AI trends are sweeping markets globally. On November 14, TikTok, the popular social media application owned by Chinese firm ByteDance, announced the availability of Symphony Creative Studios, a generative AI video creation platform it has developed, to all advertisers. According to a report by news agency Reuters, the launch is part of a larger plan by the Chinese tech giant to boost its ad business. A press release from the company indicates that some AI features included in the new platform are turning text inputs into videos, generating previews that can be edited to finalize the content, remixing, digital avatar creation, as well as translation and more.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, Foxconn, the Taiwan-based company that is one of the largest contract manufacturers of electronics in the world, announced that it expects robust growth in its artificial intelligence server business next year and will increase investment in several countries amid mounting trade tensions between the US and China. Per a report by Reuters, Young Liu, the chairman of the firm, said after the quarterly earnings results that his firm would be watching to see what policies Donald Trump implements as US president. He added that Foxconn plants in Wisconsin and Texas have seen steady growth in sales on strong demand for AI servers, and the outlook for US operations was positive.
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 financial analyst looking through a microscope at stocks to determine their market value.
AI News That Broke The Internet This Week
15. Tetra Tech, Inc. (NASDAQ:TTEK)
Market Capitalization: $10 Billion
Tetra Tech, Inc. (NASDAQ:TTEK) provides consulting and engineering services in the United States and internationally. The firm provides cooling solutions to data centers. On November 15, KeyBanc lowered the price target on the stock to $49 from $56 and kept an Overweight rating on the shares. Tetra Tech’s Q4 was above consensus and guidance was right along the midpoints of its long-term framework, the advisory told investors in a research note. KeyBanc believes Tetra Tech is the right high quality name to own in an uncertain policy environment.
14. Jones Lang LaSalle Incorporated (NYSE:JLL)
Market Capitalization: $12 Billion
Jones Lang LaSalle Incorporated (NYSE:JLL) operates as a commercial real estate and investment management company. The company leases space to tech firms as they develop AI data centers. On November 11, Jefferies analyst Peter Abramowitz raised the price target on the stock to $318 from $302 and kept a Buy rating on the shares. Despite strong Q2 results, the stock had a muted reaction following a spike in the 10-year following Tuesday’s election results, notes the advisory, which thinks this is missing the forest for the trees. A pro-business, anti-regulation environment will likely support an even stronger capital markets recovery, the advisory told investors.
13. Twilio Inc. (NYSE:TWLO)
Market Capitalization: $14 Billion
Twilio Inc. (NYSE:TWLO) provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications. The company has been integrating artificial intelligence into its platform since last year and has also introduced several new features that leverage AI to help clients gain more business from customers. Latest reports from marketing publication Mi3 contend that the company was planning to exit the customer data platform market after a strategic review ordered by new CEO Khozema Shipchandler in February this year. However, the firm is now using Segment, a firm it bought nearly 10 years ago, to embrace generative AI and execute conversational commerce plans.
12. Fortinet, Inc. (NASDAQ:FTNT)
Market Capitalization: $72 Billion
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. The company recently announced that it would be expanding GenAI capabilities across its product portfolio with the launch of two new integrations with FortiAI, Fortinet’s AI-powered security assistant that uses GenAI to guide, simplify, and automate security analyst activities.
11. Intel Corporation (NASDAQ:INTC)
Market Capitalization: $107 Billion
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. German media is reporting that the local government of the German state of Saxony-Anhalt, has said that the decision of the company to delay the construction of a semiconductor fab facility in the area was made in close coordination and reflects the strategic orientation of both partners to jointly evaluate the framework conditions and potential schedules and adapt to market needs. Intel has been beset by financial woes in recent months and growth plans have taken a backseat as the chipmaker evaluates takeover bids.
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. Latest regulatory filings from chipmaker NVIDIA indicate that it has maintained a sizable share in Arm holdings. The present stake consists of around 1.96 million shares and is worth more than $280 million, as of the end of September. The filings also show that the NVIDIA stake in Arm is the biggest holding of the company, ahead of a stake in Applied Digital.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Market Capitalization: $185 Billion
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Acer, a computer hardware firm, recently announced the launch of the latest Swift Go 14 AI laptop. This AI-capable laptop is powered by the QUALCOMM Snapdragon X-Plus processor and highlights the latter’s move into the PC market. Some AI features offered on the device include automatic eye contact correction during virtual meetings and background noise reduction, and several Acer branded AI tools.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. Latest reports indicate, according to posts on social media platforms like ChipHell, that the company is working on a new Threadripper edition sporting 3D V-Cache capabilities. Threadrippers are processors marketed by AMD that power AI workstations. Adding 3D V-Cache capabilities on these processors would enable faster calculations and a noticeable increase in overall processor speed.
7. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $268 Billion
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. On November 14, Christophe Fouquet, the CEO of the firm, said during the Investor Day of the company that the ongoing boom in AI computer chips would help ASML by increasing the relative share of advanced logic and memory chips being made, leading to more sales of the company’s best tools. He added that the company expected the chip market to grow 9% annually through 2025, passing the $1 trillion mark around 2030.
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 15, the US government said that it had finalized a CHIPS Act incentive agreement with TSM. According to a statement released by the White House, the agreement with TSM will spur $65 billion of private investment to build three facilities in Arizona and create tens of thousands of jobs by the end of the decade. This would be the largest foreign direct investment in a greenfield project in the history of the US.
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. Tech website The Verge recently reported that Meta Platforms is one of the top customers of Azure OpenAI offerings, having spent more than $1 million on the AI services in the month of September alone. Other top customers include software firm Adobe, among others. Per the report, Meta is using Microsoft’s provisioned output for access to OpenAI models, which allows for dedicated model processing capacity instead of token-based offerings for text and image generation.
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 ecommerce business. The company recently launched a new online discount storefront named Haul. The storefront, designed to be a competitor to Chinese online discount stores, prices items under $20. An analysis of the platform by Modern Retail, a media brand covering the ins and outs of the reinvention of the retail industry, indicates that a lot of postings on the platform include AI images. Per Modern Retail, the accuracy of these images, in relation to the product being sold, is not the best.
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 15, tech website VentureBeat reported that an experimental new AI model from Google, dubbed Gemini-Exp-1114, has beaten the GPT-40 model from OpenAI in important AI benchmarks on the Chatbot Arena leaderboard. Chatbot Arena is a crowdsourced, randomized battle platform for large language models. Per the platform, the Google model had superior performance to the OpenAI model across several key categories, including mathematics, creative writing, and visual understanding.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The integration of AI into the Azure cloud has served to bolster growth at the tech giant in recent months. However, on November 14, news publication Financial Times reported that authorities in the US were planning to launch a probe into Microsoft’s cloud computing business. Per the report, which quoted sources, the FTC would lead the probe and examine allegations that Microsoft is abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data to competitors’ platforms.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 14, Susquehanna raised the price target on the stock to $180 from $160 and kept a Positive rating on the shares. The firm previewed its quarter and expects better results/guidance as checks around H100/H200 and early Blackwell remain on track. However, it notes new products create some uncertainty around margins and the level of dilution.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ: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 NVIDIA Corporation (NASDAQ:NVDA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
