We recently compiled a list of the 10 AI News Investors Shouldn’t Miss. In this article, we are going to take a look at where Accenture plc (NYSE:ACN) stands against the other AI stocks.
The Biden Administration is preparing to leave office but is planning to launch an aggressive chips campaign before it goes. South China Morning Post reported that the US government may be revealing new restrictions targeting China’s black-market trade in advanced chips during Biden’s last week in the White House. The so-called “global artificial intelligence (AI) diffusion rule” will aim to limit Chinese companies’ sourcing of advanced artificial intelligence (AI) chips from unrestricted third-party countries. These changes aim to close any existing regulatory loopholes that may allow China to get its hands on powerful graphics processing units (GPUs) essential for training AI models.
READ NOW: Top 10 AI Stocks on Wall Street’s Radar and 10 AI Stocks Taking Wall Street by Storm
In response, Reuters reported on Tuesday, January 7th, that a technology industry group in the US has urged President Joe Biden’s administration to refrain from issuing a last-minute rule related to the control of global access to AI chips. They warn that these restrictions would harm US leadership in artificial intelligence instead. The Information Technology Industry Council, which represents companies like Amazon and Microsoft, said the rule could come out as soon as Friday. It also said that the rule could place arbitrary constraints on U.S. companies’ ability to sell computing systems out of the country, as well as abandon the global market to competitors.
While a major objective of these controls is to keep artificial intelligence from boosting China’s military capabilities, the technology group believes that it is going to do more harm than good. Previously, the South China Morning Post reported that Washington planned to issue the rule by the end of December 2024. However, the Biden administration had decidedly postponed the release due to delays in expert reviews which were a result of US government “budgetary issues”. Nevertheless, the new controls are anticipated to be released before Biden leaves office.
ITI CEO Jason Oxman has also criticized the administration’s “insistence” on issuing the rule in the final days of Joe Biden’s presidency. Here is what he said:
“Rushing a consequential and complex rule to completion could have significant adverse consequences”.
-Oxman said in the Jan. 7 letter, a copy of which was obtained by Reuters.
ITI also said that even though such rules are commendable, the letter said that “the potential risks to U.S. global leadership in AI are real and should be taken seriously”.
Ken Glueck, executive vice president at Oracle also said in a blog post that the rule “drops the Mother of All Regulations on the commercial cloud industry, regulating… nearly all commercial cloud computing globally for the first time in history.” He said that the controls “will go down as one of the most destructive to ever hit the U.S. technology industry”.
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.
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).
A team of data experts gathered around a computer monitor analyzing customer data.
Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 60
Accenture plc (NYSE:ACN) offers strategy and consulting services. On January 6th, Accenture announced that it has launched AI Refinery™ for Industry. The AI Refinery for Industry is a collection of 12 industry agent solutions that will enable organizations to accelerate the development and deployment of AI agents. These agents will allow speeding up the placement of specialized, multi-agent networks that are in turn ready to be customized with an organization’s data. Using Nvidia’s AI technology, the industry solutions will speed up the time to build and gain value from agents from months and weeks to days. Accenture plc (NYSE:ACN) plans to add more than 100 AI Refinery for Industry agent solutions by the end of the year.
“The launch of AI Refinery for Industry represents an expansion of the platform and our collaboration with NVIDIA—which helps clients convert raw AI technologies and tools into scaled enterprise AI systems—providing a foundation to accelerate agentic functionality and reimagine functions and industry processes. Our new industry agent solutions will empower organizations to conceptualize agents and quickly prove their value, hitting the ground running on day one as a network of digital teammates”.
-Lan Guan, chief AI officer, Accenture.
Overall ACN ranks 1st on our list of the AI stocks investors shouldn’t miss. While we acknowledge the potential of ACN 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 ACN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
