In this article, we discuss the 20 AI news you probably missed.
The AI industry continues to demonstrate remarkable growth, underpinned by advancements in generative AI, machine learning, and data analytics. Analysts across major research firms and financial institutions remain optimistic about the growth trajectory of AI, predicting sustained expansion through 2025 and beyond. For example, according to Gartner, the AI software market is expected to reach $135 billion by the end of 2025, reflecting a 21% year-over-year growth. This surge is driven largely by the adoption of AI in various sectors such as healthcare, finance, and retail. Research by McKinsey similarly indicates that AI could add as much as $13 trillion to the global economy by 2030, making it a critical driver of economic growth.
A Bloomberg report also echoes these projections, highlighting that venture capital investment in AI startups has continued at a rapid pace, even amid broader economic downturns in technology. In the first half of 2024, over $40 billion in venture capital was funneled into AI-focused firms. Much of this funding targets generative AI, a subfield of AI that has gained attention for its ability to produce human-like text, images, and designs. According to a Goldman Sachs analysis, generative AI could boost global productivity by 7% over the next decade, contributing an additional $4.4 trillion to the global economy. The ability of generative AI to handle complex tasks like legal document drafting and even medical diagnoses has led experts to view it as a game-changer across industries.
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.
Big Tech CEOs are hyper-focused on AI development right now. Satya Nadella has famously remarked that AI is the defining technology of our time, emphasizing the role of generative AI tools that his company markets, such as Copilot and Azure OpenAI, in revolutionizing work processes and enhancing productivity. Meanwhile, Sundar Pichai has stressed the importance of setting up responsible AI development, remarking that the potential of AI is immense, and noting that it could prove to be more profound for human society than electricity or fire. Andy Jassy has claimed that with cloud cost optimization programs largely in the rearview, companies are now turning their attention to investments in generative AI that is already a multi-billion-dollar business.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and 10 Unsexy AI Stocks According to Goldman Sachs.
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Our Methodology
For this article, we selected AI news that has not received significant media coverage but is important to the AI market nonetheless. The companies discussed in the news 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 You Probably Missed
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. The firm recently revealed significant new capabilities for the CloudVision platform it markets, enabling a modern network operating model for customers. CloudVision simplifies operations with automation, observability and zero trust security capabilities across all enterprise networking domains, from campus to data center, WAN, and cloud. Arista Networks, Inc. (NYSE:ANET) has already deployed CloudVision in a data center environment.
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 Forrester Wave, a guide for buyers considering their purchasing options in a technology marketplace, recently named C3.ai, Inc. (NYSE:AI) as a leader in AI/ML platforms. In the report, Forrester evaluated 14 AI vendors that demonstrated comprehensive, differentiated AI/ML platform solutions, active marketing as an AI/ML platform for enterprise customers, adequate install base and revenue requirements, and client inquiries and/or market momentum.
18. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The company recently announced that it would be hosting an online event called Advancing AI 2024 on October 10. The event aims to showcase the next-generation Advanced Micro Devices, Inc. (NASDAQ:AMD) Instinct accelerators and 5th Gen AMD EPYC server processors, as well as Networking and AI PC updates, in addition to highlighting the growing AI solutions ecosystem of the company. Senior AMD executives, partners, customers, and developers are expected to participate in the event. AMD CEO Lisa Su will also make an appearance.
17. 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. Online retail platform Newegg recently announced that it would start working with Dell Technologies Inc. (NYSE:DELL) as an authorized partner. The online retail firm singled out the energy efficiency, recycled materials, and eco-friendly certifications of Dell hardware products in the press release issued on the occasion. The AI potential of Dell notwithstanding, the legacy hardware business of the company continues to gain increased traction.
16. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. The speculation around the company selling core assets has diverted some of the focus that was on a management-led turnaround in priorities for the chipmaker. Intel Corporation (NASDAQ:INTC) CEO Pat Gelsinger recently penned a note to staff that the company was more than halfway to its workforce reduction target of roughly 15,000 by the end of the year, mostly through voluntary early retirement and separation offerings. He added that the firm was implementing plans to reduce or exit about two-thirds of its real estate globally by the end of the year, as well as working to carefully manage cash in order to improve the balance sheet and liquidity.
15. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 78
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The company recently announced that it had entered into a partnership with medical device maker Masimo to develop a smartwatch reference platform for original equipment manufacturers building Wear OS by Google smartwatches. The medical device maker is presently embroiled in a patent lawsuit with tech giant Apple over the blood oxygen technology used in Apple smartwatches. QUALCOMM Incorporated (NASDAQ:QCOM) is one of the leading suppliers of chips to the California-based electronics giant as well as other smartphone firms.
14. 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. All the hype around the AI potential of the firm has resulted in a loss of focus on the fundamentals. For example, few AI investors realize that in addition to being a top AI play, Applied Materials, Inc. (NASDAQ:AMAT) has an impressive dividend history, with 18 uninterrupted years of payouts and consistent growth for six years. The company recently declared a quarterly dividend of $0.40, in line with previous. The forward yield was 0.87%.
13. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 38
Celestica Inc. (NYSE:CLS) offers a range of product manufacturing and related supply chain services. The company recently announced the availability of the SC6100, a next-generation, 2U rackmount all-flash storage controller for enterprise application workloads. The Celestica Inc. (NYSE:CLS) storage controller builds on a cutting-edge portfolio of storage, compute and networking Hardware Platform Solutions, one of the fastest-growing departments of the firm due to the AI boom. The controller is powered by two AMD EPYC Embedded 9004 series processors and supports up to 24 dual-port U.2 PCIe Gen 5 solid state drives.
