In this article, we discuss the 30 AI news investors should not miss.
Artificial intelligence (AI) data centers are one of the hottest topics on Wall Street as companies across the industrial spectrum compete in a race to deploy AI technologies in their operations. The latest update comes from data center company Equinix, which recently announced that it would be forming a joint venture with GIC, a Singapore-based sovereign wealth fund, and Canada Pension Plan Investment Board, to raise more than $15 billion in capital. Per the data center company, the capital would be used to expand the US footprint of hyperscale data centers. Hyperscale data centers are the largest in the industry, typically developed by technology giants based in the US, and offer massive networking capacity and often consume as much power as a big city or even a small country.
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.
As technology stocks stage a comeback on the back of Fed rate cuts and AI optimism, the news coming from the commerce department in the US has buoyed investors further. The US government said earlier this week that it plans to award nearly $100 million to boost the use of artificial intelligence in developing new sustainable semiconductor materials. The funding is part of the more than $52 billion in US chip manufacturing and research grants promised by US President Joe Biden. The latest funding would go towards helping universities, national laboratories, and the private sector develop AI-powered autonomous experimentation for sustainable semiconductor manufacturing. The goal is to reduce time needed to develop new semiconductor materials that are less resource-intensive.
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 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).
AI News Investors Should Not Miss
30. 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. Citi analyst Tyler Radke recently kept a Neutral rating on the stock with a $30 price target after meeting with CFO Dave Glazer. In a research note, the analyst noted that the company remained upbeat on its Artificial Intelligence Platform momentum with consistent macro commentary. However, the analyst highlighted that the inclusion to the S&P 500 Index had increased Palantir’s valuation to one of the most expensive names in software at a 25-times next 12 months enterprise value to sales ratio. The note further added that AIP monetization was still early for Palantir Technologies Inc. (NYSE:PLTR) despite the strong bookings seen across commercial while the government business was lumpy heading into the elections.
29. Juniper Networks, Inc. (NYSE:JNPR)
Number of Hedge Fund Holders: 45
Juniper Networks, Inc. (NYSE:JNPR) designs, develops, and sells network products and services worldwide. The firm recently announced the launch of a local cloud instance in India for its wireless access, wired access, NAC, indoor location services and SD-WAN solutions, all driven by Mist AI. Mist AI is a platform marketed by the firm that replaces time consuming manual IT tasks with AI-driven proactive automation and self-healing capabilities, lowering networking operational costs. Juniper Networks, Inc. (NYSE:JNPR) has expanded presence in India in recent months, both in the government and private sector.
28. Flex Ltd. (NASDAQ:FLEX)
Number of Hedge Fund Holders: 46
Flex Ltd. (NASDAQ:FLEX) offers manufacturing solutions across Asia, the Americas, and Europe, and is making significant strides in the AI sector. Flex Ltd. (NASDAQ:FLEX) recently announced that it would be partnering with Japanese firm Musashi Energy Solutions to supply Flex-designed and manufactured capacitor-based energy storage systems featuring Musashi’s Hybrid SuperCapacitor technology. These systems are designed to integrate with server rack power systems to address challenges with utility power in AI data centers. The Flex systems aim to balance power and protect the grid from intense power surges during AI training and inference.
27. Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 47
Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide. Bank of America analyst Vivek Arya recently raised the price target on the stock to $108 from $90 and kept a Buy rating on the shares. The advisory saw a path towards about $6 in calendar year 2026 pro-forma EPS for Coherent Corp. (NYSE:COHR), which it noted was 50% and 33%, respectively, above current consensus and the forecast of $4.50 and $4.10. The firm’s scenario analysis suggested Coherent’s total sales would grow at a faster 14%-17% compound annual growth rate from calendar 2024-26, well-above the 11% current forecast, driven by maintaining its 20%-25% share in AI optical transceivers and a cyclical recovery in non-AI markets.
26. 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. Needham recently initiated coverage of the stock with a Buy rating and $600 price target. The advisory viewed Super Micro Computer, Inc. (NASDAQ:SMCI) as a first mover in the design of GPU-based compute systems and liquid cooled rack level solutions and a significant beneficiary from growing investment in AI infrastructure. Needham forecasted a compound annual revenue growth rate in excess of 55% from FY21 to FY26, though it added that it modeled a gross margin recovery that was more conservative than management’s forecast. However, the advisory noted the bear case that gross margin would trend towards the single digits was too pessimistic.
