In this article, we discuss the 35 AI news investors should not miss.
Companies are investing heavily in AI infrastructure to meet the growing demands of machine learning, data processing, and AI-driven applications. This spending is largely concentrated on building data centers, acquiring specialized hardware, and optimizing cloud infrastructure. According to a report by McKinsey, global AI infrastructure spending could reach up to $500 billion by 2027, highlighting the critical role it plays in the future of AI development. A large part of this investment is focused on AI-specific hardware like Graphics Processing Units (GPUs) and Application-Specific Integrated Circuits (ASICs), which are crucial for training and deploying AI models. NVIDIA, a dominant player in AI chips, has seen demand for its GPUs soar, largely due to their centrality in deep learning tasks. Jensen Huang, the CEO of the firm, has remarked that the AI boom is underpinned by massive infrastructure needs, and the market is just at the beginning of this growth curve.
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.
Data centers are another focal point for AI infrastructure spending. AI workloads are highly demanding, requiring specialized facilities that can support high-density computing environments. Blackstone’s $16 billion acquisition of AirTrunk, a leader in AI-driven data centers, underscores the increasing importance of such infrastructure. The deal will add 800 MW of data center capacity, with projections to grow beyond 1 GW, a testament to the rising demand for infrastructure to support AI-driven applications. Cloud infrastructure is also a major area where companies are pouring resources. Cloud giants are increasing their investments in AI infrastructure. These companies are developing new AI-optimized cloud services to cater to businesses adopting AI. Gartner predicts that by 2026, cloud AI infrastructure spending will surpass $200 billion, as enterprises increasingly shift from on-premise AI deployments to scalable cloud-based solutions.
Thomas Kurian, the CEO of Google Cloud, recently remarked that AI is unlocking entirely new revenue streams for enterprises, and cloud infrastructure is the backbone enabling this transformation. Beyond just hardware, organizations are also investing in data management platforms and storage solutions to handle the massive amounts of data AI systems require. In fact, estimates suggest that the global AI data infrastructure market will grow at a compound annual growth rate of 18%, driven by increased data volumes and the need for real-time data processing capabilities. Companies are significantly ramping up their investments in AI infrastructure, focusing on hardware, data centers, and cloud computing. With projections showing continued growth in AI workloads, this spending will only increase in the coming years.
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 analyses, 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
35. 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. Bank of America recently lowered the price target on C3.ai, Inc. (NYSE:AI) to $20 from $24 and kept an Underperform rating on the shares.
In a research note, the advisory noted that while C3.ai reported modest subscription revenue upside, an unchanged FY25 outlook did not suggest that C3 was participating in tailwinds from the AI adoption cycle in a meaningful way. Pilot deals had not translated to material incremental subscription revenue growth as of yet, added the advisory, and adjusted estimates reflected guidance and still limited visibility for accelerating revenue growth, margin expansion and bottoming backlog.
34. Fabrinet (NYSE:FN)
Number of Hedge Fund Holders: 31
Fabrinet (NYSE:FN) offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services. The company produces fiber-optic cables that power telecommunications, AI data centers, and the global Internet infrastructure. The company makes fiber-optic cables that are used to power telecommunications, AI data centers, and even the Internet across the world.
The datacom business of the company, which revolves around cable provision for AI data centers, has grown rapidly in the past two years. In the third quarter earnings call, Seamus Grady, the CEO of Fabrinet (NYSE:FN), underlined how this 150% jump in datacom revenue had benefited from the rise in demand for 800 gigs technology for AI applications. NVIDIA, one of the biggest winners of the AI craze, is the flagship customer for Fabrinet. The latter powers the data centers of the former with optical cables and electro-mechanical manufacturing services.
33. 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. It is playing the AI market through the manufacture and marketing of connectivity products for AI data centers, which include 400G and 800G switches, and storage solutions.
Stifel recently upgraded Celestica Inc. (NYSE:CLS) stock to Buy from Hold with an unchanged price target of $58. In an investor note, the advisory noted that the shares were down 35% since July 16 on concerns of slowing artificial intelligence investments from hyperscale customers following key supplier earnings reports. However, the advisory noted that the fiscal 2025 earnings per share estimate of $4 remained entirely achievable and already reflected an expected decline in server sales due to a technology transition at top customer Google.
32. 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. Latest reports indicate that chipmaker Intel has rejected approaches from Arm regarding the acquisition of the product division of the former.