12. 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. Latest reports suggest that the company is manufacturing Apple A16 chips, used in iPhones 14 Pro and 14 Pro Max, as well as 15 and 15 Plus, at the new Arizona plant in small but significant numbers. A Bloomberg report suggests that the volume of production would ramp up considerably when the second stage of the Phase 1 fab at the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) facility was completed and production was underway, which would put the Arizona project on track to hit its target for production in the first half of 2025.
11. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. The company recently announced the availability of a new solid-state drive that offers two times faster performance than the previous model. The new drive would give gamers, students and creatives a boost in speed when they boot and use data-intensive applications, per the company. The new solid-state drive has capacities up to 2 terabytes and read and write speeds of 7,100 and 6,000 megabytes per second respectively. The new offering expands the portfolio of Micron Technology (NASDAQ:MU) to address PCs, laptops and PlayStation 5.
10. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. Last week, the company announced that it would be integrating the Arm Kleidi AI acceleration technology with PyTorch, a machine learning library, and ExecuTorch, the new on-device inference runtime from PyTorch. The integration aims to bring AI and machine learning workloads to Arm-based hardware. The integration would allow a new generation of applications to run large language models (LLMs) on Arm Holdings plc (NASDAQ:ARM) CPUs.
9. 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 recently announced that it had entered into a new multi-year, multi-million-dollar contract for the artificial intelligence platform it markets to help improve healthcare through transformational technologies. The contract, with health firm Nebraska Medicine, would help Palantir Technologies Inc. (NYSE:PLTR) build on a year-long partnership that has seen Nebraska implement more than ten applications of AIP, improving patient throughput and expanding claims.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. Hock Tan, the CEO of the firm, made an appearance on CNBC earlier this week, predicting that hyperscale semiconductor customers would continue building AI clusters for another three to five years, with each generation of machines to double in size. The Broadcom Inc. (NASDAQ:AVGO) boss said those builds could be annual, and each would require two or three times the compute power of their predecessors. Per the CEO, this would create a larger compute opportunity that would be met by XPUs – an auxiliary processing unit that runs inside a data center server or appliance. Tan further noted that the AI clusters hyperscalers were building used 100,000 accelerators, but future rigs would require a million.
7. 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. Under the terms of the partnership, Constellation Energy Corporation (NASDAQ:CEG) will revive the nuclear power plant in the area which closed down in 2019. The tech world is actively seeking cleaner sources of power for their AI needs in a bid to find a carbon-free, round-the-clock electricity source needed to meet climate goals.
6. 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. Reports last week suggested that SES AI Corporation, a company that makes and sells high-performance lithium batteries, had partnered with Supermicro to accelerate material discovery in electric transportation. The companies aim to do this by mapping the universe of small molecules using a supercomputer optimized for AI. If successful, the partnership would revolutionize the understanding of battery chemistry, enhance energy storage solutions, and advance energy efficient technology. The deal will use a purpose-built AI cloud platform provided by AI startup Crusoe, powered by Super Micro Computer, Inc. (NASDAQ:SMCI) and NVIDIA hardware.
5. 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. Sundar Pichai, the CEO of the firm, recently spoke at the UN Summit of the Future, where he announced that Alphabet Inc. (NASDAQ:GOOG) would create a $120 million Global AI Opportunity Fund through which it will make AI education and training available in communities around the world in partnership with local nonprofits and NGOs. Pichai also touched on other AI themes during his speech, describing AI as the most transformative technology yet and noting that it presented four broad opportunities. These included helping people access information in their own language, accelerating scientific discovery, providing alerts and tracking around climate disasters, and fueling economic progress.
4. 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 in the media suggest that users of Meta Platforms, Inc. (NASDAQ:META) interact with the AI-powered assistant mostly on WhatsApp, with Facebook and Instagram ranked second and third on the list. Among the monthly users, Facebook edges WhatsApp in AI usage, per documents seen by insiders at the tech giant and reported by news publication The Information.
3. 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. The company recently launched a new generative AI-powered conversational shopping assistant, Rufus, in India. Rufus has been available to customers in the US since the beginning of this year. The AI assistant enables natural language interactions within the Amazon app, making it easy to ask product-related questions, get recommendations, or compare products, according to a press release on the matter by Amazon.com, Inc. (NASDAQ:AMZN). Some notable things that Rufus can do include giving customers quick insights into product sentiment and key attributes.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Latest reports suggest that the company has given more people a chance to test a new AI software update that is going to automate features through the virtual assistant Siri. The new update was made available earlier this week and will soon be released to all iPhone owners. The new iPhones, touted as AI-capable, are powered by new chips and software, which Apple Inc. (NASDAQ:AAPL) claims sets them apart from competitor products in the smartphone space. The AI software features are being dubbed Apple Intelligence and concerns have been raised over the soft demands for these phones given the slow rollout of the new AI software.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Jensen Huang, the CEO of the firm, made a surprise appearance at the recently held T-Mobile Capital Markets Day. Speaking alongside T-Mobile CEO Mike Sievert, Huang claimed that his company had fused signal processing and AI. He predicted that this was going to be a great new growth opportunity for the telecommunications industry. During the chat with Sievert, Huang underlined the importance of AI in shaping the future of telecommunications, particularly highlighting the role of AI-RAN in optimizing and scaling network performance. The NVIDIA Corporation (NASDAQ:NVDA) bigwig said that fusing radio computing and AI computing into one architecture allowed companies to apply AI models to optimize signal quality across diverse environments.
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.
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