We recently published a list of 12 AI News and Ratings Investors are Keeping Their Eye On. In this article, we are going to take a look at where DXC Technology Company (NYSE:DXC) stands against other AI news and ratings investors are keeping their eye on.
How AI Is Shaping Global Power and Innovation
Josh Wolfe, co-founder of Lux Capital, discussed the current AI space and the increasing importance of both capital and human talent in the field as he joined Caroline Hyde and Mike Shepard on “Bloomberg Technology.” He highlighted how investments in large foundation models, previously seen as groundbreaking, are being overshadowed by more cost-effective open-source models and the rise of novel AI applications, especially in physical intelligence, robotics, and biology.
Wolfe pointed out the significance of AI models’ geopolitical implications, especially regarding the competition between the U.S. and China. He stressed that U.S. leadership in AI is at risk due to China’s rapid advancements and its ability to produce a significant portion of AI talent globally. Wolfe also highlighted concerns about China’s state-backed companies, such as TikTok and Huawei, which he views as extensions of the Chinese government, posing national security risks. He emphasized the importance of attracting top international talent to the U.S. to maintain a competitive edge, as China produces a large percentage of AI researchers and students.
Additionally, Wolfe noted the growing significance of AI infrastructure, especially in hardware and inference. He predicts a shift toward on-device AI processing, which could reduce reliance on cloud-based systems and change the competitive landscape in AI. On national security, Wolfe praised initiatives that foster collaboration between technologists, policymakers, and venture capitalists to strengthen U.S. competitiveness. He also expressed concern about potential challenges to scientific research funding under the current administration, urging more federal investment in basic science and research to promote innovation, especially in physical sciences, robotics, and space exploration.
Wolfe concluded by stressing the need for more support for young researchers, as significant breakthroughs often come from ambitious and unconventional ideas, and called for a stronger focus on advancing U.S. leadership in these fields.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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).
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DXC Technology Company (NYSE:DXC)
Number of Hedge Fund Holders: 30
DXC Technology Company (NYSE:DXC) provides IT services and solutions globally, specializing in analytics, cloud infrastructure, security, and software engineering across various sectors.
On February 4, DXC Technology (NYSE:DXC) reported Q3 non-GAAP EPS of $0.92, exceeding expectations by $0.15. However, revenue of $3.23 billion declined 5% year-over-year, missing estimates by $30 million. The company management said that it continues to drive digital transformation by expanding its AI capabilities, including partnerships with SAP and ServiceNow to help clients leverage AI for growth. DXC (NYSE:DXC) is also enabling GenAI adoption by ensuring clean, reliable data for scalable solutions. Significant projects include working with Singapore General Hospital to create an AI tool for clinical data analysis and partnering with Ferrari to develop software for the F80 supercar’s infotainment system. Additionally, DXC’s strong position in the insurance sector and focus on secure AI-driven cloud infrastructure solutions contribute to its ongoing growth.
Overall, DXC ranks 5th on our list of AI news and ratings investors are keeping their eye on. While we acknowledge the potential of DXC 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 DXC 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.