According to a new report by Bloomberg Intelligence (BI), the generative AI market is set for rapid growth, projected to reach $1.3 trillion within the next decade. The market is expected to expand at a CAGR of 42%, initially fueled by training infrastructure and gradually shifting to inference devices for large language models (LLMs), digital ads, specialized software, and services in the medium to long term. Rising demand for generative AI products could generate an additional $280 billion of new software revenue, driven by specialized assistants, new infrastructure products, and copilots that accelerate coding.
READ ALSO: 10 AI News Investors Should Not Miss and Top 10 Trending AI Stocks in Q4
“The world is poised to see an explosion of growth in the generative AI sector over the next ten years that promises to fundamentally change the way the technology sector operates. The technology is set to become an increasingly essential part of IT spending, ad spending, and cybersecurity as it develops”.
-Mandeep Singh, Senior Technology Analyst at Bloomberg Intelligence
The AI world continues to buzz with recent advancements and breakthroughs. On October 29, Linkedin Corporate Communications announced the launch of their first-ever AI agent called Hiring Assistant, developed to take on a recruiter’s most repetitive tasks so that developers can steer their focus on the most impactful work. The company has also rolled out a new coaching feature in LinkedIn Learning to help learners practice human skills through interactive scenarios using text or voice.
In other news, Securiti, the pioneer in data security, privacy, governance, and compliance, announced on Tuesday that it has integrated Nvidia’s NIM microservices into its Securiti Gencore AI solution, empowering users in industries to easily and quickly build safe, enterprise-grade generative AI systems, copilots and AI agents by utilizing proprietary enterprise data safely in diverse data systems and apps.
Medicine is another area where AI is driving significant breakthroughs. On Tuesday, October 29, Biotech firm Iambic Therapeutics revealed that it has made a breakthrough artificial intelligence model. The model can radically reduce the time and money needed to develop new drugs. Its new AI drug discovery model is called Enchant, with a white paper published revealing how Enchant demonstrates a high degree of accuracy when predicting how well the human body would absorb certain drugs.
Asia is also making strides to take the lead in the AI race. The Korea Advanced Institute of Science & Technology (KAIST) has unveiled a new Artificial Intelligence method to speed quantum calculations. Professor Yong-Hoon Kim’s team from the School of Electrical Engineering has achieved a world-first; succeeding in accelerating calculations for electronic structure in quantum mechanics using a convolutional neural network (CNN) model.
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15 AI News Investors Should Not Miss
15. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 9
BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides AI-powered decision intelligence solutions for national security, digital identity, supply chain and logistics, enterprise operations, and manned-unmanned teaming in autonomous systems.
On October 28, BigBear.ai Holdings, Inc. (NYSE:BBAI) announced that they have successfully installed the veriScan™, BigBear.ai’s biometric verification solution, at the Denver International Airport. The veriScan is BigBear.ai’s industry-leading facial recognition technology that uses artificial intelligence (AI) to apply human-like sighting capabilities, extracting information from the visual world and gaining high-level insights from digital images or videos. The veriScan™ is now deployed at 14 international departure gates at the airport, streamlining the boarding process for over 46,600 international departing passengers. Using U.S. Customs and Border Protection (CBP)’s Traveler Verification Service, veriScan captures and then transmits the traveler’s image to CBP for identity verification during boarding.
“We are thrilled to see positive results early on from the implementation of veriScan™ at Denver International Airport. I applaud DEN for their dedication to focus on security protocols using innovative technologies across 13 airlines.”
-Kevin McAleenan, President of BigBear.ai.
14. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) is a British semiconductor and software design company engaged in the design and manufacture of semiconductor technology and other related products. The company demonstrates leadership in mobile and AI technology with products like the Axion processor, Ethos-U85, and Windows on Arm.
On Tuesday, October 29, Arm Holdings plc (NASDAQ:ARM) reported that it is transforming software development by integrating its compute platform with GitHub, the largest developer community, and further enhanced by the powerful GitHub Copilot. Developers can write, test, and optimize code faster on Arm with the help of Copilot’s AI-powered code suggestions. Incorporating Arm tools in GitHub Actions will allow developers to streamline tasks across applications, from cloud-native web applications to AI solutions while reducing costs and boosting productivity.
13. Reddit Inc (NYSE:RDDT)
Number of Hedge Fund Holders: 39
Reddit Inc (NYSE:RDDT) is an American social news aggregation, content rating, and forum social network. The company has jumped on the AI bandwagon by licensing its data to train AI models, entering into data licensing agreements totaling over $200 million over the coming years.
