus on AI LLM training, a technology that has captured global interest amid rapid technological advances in so-called generative AI, used to produce text, images or other output from large bodies of data. The intern is alleged to have deliberately sabotaged the model training tasks through code manipulation and unauthorized modifications.
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 and Ratings Trending on Financial Media
15. 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, DA Davidson analyst Matt Summerville downgraded the stock to Neutral from Buy with a price target of $35, down from $50, after the company delayed its 10K filing for its FY24 as it needs added time to complete the assessment of the financial impacts of correcting errors that were already disclosed and the associated impact on internal control and financial reporting.
14. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV)
Number of Hedge Fund Holders: 18
Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) provides artificial intelligence-based weapons detection for security screening in the United States and internationally. On November 27, investment advisory Cantor Fitzgerald released an investor note on the firm, saying Evolv’s resolution with the Federal Trade Commission is a net positive for the business. There is no monetary penalty charged to the business, and the customers that have the choice to terminate contracts make up just over 4% of total annual recurring revenue, which is growing 63.5% year-over-year as of Q2, the advisory told investors. Cantor recognizes that recent inquisitions into the business from regulatory authorities, accounting errors, and management turnover have soured this story for a lot of investors.
13. Iris Energy Limited (NASDAQ:IREN)
Number of Hedge Fund Holders: 28
Iris Energy Limited (NASDAQ:IREN) owns and operates bitcoin mining data centers. It also provides high performance computing solutions, including Al cloud services. On November 27, Roth MKM raised the price target on the stock to $20 from $14 and kept a Buy rating on the shares. Iris Energy accelerated its 50 EH/s timeline to the first half of 2025, which could generate around $714 million or more of annual recurring revenue by the second half of 2025, and improved BTC economics should help support site expansion, the advisory told investors in a research note. Infrastructure investments at Prince George and Childress and not purchasing additional GPUs, suggests Iris could be developing a small high performance computing colocation platform, which is likely to receive a more favorable multiple, Roth says.
12. 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 AI-first platform. On November 26, Bernstein raised the price target on the stock to $89 from $78 and kept a Market Perform rating on the shares. The advisory notes Zoom’s Q3 earnings delivered another modest beat and raise, similar to last quarter, at about 1.3% revenue beat vs. midpoint guide, and raised full year by 0.5%. But these rates of beats remain below levels that were common in the couple prior years, even after the huge post COVID stalling of growth, Bernstein adds.
11. 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, TD Securities raised the price target on the stock to $39 from $32 and kept a Hold rating on the shares. The advisory said its EPS outlook was in line as soft near-term PC demand is spilling over into next year, as soft end markets continue to spoil the solid progress of cost restructuring.
10. 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. On November 27, Barclays analyst Tim Long raised the price target on the stock to $115 from $106 and kept an Equal Weight rating on the shares. The company reported a slight miss in revenues with better margins, and guidance was a little light, the advisory told investors in a research note. Barclays says Dell’s artificial intelligence server revenues were in-line, but guided slightly lower into the January quarter despite positive comments around the pipeline while PCs remain weak.
9. 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, Piper Sandler lowered the price target on the stock to $220 from $235 and kept a Neutral rating on the shares. The advisory notes the company reported mixed results for its Q4 earnings as October quarter results exceeded expectations, while January guidance was below estimates. Looking ahead, Analog Devices has guided for a sequential decline of LSD in the segment and believes that volume growth will remain muted through the coming year, Piper adds.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest filings from the chipmaker reveal that under a recent deal with the federal government, the company has been mandated to spend at least $35 billion on research and development in the US from 2024 through 2028. The deal, worth around $8 billion in government subsidies, also tasks the chipmaker with building, equipping, and operating 12 fabs and advanced packaging facilities located in Arizona, New Mexico, Ohio, and Oregon.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. On November 28, news platform Mashable India reported that the upcoming Samsung Galaxy S25 series of devices, the premium AI-capable smartphones marketed by the Apple rival, would feature the Snapdragon 8 Elite chipset made by QUALCOMM. Even the Standard and Plus versions of the Galaxy S25 will feature the QUALCOMM chip as the production of the in-house Samsung Exynos 2500 is limited.
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, news publication Bloomberg reported that the outgoing Biden administration was considering additional restrictions on semiconductor equipment and artificial intelligence microchip exports to China. Per the report, the restrictions would target export of advanced chips to the Asian country that are made by US-based firms like AMD. The report further details that the upcoming measures would be less stringent than previous ones in this regard.
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, the company launched the AI campus in London. UK Prime Minister Keir Starmer attended the launch event. The campus has been developed in partnership with Camden Council and Camden Learning and is home to a two-year education pilot aimed to help inspire, inform, and educate local sixth form students in the field of AI. The pilot will offer students access to cutting-edge resources on AI and machine learning, as well as offering mentoring and industry expertise from Google.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 27, finance news platform Financial Times reported that NVIDIA was one of the companies that stand to suffer the most if the scaling up strategies deployed by tech giants, who are NVIDIA customers, do not work. Per the report, NVIDIA chips are being deployed at ever larger scales by these tech giants to improve their AI models, but concerns have started to grow over their progress in the past few months. Tech enthusiasts had earlier promised that the larger deployment of these chip clusters would eventually lead to superintelligence.
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. News platform Fortune recently reported that Meta was one of the GenAI firms in the US that had spun up, deepened, or started to pursue relationships with the military in recent months, even revising or making exceptions to internal policies to remove roadblocks and restrictions on defense work. The report underlined that several agencies within the DoD, from The Air Force to various Intelligence groups, were actively testing out use cases for AI models and tools from firms like Meta.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 27, news publication Bloomberg reported that the Federal Trade Commission had opened an antitrust investigation of Microsoft, questioning the company’s cloud computing and software licensing businesses to its cybersecurity offerings and artificial intelligence products. Per the report, after more than a year of conducting informal interviews with competitors and business partners, antitrust enforcers have crafted a detailed request to force Microsoft to turn over information, sources told Bloomberg.
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. Latest reports suggest that Proto, a holographic communications platform, has partnered with Amazon to showcase an experiential activation at an upcoming Amazon event. The report highlights that the activation would feature what is claimed to be the first autonomous, generative conversations between AI-powered holograms. Tech news platform Inavate reports that the experience aims to go beyond pre-scripted interactions to demonstrate collaborative intelligence.
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.
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