In this article, we discuss the 20 AI news items that broke the internet this month.
AI is transforming industries and reshaping the world by enhancing efficiency, driving innovation, and opening up new economic opportunities. A recent McKinsey report estimates that AI could add up to $4.4 trillion annually to the global economy by 2030. The rapid growth of AI technologies — especially generative AI — has enabled organizations to streamline processes, automate complex tasks, and develop personalized services. In healthcare, AI is revolutionizing diagnosis and treatment. For example, AI-powered diagnostic tools, such as those developed by Google Health, achieve accuracy rates that rival or surpass human doctors in detecting diseases like cancer. These advancements can reduce diagnostic errors and improve patient outcomes. Gartner predicts that by 2025, 50% of healthcare providers will invest in AI-driven technologies to improve patient care, underscoring the potential for massive growth.
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.
Financial services are also being transformed by AI. According to a 2023 report from PwC, AI could increase global GDP by up to 14% by 2030, with financial services being a key driver. Banks and fintech companies are leveraging AI to enhance fraud detection, streamline customer service through AI chatbots, and offer personalized investment advice. Manufacturing is another sector experiencing rapid change due to AI. AI-powered robots are automating production lines, reducing human error, and increasing efficiency. According to the International Federation of Robotics (IFR), global sales of industrial robots are expected to reach $31 billion by 2025. These robots, coupled with AI-driven predictive maintenance systems, are lowering downtime and operational costs for manufacturers. Tesla, for instance, uses AI in its Gigafactories to streamline the production of electric vehicles, aiming to achieve greater sustainability and lower manufacturing costs.
The retail industry is embracing AI to optimize supply chains and enhance customer experiences. AI-driven recommendation systems, like those used by Amazon and Alibaba, have significantly improved customer satisfaction by offering personalized shopping experiences. A Forbes report suggests that AI could reduce supply chain forecasting errors by 50%, helping retailers better meet consumer demands. However, as AI adoption grows, so do concerns around job displacement. The World Economic Forum estimates that AI will replace 85 million jobs by 2025 but also create 97 million new roles, particularly in sectors like AI development, data science, and cybersecurity. This transition will require workers to adapt and reskill to remain relevant in the evolving job market.
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.
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Our Methodology
For this article, we selected the most important AI news by combing through news articles, stock analyses, 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).
AI News That Broke The Internet This Month
20. 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 this month 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. DA Davidson lowered the price target on C3.ai, Inc. (NYSE:AI) stock to $20 from $30 and kept a Neutral rating on the shares following the results. In an investor note accompanying the price update, 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.
19. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations. The company had an eventful September. After being added to the S&P 500 list, it announced that it had won a $100 million contract from the US army to streamline the AI infrastructure capabilities of the latter. Palantir Technologies Inc. (NYSE:PLTR) chief Peter Thiel also recently filed to sell up to $1 billion worth of Palantir shares, per media reports. Furthermore, the software firm revealed this month that it had signed a multi-year, multi-million-dollar extension of an enterprise deal with energy firm APA Corporation to leverage Palantir AI tech across oil and gas operations.
18. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 47
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. A few weeks after a report by investment firm Hindenburg led to a significant drop in the share price, another research firm, Glasshouse, said earlier this month that the short-selling viewpoint of the former regarding Super Micro Computer, Inc. (NASDAQ:SMCI) had missed the mark. In an investor note, the research firm noted that the risk-reward at current levels for the artificial intelligence server company was highly favorable, and that Glasshouse was bullish on the stock for the foreseeable future. The research firm further added that the recent filing delay was likely due to a precautionary measure in response to concerns raised by Hindenburg. If the Charles Liang-led Super Micro company provides either clarity or a minor revision, a rebound in the stock could occur, Glasshouse affirmed.
17. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 71
Constellation Energy Corporation (NASDAQ:CEG) generates and sells electricity in the United States. The stock has jumped on the back of reports earlier this week that tech giant Microsoft was partnering with the utility firm to restart the Three Mile Island in Pennsylvania, the site of the worst nuclear power accident in the US. The project is indicative of the growing power demand of AI data centers and also highlights the AI ambitions of Microsoft. Pennsylvania Governor Josh Shapiro has reportedly written a letter asking grid operator PJM Interconnection to allow the Three Mile Island reactor to be allowed to come online as quickly as possible rather than waiting in the queue as if they were an entirely new development. Morgan Stanley analyst David Arcaro has said that the 20-year Constellation Energy Corporation (NASDAQ:CEG) contract with Microsoft proves the value of nuclear power for hyperscalers.
16. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. A number of Intel rivals have reportedly made bids to take over parts of the business of the chipmaker as it seeks a financial turnaround. Some of those weighing potential investments in Intel include Broadcom, QUALCOMM, and Apollo Asset Management. Meanwhile, Intel Corporation (NASDAQ:INTC) continues to land government contracts and funding, announcing earlier this month that it had been selected for multibillion-dollar contracts to make chips for Amazon and the United States government. Analysts have urged Intel to exit the foundry business but a potential deal in this regard is faced with regulatory problems.
15. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 77
Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for the semiconductor industry. Gary Dickerson, the chief of Applied Materials, spoke at the Goldman Sachs 2024 Communacopia and Technology Conference earlier this month, predicting that data centers would pass PCs and smartphones in wafer starts over the next few years. Investment advisory Stifel has a similarly bullish outlook on wafers. The advisory recently reiterated a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) stock with a price target of $270. In an investor note, the advisory noted that the Q3 results and outlook of the firm modestly exceeded consensus estimates, reflecting gradual growth in system and service revenue. The note further stated that the firm was well-positioned to grow at/above the industry in 2025 as the China exposure had been derisked.
14. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 78
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Reports published earlier this month reveal that QUALCOMM Incorporated (NASDAQ:QCOM) is exploring the possibility of buying the chip design business of Intel in a bid to improve the AI product line. One of the favored investments of the mobile chipmaker includes the design operations at the client PC design division of Intel. Analysts have predicted that the server business of Intel does not align with the long-term strategic goals of QUALCOMM Incorporated (NASDAQ:QCOM). The company also recently provided a preliminary outlook for the first quarter of 2025 that forecast 5% revenue growth, below expectations of 9% growth.
13. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 81
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. Earlier this month, Dutch authorities said they would expand export licensing requirements for the DUV immersion lithography systems sold by ASML Holding N.V. (NASDAQ: ASML), effectively aligning the policies of the US and Netherlands in this regard. China has expressed dissatisfaction over the move, even going as far as to say that it would damage the relationship between the two countries over cooperation in semiconductors. The stock of the European chipmaker has also been impacted by a ratings downgrade from UBS, which has a Neutral rating on the shares with a price target of EUR 900. In an investor note, the advisory claimed that the company’s lithography intensity was plateauing in both logic and memory and artificial intelligence demand was an insufficient offset.
12. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 88
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. The company joined the S&P 500, a list of the biggest companies in the world, earlier this month, ending a more than a decade long absence from the benchmark index on the back of AI tailwinds. Dell Technologies Inc. (NYSE:DELL) shares have also soared since a recent report by the International Data Corporation that highlighted the growth in the PC market over the past few months. Per the IDC, the global PC monitor market ended the second quarter of 2024 with 5.9% growth in unit shipments compared to the same quarter a year ago. This marked the third consecutive quarter where year-over-year growth was positive.
11. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 92
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. The company recently surpassed chipmaker NVIDIA in terms of year-to-date gains to become the gainer on the benchmark S&P 500 this year. Vistra Corp. (NYSE:VST) stock is up more than 204% so far this year, compared to the 157% rally for NVIDIA. Jefferies named the firm the top pick in the power sector and reiterated a Buy rating on the stock earlier this month. Jefferies analyst Julien Dumoulin-Smith noted that Vistra had many ways to win following years of acquisitions, rationalizations, and lessons learned about risk that had positioned it well for the power markets of the present. The analyst added that the timely acquisition of nuclear portfolio Energy Harbor in 2023 gave the company a coveted nuclear portfolio.
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. It offers AI-enabled chips for several industries, including data center and cloud, personal computers, adaptive and embedded devices, and gaming. Reports released earlier this month indicate that software giant Oracle has selected AMD Instinct MI300X accelerators with ROCm open software to power its newest OCI Compute Supercluster instance. The Oracle Cloud Infrastructure Supercluster is a cloud computing cluster that provides high-performance AI infrastructure for training, tuning, and deploying generative AI. Advanced Micro Devices, Inc. (NASDAQ:AMD) is trying to compete with AI giant NVIDIA in AI hardware. The high cost of AI chips being sold by NVIDIA have created a market for AMD chips that are cheaper but lag a little in performance.
9. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. The company posted earnings for the fourth fiscal quarter this month, topping analyst expectations on earnings per share and revenue and guiding to better-than-expected results for the first fiscal quarter of 2025. The strong guidance highlighted that the artificial intelligence boom was more than offsetting consumer weakness for the memory maker. Morgan Stanley analyst Joseph Moore took note of the development, stressing that the fundamental story for the company had not changed much as the stock had gyrated all year, adding that much of the upside was related to strength in NAND. The analyst further detailed that while there was clear evidence of memory oversupply, it had not yet impacted pricing. Moore has an Equal-Weight rating and $114 price target on Micron Technology (NASDAQ:MU).
