In a recent Tech Check program, CNBC’s Deirdre Bosa reports on how OpenAI’s head of Global Affairs is laying out his vision of what the government can do to keep American Artificial Intelligence on top. Currently leading policy at OpenAI, Chris Lehane talks about the AI policy at a time when everyone, including the industry and government, is trying to get their hands on AI policy. According to Lehane, the stakes in AI are higher than anything he has ever seen. He states how China has shared the idea of wanting to be the dominant player in AI by 2030, and that even though the US is currently in the lead, the fact that it stays on the top isn’t guaranteed. In an open letter to Washington, his Op-ed makes it clear that no matter who wins the election in less than two weeks, the US must be the leader in AI and the right way to do that is by laying the right infrastructure. The stakes involve the autocratic versus democratic development of AI, states Lehane, emphasizing the need for the U.S. to maintain its leadership in this field while ensuring that AI is built upon democratic values, principles, and benefits.
READ ALSO: 20 AI News Investors Should Not Miss and Top 10 Trending AI Stocks in Q4
As we delve deeper into the critical issues concerning AI leadership and policy, it’s equally essential to examine the latest developments in the field that are shaping technology and industries.
As reported by Tech Crunch, Anthropic’s Claude chatbot can now write and run JavaScript code itself. The company has launched a new analysis code tool for Claude which is currently in preview, enabling the AI to provide “mathematically precise and reproducible answers” by performing calculations and analyzing data from files such as spreadsheets and PDFs, and that too, with interactive visualizations.
“Think of the analysis tool as a built-in code sandbox, where Claude can do complex math, analyze data, and iterate on different ideas before sharing an answer. Instead of relying on abstract analysis alone, it can systematically process your data — cleaning, exploring, and analyzing it step-by-step until it reaches the correct result”.
-Anthropic
Despite the rapid advancements in AI technology, there are growing concerns about its limitations and potential drawbacks at the same time. In recent news, OpenAI’s AI-powered transcription tool, Whisper, has been reportedly “hallucinating”. OpenAI may deem it to have near “human level robustness and accuracy”, but interviews with more than a dozen software engineers, developers, and academic researchers reveal that some of the invented text can include racial commentary, violent rhetoric, and even imagined medical treatments. A University of Michigan researcher found hallucinations in 80% of the audio transcriptions he examined during a study of public meetings.
Such mistakes could have “really grave consequences,” particularly in hospital settings…Nobody wants a misdiagnosis” and that “There should be a higher bar.”
– Alondra Nelson, who led the White House Office of Science and Technology Policy for the Biden administration until last year.
With that, let’s take a look at the 15 recent AI news that nobody should miss.
Photo by Andrea De Santis on Unsplash
Methodology
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).
15 AI News Investors Should Not Miss
15. Rimini Street, Inc. (NASDAQ:RMNI)
Number of Hedge Fund Holders: 9
Rimini Street, Inc. (NASDAQ:RMNI) is a global provider of end-to-end enterprise software support, products, and services. Their portfolio helps to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise applications, databases, and technology software. The company uses artificial intelligence in its platform and has also started partnering with firms to use AI in their products.
On October 23, Rimini Street, Inc. (NASDAQ:RMNI) and ServiceNow, an AI platform for business transformation, announced an expanded partnership enabling organizations to unlock value in existing ERPs and enterprise applications to fuel innovation and growth. The model encompasses integrating ServiceNow’s single architecture, single data model with Rimini Street’s proven enterprise software support. According to the press release, the new enterprise software model can produce “significant” and “immediate” savings that will drive net-new innovation, AI-productivity gains, and unmatched user experiences.
“We are excited to bring organizations this new enterprise software model that enables maximized ROI on their current enterprise software investments, integrates disconnected and siloed landscapes of enterprise software and frees up funding for innovation. This new partnership truly brings together the best of ServiceNow innovation and Rimini Street enterprise software support capabilities to solve this common – but complex – IT challenge.”
– Seth Ravin, chairman and chief executive officer at Rimini Street.
14. Box, Inc. (NYSE:BOX)
Number of Hedge Fund Holders: 22
Box, Inc. (NYSE:BOX) is a cloud-based content services platform enabling organizations of various sizes to manage and share their content from anywhere on any device. The company creates and offers cloud-based tools for content management, collaboration, and file sharing for businesses. It positions itself as an AI-driven platform, leveraging its Intelligent Content Management (ICM) system to automate document processing and extract valuable data through AI.
