We recently published a list of Top 10 AI News Updates Taking Wall Street By Storm. In this article, we are going to take a look at where Accenture plc (NYSE:ACN) stands against other top AI news updates taking Wall Street by storm.
Escalating costs for developing bigger and more powerful artificial models has always been a big problem. Over the years, the cost of creating AI models has ranged between a thousand to million dollars, depending on complexity, project scope, and the need for specialized resources. The development of advanced and more powerful graphics processing units costing thousands of dollars has only fueled the costs.
In comes, DeepSeek, a Chinese AI startup that has shown it is possible to develop AI models without spending much. It maintains that its R1 AI model, despite being constructed at a fraction of the cost, competes with or surpasses top US AI models on various industry standards.
As the tech sector attempts to figure out how DeepSeek accomplished the feat, the fallout from the R1 launch is rapidly spreading around the world. DeepSeek’s achievements are fueling the race to develop cost-effective AI models.
Cohere is in the process of launching an AI model to conduct complicated business tasks while running on just two A100 H100 chips. It is significantly less than the number of chips required for some large models and also less than what DeepSeek’s system is thought to need. Similarly, Google has unveiled an AI model that runs on a single advanced AI chip.
Nevertheless, tech giants are still spending billions of dollars on data centres, semiconductors, and personnel. However, the latest releases also allude to a drive within the industry to create AI software that operates as effectively as possible. The fervor surrounding the Chinese startup might only hasten the development of robust, cost-effective AI models.
DeepSeek has disrupted numerous beliefs within Silicon Valley regarding the financial aspects of creating AI, the optimal technical approaches for developing the technology, and the degree of the United States’ advantage over rivals in China. For the longest time, the burgeoning AI sector has assumed that achieving superior AI heavily relies on substantial investments in advanced chips and significantly larger data centres to accommodate them.
“The release of DeepSeek AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win,” US President Donald Trump said.
Our Methodology
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds in Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 79
Accenture plc (NYSE:ACN) is a technology company providing strategy, consulting, technology, and operation services. It also offers systems integration, application management data, AI, and automation services. On March 12, the company partnered with CrowdStrike to drive cybersecurity transformation.
The collaboration will result in the merging of Accenture’s security services with the CrowdStrike Falcon cybersecurity platform. The integrated offering should result in transformative improvements and cost efficiencies in areas of security operations, continuous threat exposure management and AI workload protection.
“Accenture (NYSE:ACN)’s deep expertise with the Falcon platform and SIEM transformation has directly assisted organizations in upleveling their cybersecurity programs from device to cloud to datacenter. Accenture plays a key role in guiding organizations to embrace the AI-native SOC, leaving legacy SIEMs, point products, and manual SOC operations behind for automated, resilient, and machine-speed cybersecurity platform controls,” said George Kurtz, founder and CEO of CrowdStrike.
Overall, ACN ranks 1st on our list of top AI news updates taking Wall Street by storm. While we acknowledge the potential of ACN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