Intel insisted that the product division of the firm was not for sale. Arm Holdings plc (NASDAQ:ARM) inquiry into the matter did not extend to the manufacturing unit of the chipmaker, per reports. Intel has already entertained purchase offers from QUALCOMM, Broadcom, and Apollo Asset Management, but has yet to accept any of them.
31. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 41
Teradyne, Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products globally. Cantor Fitzgerald recently upgraded Teradyne, Inc. (NASDAQ:TER) stock to Overweight from Neutral with an unchanged price target of $16, adding the company to the Top Picks list.
Cantor hailed Teradyne as one of the sneakier artificial intelligence plays in semis with excellent leverage to networking and high bandwidth memory and growing traction on the custom silicon side of the business. The investor note further detailed that Teradyne was also well levered to a broader industry recovery given its outsized share in auto and industrial test, strong positioning in the robotics market, and a solid exposure in the mobile market.
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. Latest reports show that Chairman Peter Thiel has sold over $600 million worth of the company’s stock this week, bringing his total disposals this year to over $1 billion. Regulatory filings with the SEC detail that Thiel sold more than 16 million shares of the firm over the last three days of the week.
Thiel intends to sell up to 28 million shares in the company as part of a trading plan, per Bloomberg. Year-to-date, the Denver-based company — which deploys software platforms for the intelligence community — has seen its stock surge about 116%.
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 company is playing the AI space through the manufacture and marketing of networking and cybersecurity products. Citi recently resumed coverage of Juniper Networks, Inc. (NYSE:JNPR) stock with a Neutral rating and $40 price target. Following the Q3 results of the firm, the advisory updated its model, targeting the company’s sales to decline by 12% in FY24 but grow by 3% in FY25 against the Street estimates of a 10% decline and 4% growth respectively. Citi said it was positive on Juniper’s enterprise AI focus and opportunities for gross margin expansion.
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. The firm is important to the AI world since it can provide up to 80% coverage of data center needs for large and hyperscale customers that are building their AI profiles.
Senior executives from Flex Ltd. (NASDAQ:FLEX) recently took part in the Goldman Sachs 2024 Communacopia + Technology Conference, stating on the occasion that the firm had a firm hold on the end-market momentum in the power and cloud markets, largely due to the data center portfolio.
However, the executives cautioned that there was a general weakening in volume outlooks in the auto sector starting in Q3. However, the executives reaffirmed that given the improving mix and continued strong cost management for multiple quarters now, they did not expect any pressure on profitability or EPS.
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. The firm has emerged as an important player in the AI space, marketing 800G transceivers which read and write data at a speed of 800 gigabytes per second. The company recently took part in the European Conference on Optical Communications, showcasing a new product called 1.6T SiPho that was running a 5nm NVIDIA chip, according to investment advisory Barclays. The new product by Coherent Corp. (NYSE:COHR) will not hit production till late 2025, per reports. Barclays analyst Tom O’Malley detailed in an investor note that the new product would pressure companies like Marvell and Broadcom in the long term.
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. The stock has fallen in the past few days after reports from The Wall Street Journal that the server firm was being investigated by the US Justice Department.
The probe, which comes days after a report on SMCI by an activist short-selling firm, is in its early stages. Late last month, short seller Hindenburg Research had published a report on Super Micro Computer, Inc. (NASDAQ:SMCI) and said it was shorting the stock.
Mizuho analyst Vijay Rakesh recently started coverage of the stock with a Neutral rating and a price target of $450. In an investor note, the analyst underlined that the artificial intelligence server market was growing at a 54% compound annual rate, but increased competition was hitting margins, and the stocks of companies that had diverse portfolios stood to benefit more.
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. Oppenheimer recently started coverage of KLA Corporation (NASDAQ:KLAC) stock with a Perform rating and $750 price target. In an investor note on the firm, analyst Edward Yang detailed that KLA was by far the dominant provider of semiconductor process control tools that enhanced manufacturing yields, and one of the top five wafer fab equipment companies that make up 80% of total industry revenue.
The analyst further added that the firm had become the only oligopoly semicap that had consistently exceeded Street revenue estimates 100% of the time over the last three years, including the downcycle and US export curbs. He noted that the company had also become a huge beneficiary of artificial intelligence, as it had helped address the most pressing bottlenecks of both NVIDIA and the broader AI ecosystem.
