In this article, we discuss the 35 AI news you should not miss.
The AI industry is constantly evolving and investors are keeping a close eye on investments, advancements in AI capabilities, and new partnerships to keep pace with the continued rise of generative AI and integration into key industries. One of the most exciting developments in the field of AI over the past week has been the 2024 Nobel Prize in Physics, which was awarded to scientists John Hopfield and Geoffrey Hinton for their pioneering work in the field of machine learning. Hopfield, a researcher at Princeton University, gained recognition for developing an associative memory system, a neural network model capable of storing and reconstructing images or other data patterns. His work revolutionized how data patterns can be represented and recalled, marking significant progress in the field of artificial intelligence. Meanwhile, Hinton, a professor at the University of Toronto, pioneered a method for autonomously discovering data properties, enabling machines to perform tasks such as identifying specific elements within images. His contributions have been pivotal in advancing AI capacity for image recognition and pattern identification.
Another notable report worthy of mention is a recent Reuters study into the funding that AI startups have attracted so far this year. The study highlights the $6.6 billion funding round for AI startup OpenAI recently that pushed the valuation of the company to more than $157 billion. It also spotlights other AI startups that have received more than $500 million in funding this year. These include xAI, CoreWeave, Scale AI, Figure AI, Groq, Mistral AI, and Cohere. They have raised $6 billion, $1.1 billion, $1 billion, $657 million, $640 million, $600 million, and $500 million in funding so far this year, respectively. The startups are all valued at more than $2.5 billion, with xAI, founded by Tesla chief Elon Musk, worth over $24 billion. A recent report by Goldman Sachs reveals that businesses worldwide are projected to spend nearly $1 trillion in the coming years on building AI infrastructure. The report underscores the massive scale of investment needed to meet the growing demand for AI technologies across various industries. In 2024 alone, venture capital firms have already completed around 200 deals with AI companies, pouring in nearly $22 billion in funding. The average size of these funding rounds exceeds $100 million, reflecting the increasing valuation of AI startups, which now often surpass $1 billion.
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 You Should Not Miss
35. Jones Lang LaSalle Incorporated (NYSE:JLL)
Number of Hedge Fund Holders: 21
Jones Lang LaSalle Incorporated (NYSE:JLL) operates as a commercial real estate and investment management company. Christian Ulbrich, the CEO of the firm, outlined during the second quarter earnings call how the AI data center prospects were a tailwind for the stock in the long-term. The CEO underlined that the communications and technology sector had performed better than expected in the second quarter, largely because average lease prices had more than doubled as large tech companies took place to support data center operations. The CEO noted that despite a slower start to 2024 across many markets, demand for high-quality space with sustainable solutions and automated technology was expected to drive long-term growth.
34. Iron Mountain Incorporated (NYSE:IRM)
Number of Hedge Fund Holders: 24
Iron Mountain Incorporated (NYSE:IRM) is a real estate investment trust that focuses on storage and information management services. In recent quarters, the company’s data center storage revenue has emerged as its fastest-growing segment, achieving a 30% year-over-year growth. It currently operates 26 data center hosting facilities, up from 24 the previous year, indicating continued expansion. Additionally, the company leases 260 megawatts of electricity to its customers, catering to the growing power demands of AI-driven infrastructure. Stifel analyst Shlomo Rosenbaum recently raised the price target on the stock to $140 from $117 and kept a Buy rating on the shares. After spending time with the company’s CFO in investor meetings, the advisory has increased confidence that the upper-single-digit to low-double-digit revenue growth rate the company has been experiencing for the last several years should be sustainable for an extended period of time. In a research note, the advisory said it is assuming that the appeal of the company will extend beyond the REIT investor group that have pushed the stock up recently.
33. DigitalBridge Group, Inc. (NYSE:DBRG)
Number of Hedge Fund Holders: 24
DigitalBridge Group, Inc. (NYSE:DBRG) is an infrastructure investment firm specializing in digital infrastructure assets. One of the company’s key focuses is data centers, which are essential for the AI sector. These data centers support the storage and processing needs of AI workloads, which require vast computational power. Communications firm Verizon recently signed an agreement with Florida-based communications infrastructure operator Vertical Bridge, which is majorly owned by DBRG, for it to exclusively operate and manage 6,339 wireless communications towers across the US for the telecom company under a $3.3 billion deal. The deal is structured as a prepaid lease with $2.8 billion paid upfront in cash and also includes certain commercial benefits, according to a joint statement from both parties. The move will aid the wireless carrier’s efforts to expand network footprint while reducing expenses.
32. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 44
Digital Realty Trust, Inc. (NYSE:DLR) brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. JPMorgan recently raised the price target on the stock to $180 from $175 and kept an Overweight rating on the shares. The advisory says the enormous demand for hyperscale data centers is driving the overall market and a secondary impact to colocation. Cloud and digital transformation demand is robust from enterprise customers, which are still evaluating their artificial intelligence needs, the advisory told investors in a research note. JPMorgan sees Digital Realty and DigitalBridge as the best ways to play the AI data center trend.
31. 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 was recently included into the S&P 500 and the shares are up over 160% year-to-date as AI momentum catapults the firm into global limelight. The stock rally has increased the market valuation of the firm to just under $100 billion. Analysts are overwhelmingly bullish on the company in light of the speed at which it is deploying AI software in both the public and private domains and expect the firm to cross the $100 billion barrier this year. Wedbush analyst Daniel Ives has an Outperform rating on the stock with a price target of $45.
30. 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. Latest reports, per a blog by Mike Spanbauer, a technology evangelist for Juniper Security, reveal that the firm is enhancing its security services by integrating them into a unified, AI-driven platform. The company’s new Secure AI-Native Edge offering and cloud-based Security Assurance service aim to provide a centralized view of network health, performance, and security metrics. This integration allows for faster problem resolution and ensures that security policies are enforced across the enterprise. The Secure AI-Native Edge solution is part of Juniper’s broader AI-Native Networking Platform.
29. SBA Communications Corporation (NASDAQ:SBAC)
Number of Hedge Fund Holders: 45
SBA Communications Corporation (NASDAQ:SBAC) is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. The firm plays a critical role in supporting the infrastructure necessary for AI-driven technologies and services, especially those related to telecommunications and data processing. JPMorgan recently raised the price target on the stock to $250 from $228 and kept a Neutral rating on the shares. The advisory highlighted in a research note that the Federal Communications Commission had granted EchoStar its extension requests, which was positive news for the tower companies. EchoStar committed to increase its 5G sites by 60% to 24,000 by June 2025, the advisory told investors in a research note. JPMorgan estimates the additional buildout could add up to two percentage points of incremental gross leasing revenue growth for the tower companies by Q2 of 2025.
28. 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. Susquehanna recently upgraded the stock to Positive from Neutral with a price target of $120, up from $80. The advisory believes new CEO Jim Anderson, and his platform optimization program, will ultimately transform the company’s long-term financial model, potentially providing the company with over 1,000 basis points of net margin expansion. The advisory is also encouraged by a number of new product announcements made at this year’s EEOC.
27. 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. The stock has rallied this week after the firm announced that it was shipping more than 100,000 graphics processing units per quarter. In a statement, the firm revealed that it had recently deployed the GPUs with liquid solution for some of the largest AI factories ever built. Charles Liang, the CEO of the firm, said his firm continued to innovate, delivering full data center plug-and-play rack scale liquid cooling solutions. The stock rally marks a comeback for SMCI stock which crashed late last month on a report that it was the target of a Justice Department investigation.
26. 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 penned a research note on the semiconductor space, noting that recent issues from Intel and Samsung were likely to negatively impact the semiconductor equipment market. Analysts at the advisory stressed that orders were bottoming and fundamentals would modestly recover for semi stocks in CY25 with even greater recovery into CY26. Per Cantor, regulatory risks remained, but cyclically the market was at the point where the group was a buy. Shares were likely range-bound into DOC/BIS announcement, but Cantor suspected the sell-off in early September marked a bottom for Semi Cap.
25. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 56
Equinix, Inc. (NASDAQ:EQIX) is a California-based real estate trust that operates data centers and other technology assets. HSBC analyst Phani Kanumuri recently upgraded the stock to Buy from Hold with a price target of $1,000, up from $865. The advisory said operational momentum for Equinix and Digital Realty were set to improve significantly in 2025. Data center demand has far outstripped supply in 2024, due to strong artificial intelligence-driven demand and constrained supply in major markets, yet the stocks have underperformed, the advisory told investors in a research note. HSBC said improved utilization is likely to accelerate Equinix’s 2025 revenue growth to 10%.
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. The company is expected to post third quarter earnings in the coming months and analysts expect stellar results given the fact that the energy firm recently raised guidance numbers for the 2024 fiscal year. In the second quarter of 2024, the firm posted earnings per share of $3.37, beating analyst expectations by $1.82. The revenue over the period was $6.6 billion, up close to 5% compared to the revenue over the same period last year but missing expectations by $1.66 billion. Despite falling close to 5% in the past week, the stock is up more than 72% year-to-date.
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 launched a new embedded software environment designed to give developers a more integrated and secure experience developing their integrated circuits and related products for the intelligent edge. The launch is part of a larger plan by the company to capture the semi software market and capitalize on the increasing role of software abstraction in engineering. A key part of this software campaign is the new CodeFusion Studio, an embedded software development environment with software development kits and configuration tools.
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. Citi raised the price target on the stock to $460 from $385 and kept a Buy rating on the shares. The advisory raised its 2024 growth outlook for the Big Four cloud data center capex from 40% to 50% year-over-year, based on the strength of first half of the year data center spend and positive company commentary and guidance. Citi expects data center capex for the big cloud providers to grow by 40% in 2025 due to continued artificial intelligence demand and ongoing investment in data center infrastructure buildout.
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. As the firm pursues a deal with tech giant Microsoft to restart a shuttered nuclear power plant, reports from news agency Reuters claim that the Biden administration in the US is working on bringing decommissioned nuclear plants back online to help the country satisfy surging demand for emissions-free power. The report quotes remarks by National Climate Advisor Ali Zaidi on the matter. Zaidi claimed that restarting dormant plans was part of a three-prong strategy of the administration to bring back more nuclear power to fight climate change and bolster output.
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. The company offers a wide array of solutions tailored to AI companies, including advanced chipsets, networking solutions, and critical components such as server and GPU units. In addition, it provides high-speed power connectors specifically designed for data centers that manage large-scale AI computations for leading software firms. These offerings ensure optimized performance and power efficiency, enabling seamless AI processing and supporting the demanding infrastructure of major AI applications. Bank of America recently lowered the price target on the stock to $70 from $71 and kept a Neutral rating on the shares. The advisory lowered estimates to reflect a more cautious view about Auto and Industrial markets, but noted that revenue estimates in calendar year 2025 remained above the Street as the advisory had factored in unclosed, but announced, deals in its model. The advisory’s calendar year 2026 EPS estimate was now $2.39, down from $2.41 previously. Bank of America had last month downgraded the stock to Neutral from Buy.
19. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. UBS analysts recently published their top and bottom ranking stocks in their quantamental model. The stocks are analyzed by quantamental signals such as CTA momentum, crowding, EPS growth, how interest rates affect the stocks, risk targeting signals, volatility, options volume, adjusted forward PE ratio, new orders, and earnings revisions. Intel was ranked amongst the lowest scoring stocks in the information technology sector in the United States. The three highest scoring stocks in this sector, per investment advisory UBS, included Arista Networks, Broadcom, and Oracle Corporation.
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, published by news outlets in India, suggest that the chipmaker could set up operations at Dholera and Sanand in Gujarat or Morigaon in Assam. The reports quote Prabu Raja, the president of the Semiconductor Products Group at Applied Materials, on the sidelines of the Semicon India 2024 event. Raja advised authorities in India to make incentives more lucrative for the suppliers. Per the executive, the company wanted suppliers to get the same incentives, or close to the same, that manufacturers did. Raja, however, praised the cost benefits of working in the Asian country.
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. JPMorgan recently raised the price target on the stock to $1,207 from $1,202 and kept an Overweight rating on the shares. The advisory said the investor base had suddenly gotten very bearish on ASML through the summer. While there were some reasons for this, namely the Intel capex cut, the slow recovery of the consumer semiconductor market and worries about China restrictions on semi cap companies, the long-term bear thesis on ASML was overstated, the advisory told investors in a research note. JPMorgan said that litho intensity in memory would rise because the growth memory was high bandwidth memory which was litho centric.
16. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 84
Lam Research Corporation (NASDAQ:LRCX) markets semiconductor processing equipment. Prominent investment analyst Jim Cramer recently talked about the company during his show on news platform CNBC. Per research highlighted by Cramer, Lam Research Corporation was one of the stocks that had historically outperformed after the Fed began to cut rates. Cramer noted the stock had been suppressed amid a lack of orders from China and Intel slowing manufacturing in Europe to preserve the balance sheet. Cramer clarified if not for those issues, he thought the stock would be a great buy, but given that the industry had problems, he advised investors to let it come in even more. Cramer classified Lam Research as the best in the group.
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. Research firm International Data Corporation recently released worldwide PC shipment figures, highlighting that Dell Technologies shipped 9.8 million laptops in the third quarter of 2024, compared to 10.3 million during the same period in the prior year. Overall, per IDC, worldwide shipments of traditional PCs dipped 2.4% year-on-year, from 70.5 million to 68.8 million units during the third quarter of 2024, despite the global economy showing signs of recovery. Lenovo led the pack in Q3 with 16.5 million units shipped, representing 24% of the market.
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. Argus recently raised the price target on the stock to $300 from $190 and kept a Buy rating on the shares. The advisory views GE Vernova as a well-run, financially strong company that is well positioned to take advantage of megatrends such as energy transition, global electrification, and global decarbonization. Though the company’s recent profit record has been spotty, a turnaround is underway, and the outlook for near-term growth is promising, the advisory told investors in a research note.
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. Jefferies recently initiated coverage of the stock with a Buy rating and $125 price target. In a research note, the advisory stressed that Vertiv was positioned to benefit from the rise in data center construction with a leading position in liquid cooling. The advisory estimates the company should compound earnings at 24% through 2027 with potential for positive earnings revisions from a strong backlog into 2025, capital deployment opportunities and an acceleration of data center capacity builds.
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. The stock, along with a host of others in the utility space, has seen significant gains this year, largely due to perception as an AI play. The demand for AI processes has led to a need for huge amounts of data center power, and utility firms are likely to provide this power. However, BTIG analyst Jonathan Krinsky recently made a case that the S&P 500 utility sector may be poised for a downward correction. In an investor note, the analyst said it was time to fade the utility sector. Krinsky added that XLU, the Utilities Select Sector SPDR Fund, had been rising on a perfect trend since the summer, but it looked poised to break this uptrend soon.
11. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 100
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Latest reports indicate that aerospace and defense Honeywell has expanded a collaboration with the chipmaker to develop new AI-enabled solutions for the energy sector. Through the collaboration, Honeywell intends to incorporate the connectivity and AI capabilities of chips marketed by the latter into existing AI-powered applications, such as the Honeywell Field Process Knowledge System. By integrating these capabilities, the Field PKS will better be able to help provide connectivity to remote corners of plant and manufacturing facilities and enable greater data capture and analytics at the edge.
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. Investment advisory Citi recently penned a research note on the semiconductor industry, reiterating a Buy rating on AMD stock. In the note, Citi analyst Christopher Danely raised C24 semi sales forecast from up 14% year-on-year to up 17% year-on-year, or $616.6 billion. The analyst further forecasted units ex-discretes to be up 1% year-on-year and ASPs to be up 18% year-on-year. Danley noted that much of the August strength in the semi space was driven by dynamic random access memory, which was above seasonal. In total, August sales of $56.2 billion were above estimates of $51.4 billion, and sales were up 15.4% month-over-month.
9. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. Investment advisory KeyBanc recently lowered the price target on the stock to $135 from $145 and kept an Overweight rating on the shares. In an investor note to clients, the advisory said it expected Micron to garner significant share on HBM3E – the fastest, highest-capacity high-bandwidth memory to advance AI innovation – as Samsung continued to struggle with its performance and to become fully qualified on Blackwell. The note further added that as a result, Samsung would convert its unused HBM capacity back to traditional DRAM, which would result in oversupply in the first half of 2025.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor and infrastructure software solutions. The company recently announced that it had launched the BCM68660 and BCM55050, the first merchant silicon 50G PON Optical Line Terminal-Optical Network Unit devices with an embedded neural processing unit. According to the chipmaker, the devices are designed to boost artificial intelligence and machine learning, and also enable telecom operators to drive new applications on 50G fiber broadband networks. The firm also noted that the new solution gives 40x speed and lower latency than current gigabit solutions, which will boost consumer broadband experience, leading to better live-streaming and a faster gaming experience.
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 recently posted revenue numbers for September, revealing that revenue for the month surged nearly 40% year-on-year to around NT$251 billion amid growing demand for artificial intelligence chips for use in AI products. The firm makes chips for several prominent tech firms, including Apple, NVIDIA, and AMD. The chipmaker had earlier said it expected third quarter revenue to be between $22.4 billion and $23.2 billion. For the third quarter, the company expected business to be helped by strong smartphone and AI-related demand for leading-edge process technologies.
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. The firm recently announced that it had entered into a non-exclusive cloud computing agreement with venture capital firm Sequoia Capital, as reported by Axios. This partnership enables Sequoia-backed AI startups to receive up to $500,000 in free cloud computing and training services from Google. In comparison, Google offers up to $350,000 in cloud credits to other AI startups, such as those associated with Y Combinator, providing them access to cutting-edge computing power through clusters of Nvidia GPUs and Google’s Tensor Processing Units (TPUs). Venture capital firms are highly focused on AI investments. Andreessen Horowitz, for example, has acquired thousands of NVIDIA H100 processors to secure AI-related deals. Sequoia itself has heavily invested in major tech companies like Google, NVIDIA, Apple, and Cisco, reinforcing its involvement in AI and cloud computing advancements.
5. 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, recently made an appearance on a podcast hosted by Rene Haas, the CEO of chip design firm Arm. During his appearance, Huang stressed that the future of AI would be services which could reason. However, he also cautioned that the cost of computing needed to be reduced to reach that phase. Huang further predicted that next-generation AI tools would be able to answer questions by going through hundreds or thousands of steps and reflecting on their own conclusions. Huang added that his company would set the stage for these advancements by strengthening chip performance every year.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Jefferies analyst Edison Lee recently downgraded the stock to Hold from Buy with a price target of $205. In an investor note to clients, the analyst said the advisory was positive on the long-term potential of Apple Intelligence as Apple was the only hardware-software integrated player that could leverage proprietary data to offer low-cost, personalized AI services. However, per Lee, smartphone hardware needed rework before being capable of serious AI with a likely timeline of 2026/27. The high expectations for iPhone 16/17 were premature, contended the analyst. The analyst further noted the expectations of 5% to 10% unit growth for the iPhone were unlikely to be met.
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. The company recently announced that Meta AI, the AI-capable chatbot it markets, will soon be available in 21 new markets, including the UK, Brazil and more countries in Latin America and Asia. The chatbot will also support languages including Arabic, Indonesian, Thai and Vietnamese, Meta said. After the gradual rollout, the company said the chatbot would be available in 43 countries and a dozen languages, keeping it on track to become the most used AI assistant in the world by the end of 2024. The firm has more than 500 million monthly active users.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The company recently revealed that Azure, the cloud service offered by the tech giant, is the first cloud unit in the world to run the new Blackwell systems made by chip firm NVIDIA. Blackwell is the latest AI-optimized system from NVIDIA that is the most powerful and efficient yet, but has been beset by production delays. However, NVIDIA CEO Jensen Huang revealed last month that the demand for the new chips remained insane and the firm was expecting billions of dollars in revenue from these chips in the fourth quarter. Per Microsoft, Azure is running Blackwell via the GB200 AI servers.
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. The company recently announced that it would be partnering with software firm Smartsheert to launch a connector that synchronizes data from Smartsheet into the AI assistant Amazon Q Business. Per the report, the connector would enable Amazon Q Business customers to ask the AI assistant information about their projects, programs, and processes managed in Smartsheet. Amazon has developed Amazon Q Business as a generative AI-powered assistant which can answer queries, provide summaries, content, and complete tasks based on data in different enterprise systems.
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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