We recently compiled a list of the 10 AI News and Ratings Making Waves on Wall Street. In this article, we are going to take a look at where Telefónica, S.A. (NYSE:TEF) stands against the other AI stocks.
As AI is transforming industries by automating tasks, optimizing processes, and creating new opportunities for innovation, it is also giving rise to discussions around its safety, ethical implications, and societal impact. Balancing the potential benefits of AI with concerns about transparency, accountability, and equitable outcomes seems to be an important challenge for governments, businesses, and communities worldwide.
Exploring AI Risks and Opportunities in Today’s World
On Bloomberg Technology, Hugging Face’s Chief Ethics Scientist, Dr. Margaret Mitchell discussed the evolving focus of lawmakers and companies regarding AI safety and noted a shift toward emphasizing opportunity over accountability and safety, as seen in recent actions by companies like Meta and Google. She believes that the government should prioritize protecting people over businesses, ensuring a fair marketplace with rules that encourage responsible practices. Mitchell expressed uncertainty about the Trump administration’s plans, emphasizing the need to address both immediate and future AI risks.
She also talked about Elon Musk’s influence and raised concerns about his lack of focus on preventing AI discrimination and noted a recent reduction in attention to existential risks in favor of more current issues. She highlighted the importance of transparency in AI development, mentioning Hugging Face’s open approach, and also appreciated EU efforts on legislation that balances risks and benefits.
Furthermore, Mitchell warned about growing wealth disparities due to AI, where large companies gain wealth from data while many lose jobs. She pointed out that disempowered groups face increased surveillance and potential harm due to misuse of their data, and stressed the need for protective measures and discussions on universal basic income.
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).
An executive speaking in front of a large audience of business men and women, speaking on the importance of telecommunications services.
Telefónica, S.A. (NYSE:TEF)
Number of Hedge Fund Holders: 9
Telefónica, S.A. (NYSE:TEF) provides telecommunications, internet, broadband, IoT, cloud, and digital services across Europe and Latin America.
As per a February 16 report by Bloomberg, Telefónica, S.A. (NYSE:TEF)-backed AI cloud startup Ori has secured investment from Saudi Aramco’s venture arm, Wa’ed Ventures, as part of its efforts to expand AI capabilities in Saudi Arabia. The deal will help Ori establish a regional base in Riyadh to drive local talent development and technology innovation. Ori specializes in AI-optimized cloud infrastructure and recently deployed Nvidia’s H200 chips. The company previously raised £140 million and plans a larger funding round in 2025.
Overall TEF ranks 9th on our list of the AI stocks that are making waves on Wall Street. While we acknowledge the potential of TEF 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 timeframe. If you are looking for an AI stock that is more promising than TEF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
