We recently published a list of Top 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where NetApp, Inc. (NASDAQ:NTAP) stands against other AI stocks on Wall Street’s radar.
With OpenAI having started the AI arms race through its groundbreaking advancements, there are no signs that the AI startup may stop any time soon. In its latest, the company said on Tuesday, January 14, that it is introducing a beta feature called Tasks to ChatGPT. The move is said to highlight the company’s entry into the virtual assistant space, competing with Apple’s Siri and Amazon’s Alexa. Through Tasks, ChatGPT users will be able to request tasks to be performed at a future time, including one-time reminders. This includes tasks such as fetching daily weather updates or even news briefings.
READ ALSO: Top 10 AI Stocks on Latest Analyst Ratings and News and 10 Must-Watch AI Stocks on Investors’ Radar
ChatGPT maker OpenAI also revealed that it has finalized a version of its new reasoning AI model o3 mini. According to CEO Sam Altman, the finalized version will be launched in a couple of weeks. Altman further wrote in a post on social media platform X that the company has listened to user feedback, and will be releasing the application programming interface (API) and ChatGPT simultaneously.
OpenAI plans to launch the o3 mini by the end of January, and the full o3 afterwards. This move may be because there may be robust large language models that could outperform existing models and attract new investments and users. Currently, the o1 models are capable of reasoning through complex tasks. According to the company, they can solve more challenging problems than previous models in science, coding, and math.
While OpenAI is racing toward reaching the next levels in AI outpacing its competitors, it is just as much concerned about the country’s policy toward it. The company has recently laid out an economic blueprint with its vision for artificial intelligence in the US. “Chips, data, and energy are the keys to winning AI”, it said. It also said that the U.S. needs to act now to craft nationwide rules that will help secure its advantage.
“There’s an estimated $175 billion sitting in global funds awaiting investment in AI projects, and if the U.S. doesn’t attract those funds, they will flow to China-backed projects —strengthening the Chinese Communist Party’s global influence”.
-OpenAI said in the document.
The company has also outlined proposals for export controls on AI models. According to them, adversary nations should be unable to access them as they are more likely to misuse the technology.
After raising $6.6 billion last year, the company plans to turn itself into a for-profit business so that it can capture even more funds to stay ahead in the AI race.
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 multi-monitor workstation displaying data-centric services.
NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 38
NetApp, Inc. (NASDAQ:NTAP) provides storage and data management solutions, with a particular focus on hybrid cloud environments, AI-driven data storage, cloud integration, and data services. On January 15, NetApp Inc. revealed that it has agreed to sell a portfolio of cloud software assets to Flexera, the global leader in technology spend and risk management. NetApp will be divesting its “Spot” by NetApp FinOps business to Flexera which it acquired back in July 2020. According to Bloomberg, the move is said to streamline its business and strengthen its core operations. Meanwhile, it is also going to ensure that the Spot business can scale effectively within Flexera’s ecosystem, allowing NetApp to focus on its core areas of expertise.
“This decision reflects NetApp’s sharpened focus and underscores our commitment to intelligent data infrastructure and long-term growth opportunities. After a thorough evaluation, it is clear that Flexera’s established expertise and global reach provide the ideal environment for the Spot business to thrive and scale. This move not only allows the Spot team and portfolio to unlock their full potential within Flexera’s ecosystem but also reinforces our dedication to driving value creation and achieving our ambitious growth objectives.”
-Haiyan Song, Executive Vice President, Intelligent Operations Services, at NetApp.
Overall, NTAP ranks 5th on our list of AI stocks on Wall Street’s radar. While we acknowledge the potential of NTAP 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 NTAP 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.