25. KLA Corporation (NASDAQ:KLAC)
Number of Hedge Fund Holders: 55
KLA Corporation (NASDAQ:KLAC) markets process control and yield management solutions for the semiconductor industry. Investment firm Cantor Fitzgerald recently released a research note on the semiconductor market, proactively cutting official wafer fab equipment estimates to get ahead of the fact that wafer fab equipment spending coming in lower-than-expected, and reflect other industry developments, like continued TSMC strength, Intel pushouts, Samsung Taylor delays, and ongoing NAND softness. Analysts led by CJ Muse predict 2025 wafer fab equipment spending at $105 billion, down from a prior outlook of $115 billion. They also tweaked their forecast for 2026 to be $115 billion, down from a prior range of $115 billion to $125 billion. Per the analysts, this would impact the earnings of several semi firms, including KLA Corporation (NASDAQ:KLAC), which would earn $32 and $37 per share in 2025 and 2026 according to new forecasts.
24. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 56
NRG Energy, Inc. (NYSE:NRG) operates as an energy and home services company in the United States and Canada. BMO Capital analyst James Thalacker recently raised the price target on the stock to $90 from $88 and kept a Market Perform rating on the shares. The analyst cited the company’s positive announcements in independent power in raising its FY24 EBITDA midpoint outlook by 5%, with both operating cash flow and FCFbG – Free Cash Flow before Growth – also revised upwards by 5% with the implied FCFbG conversion ratio unchanged at 55-58%. Per the analyst, BMO was also raising its 2024 EBITDA estimates for NRG Energy, Inc. (NYSE:NRG) by about 3% to $3,625 million to reflect higher sustainable load-serving margins.
23. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 64
Analog Devices, Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. The company recently announced that it would be partnering with Tata Group, an Indian conglomerate, to explore potential cooperative manufacturing opportunities. Under this deal, Tata Electronics, Tata Motors, and Tejas Networks in India have signed a Memorandum of Understanding with Analog Devices, Inc. (NASDAQ:ADI) to enhance strategic and business cooperation, explore opportunities for semiconductor manufacturing in India, and use ADI products in Tata applications like electric vehicles and network infrastructure. The companies also agreed to have strategic roadmap alignment discussions.
22. 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 SEC filings show that Charles Giancarlo, a director at Arista Networks, Inc. (NYSE:ANET), has sold $765,000 worth of Arista stock recently. The shares were sold at prices between $379 and $388/share, per the disclosures. The transactions in this regard occurred under the Rule 10b5-1, which allows insiders to sell shares at predetermined times. The sale decreases the overall stake of the director in the networking firm to around 47,000 shares.
21. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 71
Constellation Energy Corporation (NASDAQ:CEG) generates and sells electricity in the United States. RBC Capital recently raised the price target on the stock to $272 from $214 and kept a Sector Perform rating on the shares. In a research note, the advisory underlined that the decision to reopen Unit-1 of Three Mile Island was not surprising, given the financial support of the PTC – Production Tax Credit – but the concurrent announcement of Constellation Energy Corporation’s (NASDAQ:CEG) deal with Microsoft for the full output of the plant for data center load was a surprise. Per the advisory, while pricing details were not disclosed, it was estimated at $40/MWh above current forward prices, highlighting the strong market interest for 24/7 renewable power.
20. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 72
Amphenol Corporation (NYSE:APH) specializes in designing, manufacturing, and marketing electrical, electronic, and fiber optic connectors. Investment advisory Citi recently released a list of companies that were heavily exposed to the Chinese market. The list comes as firms with revenue exposure to China, which is 23% for Amphenol Corporation (NYSE:APH), soar on the back of a string of measures taken by the Chinese government to shore up the economy. These measures include cuts in short-term borrowing costs and lowered restrictions on home purchases. Citi said the revenue exposure was calculated using disclosures made by the firms in their annual reports.
19. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. German Chancellor Olaf Scholz has stressed that Intel is committed to a plan to build plants in eastern Germany, according to a report published by news agency Reuters. The remarks came in the wake of the Intel Corporation (NASDAQ:INTC) disclosing that it would be delaying the construction of the German plant by two years as part of a cost-cutting plan. Per Scholz, the decision to postpone the project in Germany for two years was a decision that also included the intention to stick with it. He further added that it was important to take this opportunity in the very volatile business of the semiconductor industry to help ensure that there was nevertheless a further expansion of the already profound capacities in Germany.
18. 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. Latest reports, from Indian news publications, indicate that the company is in the process of setting up a research and development facility in Bengaluru, pending approvals from the Karnataka government in the area. The report comes amid the US visit of MB Patil, the Minister for Large and Medium Industries and Infrastructure Development in India, where he has held discussions with Applied Materials executives on setting up a center of innovation in the Asian country. Applied Materials, Inc. (NASDAQ:AMAT) has committed to spending nearly $400 million in India over the next four years to set up an engineering center in Bengaluru as well.