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The company posted third quarter earnings earlier this month, beating market expectations on earnings per share and revenue by $0.03 and $110 million respectively. However, weaker-than-expected guidance numbers for the fourth quarter led to a downward spiral for the stock. Looking to the fourth-quarter, Broadcom expects revenue to be $14 billion, below the $14.13 billion estimate. Adjusted EBITDA is expected to be around 64% of total revenue. Besides the earnings, Broadcom Inc. (NASDAQ:AVGO) stock was also impacted by reports of the company bidding to takeover at Intel. However, these reports were termed improbable by most Wall Street analysts citing regulatory hurdles.
7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 156
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. The company posted August sales numbers earlier this month, revealing that revenue for the month came in at approximately $7.8 billion, up 33% from August 2023. JP Morgan highlighted the strong sales in August for the chipmaker and suggested the global foundry could surpass third-quarter guidance. Latest reports suggest that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is mulling plans to partner with electronics giant Samsung to build mega chip factories in the United Arab Emirates. These factories would help satisfy soaring demand for artificial intelligence computing, per The Wall Street Journal.
6. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. Latest reports reveal that social platform Snapchat has expanded an existing partnership with Google Cloud to include generative AI features offered by the latter into the My AI chatbot offered by the former. Snap has used ChatGPT by OpenAI, backed by Microsoft, for the My AI chatbot, but is now transitioning to the Google model. Wedbush analysts, led by Scott Devitt, talked about Google Cloud in a recent investor note, detailing that Google was well positioned to drive adoption of generative AI tools given its AI-optimized compute infrastructure supported by custom silicon, and unmatched breadth of data to develop and train AI models across text, images, and video.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. According to a report by Financial Times, investment titan Blackrock is exploring the launch of an AI-focused fund, in collaboration with tech powerhouse Microsoft and MGX, an investment firm based in Abu Dhabi. The primary aims of this fund are likely to include focus on creating data centers and funding energy infrastructure to support AI growth. NVIDIA Corporation (NASDAQ:NVDA) is assisting Blackrock with estimating energy demands for new AI technologies. Analysts have forecast that energy constraints could be a potential roadblock to faster AI adoption. BlackRock will launch the fund with Global Infrastructure Partners, a firm it bought back in January for $12.5 billion.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. The company launched the latest model of the iPhone, dubbed iPhone 16, earlier this month. The new phone debuted with a lot of hype around Apple Intelligence, a suite of AI features that Apple Inc. (NASDAQ:AAPL) believes will change the way consumers interact with phones altogether. Initial demand figures for the phone paint a confusing picture, but Wedbush analyst Dan Ives has dismissed concerns around slower growth projections, reiterating in a recent investor note that with the introduction of artificial intelligence, a number of camera upgrades and better battery life as part of the iPhone 16, it was possible the iPhone 16 upgrade cycle topped 90 million units on initial launch. Ives further claimed that the launch of the iPhone 16 was the start of an AI driven supercycle, and throughout fiscal 2025, Apple could sell more than 240 million units of the phone.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. Latest reports indicate that Meta Platforms, Inc. (NASDAQ:META) has chosen Arista Networks to provide the networking for a massive AI model training cluster that will be powered by over 100,000 GPUs. Meta will use NVIDIA H100 GPUs for the cluster that features $2 billion worth of chips. It will train the Llama 4 large language model. Investment advisory Evercore ISI claims the deal would represent a $250 million revenue opportunity for Arista Networks. At the annual Meta Connect event held this month, Meta unveiled new versions of Llama, augmented reality Orion glasses, and mixed-reality product Quest 3s.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. It announced earlier this month that it would hike the quarterly dividend by nearly 11% and boost a share buyback program by another $60 billion. Morgan Stanley analyst Keith Weiss took note of the development in a recent investor note, noting the move was indicative of the attractive total return profile of the tech giant. The analyst further added that combined with mid-teens EPS growth, the stock now had an attractive risk/reward. Weiss has an Overweight rating and $506 price target on Microsoft Corporation (NASDAQ:MSFT). The analyst predicted that the tech company would spend slightly higher on stock repurchases in 2025 compared to 2024.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. Anthropic, the generative artificial intelligence company that is backed by Amazon, recently announced that it would be launching a version of Claude geared towards large businesses. Claude is an array of large language models developed by Anthropic. The move comes after OpenAI, a rival of Anthropic, launched ChatGPT for Enterprise in August. Both companies offer monthly subscriptions to their AI tools. TechCrunch reports that the subscription for Claude would cost more than $30 per month. Amazon.com, Inc. (NASDAQ:AMZN) has already pledged more than $4 billion towards the AI startup. Anthropic is on track to generate more than $1 billion in revenue this year and has plans to raise funding at a valuation of over $40 billion.
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.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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