U.S. President Joe Biden met with China’s President Xi Jinping at the APEC Summit in Lima, Peru, on November 16. According to the White House, the two reached an agreement affirming that human beings, not artificial intelligence, should make decisions about the use of nuclear weapons.
“The two leaders affirmed the need to maintain human control over the decision to use nuclear weapons. The two leaders also stressed the need to consider carefully the potential risks and develop AI technology in the military field in a prudent and responsible manner”.
-The White House said in a statement.
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This agreement marks a groundbreaking step in addressing two complex and challenging topics: nuclear weapons and artificial intelligence. However, it remains unclear whether the two nations will conduct additional discussions or actions on the matter.
At the same time, Xi vowed on Saturday to work with the incoming U.S. administration of Donald Trump as he held his final talks with outgoing President Joe Biden on various topics. Xi acknowledged the “ups and downs” between the countries after Trump’s election.
“China’s goal of a stable, healthy and sustainable China-U.S. relationship remains unchanged. China is ready to work with the new U.S. administration to maintain communication, expand cooperation and manage differences.”
In other trailblazing news, there is a new artificial intelligence program developed by Washington State University. Reportedly, it can spot signs of serious diseases more accurately, and faster, than trained human researchers.
According to scientists, patients can receive the results of their mammogram or MRI within an hour. Washington State Professor Michael Skinner further reveals that the process can be done in minutes, and patients don’t have to wait hours or days for their image analysis on the MRI by their physician.
“You can take that image, run it through this type of program, and it can tell you exactly where the abnormalities are. But it (the A.I. model) would still need to be trained each time.”
– Dr. Skinner.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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15. Oklo Inc. (NYSE:OKLO)
Market Capitalization: $2.2 billion
Oklo Inc. (NYSE:OKLO) is an advanced nuclear technology company that designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. Oklo is a major beneficiary of the AI boom considering the increasing interest in reliable, clean energy sources like nuclear power to fuel data centers.
On November 13, Oklo Inc. (NYSE:OKLO) announced that it has received Letters of Intent (LOIs) and will be partnering with two major data center operators. The partnership will require Oklo to deliver up to 750 megawatts (MW) of low-carbon power for data centers across the US. The new commitments will expand Oklo’s portfolio to approximately 2,100 MW, emphasizing the demand for the company’s clean energy solutions.
“The strong customer response reflects confidence in Oklo’s clean, reliable, and affordable power solutions. Our approach helps enable customers to scale sustainably with reliable power aligned to their long-term goals.”
-Jacob DeWitte, Co-Founder and CEO of Oklo.
14. SoundHound AI (NASDAQ:SOUN)
Market Capitalization: $2.28 billion
SoundHound AI (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.
On November 14, H.C. Wainwright analyst Scott Buck reiterated a “Buy” rating on SoundHound AI (NASDAQ:SOUN) and raised the price target to $8.00 from $7.00. The firm has given a buy rating to the company based on its impressive revenue performance, balance sheet management, and strong future outlook. Additionally, the company is expected to continue pursuing efforts to expand revenues and profit margins. The strong demand for artificial intelligence companies should also keep investors interested, the analyst notes
13. Five9, Inc. (NASDAQ:FIVN)
Market Capitalization: $2.85 billion
Five9, Inc. (NASDAQ:FIVN) offers intelligent cloud software for contact centers. The company leverages artificial intelligence and machine learning to improve customer interactions, enhance agent productivity, and drive operational efficiency.
On November 13, Five9, Inc. (NASDAQ:FIVN) announced the expansion of its Five9 Genius AI suite, a comprehensive product suite for tailoring AI applications to the company’s CX (customer experience) needs in the GenAI era. The expansion includes the launch of Five9 AI Agents, the next-generation of Five9 Intelligent Virtual Agents (IVA) which integrate Generative AI. These agents will enable businesses to create chat and voice bots, integrating human-like conversation with the speed and knowledge of AI.
“Five9 AI Agents has been in development for a while now, and we are excited to bring this capability to our customers. We’ve invested significant energy in taking the appeal of Gen AI, such as highly conversational bots, and making them enterprise-grade with controls, data integrations and our dial-of-trust. By utilizing AI Agents, businesses can easily scale personalized customer interactions, optimize self-service and reduce reliance on human agents.”
