In this article, we discuss the 15 trending AI stocks on latest news.
Artificial intelligence has established deep roots within human society in a very short space of time. The latest manifestation of this is the latest advertisement by Coca-Cola, one of the most popular drink brands in the world, which was made entirely using AI features. However, these advertisements have not been well-received on social media. Per a report by news platform Forbes, the AI-generated Christmas ads have sparked mockery and caution from social media users. The ads were created by Secret Level, Silverside AI and Wild Card, who used AI models Leonardo, Luma, Runway, and Kling, for creative inspiration.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, finance news publication Financial Times reports that China’s biggest tech groups are building artificial intelligence teams in Silicon Valley. Per the report, the Chinese are hoping to poach staff from US rivals who could help them make up ground in the race to profit from generative AI. FT claims that Alibaba, ByteDance and Meituan are three Chinese firms that have been expanding their offices in California in recent months. This is part of a larger push that comes despite Washington’s efforts to slow down their work by restricting exports of the highest-end AI chips to the Asian country.
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 young professional in a suit examining stocks on a tablet computer in a mid-town office building.
Trending AI Stocks on Latest News
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 6, Barclays analyst Tom O’Malley raised the price target on the stock to $130 from $90 and kept an Underweight rating on the shares following the earnings report. The firm recently posted earnings for the third quarter of 2024 in which it beat market expectations on earnings per share and revenue by $0.14 and over $2 million respectively.
14. Entegris, Inc. (NASDAQ:ENTG)
Market Capitalization: $14 Billion
Entegris, Inc. (NASDAQ:ENTG) develops, manufactures, and supplies micro contamination control products, specialty chemicals, and advanced materials handling solutions. The firm markets specially mixed liquids and gasses that are used in semiconductor manufacturing facilities. BMO Capital analyst Bhavesh Lodaya recently lowered the price target on the stock to $135 from $145 but kept an Outperform rating on the shares after its Q3 earnings miss and below-consensus guide. The company’s performance is a reflection of the health of the overall semis-market, and its slower rate of outperformance in 2024 is due to delayed tech/node transitions and new material adoptions, though these are expected in 2025, which along with improving Y/Y fundamentals should drive strong earnings growth for Entegris, the analyst told investors in a research note.
13. Super Micro Computer, Inc. (NASDAQ:SMCI)
Market Capitalization: $14 Billion
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. On November 18, the stock surged more than 15% after the company announced that it had engaged the services of an independent auditor and submitted a compliance plan to Nasdaq. The firm has been in hot waters after it informed authorities recently that it would be unable to file quarterly earnings on time. This had raised fears the firm would be delisted on the Nasdaq stock exchange.
12. ON Semiconductor Corporation (NASDAQ:ON)
Market Capitalization: $29 Billion
ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions in the United States and internationally. The firm markets innovative power supply solutions used to power high-density servers that can handle the larger data loads and intense power consumption required to power many Gen-AI applications and tools. KeyBanc analyst John Vinh recently penned an investor note on the company, highlighting the launch of its analog mixed-signal platform Treo, which, per the analyst, should generate margin-accretive revenue in 2025. The analyst further added that some Tier 1 suppliers were increasing their working relationship with On, as they look to hold lower levels of inventory, with Volkswagen cited as one example. The company is also making share gains in silicon carbide at Tesla, Vinh noted.
11. 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, tech firm Penguin Solutions announced that it would be partnering with Dell Technologies to deliver complete AI solutions that accelerate customers’ time to value through validated, high-performing AI infrastructure. These end-to-end Penguin OriginAI solutions combine Dell PowerEdge AI-optimized servers, Dell PowerScale storage and Dell PowerSwitch data center switches with Penguin’s validated solution architectures.
10. Intel Corporation (NASDAQ:INTC)
Market Capitalization: $110 Billion
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest reports, published by Bloomberg Law, suggest that the company faces a class action lawsuit over selling old processing units that chronically overheat, freeze and crash. According to the report, a complaint filed in court in the US on November 15 alleges that the Core 13 and Core 14 central processing units sold by the firm, which are used to power desktop computers, are defective. The defect causes the processors to overheat and damages them permanently.
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 news platform DigiTimes Asia, suggest that South Korean electronics giant Samsung is considering partnering with QUALCOMM for production of advanced 2nm and 3nm chips. Samsung is reportedly considering the switch to advanced chips to power AI-capable future smartphones as it ups the ante in the battle for smartphone supremacy with US-based electronics firm Apple. Samsung already uses QCOM chips in Galaxy phones.
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, the company announced that it would be partnering with technology company IBM to deploy AMD Instinct MI300X accelerators as a service on IBM Cloud. Per the two companies, the offering is expected to be available in the first half of 2025 and aims to enhance performance and power efficiency for Gen AI models and high-performance computing applications for enterprise clients.
7. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $268 Billion
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. On November 12, investment advisory Bernstein named ASML among a basket of equities that face another possible wave of China export restrictions from US lawmakers. Per the advisory, wafer fabrication equipment exports to China appear in the sights of officials. Lawmakers in the US had earlier sent a letter to ASML, pressing for information regarding sales to China. The letter warned that the PRC now purchases more semiconductor manufacturing equipment than the United States, South Korea, and Taiwan combined.
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. On November 18, Barclays analyst Tom O’Malley released an investor note on the chip markets, noting that capex spending for next year is likely to be flattish compared to expectations of growth, with Taiwan Semiconductor appearing poised to convert nodes – moving to N3 from N5 – while Samsung has had issues with its 3 nanometer yields. In aggregate, the analyst predicts a much more flattish wafer fab equipment year in 2025 than Street estimates.
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. Cerebras Systems, an AI company, recently announced that it had set a new performance record for Llama 3.1 405B – one of the world’s largest and most capable openly available AI foundation models. The AI firm further noted that data from third party benchmark firm Artificial Analysis showed that Cerebras Inference on Llama was up to 75 times faster than offerings from other hyperscalers.
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, Clean Air Task Force (CATF), a non-profit dedicated to advancing carbon-free energy solutions, released a report detailing that AI can fast forward fusion’s energy development by enhancing research, optimizing designs, improving diagnostics, and streamlining workflows. Fusion is a natural process that generates energy and can be replicated in controlled environments. The report, supported by Amazon, also found that by advancing fusion energy technologies, AI can further power the digital transformation of industries by delivering scalable carbon-free energy to grids in a way that complements existing renewable energy technologies like wind and solar.
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 18, Barclays analyst Tom O’Malley discussed the efforts of Google in AI chip design as part of a broader note on the semi industry, highlighting that Google’s TPU v6 is not expected to come into the supply chain until late in the second quarter of 2025, with v5 expected to tick down in January and April, implying a bit of an air pocket before material volume increase in July.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.1 Trillion
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 14, the company announced the successful testing of Orca-AgentInstruct, an agentic solution for synthetic-data generation. According to the tech giant, AgentInstruct can generate tailored datasets, comprising both prompts and responses, from raw data sources, paving the way to building a synthetic data factory for model fine-tuning. The announcement aims to disprove fears that training AI models on artificially-created data causes them to collapse.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Latest reports, published by news platform The Information, suggest that new Blackwell chips being shipped by the chipmaker are facing overheating issues with accompanying servers. Blackwell chips previously faced production delays over design issues. The company has asked suppliers to change the design of the server racks several times to resolve overheating problems, the report claims. A company spokesperson told news agency Reuters that the engineering iterations are normal and expected.
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.
