In this article, we discuss the 15 trending AI stocks on latest news and ratings.
When BlackRock, the investment titan with more than $10 trillion in assets under management, invests in something, the finance world pays close attention. This is why Pyramid Analytics, an AI business analytics firm, has been in the news. According to a report by news agency Reuters, the startup recently raised more than $50 million in funding from the investment management firm. Pyramid Analytics operates an AI-powered platform that uses a combination of machine learning and AI to simplify processes and data analysis for clients. Some of the prominent clients of the startup include the US Food and Drug Administration, as well as Hallmark, Deloitte and Volkswagen.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, AI markets in Europe were brimming with enthusiasm over the blockbuster debut of LightOn, a GenAI startup based in France, on the Euronext Growth market in Paris. The shares of the firm jumped close to 10% during the initial public offering. The startup builds large language models for businesses and institutions. It was valued at around $65 million in the IPO. AI startups have been fetching soaring valuations on market debuts. They have also been raising hundreds of millions in funding through financing rounds led by venture capital firms as the AI boom sweeps markets around the globe.
Read more about these developments by accessing 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).
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Trending AI Stocks on Latest News and Ratings
15. POET Technologies Inc. (NASDAQ:POET)
Number of Hedge Fund Holders: 5
POET Technologies Inc. (NASDAQ:POET) designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, Singapore, and China. The optoelectronic products marketed by the firm can help convert data from electric signals to light signals to be transmitted through optical wires. This allows for higher data transfer bandwidths, lower loss, and simpler cooling needs, especially within AI data centers. The company recently announced that the board of directors had approved the voluntary delisting of common shares from the TSX Venture Exchange.
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, B. Riley raised the price target on the stock to $85 from $61 and kept a Buy rating on the shares. The company’s Q3 result solidly exceeded consensus, and Q4’s guidance upside was even more material, the advisory told investors in a research note. The advisory cites its higher estimates and growing execution confidence for the target increase. Riley says Semtech is becoming an increasingly well-diversified AI growth play.
13. 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. On November 25, the company announced that it would be changing its name from Zoom Video Communications Inc. to just Zoom Communications Inc. In a post on the company blog, Zoom Communications CEO Eric Yuan wrote that Zoom was now an AI-first work platform for human connection that delivers modern, hybrid work solutions.
12. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 47
Elastic N.V. (NYSE:ESTC) is a search artificial intelligence company that delivers hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments. On November 25, Wedbush upgraded the stock to Outperform from Neutral with a $135 price target. It is time for the broader software space to get in on the AI Party, the advisory told investors in a research note. Wedbush believes the use cases are exploding, the enterprise consumption phase will begin in 2025 with a launch of large language models across the board, and the true adoption of generative AI will be a major catalyst for the software sector.
11. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 49
MongoDB, Inc. (NASDAQ:MDB) provides a general purpose database platform worldwide. The firm securely amalgamates operational, unstructured, and AI-related data to streamline building AI-enriched applications. On November 26, Piper Sandler raised the price target on the stock to $425 from $335 and kept an Overweight rating on the shares. The advisory notes negative investor sentiment on MongoDB appears to be reversing with shares up 38% in the last 3-months aided by favorable commentary from other data consumption related stocks. While short covering likely explains the 20% surge in the last week alone, Piper highlights that MongoDB remains one of its highest conviction tactical ideas to own into next year ahead of a normalization in growth and improving margin prospects.
10. 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. The company recently posted earnings for the fourth fiscal quarter, reporting earnings per share of $1.67, beating market estimates by $0.03. The revenue over the period was $2.44 billion, down over 10% compared to the revenue over the same period last year but beating market expectations by a handsome $30 million.
9. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. On November 25, news publication Bloomberg reported that QUALCOMM, the chipmaker that was interested in purchasing Intel a few weeks ago, was walking away from the deal. The report claims that the complexities of a potential deal have cooled QUALCOMM’s interest. However, the report added that it was still possible that QUALCOMM would be interested in buying parts of Intel, or could revive its interest in a full acquisition at a later date.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. On November 26, the company announced that it would be expanding a collaboration with defense firm Honeywell to develop artificial intelligence-powered intelligent solutions for the energy sector. Through the collaboration, the latter will incorporate the connectivity and AI technologies of the former into AI-powered applications, such as the Honeywell Field Process Knowledge System. By integrating these new capabilities, Field PKS will provide connectivity to remote corners of plant and manufacturing facilities enabling greater data capture and analytics at the edge.
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 Tweak Town reported that AMD and Apple are set to be the first customers of chipmaker TSM as it begins the mass production of 2nm chips in 2025 at the new fab in Kaohsiung, six months ahead of schedule. The equipment installation ceremony at the new fabrication plant has already taken place, per the report. 2nm chips, when production begins, would be the most advanced AI-capable chips in the world.
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, Taiwanese media reported that TSM had announced that the US-based subsidiary it operates in Arizona would start expanding an apprenticeship program to include more aspects of the manufacturing process. The report claims that TSMC Arizona will begin recruiting trainee equipment technicians, process technicians and manufacturing technician specialists under the expansion.
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, UK-based news platform The Media Leader reported that based on early indicators, publishers have seen 5-10% decreases in traffic from search since AI Overviews were launched amid other changes to the search algorithm of Google. The news platform further adds that some news outlets are reporting a substantial drop in engagement from search since AI Overviews was launched.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 25, Korean news outlet Greened reported that the chipmaker was prioritizing GDDR7 by Samsung as the memory to be installed in the GeForce RTX 50 series of graphics cards for desktops and AI notebooks, which are scheduled to be released early next year. The top three manufacturers of this memory are Samsung, SK Hynix, and Micron. Per the report, NVIDIA has chosen Samsung over Micron.
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, Howard Yu, LEGO Professor of Management and Innovation at IMD Business School, said in a written piece shared with news platform Quartz that he preferred Meta over Google in the AI race, noting that the former was future-ready and the advertising business it had was supercharged with AI, as opposed to the Search business of the latter that was being undermined by AI.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 26, Saphyre, a company that provides AI-powered infrastructure for finance operations, said that it was thrilled to be recognized by the tech giant for transforming financial services through innovation in AI. Michael Brandi, the CTO of the firm, said that Saphyre was redefining financial trading workflows by using Microsoft Azure and automating processes and reducing manual efforts by 75%.
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 government authorities in the US announced that AWS, the cloud department of the company that is integrating AI workflows across the platform, had been awarded a $158 million contract by the US Army. Under the deal, AWS would provide the American military with cloud computer and storage services under a four year contract. Back in June, AWS had been awarded a separate military contract worth $115 million.
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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