– Jonathan Rosenberg, CTO and Head of AI, Five9.
12. Bloom Energy Corporation (NYSE:BE)
Market Capitalization: $4.81 billion
Bloom Energy Corporation (NYSE:BE) is involved in designing, manufacturing, selling, and installing solid-oxide fuel cell systems for on-site power generation. The company is a key player in meeting the rising energy demands of AI data centers.
On November 15, BMO Capital raised the firm’s price target on Bloom Energy Corporation (NYSE:BE) to $19.50 from $12 and kept a “Market Perform” rating on the shares. The analyst attributes the price target increase to the company’s strategic supply agreement with American Electric Power, which aims to meet the immediate power of data centers. Even though there are some uncertainties regarding the transaction, particularly the remaining 900MW of the agreement that remains to be executed, they believe the stock is going to react very positively.
11. Skyworks Solutions, Inc. (NADAQ: SWKS)
Market Capitalization: $13.37 billion
Skyworks Solutions, Inc. (NADAQ: SWKS) is an American semiconductor company that designs, develops, manufactures, and markets proprietary semiconductor products. This AI play is recognized for its role in providing semiconductor components for enabling AI-driven smartphones and similar technologies.
On November 12, Skyworks Solutions, Inc. (NADAQ: SWKS) reported its fourth-quarter results. The company reported an adjusted EPS of $1.55, surpassing the analyst consensus estimate of $1.52. Quarterly sales were $1.025 million, in line with the analyst consensus estimate. Moreover, the company forecast first-quarter 2025 revenue and profit below Wall Street estimates, indicating weak demand from automotive and industrial clients. It expects adjusted profit per share of $1.57 for the first quarter 2025, ending in December, while analyst estimates stand at $1.72 per share. Despite the modest outlook, the company believes that the consumer electronics demand is expected to rise in the holiday season, supported by smartphone market recovery and the release of new smartphones featuring AI capabilities.
“For the second year in a row, we generated over $1.6 billion of free cash flow and ended fiscal 2024 with a record 40% free cash flow margin. Looking ahead, we believe AI is poised to ignite a transformative smartphone upgrade cycle, propelling the demand for higher levels of RF complexity.”
-Liam K. Griffin, chairman, chief executive officer and president of Skyworks
10. Zoom Video Communications, Inc. (NASDAQ:ZM)
Market Capitalization: $24.97 billion
Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology company offering a communications platform that connects people through video, voice, chat, and content sharing. The company has integrated artificial intelligence in several of its offerings.
On November 13, Morgan Stanley analyst Meta Marshall maintained a “Hold” rating on Zoom Video Communications, Inc. (NASDAQ:ZM) and raised the price target to $86.00. Despite concerns about Zoom’s potential to accelerate growth in the long run, Zoom has maintained a strong position within the enterprise market. Investor sentiment also improved after the second quarter, partly due to reduced customer churn and increased platform features. While there isn’t any significant event expected that could boost profits immensely, the analyst still believes fiscal year 2026 is going to be a good year. New artificial intelligence revenue streams are one reason for the analyst’s optimism, along with reduced churn and growth in phone and customer contact services. As such, the hold rating signifies a balance between caution and optimism.
9. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Market Capitalization: $27.97 billion
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a global semiconductor company engaged in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The chip stock is a top Goldman Sachs AI stock.
On November 11, Oppenheimer reiterated an “Outperform” rating on Monolithic Power Systems, Inc. (NASDAQ:MPWR) and a $900 price target. The firm notes that there have been unsubstantiated reports in the market regarding Monolithic losing 100% of its shares in Nvidia’s upcoming Blackwell GPU architecture due to a potential design flaw. However, the firm states that it does not believe “any design or performance issues exist with MPS’s AI accelerator power solutions”. The firm further notes that in this case, it expects Monolithic to retain dominant AI accelerator power share as well as increase content across leading AI platforms in 2025.