Given that AI compute demand was doubling every six months, while hardware performance only improved every two years, there was a severe, structural shortage of advanced semiconductors and the tools needed to manufacture them, Yang explained.
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 stock has rallied in the past few days after the company raised guidance for full-year adjusted EBITDA to a range of $3.52 billion – $3.67 billion, up from its previous view of $3.3 billion – $3.55 billion, reflecting robust financial and operational execution throughout the year.
The company also hiked guidance for FY 2024 cash flow before growth to $1.97 billion – $2.12 billion from its prior outlook for $1.82 billion – $2.07 billion. Larry Coben, the CEO of NRG Energy, Inc. (NYSE:NRG), said the firm was confident in the ability to drive growth and capitalize on the emerging opportunities in markets. The firm is well-positioned to capitalize on favorable power demand trends from generative AI and data centers.
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. Truist downgraded Analog Devices, Inc. (NASDAQ:ADI) stock to Hold from Buy with a price target of $233, down from $266. The advisory also downgraded the semiconductor industry to Neutral from Constructive. In a research note, the advisory detailed that industry revenue growth had peaked and was entering a slow fade, while stock investment returns had been robust cycle-to-date, making significant additional returns from here more challenging.
However, Truist recognized that the fundamentals of ADI appeared to have recently bottomed, and forecast a significant recovery in 2025, but noted the stock was also trading at 28-times estimated 2025 earnings, representing an historical peak for the company, with much of the potential upside already embedded in the stock price.
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. 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. Latest reports indicate that the company has also been selected by tech giant Meta to provide the networking for a massive AI model training cluster that will be powered by over 100,000 GPUs.
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. UBS raised the price target on Constellation Energy Corporation (NASDAQ:CEG) stock to $307 from $230 and kept a Buy rating on the shares. In an investor note, the advisory referenced the recent Constellation deal with Microsoft to provide long-term, dedicated power from the restarted Crane plant, noting that the broad implications from the announcement were a reaffirmation of the demand for power from large technology companies and the willingness to pay up for access to large quantities of clean energy.
The advisory further added that this was another signaling event in the power demand thesis that demonstrated a very supportive fundamental backdrop for 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. The company offers a diverse range of products for AI companies, including chipsets, networking solutions, and server and GPU components. Additionally, it provides high-speed power connectors for data centers that handle AI computations for major software firms.
Bank of America recently downgraded Amphenol Corporation (NYSE:APH) to Neutral from Buy with a price target of $71, down from $80. The advisory said checks suggested that certain issues with GB200-based systems could result in a design change that could lower the addressable market for Amphenol and could significantly impact the content of the firm in NVIDIA GB200 NVL36- and NVL72-based configurations.
19. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest reports, published by Financial Times, indicate that the company is set to finalize an agreement for $8.5 billion in direct funding from the US government. This funding is part of the broader initiative by the US government, under the CHIPS and Science Act passed earlier in the Biden term, aimed at bolstering domestic semiconductor manufacturing capabilities.
However, the report claims that potential takeover talks at Intel Corporation (NASDAQ:INTC) and rumors of the chipmaker divesting parts of the business could scuttle talks with the government. The government funds would support chip operations at Intel plants in Arizona, New Mexico, Ohio, and Oregon.
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. Citi analyst Atif Malik recently lowered the price target on Applied Materials, Inc. (NASDAQ:AMAT) stock to $217 from $240 and kept a Buy rating on the shares.
The advisory updated its semiconductor equipment sector view and forecast that the equipment group was heading into a mid-cycle correction in the first half of 2025. While server artificial intelligence demand remained strong, consumer demand across PCs, smartphones, and auto appeared lackluster, analysts at the advisory told investors in a research note.
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. Morgan Stanley analyst Lee Simpson recently downgraded ASML Holding N.V. (NASDAQ: ASML) stock to Equal Weight from Overweight with a price target of EUR 800, down from EUR 925.
The analyst, in an investor note, saw a balanced risk/reward for the shares given late cycle share price dynamics. The note further added that ASML’s risks included weak Intel capacity adds, a slowing DRAM cycle in 2025 and ongoing uncertainties surrounding China demand. The company has come under pressure in recent months after a tightening of export controls by the US and Dutch governments aimed at curbing Chinese access to AI chips.
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. Mizuho lowered the price target on Lam Research Corporation (NASDAQ:LRCX) stock to $950 from $1,050 and kept an Outperform rating on the shares.
