xAI, the AI startup owned by Elon Musk, is raising more than $6 billion at a $50 billion valuation, per a report by news platform CNBC. The bulk of this money, nearly $5 billion, will be raised through sovereign funds in the Middle East. The funding will be used to purchase 100,000 NVIDIA chips, according to the news outlet. xAI plans to build a supercomputer with these chips. This supercomputer would then be integrated with other Musk companies, most notably Tesla, as plans to improve Full Self Driving continue at a rapid pace.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
CNBC claims that the billionaire has started working closely with Donald Trump, the president-elect, on the approach of the new White House administration to AI and tech more broadly. Trump plans on rebranding the CHIPS Act and repealing the Executive Order on AI, two major AI initiatives of US President Joe Biden. The technology world has been dealing with the impact of a change in the US presidency, as Trump is widely expected to increase tariffs on firms doing business with China. He is also expected to urge tech firms in the country to relocate manufacturing operations from overseas to the US.
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).
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AI Updates Taking Wall Street By Storm
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 14, Baird analyst Andrew Wittmann raised the price target on the stock to $47 from $46 and kept a Neutral rating on the shares. The advisory said results came in just ahead of expectations closing out a strong year for the company. Initial FY2025 guidance bracketed the in-place revenue but the midpoint was just under consensus.
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. The company recently reported earnings for the third quarter of 2024, posting earnings per share of $3.50, beating analyst expectations by $0.76. The revenue over the period was close to $6 billion, up more than 15% compared to the revenue over the same period last year and beating market estimates by $280 million.
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. On November 15, Monness Crespi upgraded the stock to Buy from Neutral with a $135 price target. Few software companies have experienced a fall from grace as spectacular as Twilio with the stock down 79% from its peak and holding the lowest enterprise-value-to-revenue multiple among the analyst’s coverage, the advisory told investors. However, heading into 2025, the advisory believes Twilio is on course to extend its recovery and argues that the stock’s valuation remains attractive.
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 the opening of a new facility in Atlanta. John Whittle, the CEO of the firm, said that the new facility would become a global innovation hub and serve as a base for the growing customer base for the company in the region.
11. Intel Corporation (NASDAQ:INTC)
Market Capitalization: $107 Billion
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest reports from media outlet Globes suggest that after a massive layoff in Oregon, the Israeli branch of the chipmaker has also started laying off employees. The company is the largest private employer in the Middle Eastern country. Per the reports, nearly 1,000 employees have so far left the chipmaker in this layoff drive. Intel is undergoing a massive restructuring as it aims to compete with other chip firms and rebrand as an AI-first chipmaker.
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. The company recently showcased a demo featuring the Arm Ethos-U85, a small, low-power platform capable of running generative AI. In the demo, a user inputs a sentence, and the system generates an extended children’s story based on it. The system is trained on a small language model.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Market Capitalization: $185 Billion
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Financial Express recently reported that Gautam Sheoran, a senior executive at the company, has said that 5G tech is a game-changer in terms of performance and capability. The launch of wireless 5G services in India has made it easier for companies to offer AI applications on smart devices. These applications typically need to process data at very fast speeds. In his interview with Financial Express, Sheoran also noted that 5G wireless fibre technology was addressing challenges posed by traditional wired networks, especially in densely populated urban areas.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. Latest reports from tech website Smartphone Magazine indicate that the company is planning to enter the smartphone market, and is in talks with phone makers to integrate the Ryzen processors, which are AI-capable, into smart handheld devices. AMD is well-known for powering PCs, but the recent foray of QUALCOMM, a phone-first semi firm, into the PC world, might be one of the reasons behind the AMD move, per the report.
7. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $268 Billion
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. Latest reports indicate that Japanese semi firm Rapidus is set to receive the first shipment of the advanced EUV lithography equipment in mid-December. These EUV machines are a specialty of ASML and the Dutch semi firm has plans in place to establish a service center in Chitose City to support future growth operations of Rapidus. The Japanese firm plans to install more EUV machines at the Chitosesemi facility in the coming months.
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. The shares of the company have been on a downward trend over the past few days despite recent reports that it had secured over $6.6 billion in funding through the CHIPS Act from the US government. Investor concerns around the incoming White House administration, which has taken several swipes at TSM during the campaign trail, are one of the major reasons behind this. Trump has asked companies to relocate advanced chip manufacturing to the United States several times over the past years.
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. Latest reports indicate that Rokid, a Chinese product-oriented platform company dedicated to human-computer interaction, is set to release next-generation smart glasses rivaling Meta’s AI-powered Ray-Bans, at an event on November 18. The Rokid Glasses will be released at the Rokid Jungle 2024 event in Hangzhou. These glasses integrate cutting-edge artificial intelligence with augmented reality.
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 new AI features for the Amazon Fire tablets. The features were included in the latest update for the Fire HD 8, Fire HD 8 Plus, Fire HD 10, and Fire HD Max 11. One of the notable new AI features is the writing assistant, which works as part of the device keyboard and is compatible with any app on your Fire tablet, including e-mail, Word documents, and social media. Other new features include Webpage Summaries and Wallpaper Creator.
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. The dominance of Google in Internet Search has been threatened in recent weeks, amid a DoJ trial and the emergence of AI alternatives. On November 15, JPMorgan maintained an Overweight rating on the stock with a price target of $212. In an investor note, the advisory said it expects the DOJ’s final proposed remedies in the ongoing search commercial agreements trial to come next Wednesday, November 20, and heading toward that date the firm says that sentiment on Alphabet shares remains mixed. JPMorgan believes the final proposed remedies next week carry headline risk, but it will also be positive to have some clarity on the worst case remedies. Even after this, there are major steps ahead, including the Judge’s final decision that likely comes in August of next year, Google’s appeal, and ultimately a strategic decision from Apple on how it will proceed if Google can no longer be the exclusive default search provider on Safari.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. Latest reports indicate that Tesla owner Elon Musk, who is also the founder of AI startup xAI, has amended a lawsuit he filed against OpenAI, another AI startup, to include Microsoft. The latest complaint alleges, per CoinGape, that OpenAI and Microsoft are leveraging their combined dominance to stifle competition in the AI industry. The complaint accuses the companies of recruiting AI talent through extravagant salaries, reportedly spending $1.5 billion for a workforce of 1,500.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 14, Oppenheimer analyst Rick Schafer raised the price target on the stock to $175 from $150 and kept an Outperform rating on the shares ahead of quarterly results. The advisory sees upside to Q3 results and Q4 outlook led by sustained CSP/enterprise demand for AI accelerators. Further, Oppenheimer sees meaningful acceleration in Blackwell Q1. Conversations with investors suggest buyside modeling 5-6M GPUs next year. The advisory believes Nvidia is best positioned in AI, benefiting from full-stack AI hardware/software.
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.
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