We recently compiled a list of the 15 AI News Investors Should Not Miss. In this article, we are going to take a look at where Western Digital Corporation (NASDAQ:WDC) stands against the other AI stocks you should not miss.
In a recent Tech Check program, CNBC’s Deirdre Bosa reports on how OpenAI’s head of Global Affairs is laying out his vision of what the government can do to keep American Artificial Intelligence on top. Currently leading policy at OpenAI, Chris Lehane talks about the AI policy at a time when everyone, including the industry and government, is trying to get their hands on AI policy. According to Lehane, the stakes in AI are higher than anything he has ever seen. He states how China has shared the idea of wanting to be the dominant player in AI by 2030, and that even though the US is currently in the lead, the fact that it stays on the top isn’t guaranteed. In an open letter to Washington, his Op-ed makes it clear that no matter who wins the election in less than two weeks, the US must be the leader in AI and the right way to do that is by laying the right infrastructure. The stakes involve the autocratic versus democratic development of AI, states Lehane, emphasizing the need for the U.S. to maintain its leadership in this field while ensuring that AI is built upon democratic values, principles, and benefits.
READ ALSO: 20 AI News Investors Should Not Miss and Top 10 Trending AI Stocks in Q4
As we delve deeper into the critical issues concerning AI leadership and policy, it’s equally essential to examine the latest developments in the field that are shaping technology and industries.
As reported by Tech Crunch, Anthropic’s Claude chatbot can now write and run JavaScript code itself. The company has launched a new analysis code tool for Claude which is currently in preview, enabling the AI to provide “mathematically precise and reproducible answers” by performing calculations and analyzing data from files such as spreadsheets and PDFs, and that too, with interactive visualizations.
“Think of the analysis tool as a built-in code sandbox, where Claude can do complex math, analyze data, and iterate on different ideas before sharing an answer. Instead of relying on abstract analysis alone, it can systematically process your data — cleaning, exploring, and analyzing it step-by-step until it reaches the correct result”.
-Anthropic
Despite the rapid advancements in AI technology, there are growing concerns about its limitations and potential drawbacks at the same time. In recent news, OpenAI’s AI-powered transcription tool, Whisper, has been reportedly “hallucinating”. OpenAI may deem it to have near “human level robustness and accuracy”, but interviews with more than a dozen software engineers, developers, and academic researchers reveal that some of the invented text can include racial commentary, violent rhetoric, and even imagined medical treatments. A University of Michigan researcher found hallucinations in 80% of the audio transcriptions he examined during a study of public meetings.
Such mistakes could have “really grave consequences,” particularly in hospital settings…Nobody wants a misdiagnosis” and that “There should be a higher bar.”
– Alondra Nelson, who led the White House Office of Science and Technology Policy for the Biden administration until last year.
With that, let’s look at the 15 recent AI news that nobody should miss.
Methodology
For this article, we selected AI stocks by combing 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).
Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 80
Western Digital Corporation (NASDAQ:WDC) is a leading innovator in the data storage industry. The company offers data storage solutions, including systems, HDD, Flash SSD, memory, and personal data solutions. Storage demand has been recovering over the years in order to support increased data processing. This makes Western Digital well-positioned to benefit from rising enterprise demand for data storage, driven by the growing need to capture and manage AI-related data.
On October 25, Evercore ISI analyst Amit Daryanani maintained an “Outperform” rating on Western Digital Corporation (NASDAQ:WDC), with a price target of $85.00. The data storage solutions company released strong fiscal-quarter earnings, with a cloud revenue of $2.2 billion for the quarter. This represents a 153% increase from the same period last year. The rapid adoption of artificial intelligence has increased demand for data storage products, driving a surge in the company’s cloud business sales. Chief Executive David Goeckeler believes that the company’s flash and HDD products product portfolios are well-positioned to capitalize on the opportunities created by the AI data cycle. Reaffirming their Outperform rating, Daryanani states that in-line revenue guidance for the December quarter should ease concerns regarding a potential downturn in the market.
Overall WDC ranks 6th on our list of the AI stocks you should not miss. While we acknowledge the potential of WDC 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 WDC 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.
