In this article, we discuss the 15 AI news you should not ignore.
Even as the United States pursues a tougher trade policy towards China, the latest indication being the tightening of export restrictions on advanced AI chips, companies from the Asian country continue to debut on the US stock market with elevated investor interest. For example, Pony AI, a China-based autonomous vehicle technology company, recently held an initial public offering that saw shares jump 15% in the market debut, pushing the valuation of the firm to more than $5.25 billion. News agency Reuters reports that the successful debut also suggested a positive investor approach to China-based firms.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The IPO price of the stock was $13 per share but the depositary shares opened at $15 in their Nasdaq debut, per the report. Even after the stellar debut, the new company faces several challenges, the report added, including public skepticism about autonomous vehicles, data privacy concerns, and competition from companies, including Tesla which has promised to roll out driverless ride-hailing services to the public in California and Texas next year. The company has said that its US operations will remain limited in scope for the foreseeable future.
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 observing a complex fiber-optic networking set-up in a laboratory.
AI News You Should Not Ignore
15. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 15
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 27, KeyBanc analyst Ken Newman downgraded the stock to Sector Weight from Overweight following the company’s announcement that it found additional accounting errors in its revenue recognition related to cost overruns. While the complete picture of the impact won’t be available until the 10-K is officially filed in the next two weeks, the advisory says it gets the sense that this restatement is purely an accounting issue and not indicative of a change in customer behavior or order activity.
14. Semtech Corporation (NASDAQ:SMTC)
Number of Hedge Fund Holders: 32
Semtech Corporation (NASDAQ:SMTC) develops, manufactures, and markets analog and mixed-signal semiconductors and advanced algorithms. On November 26, Piper Sandler analyst Harsh Kumar raised the price target on the stock to $75 from $60 and kept an Overweight rating on the shares. The advisory notes the company exceeded Street expectations on its Q3 results and January guidance. Trends continue to point to strong upticks in revenues driven primarily by the data center product portfolio, Piper added.
13. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. Even as the company faces a potential delisting on the Nasdaq stock exchange, hedge fund titans are loading up on the stock. Latest disclosures reveal that Ray Dalio of Bridgewater Associates has upped the stake of his hedge fund in the server maker by 922% compared to the filings for the previous quarter. The present stake comprises over 1.6 million shares worth more than $67 million.
12. 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. Following third quarter earnings results, the firm announced it is rebranding as AI-first platform. On November 26, UBS analyst Karl Keirstead raised the price target on the stock to $90 from $75 and kept a Neutral rating on the shares. Zoom has conveyed a focus on growth acceleration, but it is not clear that the Q3 print will infuse confidence in a material acceleration in fiscal 2026, the analyst told investors in a research note. The outlook for Q4 revenue growth of 3% and the statement that 3% serves as an initial placeholder for FY26 growth likely won’t fuel the bull case for a material growth inflection, even if Zoom is being a bit conservative, UBS argued.
11. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 55
Equinix, Inc. (NASDAQ:EQIX) is a California-based real estate trust that operates data centers and other technology assets. As AI data center companies come under increased pressure to use sustainable energy sources for their data center power needs, Equinix recently announced that it had issued an additional €1.15B in green bonds, which builds on more than $750 billion offerings in green bonds that Equinix completed in September this year. With these latest issuances, Equinix will have issued a total of $6.9 billion of green bonds, making it a top 5 issuer of green bonds in the US. The firm said it will utilize the green bonds to further its sustainability initiatives and enhance the operational efficiency of its global business.
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. On November 27, Citi lowered the price target on the stock to $156 from $160 and kept a Buy rating on the shares. The stock traded down 10% post earnings as reported revenue and guidance missed expectations, largely on artificial intelligence revenues and more tempered PC, the advisory told investors in a research note. However, Citi says Dell remains confident in continued growth drivers across all segments with a robust AI pipeline, mainstream server recovery gaining momentum, and a PC recovery taking hold.
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. On November 27, Evercore ISI raised the price target on the stock to $280 from $254 and kept an Outperform rating on the shares. The advisory believes guidance contemplates a cautious supply chain, which has undergone seven quarters of inventory correction and is heading to below normal levels. This, combined with its view that Analog is shipping about 22% below consumption, leads the advisory to contend that the company should be set up for a material snapback in demand starting in the January or April-end quarter.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest reports, published by news platform news 5 Cleveland, suggest that the Intel plant in Ohio, over which the firm broke ground more than two years ago, is set to be the receipt of $1.5 billion in federal funding through the close to $8 billion CHIPS Act grant recently provided to Intel. Per the federal authorities, the new plant will be functional by 2030. Analysts believe the delay in making the Ohio plant operational is one of the reasons why the initial $8.5 billion grant for Intel was reduced to below $8 billion.
7. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. The firm is harnessing artificial intelligence to streamline and strengthen cyber protection. On November 27, Oppenheimer raised the price target on the stock to $410 from $365 and kept an Outperform rating on the shares. The advisory notes CrowdStrike reported a strong Q3, beating top-/bottom-line estimates, while maintaining strong gross retention and module adoption following the 7/19 outage. Oppenheimer expects the stock to remain range-bound until investors gain greater clarity around ARR comments.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. A new report from tech news platform PC Watch shows that the latest chips developed by Zhaoxin, a Chinese joint venture between Via Technologies and Shanghai Municipal Government, are faster than their predecessors but lag years behind the technology of American chipmakers like AMD. Chinese and US firms are engaged in a battle for AI supremacy as the US government steps up efforts to restrict export of advanced chips to China, forcing Chinese businesses to turn to domestic manufacturers that are not equipped for the task.
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, New York-based legal news service Law360 reported that the judge overseeing the search monopolization case against Google suggested in a DC federal court recently that artificial intelligence was shifting the market and would likely play a role in the remedies that the court imposed on Google allegedly violating antitrust laws in the country. The federal government is pursuing a breakup of Google in the case, pushing the tech giant to divest the Chrome browser business.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Merely a few hours after Jenser Huang, the CEO of the firm, said that the chipmaker was working to certify the AI memory chips of Samsung, the South Korean electronics giant has announced that it would be replacing the heads of its memory and foundry semiconductor businesses. Samsung has struggled to keep pace with other chip firms in the race to develop AI chips in recent months, as rival Apple leaps ahead in the domain.
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. Under the global Llama 3.1 Impact Grants program, the company recently hosted the first Llama Hackathon in Austin. AI firms AITX and Cerebral Valley partnered with the tech giant in the initiative. Local news outlets reported that Meta also gave live demonstrations of the Ray-Ban Meta smart glasses and Meta Quest 3, both of which use Meta AI to serve consumers.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 27, news platform CNBC reported that Japanese multinational Softbank was mulling a $1.5 billion investment in Microsoft-backed OpenAI through a new tender offer. Per the report, OpenAI employees will have the option of cashing out of their shares worth around $1.5 billion in a tender offer to SoftBank. The report further highlights that employees at the startup have till December 24 to decide on participating in the tender offer. Softbank recently invested $500 million in a $6 billion funding round for the AI startup that valued OpenAI at over $157 billion.
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, the company announced that AWS Partner Assistant, a generative AI–powered virtual assistant built on Amazon Q Business, was now available for partners in AWS Partner Central and the AWS Marketplace Management Portal. Per the tech giant, the assistant makes it easier to get quick answers to common questions. It reduces the need for manual searches by generating real-time guidance and concise summaries from guides and documentation, the firm added.
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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