In this article, we discuss the 15 AI news updates worthy of investor attention.
The advent of artificial intelligence has shaken up the Search business on the internet, a domain where Google has long reigned supreme. With AI models from startups like OpenAI, companies are offering natural language search capabilities to users that are cutting away Google’s dominance in the Search market. Latest reports from news publication Bloomberg suggest that Google now faces added pressure with authorities in the US reportedly pushing the firm to spin off its Chrome browser business. The report further claims that authorities are also planning to recommend to a federal judge that Google face antitrust requirements related to AI and its Android mobile operating system.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The measures are a byproduct of a multilayer case that the Justice Department has built against Google. The government won the first round in the case earlier this year, which sought to prove that the tech giant has a web search monopoly in the US. In the ruling on this case, federal judge Amit Mehta ruled that Google broke antitrust laws in both online search and search text ads markets. Per the Justice Department, the case against Chrome stems from the fact that the browser is a key access point through which many people use Google Search. Chrome controls about 61% of the browser market in the US, according to web traffic service StatCounter.
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 adviser looking over a portfolio of securities and stocks.
15. SiTime Corporation (NASDAQ:SITM)
Market Capitalization: $4 Billion
SiTime Corporation (NASDAQ:SITM) provides silicon timing systems. The firm markets micro-electromechanical systems that are designed to improve performance in data centers, 5G networks, and AI-driven applications. On November 7, Roth MKM analyst Suji Desilva raised the price target on the stock to $230 from $205 and kept a Buy rating on the shares. The company reported an upside in the quarter and guidance with strong growth seen across all key segments, and the advisory expects SiTime’s timing content to benefit from outsized data center-related AI infrastructure build outs, the analyst told investors in a research note.
14. 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 announced the production release of high-speed indium phosphide (InP) photodiodes. These are designed for use in the next generation of 800G and 1.6T transceivers with 200 Gb/s PAM4 optical lanes. In recent months, the speed at which transceivers made by firms like Coherent can transmit data between computers has become very important to the functioning of AI data centers.
13. Symbotic Inc. (NASDAQ:SYM)
Market Capitalization: $17 Billion
Symbotic Inc. (NASDAQ:SYM) is an automation technology company that engages in developing technologies to improve operating efficiencies in modern warehouses. The AI business focuses on automating supply chain and warehouse operations. On November 18, the firm posted earnings for the fourth fiscal quarter, reporting earnings per share of $0.05, beating market estimates by $0.02. The revenue over the period was $576 million, up 47% compared to the revenue over the same period last year and beating estimates by $106 million.
12. NXP Semiconductors N.V. (NASDAQ:NXPI)
Market Capitalization: $57 Billion
NXP Semiconductors N.V. (NASDAQ:NXPI) makes and sells various products related to semiconductors. NXP offers a comprehensive portfolio of microcontrollers and processors optimized for AI and machine learning applications in automotive, smart industrial and IoT industries. On November 16, investment advisory Oppenheimer released an investor note on the semiconductor industry, detailing that the findings of a technical analysis indicated that NXP Semiconductors stock should be sold by investors based on recent trading patterns. The advisory also downgraded the semiconductor names as a group to Market Weight from a previous rating of Overweight based on recent price movements
11. Equinix, Inc. (NASDAQ:EQIX)
Market Capitalization: $89 Billion
Equinix, Inc. (NASDAQ:EQIX) is a California-based real estate trust that operates data centers and other technology assets. The firm helps AI businesses host AI infrastructure for AI model development and offers network-rich interconnected locations for AI inference. On November 19, Barclays raised the price target on the stock to $822 from $810 and kept an Equal Weight rating on the shares. The advisory updated models in the real estate investment trust and communications infrastructure space post earnings.
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 18, Mizuho analyst Vijay Rakesh maintained an Outperform rating on the stock and raised the price target to $155 from $135. In an investor note, the analyst cited increased opportunities for the company in the artificial intelligence server market. The analyst projects the firm gaining share in AI servers as capex percolates and NVDA GPU supply expands to Tier 2 CSPs and Enterprise/ Sovereign customers.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Market Capitalization: $185 Billion
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Latest reports, published by tech website Android Police, suggest that South Korean electronics giant Samsung is set to launch the latest flagship Galaxy smartphones powered by QUALCOMM processors. One of the flagship new features in this phone would be a Gaming Assist that relies on QUALCOMM’s Adreno Frame Motion Engine 2 for frame interpolation and upscaling. Per the chipmaker, the engine provides realistic detail by generating high quality scenes and doubling the frame rate while maintaining the same power consumption.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. On November 18, Barclays analyst Tom O’Malley discussed AMD as part of a larger note on the chip market, noting that orders for AMD’s MI300 and 325 AI accelerators recently up-ticked for the fourth quarter, but there is the expected sequential decline in the first quarter. He also noted that early signs for AMD’s Xilinx unit appear up double-digits year-over-year, but may be weaker to start the year.
7. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $268 Billion
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. After recently reaffirming guidance numbers for the rest of the fiscal year despite mounting pressures on China business, the chipmaker managed to reassure analysts about future earnings potential. For example, Kevin Wang of Mizuho Securities noted that the first glance looks positive, adding that some investors had expected a cut in guidance. Wang further added that management remains bullish on ASML’s sales and profitability growth.
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. Investment advisory Bank of America recently released an investor note on the US-China trade tussle, highlighting the potential impact of increased tariffs on international goods entering the US. In the note, TSM was identified as one of the Asian firms with the most exposure to US revenue. Per the analysis carried out by the bank, TSM was reliant on the US for 65% of its revenue.
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. Hyperscalers like Meta have come under increased scrutiny in recent months over their use of data to train AI models. Regulators are tightening their policies around the usage of data on social media platforms. Latest reports suggest that the competition regulator in India has imposed a fine of more than $25 million on the social media giant over the collection and sharing of user data with other Meta companies through a WhatsApp policy change in 2021.
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. On November 15, Amazon Web Services, the cloud department of the firm, released a blog post that detailed how the cloud service of the tech giant would help companies comply with the recent White House National Security Memorandum on AI. A lot of companies use AWS for their AI needs, and Amazon has released a blog post to reassure them that the service has the capability to adapt to changes, should the need arise.
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 16, investment advisory Morgan Stanley released an investor note on the GenAI market, highlighting that the results of a survey indicated that the use of GenAI for research was still the most common use case, but commercial behaviors, such as shopping, looking up recipes or travel, were rising. The advisory further noted that while travel planning remains lower – less than 20% – the advisory expects product innovation in 2025, like digital travel planners already shown by Google, to potentially drive further behavior change.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 18, the company announced it had opened an artificial intelligence and robotics base in Japan. The base was developed in partnership with Japanese universities and research institutes, as well as companies such as Kawasaki Heavy Industries and Nissan Motor. The tech giant has plans in place to combine AI with strength in robotics and put the results into practical use in the Asian country, per Japan Times. Microsoft has also prepared a program to train personnel who will support the learning of AI-related skills.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Global financial market experts are of the opinion that a plan by incoming US President Donald Trump to impose tariffs on China imports is unlikely to harm NVIDIA. Tatiana Darie, a market expert, has opined for news publication Bloomberg that in addition to reducing exposure to China in recent years, the customer base of the chipmaker lies in the US, with hyperscalers like Microsoft, Google, Amazon, and Meta lining up to buy NVIDIA chips for their AI ventures.
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.
