In this article, we discuss the 15 AI news updates Wall Street is monitoring.
AI companies in the United States, many of whom have extensive business relations in China, are waiting anxiously for President-elect Donald Trump to assume office and announce possible changes to American policies towards China that will provide greater clarity on future US trade with the Asian country. Top executives from US-based firms were in China recently to meet with Chinese business leaders amid rumors of a massive spike in tariffs on goods being imported to Washington from Beijing. Latest reports from news platform Axios contend that Donald Trump is considering the appointment of an AI czar in the White House to coordinate federal policy and governmental use of artificial intelligence
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Per the report, billionaire Elon Musk, who has publicly backed Trump during the 2024 election and is rumored to have a key influence over the President-elect on AI policy, will not be the AI czar. However, the report adds that Musk is nevertheless expected to be involved in shaping the future of the debate and use cases related to AI. xAI, the AI startup Musk founded in 2023, recently raised $5 billion in a funding round. The latest round of funding brought the valuation of the startup to over $50 billion. xAI is competing with OpenAI, the ChatGPT maker with a valuation of more than $157 billion.
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 News Updates Wall Street Is Monitoring
15. Semtech Corporation (NASDAQ:SMTC)
Number of Hedge Fund Holders: 32
Semtech Corporation (NASDAQ:SMTC) develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. The company recently posted earnings for the third quarter, reporting earnings per share of $0.26, beating market expectations by $0.03. The revenue over the period was more than $236 million, up close to 18% compared to the revenue over the same period last year and beating analyst estimates by $4.74 million.
14. 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. On November 26, Baird analyst Richard Eastman raised the price target on the stock to $305 from $290 and kept an Outperform rating on the shares. The advisory said its Investor Day presentations reinforced their view the company is very well positioned to capture manufacturer investments to drive higher productivity, resiliency and quality.
13. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 39
Zoom Video Communications, Inc. (NASDAQ:ZM) provides a unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. On November 26, Benchmark raised the price target on the stock to $97 from $85 and kept a Buy rating on the shares. Even as it remains synonymous with video conferencing, Zoom announced it is dropping Video from its company name as it emphasizes AI in a Zoom 2.0 approach and emerges increasingly as a comprehensive collaboration platform, the advisory told investors.
12. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 47
Elastic N.V. (NYSE:ESTC) is a search artificial intelligence company that delivers hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments. On November 25, Barclays raised the price target on the stock to $138 from $105 and kept an Overweight rating on the shares. The company’s better than consensus results across the board in Q2 should set a positive tone for investors, as Elastic appears to be moving past its go-to-market changes from Q1, the advisory told investors in a research note. Barclays thinks the company’s outlook creates a favorable setup into the back half of the year.
11. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 49
NRG Energy, Inc. (NYSE:NRG) operates as an energy and home services company in the United States and Canada. The firm is emerging as an important AI firm because it produces and sells electricity, vital for powering the AI needs of companies and consumers alike. On November 26, Jefferies analyst Julien Dumoulin-Smith upgraded the stock to Buy from Hold with a price target of $113, up from $93, citing more confidence in the cross-selling thesis with upside to both estimates and valuation. The advisory is increasing its 2029 EBITDA estimate to $4.5 billion, up about $230 million from its prior estimate and almost $1 billion higher than the sleepy consensus, to more fully reflect the company’s $750 million growth plan.
10. 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. The company is expected to announce third quarter earnings results soon. Wall Street expects the company to deliver earnings per share of $2.06, up 9.6% year-on-year, and a revenue of $24.72 billion, up 10.9% year-on-year. The firm has beaten EPS estimates and revenue estimates nearly 88% of the time over the past two years.
9. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 63
Analog Devices, Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. The firm recently posted earnings for the fourth fiscal quarter, beating analyst expectations on earnings per share and revenue. Looking ahead, Analog Devices forecast first quarter fiscal 2025 revenue at a mid-point of $2.35 billion, plus or minus $100 million. The firm showed stronger-than-expected results in the auto, consumer and comms segment, but industrial demand continued to lag for semiconductor companies.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. On November 26, the company announced that it had finalized a deal with the US government on terms to award the company up to $7.86 billion in direct funding for its commercial semiconductor manufacturing projects under the US CHIPS and Science Act. The award will support Intel’s previously announced plans to advance semiconductor manufacturing and advanced packaging projects at its sites in Arizona, New Mexico, Ohio and Oregon. Intel also plans to claim the US Treasury Department’s Investment Tax Credit, which is expected to be up to 25% of qualified investments of more than $100 billion.
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 26, telecom news platform Capacity reported that the chipmaker had released the latest version of its ROCm software stack for GPUs, adding tools to cut down AI development times. The report underlined that Version 6.3 of the open source software stack aims to provide better performance and scalability for AI and high-performance computing workloads on AMD Instinct GPUs, like the new MI325X.
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. On November 26, Taiwan-based news channel TVBS reported that Mark Liu, the former chairman of the chipmaker, had expressed skepticism about the potential impact of US President-elect Donald Trump on the semiconductor industry in Taiwan. Liu said that tariffs would not affect the semi industry in Taiwan, adding that the US and Taiwan had a symbiotic relationship wherein the US focused on design while Taiwan focused on manufacturing.
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. On November 26, the company announced that it would be partnering with a global non-profit named Digital Promise to co-design and establish frameworks for evaluating AI-powered learning tools. Per the tech giant, the partnership aims to address key challenges in education by creating trusted, research-backed technologies that meet the needs of educators and students.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 25, news agency Reuters reported that the chipmaker had unveiled Fugatto, an AI model designed to modify voices and generate new sounds, aimed at music, film, and video game producers. Per the report, the AI model, which stands for Foundational Generative Audio Transformer Opus 1, can create sound effects and music from text descriptions. The ability to modify existing audio is said to set apart Fugatto. It can transform a piano line into a human voice or change the accent and mood of spoken words, the report claims.
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. On November 26, French telecom firm Orange announced that it would be partnering with Meta and AI startup OpenAI to build custom AI models that can understand West African languages not understood by most conversational systems. Under the deal, the telecom firm plans to roll out AI models incorporating two West African regional languages, Wolof and Pulaar, in early 2025.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 26, software firm NowVertical Group announced that it had signed a strategic partnership with Microsoft and launched a Global Center of Excellence to enhance AI-driven data solutions. Per the software company, the collaboration aims to leverage the Azure platform of the latter to drive growth in the generative AI market and expand the reach of the former across various regions.
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. On November 26, electronics company Philips announced that it would be expanding a strategic collaboration with Amazon Web Services to offer the integrated diagnostics portfolio of the former in the cloud, including radiology, digital pathology, cardiology, and AI advanced visualization solutions. Philips has already successfully transitioned over 150 sites across North America and Latin America to Philips HealthSuite Imaging on AWS.
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.
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