8. Microchip Technology Incorporated (NASDAQ: MCHP)
Market Capitalization: $33.76 billion
Microchip Technology Incorporated (NASDAQ: MCHP) is a leading semiconductor supplier engaged in the development, manufacture, and sale of smart, connected, and secure embedded control solutions. Its semiconductors and solutions are essential for data centers that power AI applications
On November 12, Microchip Technology Incorporated (NASDAQ: MCHP) announced its portfolio of IGBT 7 devices, power components that offer increased power capabilities, lower power losses, and compact device sizes. The IGBT 7 modules support voltages from 1200 V to 1700 V and currents from 50 A to 900 A, and come in various configurations and topologies. The new portfolio will help to meet high-growth market segments such as sustainability, E-Mobility, and data centers.
“The versatile IGBT 7 portfolio combines ease of use and cost efficiency with higher power density and reliability, offering our customers maximum flexibility. These products are designed for general industrial applications as well as specialized aerospace and defense applications. Additionally, our power solutions can be integrated with Microchip’s broad range of FPGAs, microcontrollers (MCUs), microprocessors (MPUs), dsPiC® Digital Signal Controllers (DSCs) and analog devices to provide a comprehensive system solution from one supplier”.
– Leon Gross, corporate vice president of Microchip’s discrete product group.
7. Vistra Corp. (NYSE:VST)
Market Capitalization: $48.84 billion
Vistra Corp. (NYSE:VST) is one of the largest competitive power generators in the U.S. The company leverages its nuclear capacity to power energy-intensive AI processes
On November 15, Jefferies analyst Julien Dumoulin Smith maintained a Buy rating on Vistra Corp. (NYSE:VST) with a price target of $167.00. According to the analyst, one reason for the buy rating is active discussions that the company is having concerning potential data center deals in both PJM and ERCOT regions. The management is confident that these ongoing talks will likely lead to finalized agreements, boosting the value of the company. Moreover, gas is gaining traction in the energy sector, boosting Vistra’s position. There are some challenges with FERC, but the company is still actively pursuing large customers which indicates its growth potential.
6. Workday, Inc. (NASDAQ:WDAY)
Market Capitalization: $68.74 billion
Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications. The company is a strong AI play, having integrated artificial intelligence in its platform to automate, analyze and personalize tasks and workflows.
On November 13, Bank of America Securities analyst Bradley Sills reiterated a “Buy” rating on Workday, Inc. (NASDAQ:WDAY) and set a price target of $310.00. The company’s growth potential and consistent performance in key areas have led to the buy rating. Moreover, the company has had stable deal activity in the US, with its Human Capital Management (HCM) offering demonstrating steady growth. Its financial segment has also shown mid-market strength, and its Illuminate AI platform is viewed as a distinguishing factor against competitors such as SAP and Oracle. Sills notes a potential for Q3 results improvement and a strong Q4 pipeline despite some weakness in Europe. The optimism mainly comes from Workday’s leading position in cloud and AI, justifying the Buy rating.
5. Snowflake Inc. (NYSE:SNOW)
Market Capitalization: $42.22 billion
Snowflake Inc. (NYSE:SNOW) is an artificial intelligence data cloud company benefiting from the AI boom as data warehouses are a critical component in making AI useful for enterprises.
On November 15, Piper Sandler analyst Brent Rabatin reiterated an “Overweight” rating and $165.00 price target on Snowflake Inc. (NYSE:SNOW). The analyst remains cautious ahead of Snowflake’s earnings report, highlighting that the negative investor sentiment regarding the stock may not be alleviated. The sentiment stems from several factors such as increased competition from cloud providers, slowdown in cloud computing growth, and challenges in adapting to the AI landscape. The Overweight rating is maintained on the back of an attractive risk-reward profile, with analysts suggesting buying on pullbacks as growth is expected to recover in the following year.
“Earnings next Wednesday (11/20) may not be the cure for negative investor sentiment that has soured on SNOW and remains cautious given the expected ~6% top-line drag on platform performance improvements likely to materialize, pressuring 2H product growth to fall below 25% (vs. 32% in 1H). Growth concerns are partially reflected in the 35% sell-off YTD (vs. +25% S&P 500) and the valuation multiple, with CY26E EV/FCF falling to 29x (vs. 46x entering this year). We maintain an Overweight rating on favorable risk-reward and would add to positions on pullbacks ahead of a potential growth recovery next year”.
