In this article, we discuss the 15 AI news updates investors should not miss.
A latest report into the adoption of AI in the United Kingdom has revealed that even though a lot of companies are using AI, only a few have integrated the new technology into their manufacturing processes. The study, called The Future Factories was carried out earlier this year in collaboration with design software giant Autodesk. The report warns that the lack of confidence in digital technologies and AI means companies in the UK are at risk of missing out on innovation and productivity gains. It also proposes how government initiatives and regulation can support the adoption of new technologies.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The report further highlights that manufacturers were mostly using AI to manage their energy usage and reduce waste. It added that some of the manufacturing sectors in which AI was being used were predictive maintenance and supply chain optimization. Per a survey cited in the study, the biggest benefits manufacturers cited were increased efficiency, improved productivity, and automation of routine tasks. The research highlights that the benefits show the importance of lowering the barrier to entry for these technologies and the untapped potential in this field for small manufacturers.
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 in a server room of a corporate office surrounded by servers and networking equipment.
AI News Updates Investors Should Not Miss
15. POET Technologies Inc. (NASDAQ:POET)
Number of Hedge Fund Holders: 5
POET Technologies Inc. (NASDAQ:POET) designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, Singapore, and China. The optoelectronic products marketed by the firm can help convert data from electric signals to light signals to be transmitted through optical wires. This allows for higher data transfer bandwidths, lower loss, and simpler cooling needs, especially within AI data centers. On November 25, the company announced that it would expand optical engine production capacity in Malaysia to meet AI infrastructure demand.
14. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 17
C3.ai, Inc. (NYSE:AI) operates as an enterprise artificial intelligence software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. Tom Siebel, the CEO of the firm, recently gave an interview to Fortune magazine. During the interview, the CEO compared the AI boom to the dot-com bubble, pointing out overvalued companies and risky investments. He also questioned the $157 billion valuation of OpenAI and stressed that only companies with solid business plans and reliable technology would make it through the AI bubble.
13. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 38
Rockwell Automation, Inc. (NYSE:ROK) provides industrial automation and digital transformation solutions. The company focuses on AI-driven analytics and machine learning to optimize processes, improve decision-making, and boost productivity across various sectors. Blake Moret, the CEO of the firm, recently spoke at the Automation Fair 2024, noting that based on conversations with customers, he believed the best opportunities for adding real value with AI was by making it part of existing workflows rather than requiring manufacturers to rip out existing processes to implement AI. Doing that was just too risky, he said, adding that risk was the enemy of investment in new technology.
12. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 46
Corning Incorporated (NYSE:GLW) engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses. The optic products offered by the firm have witnessed a surge in demand in the past few months as large companies invest in AI data centers. Top executives from the company were part of an American delegation that met the Chinese premier on November 25. The meeting came as US-China tensions increase over use of AI chips and tough-on-China Donald Trump prepares to assume charge as US president.
11. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 49
MongoDB, Inc. (NASDAQ:MDB) provides a general purpose database platform worldwide. The firm securely amalgamates operational, unstructured, and AI-related data to streamline building AI-enriched applications. On November 25, Bank of America analyst Brad Sills raised the price target on the stock to $400 from $350 and kept a Buy rating on the shares. Looking ahead, the advisory says the data points to improving trends in Q3 and Bank of America is raising its target on what it calls the top data platform ahead of earnings.
10. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 52
Digital Realty Trust, Inc. (NYSE:DLR) brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. On November 25, DataBox, a Croatian telecom and IT services provider, announced that it had acquired the local cloud business of Digital Realty. DataBox aims to strengthen its position as a cloud services provider in the region through the purchase. Earlier this year, Digital Realty Trust had announced the expansion of an existing data centre in Zagreb, ZAG1, with the addition of 1,600 square meters of ICT and technical space.
9. 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. Networking company Adtran recently announced that it would be partnering with Dell to support the growing artificial intelligence networking needs of the US federal government. The partnership combines Adtran’s optical, packet, and software networking solutions with Dell’s AI-driven infrastructure to accelerate AI deployments across federal agencies.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. On November 25, Bernstein analyst Stacy Rasgon maintained a Market Perform rating on the stock with a price target of $25. In an investor note, the analyst underlined that the PC channel had now started to show signs of normalization. Rasgon added that Intel had been incentivizing sales in recent quarters, but did not report as much incentivizing in the third-quarter, suggesting the company is working to get its channel inventory back in line. He added that Intel was still struggling in the AI accelerator market and would ship less than $500 million in Gaudi AI units this year.
7. 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 25, the company announced the release of Amuse 2.2 Beta, an update that comes with support for Stable Diffusion 3.5. This enhances the image quality for Ryzen AI processors and Radeon graphics. The updates essentially improve the image quality for users that power the processors for heavy workloads. Per the company, users can explore these enhancements by downloading Amuse on an AMD Ryzen AI 300 Series device and adjusting the quality settings.
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. Jeff Koch, an analyst at the semiconductor research and consulting firm SemiAnalysis, recently told news platform Business Insider that chips made in TSM factories in the US are expected to be one to two levels behind the company’s more advanced Taiwan-made chips. Similarly, Stephen Ezell, the vice president for global innovation policy at the Information Technology and Innovation Foundation, also recently told the publication that by the time the TSM Phoenix factory starts making 2nm chips, he would expect the company to be producing even more advanced chips in Taiwan.
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. Latest reports, published by tech news platform NoMusica, claim that Google researchers have made a major breakthrough in quantum computing using artificial intelligence. Per the report, the new system, named AlphaQubit, can reduce errors in quantum computers, making them more reliable for real-world use. AI strategies employed by Google identify and correct errors in quantum computers with high accuracy, reducing them by up to 30% compared to older methods.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 25, Jensen Huang, the CEO of the firm, appeared to acknowledge that LLMs, the foundations upon which AI applications rest, are not developed enough for people to trust them. In an interview at a Hong Kong university, Huang said artificial intelligence does not provide the best answers and that the world is still several years away from an AI we can largely trust. Huang said more computations were needed before AI could get to that level.
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. The company has become one of the most important AI enablers across the globe through the development of Llama, a family of autoregressive large language models (LLMs) released by Meta AI starting in February 2023. Llama is built on an open-source model and other companies are now starting to come up with competitors. Samsung recently launched Gauss-2 to rival Llama. The development is important as Samsung plans to launch AI-powered XR smart glasses in 2025, competing with Ray-Ban Meta glasses.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 25, information technology company LTIMindtree announced that it would be partnering with tech giant Microsoft to usher in a new era of AI-driven transformation. The collaboration would allow clients to fast-track the adoption of AI solutions and transform ambitious AI visions into actionable strategies. Under the deal, Microsoft and LTIMindtree will collaborate to create a joint go-to-market strategy and make joint investments in AI-powered solutions.
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, published by news publication Bloomberg, suggest that the recent $4 billion investment by the tech titan into AI startup Anthropic is part of a larger plan to make the Neuron SDK, the software used to run AI workloads on the chips, more appealing. Per the report, convincing customers to switch from rival NVIDIA would require hundreds of hours of development time, and Anthropic teams working directly with AWS personnel would help bridge this gap.
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.
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.