In a research note, the investment advisory forecast 2024 and 2025 wafer fab equipment spending flat and up 2% year-over-year respectively, versus prior estimates of up 3%-4%. Mizuho saw some challenges with Intel capex cuts into 2025 and China potential high bandwidth memory restrictions. However, it also saw artificial intelligence as a strong demand driver into 2025.
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. Deutsche Bank analyst Matt Niknam recently penned a research note on the company, reiterating a Buy rating on Dell Technologies Inc. (NYSE:DELL) stock with a price target of $144.
Niknam highlighted that the shares of the company had gained more than 60% year-to-date and 80% over the past 12 months, as Dell had benefited from the artificial intelligence spending boom tied to servers. Niknam predicted that the shares had even more room to run. He forecast top-line growth to accelerate into the double-digits over the next several quarters, as Dell benefited from a confluence of tailwinds across key segments, where it was a share leader, like servers, storage and commercial PCs.
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. Latest reports indicate that the company is among a group of four firms shortlisted by authorities in Britain for the next stage of a competition to develop small modular nuclear reactors.
These facilities are attracting a lot of attention as AI data centers and their power needs force countries to revamp their energy infrastructures. The four companies selected include Rolls Royce, GE Vernova Inc. (NYSE:GEV), Westinghouse, and Holtec Britain. GE Vernova is participating in the competition through the Hitachi Nuclear Energy subsidiary. Small nuclear power plants have lower costs and faster construction times, making them attractive for investors.
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 company recently announced that it was expanding manufacturing operations in North America with a new facility in South Carolina.
The new facility would add 215,000 square feet of manufacturing space and create up to 300 additional skilled job opportunities. The primary purpose of the facility is to produce a variety of AI infrastructure solutions that would reduce site labor requirements and overall data center time to market. Vertiv Holdings Co (NYSE:VRT) markets IT infrastructure technologies for data centers.
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. Morgan Stanley analyst David Arcaro raised the price target on Vistra Corp. (NYSE:VST) stock to $132 from $110 and kept an Overweight rating on the shares. In a research note, the analyst highlighted that in August, Regulated & Diversified Utilities / IPPs in North America outperformed the S&P’s 2.43% return by 238 bps.
The analyst further added that with interest rates declining, a potential economic slowdown ahead, and expected data center updates, the investment advisory believes that the industry could outperform by approximately 5% but noted the sector’s mixed performance in previous soft landings.
11. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 100
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. Investment advisory Benchmark recently released an investor note on the company, following the publication of reports that the chipmaker was in talks with rival Intel about a potential acquisition of the latter.
The investor note detailed that analysts understood the attraction of the deal to QUALCOMM Incorporated (NASDAQ:QCOM), and the possibility of a combination with at least a portion of Intel, namely the chip design business focused on the PC/notebook and server markets, but noted that the ultimate acquisition of Intel by the chip firm was logically unlikely. The note further added that an Intel offer would undoubtedly entail a hefty price tag, but even greater than the steep financial hurdle, the largest impediment to an acquisition was simply the high degree of regulatory scrutiny the transaction would attract.
10. 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 Oracle Cloud Infrastructure would be deploying the MI300X GPUs to power the newest Oracle Cloud Infrastructure Compute Supercluster instance.
Following the news, Wells Fargo released an investor note on Advanced Micro Devices, Inc. (NASDAQ:AMD), maintaining an Overweight rating on the stock with a price target of $205. The advisory detailed that the news was an incremental positive and the press release issued by the semiconductor firm specifically highlighted the MI300X GPUs as well positioned for inference capabilities, a theme the company would emphasize at an upcoming artificial intelligence event expected to be held on October 10.
9. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 120
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. Raymond James recently raised the price target on Micron Technology (NASDAQ:MU) stock to $140 from $125 and reiterated an Outperform rating on the shares. In an investor note, the investment advisory detailed that the fourth quarter results and first quarter outlook for the memory maker were both better than recently reduced estimates by analysts and fiscal 2025 commentary by management would help allay recent concerns about the memory cycle rolling over.
