We recently published a list of 10 AI Stocks Analysts Are Watching: Latest Ratings and News. In this article, we are going to take a look at where Lam Research Corporation (NASDAQ:LRCX) stands against other AI stocks analysts are watching.
A consortium of investors led by Elon Musk recently offered $97.4 billion to buy the non-profit that controls OpenAI. Musk’s lawyer, Marc Toberoff, confirmed the news. He told Reuters that the offer was sent by email on Monday to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz. However, OpenAI has said that it has not yet received a formal bid from the Elon Musk-led consortium.
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According to Toberoff, the bid was in the form of a “detailed four-page Letter of Intent” to purchase OpenAI’s assets. It was signed by Musk and other investors and addressed to the board. Nevertheless, the news of not having received the bid adds confusion over Musk’s attempt to take control of the artificial startup that has seemingly started the AI arms race.
“Whether Sam Altman chose to provide or withhold this from OpenAI’s other Board members is outside of our control”
-Toberoff, referring to OpenAI’s CEO.
Whether or not an official bid has been sent to OpenAI from Musk, one thing remains clear. Sam Altman, CEO of OpenAI, is not interested in the offer. Altman told Reuters that the non-profit that controls OpenAI is not for sale. He also posted on X, counter-questioning if Musk wanted to sell Twitter for $9.74 billion instead.
“I have nothing to say. I mean, it’s ridiculous. The company is not for sale. It’s another one of his tactics to try to mess with us”.
-Altman said (on the sidelines) of an AI summit in Paris when asked about the offer.
Reuters also reported that Altman sent an internal message to OpenAI employees stating that the board, even though it had not officially reviewed the offer, would reject it based on the interest of OpenAI.
OpenAI is currently seeking a transition into a for-profit from a nonprofit entity. The company states that the transition is required to secure the capital needed for developing the best AI models. Musk, however, appears to have made the move to prevent this outcome. According to him, OpenAI’s transition to a for-profit entity would steer it away from its original mission of developing open-source, safety-focused AI that benefits humanity.
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.
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A technician operating an automated semiconductor processing machine with laser accuracy.
Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 58
Lam Research Corporation (NASDAQ:LRCX) is a semiconductor stock that offers semiconductor equipment and services used in the making of integrated circuits. On February 12, U.S.-based chip toolmaker company Lam Research announced that it will be investing over 100 billion rupees ($1.2 billion) over the next few years in India’s southern Karnataka state. The move marks the latest push toward India’s plans to strengthen its semiconductor ecosystem.
Lam Research reported signing a memorandum of understanding (MoU) with the Karnataka Industrial Area Development Board (KIADB) for the investment during an ‘Invest Karnataka’ event. According to India’s IT minister, Lam Research’s investment is “one more milestone” in the country’s semiconductor journey. Global chip firms are increasingly investing and setting up facilities in India as the country races to build up its semiconductor industry. The country expects its semiconductor market to be worth $63 billion by 2026.
Overall, LRCX ranks 6th on our list of AI stocks analysts are watching. While we acknowledge the potential of LRCX 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 LRCX 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.