Days after the Biden-era rule on AI chips export was rescinded, a bipartisan group of eight U.S. lawmakers has now introduced a bill requiring makers of artificial intelligence chips to include technology that verifies the location of their chips before exporting them.
Introduced in the U.S. House of Representatives, the Chip Security Act will aim to address reports of U.S. export-controlled AI chips being smuggled into China.
The bill comes shortly after US President Donald Trump began his tour of the Middle East this week, announcing several deals that will send AI chips to countries in the Middle East. This has been despite growing opposition from some inside the US government.
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“In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors.”
-Rep. Bill Huizenga, a Michigan Republican who introduced the House bill, said in a statement.
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. The hedge fund data is as of Q4 2024.
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10. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 22
Informatica Inc. (NYSE:INFA) is a leader in enterprise AI-powered cloud data management. On May 14, the company announced that it has entered into a strategic agreement with Microsoft, extending its long-standing collaboration with the company and accelerating customer adoption on the Microsoft Azure cloud platform. Leveraging Informatica’s Intelligent Data Management Cloud™ platform with key Microsoft services, including Microsoft Fabric and Microsoft Azure, both companies are working closely together to deliver AI-powered solutions. Informatica’s cloud data management platform is available as a SaaS offering on Azure and via Azure Marketplace to enable customers to achieve AI-driven business transformations.
“As enterprises increasingly prioritize trusted data to fuel responsible AI, agents and next-generation analytics, Informatica and Microsoft are jointly committed to empowering our customers as they continue on their cloud and AI transformation journey. This strategic agreement reflects our shared vision to drive customer success through co-innovation, go-to-market alignment and deep-field collaboration, helping organizations securely and efficiently scale AI across their data estate.”
-Amit Walia, CEO at Informatica.
9. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 52
Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company. On May 15, Analyst Meta Marshall from Morgan Stanley maintained a “Buy” rating on the stock with a $117.00 price target. Twilio has been advancing strategically and demonstrates significant growth potential, which has led to the buy rating. In particular, Twilio’s platform stood out at its recent Signal event, demonstrating how it can enhance B2C relationships through contextual data crucial for cross-selling opportunities. Even though financial details weren’t shared at the event, the company made it clear that Twilio is committed to simplifying its platform and improving its value proposition. The company has also announced a multi-year partnership with Microsoft to develop conversational AI solutions on Azure AI Foundry. This announcement will likely help to grow its reach.