The advisory further added that the margins for Micron were benefiting from a combination of pricing, high bandwidth memory mix, and improving yields, tailwinds that would continue through the year, and noted that a higher peak multiple was justified for the shares.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. William Blair analyst Sebastien Naji recently initiated coverage of Broadcom Inc. (NASDAQ:AVGO) stock with an Outperform rating. In an investor note accompanying the ratings update, the analyst highlighted that Broadcom was targeting $12 billion in AI revenue in fiscal year 2024 and the investment advisory saw room for continued steady growth into fiscal year 2025 and fiscal year 2026 for the chipmaker, largely driven by increasing custom chip demand, improved software monetization, recovery in non-AI semi chips and accelerating growth of Ethernet AI network fabrics.
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. Latest reports indicate that ByteDance, the parent firm of social media giant TikTok, has set up a deal with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to mass produce two AI chips.
These chips, designed jointly by both firms, could hit production within the next two years. The production of the chips is aimed at reducing the reliance of the Chinese internet technology company on American chipmaker NVIDIA. The latter currently provides chips to ByteDance for developing and operating AI models. However, the US has banned the export of NVIDIA chips to China in recent months.
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. Google CEO Sundar Pichai said recently that the tech giant is investing $3.3 billion in South Carolina to break ground on two new data centers. The move is part of a larger plan to expand cloud and data center infrastructure, create local jobs, and support economic activity in the area.
According to reports, the two new data centers are being built in Dorchester County, which is northwest of Charleston. The South Carolina centers comprise part of a 40-region global network for Google Cloud, which covers more than 200 countries and territories around the globe. The Cloud service marketed by Alphabet Inc. (NASDAQ:GOOG) is the third biggest cloud service in the world, trailing Amazon Web Services and Microsoft Azure.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Latest reports, published by the news publication Bloomberg, reveal that regulators in China are discouraging businesses from purchasing NVIDIA chips. NVIDIA is not allowed to sell advanced chips to Chinese entities, under orders from the US government, but some models are allowed for export, like the H20. NVIDIA derives almost 12% of revenue from the sales of low-end chips and software to companies in China.
The Chinese pushback against NVIDIA Corporation (NASDAQ:NVDA) is largely viewed as an effort to decrease reliance on American chips and encourage purchase from domestic chipmakers, chief among them being Cambricon and Huawei. The US has discouraged NVIDIA from exporting chips to China for two years.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Latest reports, published by finance publication The Wall Street Journal, indicate that the company has dropped out of taking part in an investment round for AI startup OpenAI. The startup is reportedly worth more than $100 billion and is backed by several tech giants, including Apple rival Microsoft.
Previously, it had been reported that Microsoft, Apple Inc. (NASDAQ:AAPL), and NVIDIA had all discussed joining the capital raise for the startup, which was valued at around $86 billion in a funding round held earlier this year. Microsoft was set to invest $1 billion into the startup, bringing total investment in OpenAI to around $13 billion. Venture capital firm Thrive Capital, which is leading the latest funding round, is also likely to invest more than $1 billion into the AI startup.
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. Jefferies analyst Brent Thill released an investor note on the company following the keynote address of Meta chief Mark Zuckerberg at the Meta Connect event, reiterating a Buy rating on the stock with a price target of $600.
Thill underlined that the keynote had left analysts more bullish on the consumer and enterprise AI opportunities for Meta Platforms, Inc. (NASDAQ:META). Thill added that on the consumer front, there were bullish views on the impressive traction for Meta AI, with about 500 million monthly active users, and saw potential for new image, translation and voice capabilities to boost core engagement.
On the enterprise side, per the analyst, Llama was becoming a serious contender and the advisory saw momentum building with the new multimodal capabilities.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The company announced earlier this week that it would be investing $2.7 billion in Brazil over the course of three years as part of an effort to foster the development of an artificial intelligence ecosystem in the South American country. When completed, the investment would be the biggest single investment for Microsoft Corporation (NASDAQ:MSFT) in Brazil.
The money would be directed towards the expansion of cloud and AI infrastructure across multiple datacenter campuses. The firm will also launch a ConnectAI program to provide AI skills training to 5 million people, with the goal of addressing the AI-driven workforce shift.
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. Earlier this week, the regulatory authorities in Britain cleared the partnership that the tech giant had made with AI startup Anthropic back in March. Under the partnership, Amazon.com, Inc. (NASDAQ:AMZN) had agreed to invest over $4 billion into the company in the coming months.
The British regulator said the partnership did not qualify for investigation under merger rules. Anthropic, which was co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, has received billions of dollars in investments from several tech giants, including Amazon rival Google. The startup is preparing to raise fresh funding at a valuation of around $40 billion.
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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