In this article, we discuss the 15 AI news updates investors should not miss.
Perplexity, the California-based AI startup that is challenging the dominance of Google in the Internet Search market, is considering the development of a $50 device that brings the conversational search abilities of the platforms it offers on the consumer market. Aravind Srinivas, the CEO of the firm, recently posted on social networking platform X and said the company would definitely sell such a device if the post got more than 5,000 likes. Other AI startups have also tried making AI-only devices, the latest example being Humane and their AI Pin, but these devices have not caught mass attention because of buggy performance.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Perplexity could succeed where others have failed as the firm has much more cash in the bank to hire the right teams for the purpose. News publication The Wall Street Journal recently reported that the startup is planning to raise more than $500 million at an upcoming funding round that would value the firm at more than $8 billion. The report claims that the platform the startup markets currently receives about 15 million queries a day and brings in around $50 million in annualized revenue. Perplexity uses AI to help people search the web in a chatbot-style interface.
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
15. SPX Technologies, Inc. (NYSE:SPXC)
Number of Hedge Fund Holders: 22
SPX Technologies, Inc. (NYSE:SPXC) supplies infrastructure equipment serving the heating, ventilation, cooling, detection and measurement markets worldwide. The cooling products and engineered air movement solutions for the HVAC industrial and power generation marketed by the firm are directly linked to the construction and powering of AI data centers across the United States. On November 25, Wolfe Research initiated coverage of the stock with an Outperform rating and $199 price target. The advisory views SPX as an early-stage compounder, operating in the niche HVAC and detection and measurement markets, with attractive growth opportunities both organically and inorganically. The company is positioned towards the high end of the value chain in engineered niches with plenty of runway for continued bolt-on acquisitions to its existing platforms, Wolfe told investors in a research note.
14. 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. On November 26, Craig-Hallum raised the price target on the stock to $70 from $48 and kept a Buy rating on the shares. The advisory notes the company reported a beat and strong guide on data center strength, which was primarily driven by Fiber products. The advisory continues to think Semtech’s LPO TIA driver product could show strong interest from data centers with expected sales in late calendar 2025.
13. Comfort Systems USA, Inc. (NYSE:FIX)
Number of Hedge Fund Holders: 35
Comfort Systems USA, Inc. (NYSE:FIX) provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services. The company designs and installs HVAC and electrical systems for data centers. These data centers are used by AI firms. These systems are also used by chip fabrication firms. The firm has the advantage of being the largest mechanical contracting firm in North America. Northcoast recently initiated coverage of Comfort Systems USA with a Buy rating and $525 price target.
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. The firm recently rebranded as an AI-first work platform for human connection, dropping the video title from the name. On November 24, Evercore ISI upgraded the stock to Outperform from In Line with a price target of $115, up from $70. In an investor note, the advisory noted that the company delivered yet another very solid quarter, marked by consistent operational execution and impressive momentum across its newer product offerings. The note added that when considering the company’s monetization opportunities of all the artificial intelligence-driven productivity tools across the platform, there are multiple strategic levers in place to drive growth reacceleration.
11. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 46
Corning Incorporated (NYSE:GLW) engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses. The optic products offered by the firm have witnessed a surge in demand in the past few months as large companies invest in AI data centers. The company recently announced that it would make several changes to contract terms with phone manufacturers following a competition investigation launched by the European Union earlier this month, which raised concerns about possible exclusive dealing.
10. Motorola Solutions, Inc. (NYSE:MSI)
Number of Hedge Fund Holders: 48
Motorola Solutions, Inc. (NYSE:MSI) provides public safety and enterprise security solutions. The company is aggressively advocating for the increased adoption of AI in large-scale safety and security systems. On November 26, Deutsche Bank raised the price target on the stock to $530 from $440 and kept a Buy rating on the shares. The advisory updated the company’s model post the Q3 report. Deutsche continues to view Motorola Solutions as the top defensive pick in its coverage, saying a near-record backlog and improving revenue mix provide greater visibility into the durability of its multi-year earnings and free cash flow growth. The company is selling into a very healthy demand backdrop underpinned by its 75% exposure to public safety, the advisory told investors in a research note.
9. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. On November 26, news publication Albuquerque Journal reported that of the $7.8 billion granted to Intel by the government through the CHIPS Act, $500 million has been set aside for Intel in Rio Rancho so it can modernize two fabrication facilities and become a massive advanced packaging facility. Intel will refit and reopen Fab 9 and upgrade its Fabs 11 and 11X in Rio Rancho, per the report. The latest investment in Intel in Rio Rancho is estimated to create 1,800 manufacturing jobs and 2,500 construction jobs.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Latest data from technology research firm Canalys shows that even as AI-capable PCs gain momentum globally, chipmaker QUALCOMM has failed to impress with sales numbers since entering the AI PC market. The data shows that in the third quarter, Snapdragon X laptops recorded total sales of under 720,000 units, representing 0.008% of the total PCs shipped globally over the same period, equivalent to fewer than one out of every 125 devices.
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, tech news platform DigiTimes reported that the chipmaker had inaugurated a research and development center in India while affirming a previous commitment to invest the $400 million in the Asian country. AMD CEO Lisa Su, while on a tour of the country last week, had pledged to increase investments in India and referenced the design lab in the country as one of the most important AMD assets globally. The company is also building two supercomputers in India specifically for weather forecasting, per the report.
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, Focus Taiwan, a news platform that looks closely at the chip developments in the region, reported that TSM had begun installing equipment at its 2-nanometer fab in Kaohsiung. Per the report, the installation paves the way for a trial run at the company’s second plant featuring its most advanced technology in the first half of 2025. TSMC is building up its 2nm production capacity in Hsinchu in northern Taiwan and Kaohsiung in southern Taiwan.
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 25, research commissioned by Google Workspace showed that 82% of US-based workers had been using AI tools at work. The Harris Poll-conducted survey revealed that some 93% of those who identify as Gen Z and 79% who identify as Millennials already use two or more AI tools each week. 75% of those using AI are also recommending it to peers, the study highlights.
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 following a meeting with NVIDIA executives, Wang Shouwen, the vice commerce minister of China, said that China welcomes the presence of NVIDIA and aims to build a better business environment for foreign firms. The minister added that China’s commerce ministry is willing to strengthen communication with the US to return economic and trade relations between the two countries to the right track.
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, news agency Reuters reported that the company, which is integrating AI products into Instagram and WhatsApp, the two most important social media platforms it owns, will face a trial in April over allegations that the platform bought Instagram and WhatsApp to crush emerging competition. In 2020, the FTC sued the company, alleging it acted illegally to maintain a monopoly on personal social networks. The FTC claims Meta overpaid for Instagram and WhatsApp to eliminate new threats.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 26, Coles Group, an Australia-based retailer, announced that it had signed a five-year partnership with Microsoft for cloud and artificial intelligence solutions. Per the retailer, under the deal, Coles would be using Microsoft cloud, AI, and edge computing offerings to develop an AI-as-a-Service platform and to modernize the IT estate. Since 2019, Coles has worked with Microsoft and migrated over 70% of business data to the cloud.
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 25, the company said that it had become the first major cloud service provider to announce ISO/IEC 42001 accredited certification for AI services. The certification covers Amazon Bedrock, Amazon Q Business, Amazon Textract, and Amazon Transcribe. ISO/IEC 42001 is an international management system standard that outlines requirements and controls for organizations to promote the responsible development and use of AI systems.
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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