On October 24, Box, Inc. (NYSE:BOX) announced a strategic partnership with Amazon Web Services (AWS) that will enable organizations to build new applications and maximize productivity with generative AI. Through the collaboration, Box customers now have direct access to foundational models within Box AI via Amazon Bedrock, starting with Anthropic’s Claude and Amazon Titan. The integration will allow companies to build some of the most advanced AI models with their data stored in Box’s Intelligent Content Management platform. Additionally, there is a new Box connector for Amazon Q business, the most capable generative AI assistant for work, which will help organizations garner more intelligence, and enable them to summarize information, generate content, and securely complete tasks using their privately managed data in Box.
13. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 28
Informatica Inc. (NYSE:INFA) is an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide.
On October 24, Informatica Inc. (NYSE:INFA) announced that Generative AI (GenAI) blueprints, which make it faster and easier for customers to build enterprise-grade GenAI applications on six prominent technology platforms, are now available. These blueprints are available at no cost at Informatica’s Architecture, enabling customers to use the vendor’s Intelligence Data Management Cloud (IDMC) platform in concert with AWS, Databricks, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Snowflake to develop GenAI capabilities. Key features include data quality and master data management (MDM), use of business glossary metadata and data governance, support for responsible AI, accelerated GenAI development via pre-built, ecosystem-specific iPaaS recipes, and enhanced scalability and efficiency with serverless runtime for integrating AI agents and RAG-chain executors.
“A myriad of components must be brought together for GenAI development, including large language models, vector data management, prompt handling and more. These blueprints provide a prescriptive path for customers to unlock the potential of GenAI for their enterprise use cases. Informatica is continuing to simplify and streamline the process of delivering GenAI applications at scale by minimizing the do-it-yourself integration required. And, most importantly, we do so with AI-ready data that is relevant, responsible and robust.”
-Rik Tamm-Daniels, Group Vice President of Strategic Ecosystems and Technology at Informatica.
12. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 38
Celestica Inc. (NYSE:CLS) is an American-Canadian multinational company that designs, manufactures, and offers supply chain solutions across many industries. With hyperscalers continuing to invest in artificial intelligence infrastructure investments, Celestica Inc. (NYSE:CLS) is benefiting from the AI cycle through its connectivity and cloud solutions portfolio.
On October 24, RBC Capital raised the firm’s price target on Celestica to $75 from $65 and kept an “Outperform” rating on the shares. The accelerated business momentum for Celestica is being driven by AI-related strength. The company posted a beat-and-raise third-quarter earnings report. Its Connectivity and Clouds Solutions (CCS) segment saw a 42% year-over-year revenue increase, driven by the strong demand from hyperscale customers. The firm also announced two significant wins, including its partnership with Groq to supply AI servers and a 1.6T switching contract with a major hyperscaler Other analysts have also raised their price targets on the company’s shares after the report.
“Celestica is seeing increasing traction at hyperscalers and a mix shift to higher-margin programs,” Treiber said in a client note.
11. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company engaged in the design and manufacture of semiconductor technology and other related products. The company showcases leadership in mobile and AI technology with products like the Axion processor, Ethos-U85, and Windows on Arm. Its chips are used in concurrence with GPUs in data centers and to enable on-device AI features in smartphones.
On October 24, Arm Holdings plc (NASDAQ:ARM) revealed that it is collaborating with Meta’s PyTorch team on the ExecuTorch Beta release. The release aims to bring AI and machine learning (ML) capabilities to billions of edge devices and developers worldwide. Arm’s collaboration with ExecuTorch, a PyTorch-native framework designed to deploy AI models on mobile and edge devices, means improved performance for real-world use cases such as text generation and summarization. This is accomplished through the direct integration of Arm Kleidi technologies into the ExecuTorch framework, along with the optimization of Llama 3.2 models and enhanced quantization schemes for accelerating generative AI workloads on the Arm CPU. This results in developers benefiting from faster development and deployment at scale, while users communicate and learn in newer and more responsive ways.
10. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 61
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational digital communications technology conglomerate corporation that offers a wide array of technology innovations. The technology leader offers AI-native infrastructure and solutions. Currently, AI makes 2% of the company’s revenue, but analysts are positive about its AI opportunities as the company taps into a larger Ethernet market.
On October 23, Cisco Systems, Inc. (NASDAQ:CSCO) announced that it has unveiled new AI solutions for enhancing employee connection and collaboration. New innovations, including Cisco Spatial Meetings, Ceiling Microphone Pro, and new Cisco AI Assistant for Webex capabilities are aimed to transform work and workspaces. Designed to enable “Distance Zero”, an experience where attendees feel like they are in the same room even if they are not, manage smart workspaces, and advance employee productivity and engagement, Cisco’s AI solutions are helping to advance collaboration and empower employees with equitable and exceptional experiences.
