The leaders of the United States and China both participated in the recently held APEC Summit in Peru, with artificial intelligence dominating headlines again. Latest reports from Techopedia suggest that the two countries have in principle reached an agreement that neither nation would delegate control of nuclear weapons to artificial intelligence systems. White House National Security Advisor Jake Sullivan said in a statement that the agreement was not a reaction to imminent threats but a proactive measure acknowledging the leadership of both nations in AI development. Sullivan further noted the agreement reflects how, even amidst competition, the US and the PRC can work responsibly to manage risks.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, AI startups continue to draw the attention of investors. Crunchbase data shows that AI companies raised close to $19 billion in the third quarter this year, representing 28% of all venture funding. The quarter also witnessed the biggest venture capital deal of all time, with OpenAI raising more than $6.6 billion at a valuation of over $150 billion, making it the most private firm in the world. The data also shows that 44 AI startups in the US raised $100 million or more in funding. Even as concerns over return on investment in the AI space continue to grow, the VC appetite for AI firms seems far from over.
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).
Stocks
AI News Updates Wall Street Is Monitoring
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 13, the company posted earnings for the fourth fiscal quarter, reporting earnings per share of $0.38, beating analyst expectations by $0.01. The revenue over the period was $1.37 billion, up more than 8% compared to the revenue over the same period last year and beating market estimates by more than $239 million.
14. Super Micro Computer, Inc. (NASDAQ:SMCI)
Market Capitalization: $14 Billion
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. Finance news publication Barron’s recently reported that Super Micro Computer is set to submit a plan early next week that would allow the server firm to remain listed on the NASDAQ stock market. A failure to file the latest quarterly earnings report on time has threatened the position of the firm on the stock market. If the company is delisted, it would be the second time. It was delisted in August 2018 for a delay in filing reports on its finances. It regained its listing in January 2020.
13. Coherent Corp. (NYSE:COHR)
Market Capitalization: $16 Billion
Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide. The firm has emerged as an important player in the AI space, marketing 800G transceivers that read and write data at a speed of 800 gigabytes per second. The company recently posted earnings for the first fiscal quarter, reporting earnings per share of $0.74, beating market estimates by $0.13. The revenue over the period was $1.35 billion, beating analyst expectations by $30 million.
12. Hewlett Packard Enterprise Company (NYSE:HPE)
Market Capitalization: $27 Billion
Hewlett Packard Enterprise Company (NYSE:HPE) is a Texas-based multinational technology company founded in 1939. The company offers high-performance computing (HPC) systems, AI software, and data storage solutions that help run complex AI workloads. Investment advisory Citi recently penned an investor note on the AI industry, detailing that HPE would be one of the firms, alongside Dell Technologies, that benefit from improving artificial intelligence order momentum and competitive intensity in the quarters ahead given Super Micro’s woes.
11. 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 GenAI updates to several products. These include FortiNDR Cloud and Lacework FortiCNAPP programs. The former integrates GenAI to accelerate threat coverage analysis, while the latter simplifies investigations by using AI to streamline the identification, contextualization, and response to security alerts in cloud-native applications.
10. Dell Technologies Inc. (NYSE:DELL)
Market Capitalization: $95 Billion
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. On November 15, tech platform Gadget reported that Haidi Nossair, senior director for Dell’s client solutions group, said that the present year represented a revolution for the PC industry as opposed to the evolutionary years of the past. Nossair talked about the NPU lineup of products from Dell, which are different from CPUs and GPUs, highlighting that NPUs help manage AI-related tasks and collaboration tools, enhancing energy efficiency and extending battery life of products, reducing charging cycles, and contributing to sustainability.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Market Capitalization: $185 Billion
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Latest reports from China-based Wellsen XR Research contend that Samsung has finalized plans to launch AI smart glasses. The company plans to produce close to 500,000 units of the new product in the first batch. The research note adds that these Android-based XR glasses will launch by the third quarter of next year. These glasses will be equipped with QUALCOMM processors, per the report.
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 PC Guide indicate that the AI-capable AMD CPUs are topping best seller charts on ecommerce platform Amazon. Processors from AMD rival Intel, meanwhile, have failed to make the top ten best-selling processors list. Businesses also prefer AMD over Intel. On November 14, portable gaming console firm Ayaneo announced that the latest console from the firm was going to be powered by the AMD Ryzen AI 9 HX 370 processor.
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 16, Robbins Geller Rudman & Dowd LLP, a law firm that specializes in complex securities litigation, announced that purchasers or acquirers of ASML ordinary shares between January 24, 2024 and October 15, 2024, have until January 13, 2025 to seek appointment as lead plaintiff of a class action lawsuit. The lawsuit charges ASML and certain of ASML’s top current and former executives with violations of the Securities Exchange Act of 1934.
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 company was recently granted close to $6.6 billion in funding through the CHIPS Act. US government officials claim that the money would help create 20,000 construction jobs and 6,000 high-paying manufacturing jobs in Phoenix. TSM chips manufactured at the new TSM plant in Arizona would be used in smartphones, cars, satellites, weapons systems and other electronics. US Senator Mark Kelly, who helped negotiate the CHIPS and Science Act, has said that Arizona is set to become one of the world’s key centers for leading-edge microchip manufacturing.
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. Yiqi Zhao, the head of Product Design at Meta Reality Labs, recently attended the GenAI Summit Silicon Valley 2024. During her session, per tech website Le Lezard, the executive shared her vision of human-AI collaboration, noting that AI would augment designers’ skillsets in the future, allowing them to explore new frontiers in digital artistry without sacrificing control or creativity. Zhao stressed that long-term wearability and user well-being were cornerstones of future product design in human-computer interactions.
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. Latest reports from Israeli media indicate that Amazon and Google are competing for a $80 million tender to construct the first AI supercomputer in the Middle Eastern country. Per the reports, the Israel Innovation Authority set to split the costs equally with the winning tech giant. The reports further claim that the project will equip Israel with between 1,000 and 2,000 NVIDIA H100 graphics processors dedicated to training language models.
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 company has been taking steps to integrate AI into workspace tools. As part of this plan, it recently released updates to the Google Docs platform. The new updates let users use Gemini, powered by the advanced Imagen 3 model, to create custom inline images and cover designs directly within their documents. Tech website Neowin reports that the features began rolling out to Gemini Business, Enterprise, Education, and Education Premium users in rapid-release domains on November 15.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 14, the company announced that NASA had worked with Microsoft to develop an AI-driven customer copilot, called Earth Copilot, which could simplify data access and encourage a wider range of users to interact with its Earth Science data. Per the tech giant, the AI model developed by NASA and Microsoft leverages Microsoft’s Azure cloud platform and advanced AI capabilities to transform how users can search, discover and analyze NASA’s geospatial data.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Masayoshi Son, the Japanese billionaire technology entrepreneur, investor and philanthropist, recently gave an interview to American news platform CNN where he talked about the AI industry. Son opined that the ongoing spending trends in artificial intelligence would only accelerate in the years ahead, benefiting NVIDIA and its GPU chip business, which has been the driving force behind most AI advancements. He also said he thought NVIDIA was still undervalued because the future was much bigger. Son also predicted that AI superintelligence, the next step after AI, would require upwards of 200 million GPU chips and $9 trillion in total capex spending by companies.
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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