We recently compiled a list of the 10 AI News Taking Wall Street by Storm. In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against the other AI stocks that are taking Wall Street by storm.
It seems that major tech companies in Silicon Valley are forging relationships with the defense industry these days. In the latest news, prominent artificial intelligence company OpenAI has entered a partnership with Anduril, a defense startup that produces missiles, drones, and software for the United States military.
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The companies said that this partnership will emphasize on the improvement of the United States’ counter-unmanned aircraft systems (CUAS) as well as their ability to deal with potentially lethal aerial threats in real-time. The CUAS will enable defense against drone strikes by detecting and intercepting them while they are airborne.
According to Brian Schimpf, cofounder and CEO of Anduril, OpenAI’s AI models will be used to improve systems used for air defense. The technology will be used to “assess drone threats more quickly and accurately, giving operators the information they need to make better decisions while staying out of harm’s way”, revealed a former OpenAI employee.
“OpenAI builds AI to benefit as many people as possible, and supports US-led efforts to ensure the technology upholds democratic values… Our partnership with Anduril will help ensure OpenAI technology protects US military personnel, and will help the national security community understand and responsibly use this technology to keep our citizens safe and free.”
-Sam Altman, OpenAI’s CEO.
Last month, OpenAI rival Anthropic also entered a partnership with a famous defense contractor to provide “US intelligence and defense agencies” access to its AI models. Regardless of its competitors’ actions, OpenAI shows no signs of slowing down anytime soon. After months of tender offers and a soaring valuation, the company has reached a new record of 300 million weekly active users. The announcement was made by Sam Altman during an appearance at The New York Times’ Dealbook Conference on Wednesday, December 4th. The company is reportedly targeting 1 billion active users by next year.
These strategies aim to strengthen OpenAI’s position against competitors Anthropic and Elon Musk’s xAI, the latter of which Sam Altman considers a “fierce competitor”. Besides that, it is also striving to gain a larger slice of the generative AI market, which may top $1 trillion in revenue by the next decade. Altman also revealed that his company hasn’t asked investors not to invest in its competitors. However, those who decide to wouldn’t have access to OpenAI’s “information rights,” like the company’s roadmap and other materials.
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).
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MicroStrategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 25
MicroStrategy Incorporated (NASDAQ:MSTR) is an innovator in AI-powered business intelligence (BI) offering business intelligence (BI), mobile software, and cloud-based services. On December 5, the company announced that Zebra Technologies has selected its cloud-native platform, MicroStrategy ONE, for its Workcloud Workforce Optimization Suite. The collaboration will allow Zebra customers to modernize analysis and decision-making across fleet and corporate functions by using MicroStrategy’s self-service reporting and AI capabilities. The platform will also help Zebra customers with access to a modern reporting suite complete with generative AI capabilities, as well as allow access to self-service capabilities, reducing the need for custom report requests while providing direct access to analytics.
“We were the first to release a cloud-native business intelligence platform that integrates generative AI. We’re proud to partner with Zebra to provide their clients with a thoroughly modern platform so they can access the data they need quickly with excellent performance.”
-Saurabh Abhyankar, Executive Vice President & Chief Product Officer MicroStrategy.
Overall MSTR ranks 8th on our list of the AI stocks that are taking Wall Street by storm. While we acknowledge the potential of MSTR 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 MSTR 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.