17. 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. Dirk Beljaarts, the economy minister of the Netherlands, recently visited the US and met US Deputy Secretary of Commerce Don Graves. During his visit, the minister emphasized the importance of China as a trading partner and stressed that ASML Holding N.V. (NASDAQ:ASML), which is based in his country, should be allowed to do business as freely as possible. The comments come in the wake of a tightening of US chip exports to China and pressure on US allies to do the same. ASML markets lithography machines to Chinese firms and has strong business ties in the country that is lagging behind the US in terms of advanced chip technology.
16. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 84
Lam Research Corporation (NASDAQ:LRCX) markets semiconductor processing equipment. The company is the third leading supplier of wafer fab equipment. The company recently announced that it would hold its quarterly financial conference call and webcast on October 23. The call is eagerly awaited as the stock recently touched a 52-week low, despite rising more than 26% in the past year amid a broader selloff in the tech sector as geopolitical tensions rise across the globe. In the fourth fiscal quarter, Lam Research Corporation (NASDAQ:LRCX) had reported a quarterly revenue of $3.87 billion, surpassing analyst expectations, as the demand for AI-powered chips increased. The company also announced a 15% increase in its quarterly dividend, rising from $2.00 to $2.30 per share.
15. 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. Susquehanna recently initiated coverage of the stock with a Neutral rating and $120 price target. In an investor note, the advisory highlighted that Dell Technologies Inc. (NYSE:DELL) had the scale, brand, and internal financing arm to scale AI hardware for server applications, but two risk factors had led to its below-consensus EPS estimates. Per the advisory, the economics of AI hardware remained uncertain and the strategy for scaling AI services remained unclear.
14. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 92
GE Vernova Inc. (NYSE:GEV) is an energy company that engages in the provision of various products and services that generate, transfer, orchestrate, convert, and store electricity. Raymond James analyst Pavel Molchanov recently downgraded the stock to Market Perform from Outperform without a price target. The advisory said clean technology stocks just had their best quarter since 2020, and the artificial intelligence-fueled rally for GE Vernova Inc. (NYSE:GEV) felt a bit overstretched, and the stock could use some consolidation. Raymond James pointed out that nearly half of Vernova’s revenue came from services tied to existing power plants, which meant the business model had less direct leverage to newbuilds, particularly in the gas-centric power segment.
13. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 92
Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The stock has gained attention among Wall Street analysts since the firm posted second quarter earnings in which it reported 13% growth in sales and a 50% jump in earnings. However, the stock still dropped over 10% in value following the report amid broader concerns around overspending in the AI sector. Barron’s analyst Jacob Sonenshine wrote in an investor note on the firm that the infrastructure and cooling systems needed for data centers were the bread and butter for Vertiv Holdings Co (NYSE:VRT), whose business was too strong to get undermined by what looked to be a short-term concern.
12. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 92
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. RBC Capital recently raised the price target on the stock to $141 from $105 and kept an Outperform rating on the shares. In an investor note, the advisory detailed that the power company’s repurchase of the minority interest in Vision seemed compelling, even before the news of a new nuclear deal announced between Constellation Energy and Microsoft, which has re-rated nuclear asset values higher. RBC added that it saw meaningful tailwinds driving power demand, with no signs of abating.
11. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 100
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The company controls a large portion of the smartphone market and is making steady inroads into the PC space. For example, QCOM chips now power Windows laptops, making them more efficient and AI-capable compared to previous models that carried Intel chipsets. News publication Bloomberg reports that these QCOM powered PCs deliver on AI promises in sensational style. Market analysis firm Canalys claims that the tech industry is on pace to ship 44 million such AI-capable PCs in 2024 and more than double that to 103 million units in 2025. Poll data from the firm showed about 60% of respondents indicated a preference for devices with a Microsoft Copilot key.
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. As the company prepares for the much-hyped Advancing AI event, scheduled for later this month, Bank of America analysts have released a research note on the firm. In the note, the analysts contend that while AMD has made an impressive start in the AI space, expanding its share further could be challenging given NVIDIA Corporation’s dominant 80-85% market share and strong position in the cloud, alongside competition from cost-optimized custom ASICs from companies like Broadcom and Marvell. However, per the advisory, if Advanced Micro Devices, Inc. (NASDAQ:AMD) can demonstrate a credible path to securing over 10% of the AI market share by 2026, it could add approximately $5 billion to its sales, with potential earnings per share of around $8-$9, compared to the consensus estimate of $7.37.
9. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. Even though the stock has fallen in recent days on the back of rising geopolitical tensions, it may recover the losses in the coming days as latest reports indicate that US President Joe Biden has signed legislation exempting US semiconductor manufacturing facilities that are receiving government subsidies from federal environmental reviews. The legislation will help to expedite the construction of chip manufacturing facilities, per news reports. The White House has stressed that it will continue to ensure that semiconductor projects are built and operated in a way that meets clean water, clean air, endangered species, and other federal requirements.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor and infrastructure software solutions and also makes custom ASICs. The company was recently named on a list of Core stocks by investment advisory Wells Fargo. The Core group of stocks are high-quality, blue chip, industry-leading companies that can be long-term investment ideas, per the advisory. Broadcom Inc. (NASDAQ:AVGO) was named a Core stock in the information technology category, referenced with a dividend yield of 1.3% and consensus next-12-months EPS of $5.92. Wells Fargo analyst John Sheehan underlined in an investor note that the characteristics considered for the list included long-term revenue, earnings, dividend growth rates, and projected growth rates, as well as a company’s management team, return on invested capital, stock price volatility, and balance-sheet strength.
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 has invested heavily in research and development over the past few years, and is thus able to pack more transistors on chips compared to competitors, making them more powerful and efficient. As the AI wave sweeps the market, the firm is on full volume production for the 3nm node process, and is set to start mass production on 2nm nodes in 2025. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also derives tech superiority over rivals in terms of semiconductor packaging as well. Market expert Uttam Dey recently penned an investor note on the chipmaker, highlighting that despite this chip power, TSM rival Samsung is catching up. The latter intends to use the latest 3nm chip processing technology to make the next Galaxy line-up of smartphones and smartwatches, and is expected to use a home-grown 3nm Exynos W1000 AP chip for Galaxy S25 smartphone, anticipated early next year.
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, published by news platform Nikkei, claim that Google is considering buying electricity from nuclear power plants to power AI data centers. The report quotes Google CEO Sundar Pichai from an interview with Nikkei where he also stressed that his company would increase its investment in solar and thermal power. Per the CEO, for the first time in history, there was this one piece of underlying technology which cut across everything, in reference to generative AI, and the opportunity to do well in this field was something Google was leaning into.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Bernstein analysts, led by Toni Sacconaghi, recently penned an investor note on the AI space, noting that the potential for continued strong Gen-AI training dynamics was likely constructive for NVIDIA at this point, though questions around the pace and trajectory of Gen-AI inference, however, may come more at the expense of their peers who have broadly acknowledged NVIDIA’s training dominance and have hence focused on inference as the bulk of their long-term opportunity. Per Bernstein, leading LLM builders were already pre-buying NVIDIA’s Blackwell to prepare for next-generation models.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Bank of America recently reiterated a Buy rating on the stock with a price target of $256. In a research note on the firm, the advisory noted that tracking of iPhone ship dates on Apple’s own website, and various carrier websites, indicated that as of October 2, or 20 days after preorders started, ship time in days for the iPhone 16 Pro and Pro Max models were extended, but somewhat less, on average, compared to prior years. Globally, per the advisory, on average, ship time for the iPhone 16 Pro was currently at 13 days, while iPhone 16 Pro Max stood at 20 days. The note detailed that the initial demand for the phones could be lower due to the unavailability of Apple Intelligence at launch, but would pick up after the AI features were available.
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. Pivotal Research analyst Jeffrey Wlodarczak recently initiated coverage of the stock with a Buy rating and $780 price target. In an investor note, the analyst highlighted that Meta was the dominant social media company in the world with 3.3 billion daily active users. The analyst predicted strong revenue growth for the tech firm from increased usage, new products, better targeting and higher prices, boosted by cost efficiencies and eventually materially declining Reality Labs losses combined with what appeared to be an attractive valuation.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The tech giant has ramped up investments in AI over the past few years as it aims to get ahead of competitors in the emerging space. As part of this effort, it has invested nearly $13 billion in OpenAI of ChatGPT fame. Following the latest funding round, where OpenAI raised $6.6 billion in new funding, the startup is now valued at more than $157 billion, making it the highest valued private company in the US, overtaking SpaceX by Elon Musk. The latter is valued at around $125 billion. The only other private firm that rivals OpenAI globally is ByteDance, the Chinese parent of the popular social media app TikTok, that is valued at around $220 billion.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. Investment advisory Bernstein recently referenced the company in an investor note detailing that AI infrastructure spending by tech giants is expected to reach a combined total of $160 billion in 2024. The note was released as the advisory sought to clarify that training AI models required higher budget allocations as opposed to inferencing. According to an analysis by Bernstein, inference only accounted for 5% of AI infrastructure spending. Bernstein referenced ChatGPT by OpenAI as an example, noting that GPT-2 was trained on a cluster of chips costing about $3 million, while GPT-3 required about $30 million worth of hardware to train. GPT-4 was then trained on 25,000 A100s, which cost about $300 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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