4. Applied Materials, Inc. (NASDAQ:AMAT)
Market Capitalization: $139.23 billion
Applied Materials, Inc. (NASDAQ:AMAT) is engaged in the provision of materials engineering solutions used to produce new chips and advanced displays. The key AI player delivers the equipment needed to produce chips that power everything from personal computers to smartphones.
On November 15, Deutsche Bank analyst Melissa Weathers maintained a “Hold” rating on Applied Materials, Inc. (NASDAQ:AMAT) and set a price target of $200.00. The hold rating stems from several factors that are affecting the company’s prospects. Even though the company has had a solid quarterly performance, its guidance failed to meet investors’ expectations due to mixed spending trends in the wafer fabrication equipment market. For Q1, the company forecasts adjusted diluted EPS of $2.29, with a potential range of $0.18 above or below that figure, and projected revenue of about $7.15 billion, plus or minus $400 million. This guidance was compared to analysts’ estimates of $2.27 for adjusted EPS and $7.23 billion in revenue. While the company exceeded analysts’ expectations for adjusted EPS, the revenue growth projections remain soft, despite strong demand in leading-edge nodes and positive momentum in DRAM, since other areas are weaker. Additionally, the company’s exposure to the Chinese market remains steady but is expected to decline in revenue share. Additionally, potential new restrictions on China add to a cautious outlook.
3. International Business Machines Corporation (NYSE:IBM)
Market Capitalization: $189.54 billion
International Business Machines Corporation (NYSE:IBM) is an information technology company that provides global hybrid cloud and AI, as well as consulting expertise.
On November 14, International Business Machines Corporation (NYSE:IBM) announced an innovative new partnership with UFC®️, the world’s premier mixed martial arts organization. The partnership will bring together IBM’s powerful AI and data platform called watsonX with UFC’s Insights Engine, enabling an enhanced fight analysis viewing experience for millions of UFC fans around the globe. Fans will be able to access unique insights and advanced analysis of everything from live bouts and fighter tendencies to projections of possible match outcomes and even methods of victory – all of which will be engineered to update in real-time on-screen as more live data is generated.
“Data and AI solutions like UFC Insights Engine built with IBM watsonx can offer current fans entirely new ways to connect with their favorite athletes and sports, while also building excitement among new generations of MMA fans. Leveraging watsonx and our Granite models also allows UFC to enhance its digital operations and to harness the power of its extensive library of match data – all to the benefit of current and future fans.”
– Jonathan Adashek, Senior Vice President of Marketing and Communications at IBM.
2. Salesforce Inc (NYSE:CRM)
Market Capitalization: $310.95 billion
Salesforce Inc (NYSE:CRM) is an American cloud-based CRM software company that has gained significant attention after the launch of Agentforce, its AI-powered platform.
On November 14, Loop Capital raised the firm’s price target on Salesforce Inc (NYSE:CRM) to $340 from $270 and kept a “Hold” rating on the shares. The buy rating comes as a part of a broader research note on select Software names. Several analysts have been upgrading their ratings and price targets on Salesforce on the back of its AI-powered platform, Agentforce, ahead of the company’s earnings. Meanwhile, many others have been downgrading the stock on the back of projected slower growth.
1. Apple Inc. (NASDAQ:AAPL)
Market Capitalization: $3.4 trillion
Apple Inc. (NASDAQ:AAPL) has become an important AI stock after the launch of Apple Intelligence. On Thursday, November 14, Google released a smartphone application for its AI chatbot on Apple’s App Store, introducing the latest generation of its voice assistant to the popular mobile operating system. The new Gemini app will be featuring Gemini Live, a voice feature enabling users to engage in natural conversations with the chatbot. Apple already has plans to integrate ChatGPT within Siri, its voice assistant.
“It’s great for when you want to practice for an upcoming interview, ask for advice on things to do in a new city, or brainstorm and develop creative ideas”
-Brian Marquardt, a senior director of product management at Google, said in a statement.
While we acknowledge the potential of AAPL 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 AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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