We recently published a list of Top 10 AI Stocks Buzzing on Latest News. In this article, we are going to take a look at where Illumina, Inc. (NASDAQ:ILMN) stands against other top AI stocks buzzing on latest news.
Investors are continuing to assess the impact of new LLMs in the AI industry. X. Eyeé, CEO of AI consulting firm Malo Santo and senior policy advisor at the Goldman School of Public Policy at UC Berkeley, said in a recent program on CNBC that the DeepSeek breakthrough in China has changed the dynamics of the AI race. She believes AI development is no longer limited to the companies with the “largest pockets.”
“I mean, the world has long looked to the United States to be the leader in artificial intelligence, but these recent model releases from China have demonstrated its ability to leapfrog and catch up with us tech giants and achieve groundbreaking results without the luxury of advanced hardware, which is ultimately challenging everything that we thought was necessary for innovation in the AI space. See, what DeepSeek represents is that AI innovation isn’t necessarily driven by the companies with the largest pockets or the fanciest hardware, but that collaborative development approaches can actually end up providing market-leading technologies.”
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For this article, we picked 10 AI stocks making the biggest moves these days. With each stock we have mentioned the number of hedge fund investors. 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).
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Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Investors: 54
In a latest interview with CNBC, Cathie Wood explained why she likes Illumina, Inc. (NASDAQ:ILMN) on the back of AI catalysts:
“Now that AI is speeding everything up, we’re going to see more value placed on those because the number of failures is going to drop and the time to market is going to accelerate. We think cures are going to increase the value of patents, and this is not what the traditional world thinks—by anywhere from two to twentyfold. If we’re curing disease, then we won’t be falling off patent cliffs. I do see Illumina getting hit today by the China announcement overnight. Illumina, Inc. (NASDAQ:ILMN) is the premier short-read sequencing company, and that’s going to be very important in the blood tests that help us discern whether we have cancer or whether it is recurring.”
Baron Global Advantage Fund stated the following regarding Illumina, Inc. (NASDAQ:ILMN) in its Q3 2024 investor letter:
“We added to our investment in Illumina, Inc. (NASDAQ:ILMN). The company supplies instruments and consumables for next generation sequencing (NGS), a technique that enables massive amounts of genetic analysis in both research and clinical diagnosis. It is the dominant player today with 80% of the market. We believe Illumina is on a path to return to double-digit growth in the intermediate to long term while benefiting from a long runway for growth with genomes sequenced for less than 1% of humans and 0.1% of species. We believe that Illumina would be able to grow its TAM by continuing to reduce the cost of sequencing as it has in the past (its recent Novaseq X) has reduced the cost from $600 to $200. We also believe that Illumina is more than a sequencing company. It’s an entire workflow and ecosystem, from sample prep to sequencing and bioinformatic analytics. While it used to be that the sequencing portion was a big chunk of the whole workflow’s costs, nowadays it’s in line with the other parts of the workflow. If researchers are used to Illumina protocols and their solution is spec’ed in on the workflows (particularly on the clinical side), it doesn’t make sense to save a bit more money on that few hundred dollars, if Illumina makes them more efficient on the other parts of the workflow like sample prep and bioinformatics.”
Overall, ILMN ranks 8th on our list of top AI stocks buzzing on latest news. While we acknowledge the potential of ILMN, our conviction lies in the belief that under the radar 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 ILMN 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.
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