In this article, we discuss the 20 AI news and analyst ratings that you should not miss.
The artificial intelligence (AI) market continues to show tremendous growth, with significant advances across sectors. According to a report by McKinsey on the AI industry, the AI revolution is driving innovation across industries, with investment in AI increasing sevenfold in recent years despite economic downturns in other tech sectors. This surge is primarily fueled by the growing demand for AI applications in data analysis, content generation, and predictive modeling. In particular, generative AI has drawn the most attention, revolutionizing industries like marketing, customer service, and product design. Moreover, high-performing companies are heavily investing in AI to gain a competitive edge. These firms, often referred to as AI high performers, allocate a significant portion of their digital budgets – over 20% – to AI technologies. They prioritize AI not only for cost reductions but also for new revenue streams.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.
The market for AI applications is set to expand even further, with several industry reports predicting that by 2030, AI could contribute up to $13 trillion to the global economy. Over a course of the next decade, informed estimates by investment advisors at Goldman Sachs indicate that these AI tools could drive a 7% increase in global GDP, worth nearly $7 trillion, and lift productivity growth by 1.5 percentage points overall. Moreover, the bank expects established businesses around the world to spend nearly $1 trillion on developing AI infrastructure in the coming years
Prominent businesses have taken note of these developments. Latest reports suggest that investment titan BlackRock, in partnership with tech giants is likely to launch a more than $30 billion fund focused on AI. The fund will invest in artificial intelligence infrastructure to build data centers and energy projects. The need for energy is a source of particular interest to the business community as AI models require substantial computational power, leading to higher energy consumption.
The sheer scale of computational power required for AI workloads has also forced tech giants to build supercomputer clusters, stringing together expensive chips, cooling systems, networking tools, and other high-tech gear to crunch data. These AI data centers will likely consume a growing amount of energy as the use cases of AI expand. McKinsey estimates that by 2025, 15% to 20% of all data center workloads will be AI-driven, compared to less than 5% in 2020. Furthermore, according to a report from the International Energy Agency, AI data centers could account for as much as 13% of global electricity demand by 2030 if current growth trends continue. Tech giants are thus investing billions of dollars into expanding their AI infrastructure.
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20 AI News and Analyst Ratings You Should Not Miss
20. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 65
Arista Networks, Inc. (NYSE:ANET) engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments. Latest reports indicate that the company has been selected by tech giant Meta to provide the networking for a massive AI model training cluster that will be powered by over 100,000 GPUs. Meta aims to use NVIDIA H100 GPUs for the cluster that features $2 billion worth of chips. It will train the Llama 4 large language model.
Evercore ISI analyst Amit Daryanani has an Outperform rating on Arista Networks, Inc. (NYSE:ANET) stock with a price target of $400. In a recent investor note, the analyst highlighted a report that claimed that Meta was putting the finishing touches on a model training cluster that would exceed 100,000 GPUs, pointing out that the cluster would be networked by Ethernet because InfiniBand could not handle clusters of this scale. The analyst detailed that there was a high probability that Arista Networks would provide the Ethernet switches for this cluster, a deal that would represent a $250 million revenue opportunity for the networking firm.
19. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 18
C3.ai, Inc. (NYSE:AI) operates as an enterprise artificial intelligence software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The stock has registered a steep fall in price after the firm posted first fiscal quarter earnings and guidance that did not impress investors. However, Thomas Siebel, the CEO of the firm, sought to allay investor concerns, highlighting that the firm had a solid start to the fiscal year, with rising demand for Enterprise AI driving a sixth consecutive quarter of accelerating revenue growth. He added that C3 AI was the original Enterprise AI company, with an unwavering commitment to solving the most challenging problems in the enterprise.
DA Davidson recently lowered the price target on C3.ai, Inc. (NYSE:AI) stock to $20 from $30 and kept a Neutral rating on the shares. In an investor note accompanying the price update, the investment advisory highlighted the mixed quarterly results of the software firm, with total revenue growth accelerating, though subscription revenue declined quarter over quarter, leading shares lower. The advisory detailed that C3.ai continued to convey a large opportunity ahead of it and was focused on growing total revenue, though the stock also fully reflected the current growth prospects for the company.