On Tuesday, October 30, Citi analyst Ronald Josey raised the price target on Reddit Inc (NYSE:RDDT) to $120 from $70 and kept a “Buy” rating on the shares. This comes after the company reported its first quarterly profit and a fourth-quarter revenue forecast above estimates, fueled by its AI content licensing deals and strong digital advertising spending. According to the analyst, the company has reported “impressive” Q3 results with revenue coming in 11% above consensus and EBITDA coming in 57% above the high-end of guidance. The company is also witnessing continued user growth and engagement gains with daily active unique visitors reaching 97M. Citi believes the trends will continue as new ad options are introduced and areas like search, video, and shopping are monetized.
12. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 42
Fortinet, Inc. (NASDAQ:FTNT) is a global US-based cybersecurity company offering cybersecurity and convergence of networking and security solutions worldwide. The leading cybersecurity company integrates artificial intelligence and machine learning in many of its offerings, such as FortiAI, its AI chatbot, and FortiAIOps, an AI/ML solution that collects data and identifies network anomalies.
On Wednesday, October 30, Fortinet, Inc. (NASDAQ:FTNT) announced the general availability of FortiDLP, a next-generation data loss prevention (DLP) and insider risk management solution. By leveraging Next DLP’s innovative technology and its seamless integration into the Fortinet Security Fabric, the new solution strengthens Fortinet’s comprehensive portfolio of DLP capabilities. FortiDLP, an AI-enhanced, cloud-native endpoint data protection solution, will allow customers to address all their data protection needs with a single solution. It is based on the next-generation, cloud-native SaaS data protection platform from Next DLP. Next DLP is a leading provider of insider risk and data protection solutions that Fortinet has recently acquired.
“In an era when data protection is paramount, FortiDLP offers a next-gen solution that combines AI-enhanced detection and insider risk management to secure sensitive information. By leveraging an AI-powered data protection solution with the help of generative AI, security teams can anticipate risks, streamline incident response, and mitigate threats faster than legacy DLP solutions. Protecting your data from both internal and external threats starts with visibility and proactive prevention, and FortiDLP delivers that protection on day one”.
-John Maddison, chief marketing officer at Fortinet.
11. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 61
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational digital communications technology conglomerate that provides information technology and networking services. The company harnesses AI-powered capabilities across its entire product and customer service portfolio.
On October 29, Cisco Systems, Inc. (NASDAQ:CSCO) announced new additions to its data center infrastructure portfolio. The first addition is an AI server family purpose-built for GPU-intensive AI workloads with NVIDIA accelerated computing, while the other addition is AI PODs to simplify and de-risk AI infrastructure investment. These innovative solutions will help customers accelerate their AI adoption, helping them extend their existing infrastructure, and enabling them to grow and innovate without adding complexity. Managed by Cisco Intersight, the new solutions include Accelerated compute for the AI era and Plug-and Play AI Infrastructure,
“Enterprise customers are under pressure to deploy AI workloads, especially as we move toward agentic workflows, and AI begins solving problems on its own. Cisco innovations like AI PODs and the GPU server strengthen the security, compliance, and processing power of those workloads as customers navigate their AI journeys from inferencing to training.”
-Jeetu Patel, Chief Product Officer, Cisco.
10. Cadence Design Systems, Inc. (NASDAQ:CDNS)
Number of Hedge Fund Holders: 64
Cadence Design Systems, Inc. (NASDAQ:CDNS) is an American multinational technology and computational software company that delivers hardware, software, and IP for electronic design. The leading EDA and Intelligent System Design provider supplies both software and specialized computer servers to leading AI-chip designers.
On Tuesday, October 29, Reuters reported that Cadence Design Systems, Inc. (NASDAQ:CDNS) had raised the midpoint of its annual profit forecast on Monday. The company is betting on the surge in generative AI to boost demand for its software, which is used in designing the chips powering those systems. It raised the midpoint of its adjusted annual profit forecast to $5.90 per share, up from the previous $5.87 per share for 2024. The company’s software helps automate parts of the chip design process, enabling precise transistor layouts to develop the fastest and most powerful semiconductors. Its September quarter has already seen a 20% rise in revenue to $1.22 billion, marking its strongest growth in over a year and a half. The company is also poised to benefit from a new generation of its Palladium supercomputer, reported to go on sale in the third quarter with sales mounting in the next.
9. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) is an American multinational corporation and technology company that designs, develops, manufactures, markets and sells computing and related products and services. Once a very important chip company, Intel is leveraging its established presence in data centers to support the growing demand for AI applications.
Intel Corporation (NASDAQ:INTC) will release its third-quarter financial results on October 31, after the closing bell. On October 29, Rosenblatt Securities reiterated its “Sell” rating on Intel with a price target of $17.00. Analyst Hans Mosesmann expects Intel to report results that meet expectations due to the stabilization of the PC market. However, the company is losing market share to Advanced Micro Devices in the lucrative data center sector. The analyst also lacks confidence in the out-quarter estimates, as the company struggles to catch up with the current AI cycle as it works to improve its CPU roadmap and the Intel Foundry business, among other challenges.
8. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 93
Oracle Corporation (NYSE:ORCL) is an American multinational computer technology company offering products and services that address enterprise information technology environments globally.
On Tuesday, October 29, Oracle Corporation (NYSE:ORCL) revealed that it has developed a new version of its Clinical AI Agent built completely upon the world’s latest generative AI technology. Formerly known as Oracle Health’s Clinical Digital Assistant, the second-generation Clinical AI Agent enhances patient-provider interactions by integrating comprehensive clinical intelligence with a multimodal voice user interface. This allows the automation and unification of a wide range of clinical workflows. By capturing and enriching patient interactions, increasing documentation accuracy, and simplifying decision-making through AI, the Clinical AI Agent enhances the productivity levels of physicians.
The AI Agent is integrated with Oracle Health’s electronic health record, having the capability to provide highly accurate draft notes in multiple languages within minutes. It can also propose clinical follow-up and referrals for the provider to review and approve, synchronizing all the information back to patients’ individual medical records. At the same time, it can extract relevant data from the patient notes to automate coding, as well as generate condition-specific medication history and discharge summaries to deliver rapid insights for clinical decision-making.
“Oracle Health Clinical AI Agent exemplifies the ability of Oracle AI to overcome longstanding industry challenges. From reducing burnout to enhancing patient satisfaction and improving reimbursement processes, the Clinical AI Agent is changing the lives of practitioners and the patients they serve”.
– Seema Verma, Executive Vice President and General Manager, Oracle Health and Life Sciences.
7. Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Holders: 117
Salesforce Inc (NYSE:CRM) is a cloud-based software company engaged in the design and development of cloud-based enterprise software. Their offerings include CRM apps for sales, service, marketing, commerce, and more with trusted AI and data on one integrated platform. Its recent innovation in AI technology is Agentforce, an AI development platform that allows organizations to create, customize, and deploy intelligent agents.
On Tuesday, October 29, Salesforce Inc (NYSE:CRM) announced the general availability of Agentforce, a new layer on the Salesforce Platform. Agentforce allows companies to build and deploy AI agents that go beyond chatbots and copilots, using advanced reasoning capabilities to reason and take action. These agents can also handle tasks without human intervention, triggered by changes in data, business rules, pre-built automation, or signals via API calls from other systems. Moreover, Agentforce also includes customizable low-code or no-code agents to work around the clock across any channel. Agentforce Service Agent is the first generally available out-the-box agent, offering extensive pre-built abilities for customer support.
“Agentforce is redefining what’s possible in business and beyond, ushering in a new era of AI abundance and limitless workforces that augment every employee, build deeper customer relationships and drive unprecedented growth and profitability. Built on Salesforce’s trusted, fully customizable platform — seamlessly integrating enterprise data, metadata, AI models, workflows, security and applications — Agentforce is what AI was meant to be.”
– Marc Benioff, Chair and CEO, Salesforce.
6. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company that wholly owns the internet giant Google, along with other businesses. Its subsidiary Google has been leveraging artificial intelligence technology for years.
On October 28, Alphabet Inc. (NASDAQ:GOOG)’s Google revealed that it will launch its “AI Overviews” in more than 100 countries this week. They have also made them accessible in more languages, helping people search in a new manner. The currently supported languages include English, Hindi, Indonesian, Japanese, Portuguese, and Spanish. The AI Overviews, launched in May, use generative AI on Google searches and provide an AI-generated snapshot and links to explore further. The expansion, according to Google, will expand their user base to more than 1 billion global users every month.
“So now, in our largest expansion yet, we’re launching AI Overviews in more than 100 countries and making them accessible in more languages — helping you search in a whole new way, no matter what questions are on your mind”.
– Srinivasan (Cheenu) Venkatachary, VP, Search Quality at Google
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) has been leading the way in AI infrastructure. It is not only the front-runner in the AI chip market but has built a comprehensive AI ecosystem that spans graphics, computing, and networking solutions. The company has a 90% market share in data-center GPUs and more than 80% market share in AI processors.
On Tuesday, October 29; NVIDIA Corporation (NASDAQ:NVDA) revealed that it has developed Enterprise Reference Architectures (Enterprise RAs) for designing scalable, future-proof data center infrastructure amid rapidly evolving AI workloads and best practices. Enterprise Reference Architectures are comprehensive blueprints that help NVIDIA systems partners and joint customers build their own AI factories. The NVIDIA Enterprise RAs will provide full-stack hardware and software recommendations, detailed guidance on optimal servers, and cluster and network configurations for modern AI workloads. This will help them reduce the time and cost of deploying AI infrastructure solutions. Businesses that implement AI workloads on partner solutions built with Enterprise RAs will benefit from an accelerated time to market, peak performance, scalability and manageability, security, and reduced complexity.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is an American technology company that designs, manufactures, and markets smartphones, tablets, PCs, wearables, and accessories worldwide. Apple has been positioning itself as a leading AI stock, incorporating artificial intelligence in many of its popular features, such as Siri, Face ID, and recently launching new AI tools on the latest models of its iPhones.
