We recently published a list of 15 Important AI News and Ratings on Investors’ Radar. In this article, we are going to take a look at where Informatica Inc. (NYSE:INFA) stands against other important AI news and ratings on investors’ radar.
On Monday, the US government revealed that it would further restrict artificial intelligence chip and technology exports. As reported by Reuters, the goal behind these restrictions is to help the US advance its computing power and AI technology, while finding more ways to block China’s access. Under the new regulations, the number of AI chips exported to most countries will be capped, allowing unlimited access to U.S. AI technology for America’s closest allies. Meanwhile, a block shall be maintained on exports to China, Russia, Iran, and North Korea.
“The U.S. leads AI now – both AI development and AI chip design, and it’s critical that we keep it that way”.
-Commerce Secretary Gina Raimondo said.
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These regulations are seemingly the last efforts by the Biden administration to maintain US leadership in AI and close any loopholes in controlling the flow of AI chips. The new administration, set to take office on January 20, shares similar views on the competitive threat from China. However, President-elect Donald Trump is expected to make significant changes to the Biden administration’s stance on artificial intelligence.
“We will repeal Joe Biden’s dangerous Executive Order that hinders AI innovation, and imposes radical leftwing ideas on the development of this technology. In its place, Republicans support AI development rooted in free speech and human flourishing”.
-A manifesto from the Republican Party platform
With only a few days left until Trump takes office, the recently revealed restrictions on AI chips have been imposed on advanced graphics processing units (GPUs), which are used to power data centers needed to train AI models. Moreover, under the new rules, cloud providers will be able to build data centers by applying for global approval. Once approved, they won’t need export licenses for AI chips which will allow them to build data centers in countries that cannot import enough chips because of the U.S.-imposed quotas. However, these authorized companies must abide by stringent conditions and restrictions, such as security requirements, reporting demands, and a plan or track record of respecting human rights.
Currently, the recent regulation divides the world into three tiers. 18 countries, including Japan, Britain, South Korea, and the Netherlands, will essentially be exempt from the rules. Moreover, 120 other countries, including Singapore, Israel, Saudi Arabia, and the United Arab Emirates, will face country caps, whereas arms-embargoed countries like Russia, China, and Iran will not be allowed to receive the technology altogether.
“How effective the rule ends up being in the next 10 to 15 years is now up to the incoming team. They are well aware that ensuring a dominant domestic industry is a core element of competition with China”.
– Meghan Harris, a national security official during the first Trump administration.
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 business executive in a modern office looking over reports detailing artificial intelligence.
Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 22
Informatica Inc. (NYSE:INFA) is a leader in enterprise AI-powered cloud data management. On January 10, the company announced that it had expanded its partnership with Google Cloud. The partnership expansion will allow its Cloud Data Governance and Catalog (CDGC) to be available on Google Cloud as a transactable offering on Google Cloud Marketplace. It is built on the foundation of Informatica’s AI-powered Intelligent Data Management Cloud™ (IDMC), offering customers a robust data governance and catalog solution. Through CDGC, businesses can now easily govern, classify, define, discover, catalog, and measure data across the enterprise.
“AI-driven cataloging and governance capabilities provide a rich metadata foundation that is critical for modern analytics and AI initiatives, including Informatica’s recently-released Gen AI Blueprint for the Vertex AI platform and Gemini models. We are excited to offer CDGC natively on Google Cloud so Google Cloud customers can classify, secure and democratize their critical data assets and achieve transformative AI and analytics driven outcomes”.
-Rik Tamm-Daniels, Global Vice President of Strategic Ecosystems and Technology at Informatica.
Overall, INFA ranks 8th on our list of important AI news and ratings on investors’ radar. While we acknowledge the potential of INFA 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 time frame. If you are looking for an AI stock that is more promising than INFA 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.