We recently compiled a list of 14 AI News Investors Are Paying Attention to. In this article, we’ll take a look at where Alphabet Inc. (NASDAQ: GOOG) stacks up to other AI stocks that investors are paying attention to.
The release of ChatGPT by OpenAI, now the world’s most valuable private company, in November 2022 has had broad implications for the technology industry. In the two years since the release, tech valuations, which had struggled due to broader inflation and concerns about slowing growth, have rebounded. Tech giants have surpassed billion-dollar valuations and OpenAI itself has surpassed $150 billion. In this environment, tech companies have pushed for increased capital spending on AI infrastructure, telling investors that adding data and computing power will consistently lead to improved AI models.
Learn more about these developments by accessing 10 Best AI Data Center Stocks And 10 Hot AI Stocks According to Goldman Sachs.
However, the Reuters news agency reports that new techniques used by AI companies to train their AI models could reshape the AI arms race and have implications for the types of resources for which AI companies have insatiable demand, from energy to chip types. For example, Ilya Sutskever, a Canadian-Israeli computer scientist who was one of the founders of OpenAI, said the results of scaling up pre-training had stagnated. The computer scientist says the 2010s were the era of scaling and now we’re back in the age of wonder and discovery. Everyone is looking for the next step, and it’s more important than ever to scale the right thing.
Learn more about these developments by accessing 30 The Most Important AI Stocks According to BlackRock And Beyond Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analyzes and press releases. These stocks are also popular among hedge funds.
Why are we interested in stocks that hedge funds are piling into? The reason is simple: our research has shown that we can outperform the market by imitating the stocks selected by the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A laptop and phone open to Google services on a daily basis.
Market capitalization: $2.2 trillion
Alphabet Inc. (NASDAQ: GOOG) is a California-based technology company that owns and operates the Google Internet search engine. On November 9, technology website Android Authority reported that the AI-enabled Tensor processors developed by Google for the Pixel line of smartphones had failed to meet financial targets. The report highlights that the tech titan’s financial target is around $65 per chip to make the company viable. For more context, the tech website claims Qualcomm’s latest flagship chips cost around $150. Google released the latest Pixel phones earlier this year. The phones feature the built-in artificial intelligent assistant Gemini Nano and an array of generative AI features.