On October 29, Apple Inc. (NASDAQ:AAPL) announced the launch of its all-new Mac mini powered by the M4 and new M4 Pro chips and redesigned around Apple silicon that promises accelerated performance while maintaining a smaller form of just 5 by 5 inches. By virtue of the M4, the Mac mini is capable of delivering up to 1.8x faster CPU performance and 2.2x faster GPU performance over the M1 model. Meanwhile, the M4 scales these advancements for more demanding workloads.
The new Mac mini features front and back ports for convenient connectivity, and also includes Thunderbolt 5 for faster data transfer speeds on the M4 Pro model. Designed with Apple Intelligence, Apple’s personal intelligence system, the Mac mini boasts being Apple’s first carbon-neutral Mac with an over 80 percent reduction in greenhouse gas emissions across its materials, manufacturing, transportation, and customer use. According to Apple, it is starting at just $599 with 16GB of memory and is available to pre-order, with availability beginning November 8.
“The new Mac mini delivers gigantic performance in an unbelievably small design thanks to the power efficiency of Apple silicon and an innovative new thermal architecture. Combined with the performance of M4 and the new M4 Pro chip, enhanced connectivity on both the front and back, and the arrival of Apple Intelligence, Mac mini is more capable and versatile than ever, and there is nothing else like it.”
– John Ternus, Apple’s senior vice president of Hardware Engineering.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) is a social technology company that develops applications and technologies to help people connect, find communities, as well as grow businesses. The company is a top AI player in consumer internet, investing heavily in AI-related infrastructure, technology, and products.
On October 29, Analyst Justin Post from Bank of America Securities reiterated a “Buy” rating on Meta Platforms and kept the price target at $630.00, as reported by TipRanks. The Buy rating comes from a combination of factors, such as the company’s strategic initiatives in AI and search capabilities, as well as the development of its AI chatbot with reports of creating an internal search engine to reduce reliance on competitors. The company’s substantial AI resources put it in a strong position to enhance its AI assistant capabilities. Meta’s strong user engagement on social media platforms enhances its potential to develop a competitive search engine and will potentially allow it to capture a share of internet traffic that currently Google holds.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is an American multinational technology company that develops and sells software, services, and hardware. The company is globally recognized as a leader in AI, leveraging its collaboration with OpenAI and developing AI resources for its consumers and business customers such as Copilot and Microsoft Azure.
On Tuesday, October 29, CNBC reported that Microsoft Corporation (NASDAQ:MSFT)’s most successful AI product, GitHub Copilot, is now going beyond OpenAI to allow developers more choice in the models they want to use. GitHub stated in a blog post that developers will be able to power the GitHub Copilot Chat feature with Anthropic’s Claude 3.5 Sonnet model or Google’s Gemini 1.5 Pro model, as substitutes for OpenAI’s GPT-4o, if they wish.
“There is no one model to rule every scenario, and developers expect the agency to build with the models that work best for them. It is clear the next phase of AI code generation will not only be defined by multi-model functionality, but by multi-model choice. Today, we deliver just that.”
– GitHub CEO Thomas Dohmke said in the post.
OpenAI’s o1-preview and o1-mini models that are designed for complex problem solving will also be available in the Copilot Chat on GitHub’s website and in the open-source Visual Studio Code text editor, currently available in a public preview. Meanwhile, Google’s model will be available in the coming weeks, according to a spokesperson.
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com Inc (NASDAQ:AMZN) is one of the largest online retailers and technology providers offering e-commerce, cloud computing, and services such as digital streaming and artificial intelligence solutions.
On October 29, Amazon.com Inc (NASDAQ:AMZN) announced the launch of Rufus, a new generative AI-powered conversational shopping assistant, in beta across Europe. After its launch in September in the UK, Rufus is now available in beta in Germany, France, Italy, and Spain and will be progressively rolling out to customers in the coming weeks, Amazon reports. The AI-powered shopping assistant can address customer queries on shopping needs, products, and comparisons, provide recommendations, and assist with product discovery within the familiar Amazon shopping experience that customers frequently use.
“Building on these AI customer innovations, today we are launching Rufus in beta to customers in Germany, France, Italy and Spain. Customers in the U.S., the UK, and India have already asked Rufus tens of millions of questions, and we’re excited to introduce it in these countries too”.
– Amazon.com Inc (NASDAQ:AMZN)
Overall, AMZN ranks first among the 15 AI News Investors Should Not Miss. While we acknowledge the potential of 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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