“With AI baked into every part of Cisco’s product portfolio, we’re helping organizations futureproof their workspaces with solutions ready for the next generation of how and where people work. We’re providing our customers with intelligent, adaptable, and easy-to-manage technology that enhances experiences for their employees and customers.”
– Jeetu Patel, Executive Vice President and Chief Product Officer, Cisco.
9. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 69
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a global cybersecurity company offering cloud-delivered protection of endpoints, cloud workloads, identity, and data. It employs world-class AI and ML to detect and prevent modern threats with the speed and scale of the cloud. Its generative AI security platform Charlotte AI has also gained significant traction.
On October 25, CNBC reported that Delta Airlines has sued CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in a Georgia state court following a global outage in July, leading to widespread flight cancellations and disruptions of travel plans that cost the airline over $500 million.
A CrowdStrike spokesperson told CNBC:
“While we aimed to reach a business resolution that puts customers first, Delta has chosen a different path. Delta’s claims are based on disproven misinformation, demonstrate a lack of understanding of how modern cybersecurity works, and reflect a desperate attempt to shift blame for its slow recovery away from its failure to modernize its antiquated IT infrastructure.”
8. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 72
Amphenol Corporation (NYSE:APH) designs, manufactures, and markets electrical, electronic, and fiber optic connectors. Its products are crucial in IT and AI advancements, offering essential connectors and sensors that are used in AI-driven technologies.
On Friday, October 25, TD Cowen raised the price target for Amphenol Corporation (NYSE:APH) stock to $63 from $60. The firm maintained a “Hold” rating on the stock on the back of a strong book-to-bill ratio above 1 and sustained organic growth. The company closed the third quarter with sales and adjusted diluted EPS exceeding the high end of guidance. Sales rose 26% year-over-year, driven by strong organic growth in IT Datacom, mobile networks, mobile devices, commercial aerospace, and defense markets, along with contributions from the Company’s acquisition program. IT Datacom sales grew by 60% in US dollars and 59% organically, led by accelerating demand for AI-related products as well as strong performance in the core IT Datacom business. Analyst claims that the company’s business strategy strongly incorporates AI, with no signs of slowing growth. However, a weakening momentum may impact the stock’s valuation, even though current indicators reflect otherwise.
7. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) is an American multinational corporation and technology company that is engaged in the design, development, manufacture, marketing, and selling of computing and related products and services. It was once a very important chip company, but its failure to proactively prioritize GPUs that are more effective for AI has left it lagging behind in the industry. As of today, it is leveraging its established presence in data centers to support the growing demand for AI applications.
On October 24, Intel Corporation (NASDAQ:INTC) and Iterate.ai, an AI platform enabling enterprises to build production-ready AI applications and ready-to-use products for private AI requirements, announced that they have entered into a partnership to bring Generate, Iterate.ai’s secure AI Manager application, to Intel AI PCs. Generate employs RAG and multiple secure vector databases and runs LLMs locally on AI PCs using its advanced capabilities, enabling businesses with a personal AI assistant and instant go-to resource for business guidance and generative AI needs. The partnership will enable Intel to incorporate Generate into application bundles for use with its Intel Meteor Lake AI PCs and the upcoming Lunar Lake AI PCs.
“We are excited to collaborate with Iterate.ai to bring the AI capabilities offered by Generate to Intel AI PCs. This unleashes the productivity benefits of generative AI to Intel AI PC users with enhanced privacy and security as the applications run locally on the device. Users can confidently gain insights and efficiencies leveraging private documents to answer questions, generate content, instantly retrieve information and more.”
– Justin Christiansen, GM Software and Services Partners at Intel.
6. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 80
Western Digital Corporation (NASDAQ:WDC) is a leading innovator in the data storage industry. The company offers data storage solutions, including systems, HDD, Flash SSD, memory, and personal data solutions. Storage demand has been recovering over the years in order to support increased data processing. This makes Western Digital well-positioned to benefit from rising enterprise demand for data storage, driven by the growing need to capture and manage AI-related data.
On October 25, Evercore ISI analyst Amit Daryanani maintained an “Outperform” rating on Western Digital Corporation (NASDAQ:WDC), with a price target of $85.00. The data storage solutions company released strong fiscal-quarter earnings, with a cloud revenue of $2.2 billion for the quarter. This represents a 153% increase from the same period last year. The rapid adoption of artificial intelligence has increased demand for data storage products, driving a surge in the company’s cloud business sales. Chief Executive David Goeckeler believes that the company’s flash and HDD products product portfolios are well-positioned to capitalize on the opportunities created by the AI data cycle. Reaffirming their Outperform rating, Daryanani states that in-line revenue guidance for the December quarter should ease concerns regarding a potential downturn in the market.
5. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 92
Vertiv Holdings Co (NYSE:VRT) is a company that offers digital infrastructure technology and services for data centers, communication networks, and commercial and industrial facilities. The company’s offerings, such as its cooling and power systems, are fundamental to ensure that data centers run smoothly, as these facilities are responsible for operating AI technologies.
On October 24, Bank of America Securities analyst Andrew Obin reiterated a Buy rating on the stock with a $140.00 price target. The company reported strong Q3 2024 results, achieving a 19% organic net sales growth year-over-year (YoY) and a 41% jump in adjusted operating profit to $417 million. Its 47% year-over-year backlog surge to $7.4 billion is an indicator of the strong demand for its infrastructure solutions. Vertiv’s partnership with Nvidia has also been a major growth driver, co-developing the GB200 NVL72 to meet the surging demand in AI and high-performance computing. In essence, strong market demand and earnings growth driven by artificial intelligence tailwinds have led to the rating reiteration.
4. Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Holders: 117
Salesforce Inc (NYSE:CRM) is an American cloud-based software company engaged in the design and development of cloud-based enterprise software. Their offerings include CRM solutions that incorporate advanced artificial intelligence features. Its recent innovation in AI technology is Agentforce, an AI development platform that allows organizations to create, customize, and deploy intelligent agents.
On October 25, Analyst Keith Weiss from Morgan Stanley maintained a “Buy” rating on the stock and kept the price target at $330. The reaffirmation comes from several factors that emphasize the company’s potential for revenue growth and cost efficiency. Moreover, the company’s Agentforce plays a key role in its promising outlook and is expected to deliver substantial returns on investment as well as positively impact revenue. As per Weiss, the company’s shares are currently undervalued, implying that the market hasn’t realized its full potential yet. The anticipated wider adoption of Agentforce is further expected to enhance Service Cloud contracts significantly.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. Google has been using artificial intelligence technology for years, integrating advanced AI across its products like Search, Assistant, and Cloud solutions. Its AI offerings include consumer-focused solutions such as Google One AI Premium and Gemini, along with developer tools like Gemini models.
On October 26, The Verge reported that Alphabet Inc. (NASDAQ:GOOG)’s Google is supposedly launching its next major Gemini 2.0 model in December. Reportedly, this new model isn’t showing the expected performance gains, but it is largely a trend happening across companies developing large models.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) is a social technology company building applications and technologies that help people connect, find communities, as well as grow businesses. The company leverages artificial intelligence to enhance user experiences and develop new technologies. Nearly 500 million people use Meta AI, an intelligent assistant that is capable of following instructions, visualizing ideas, and solving nuanced problems.
On October 25, American news website Axios reported that Meta Platforms, Inc. (NASDAQ:META) has struck a multi-year deal with Reuters, a news agency owned by Thomson Reuters. This marks the first news deal that Meta has secured since the onset of the AI era. Users of Meta AI’s chatbot feature will be able to access real-time news and information from Reuters when they question about news or current events. According to a Meta spokesperson, the partnership aims to offer a useful experience for those seeking information on current events.
“While most people use Meta AI for creative tasks, deep dives on new topics or how-to assistance, this partnership will help ensure a more useful experience for those seeking information on current events”.
-Meta Spokesperson
“We can confirm that Reuters has partnered with tech providers to license our trusted, fact-based news content to power their AI platforms. The terms of these deals remain confidential”.
-Spokesperson for Reuters, said in a statement.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ) is an American multinational corporation and technology company that develops and sells software, services, and hardware. The company creates platforms and tools powered by AI to deliver innovative solutions, exemplified by its collaboration with OpenAI and the integration of AI technologies across platforms like Windows, Xbox, Microsoft 365, Teams, and Dynamics.
On October 24, Microsoft Corporation (NASDAQ:MSFT) announced that it is collaborating with Siemens, a German multinational technology conglomerate. The collaboration will allow Siemens Industrial Copilot to handle the most demanding environments at scale. The Siemens Industrial Copilot is a Generative AI-powered copilot designed to help automation engineers generate codes and diagnose faults. By integrating Siemen’s industry expertise with the Microsoft Azure OpenAI Service, the Copilot handles demanding requirements in manufacturing and automation. Co-creation partner ThyssenKrupp Automation Engineering is set to be the first to use Copilot globally beginning in early 2025.
Overall, MSFT ranks first among the 15 AI News Investors Should Not Miss. While we acknowledge the potential of MSFT 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 MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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