In this article, we discuss the 15 AI news investors are paying attention to.
The United States and China are locked in a battle for AI supremacy and both countries are doubling down on their AI bets to future-proof their economies. Latest reports from news agency Reuters suggest that a US congressional commission has proposed a Manhattan Project-style initiative to fund the development of AI systems that will be as smart or smarter than humans.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, financial markets around the world are preparing for NVIDIA to release earnings results. The chipmaker is the poster child of the AI revolutions and the quarterly numbers from the company have ramifications for businesses around the world. The company is expected to release earnings figures after the close of trading on November 20. Joshua Meyers, an executive director at JPMorgan, has said that analysts are expecting the chipmaker to widely beat expectations through the results. He also highlighted the importance of guidance numbers and the commentary of Jensen Huang, the CEO of the firm, on future plans.
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 technician observing a complex fiber-optic networking set-up in a laboratory.
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 19, Northland analyst Michael Latimore raised the price target on the stock to $53 from $50 and kept an Outperform rating on the shares following the company’s Q4 earnings beat. The company had a record number of new system starts, notes the advisory, which cites slightly higher revenue estimates for its increased price target on the shares.
14. Rubrik, Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 23
Rubrik, Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide. The cybersecurity platform of the firm uses AI and machine learning to monitor for threats and provide sophisticated data recovery. The firm recently announced a new cyber resilience solution for Microsoft Azure Blob Storage. It stated that Microsoft Azure Blob Storage was a critical repository for sensitive business information, personal data, compliance records, and data powering artificial intelligence training models.
13. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ:FTNT) provides cybersecurity and convergence of networking and security solutions worldwide. The Fortinet SecOps platform offers the broadest range of sensors that utilize AI and other advanced analytics to continuously assess cyberthreats. On November 19, BMO Capital raised the price target on the stock to $100 from $88 and kept a Market Perform rating on the shares after its Analyst Day presentation. The advisory believes that the company’s medium-term targets are reasonable, and it was encouraged that Fortinet is investing more in SASE/SecOps. BMO further notes that Fortinet’s refresh opportunity in 2025 is significant, also stating that the company’s portfolio and common OS provide competitive advantages despite being better aligned to small and medium size organizations.
12. 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 19, investment advisory JPMorgan released the Analyst Focus List, revealing names of companies chosen by individual analysts at the advisory looking into growth, income, value, and short ideas. Dell was named among the Value Ideas list with a price target of $160, implying an upside potential of close to 18%.
11. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest reports, published by tech website HPC Wire, indicate that the company has revealed the name of a new AI chip that will compete with offerings from leading chipmakers. The latest chip is named Jaguar Shores and will be the successor to the Falcon Shores chips. Intel has been struggling financially and recently announced it would cut 15,000 jobs to cut costs. It is also evaluating takeover offers from different chipmakers.
10. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The company recently announced that it had enabled as much as 80% of the fixed wireless access (FWA) connections in India, thereby helping telecom carriers monetize their 5G spectrum more effectively. The proliferation of 5G is a key factor enabling the AI boom. Fast internet speeds are necessary for many AI tasks that software firms are offering. These AI tasks run on cloud services provided by these software firms.
9. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 90
Eaton Corporation plc (NYSE:ETN) operates as a power management company worldwide. The primary AI catalyst for the firm is sales of data center equipment. It makes and sells electrical components used in data centers across the globe. UBS analyst Amit Mehrotra recently assumed coverage of the stock with a Buy rating with a price target of $431, up from $330. Eaton can sustain high single digit revenue growth for several years to come, driven by data center growth, electrification trends and reshoring of manufacturing capacity, the analyst told investors in a research note. Additionally, UBS believes the company’s earnings can reach $17 per share in 2028, 4% above consensus, with upside to $19.
8. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 91
Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. On November 19, Oppenheimer raised the price target on the stock to $131 from $121 and kept an Outperform rating on the shares. The advisory notes Vertiv raised long-term growth, margin, and cash generation targets and guided FY25 EPS modestly above the Street on in-line revenue outlook. Infrastructure bottlenecks appear to be playing to the firm’s competitive strengths, enabling 200-300bps outgrowth expectations vs. end-markets, Oppenheimer added.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. TensorWave, a cloud service provider, announced that it is working on making the world’s largest GPU clusters built on AMD Instinct MI300X, MI325X, and MI350X AI accelerators. The cloud firm claims that a key aspect of the development is the use of the newly introduced Ultra Ethernet standard, which will improve data transmission within AI systems. Darrick Horton, the CEO of the firm, said that with 1 Gigawatt of capacity, the aim was to massively scale deployments in 2025.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. On November 19, news platform Business Korea reported that the chipmaker was focusing on expanding its advanced packaging production capacity in response to the surge in demand for AI semiconductors. Per the report, which cited Taiwan media, the chipmaker has larger plans in place for the expansion, which include projects to establish 10 new factories worldwide next year.
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 18, chipmaker NVIDIA announced that it had partnered with Google Quantum AI to accelerate the design of its next-generation quantum computing devices using simulations powered by the NVIDIA CUDA-Q platform. Per the announcement, Google Quantum AI is using the hybrid quantum-classical computing platform and the NVIDIA Eos supercomputer to simulate the physics of its quantum processors.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 19. Wells Fargo analyst Aaron Rakers penned an investor note on the company, highlighting that the chipmaker was set to report fiscal third-quarter results but had given an update on its Blackwell line of GPUs, which appeared to be progressing smoothly. Per the analyst, during a presentation, Nvidia specifically called out Foxconn’s production ramp in US, Mexico, and Taiwan, leveraging Nvidia Omniverse for 3D factories design in order to stand up capacity as quickly as possible.
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. Clara Shih, the former CEO of Salesforce AI, has announced that she will be leading a new Business AI group at Meta. Shih posted on networking platform X that the vision for this new product group was to make cutting-edge AI accessible to every business. Shih added that Meta’s Llama models had over 600 million downloads to date, and Meta AI had more than 500 million monthly actives.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 19, the tech titan announced that it was partnering with AI firm C3.ai to accelerate the adoption of enterprise artificial intelligence on Microsoft Azure. Under the agreement, C3.ai and Microsoft will engage in a range of strategic initiatives, including technical integration, as C3.ai’s full suite of Enterprise AI application software, including C3 Generative AI, will be available on the Microsoft Commercial Cloud Portal.
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. On November 19, news platform Fortune reported that a plan by the tech titan to create an AI-powered assistant has had another setback. Per the report, employees at the firm have found there is too much of a delay between asking the technology for something and the new Alexa providing a response or completing a task. Fortune references an internal memo that details that this latency is a critical shortcoming.
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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