In this article, we discuss the 11 AI news that you should not miss.
The tech industry is undergoing significant changes, with increasing competition in AI, evolving regulatory landscapes, and strategic moves by major companies to stay ahead. These shifts are shaping the strategies and priorities of both established players and emerging competitors. The trends reveal a pivotal moment for the tech industry, where success will depend not only on innovation but also on the ability to balance growth with regulatory compliance and strategic partnerships in the evolving market.
AI Competition and Regulatory Shifts in Focus
In a CNBC interview, Jessica Lessin, founder, and CEO of The Information, shared her perspectives on the shifting dynamics of the tech industry, addressing challenges in AI competition, regulatory changes under new leadership, and the evolving roles of major companies in the semiconductor and AI sectors. On Nvidia, she acknowledged its strong position in GPUs but highlighted rising competition in AI, such as Broadcom partnering with Apple on AI chips. She emphasized the need for investors to closely monitor tech companies’ efforts to expand their AI capabilities.
Discussing tech executives meeting with President-elect Trump, Lessin said the focus is on navigating regulatory changes, including M&A deals and tariff policies. She noted the unusual eagerness of some leaders to publicize their visits, contrasting with figures like Zuckerberg and Cook, who are more focused on understanding the shifting landscape.
On AI, Lessin pointed out that large language models are becoming commoditized, prompting companies like Google, OpenAI, and Amazon to prioritize monetization and differentiation. She sees AI as a key growth area for these firms, despite significant investments. Surprising moves, such as the iPhone maker’s use of AWS chips, reveal unexpected competition in the chip sector, keeping the race highly dynamic on multiple fronts.
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For this article, we selected AI stocks by going through 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.
11 AI News That You Should Not Miss
11. Mercurity Fintech Holding Inc. (NASDAQ:MFH)
Number of Hedge Fund Holders: N/A
Mercurity Fintech Holding Inc. (NASDAQ:MFH) is a fintech company offering business consultation, cryptocurrency mining, and cloud storage services. Its latest JV in Hong Kong is expected to focus on AI hardware.
On December 16, Mercurity Fintech (NASDAQ:MFH) announced that it signed a term sheet to form a strategic joint venture (JV) in Hong Kong with a high-tech enterprise specializing in precision components for new energy vehicles and smart devices. The JV will focus on AI hardware manufacturing, especially producing precision parts for AI servers and advanced cooling solutions.
The partnership also aims to manufacture sub-assemblies for AI, automotive, and wearable technologies. With an initial investment of $9.8 million, Mercurity Fintech will hold a 51% stake. The JV will benefit from global manufacturing reach and collaboration with leading AI server companies, addressing the growing demand for efficient cooling in AI infrastructure.
CEO of Mercurity Fintech, Shi Qiu said:
“This partnership represents a pivotal moment for Mercurity Fintech as we expand our business scope into the thriving AI hardware intelligent manufacturing sector. By combining our partner’s unparalleled expertise in precision engineering with Mercurity Fintech’s technological and operational acumen, we are poised to create a unique value proposition for global technology companies. Our JV partner’s collaboration with the world leading AI server company underscores the immense potential of this venture and our shared commitment to innovation.”
10. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 3
Rezolve AI Limited (NASDAQ:RZLV) focuses on e-commerce AI and provides a mobile-based technology solution that enables instant transactions, including purchases, bill payments, and donations.
On December 18, Rezolve AI (NASDAQ:RZLV) agreed to convert $49 million in convertible loan notes into equity, strengthening its finances and supporting growth in the $30 trillion retail market. Key investors, including Apeiron Investment Group, highlighted the confidence in Rezolve AI’s AI-driven retail solutions and partnerships with Microsoft and Google.
CEO Daniel M. Wagner called the move a testament to the company’s vision and market value. The funds will help expand offerings like Brain Commerce and brainpowa, alongside initiatives in crypto payments. He commented:
“I believe this milestone highlights the extraordinary confidence that Apeiron and other leading investors have in our strategy and vision. Their support is a testament to the immense value Rezolve Ai brings to the global retail market as we continue to deliver on our mission to democratize AI and accelerate innovation worldwide.”
9. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Number of Hedge Fund Holders: 30
Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions for optical and electrical Ethernet applications, which is essential for AI-driven data processing in hyperscale and HPC markets.
On December 17, Susquehanna analyst Christopher Rolland started coverage of Credo Technology (NASDAQ:CRDO) with a Neutral rating and an $80 price target, as per The Fly. The analyst highlighted Credo’s strong position in high-performance data center connectivity, addressing the transition to faster interconnects fueled by AI and cloud computing. While acknowledging the company’s long-term growth potential, the firm noted that the recent surge in the stock price following earnings makes its valuation less attractive at current levels.
8. Oshkosh Corporation (NYSE:OSK)
Number of Hedge Fund Holders: 33
Oshkosh Corporation (NYSE:OSK) designs and manufactures purpose-built vehicles for construction, defense, and vocational markets. Its products support AI-driven applications in the industrial, defense, and emergency response sectors.
It was announced on December 17 that Oshkosh Corporation (NYSE:OSK) will debut at CES 2025 from January 7-10 in Las Vegas, showing innovations in electrification, AI, autonomy, connectivity, and analytics. At booth #5616 in the LVCC West Hall, Oshkosh will display advancements transforming tough jobs, and improving safety, productivity, and sustainability.
Key features include electric and autonomous airport ground equipment, electric fleet vehicles for safer and cleaner communities, and connected construction equipment improving job site efficiency. Oshkosh executives will participate in CES panels, discussing robotics, AI’s role in automotive advancements, and autonomous solutions for safety and efficiency in construction and manufacturing. Sessions will occur on January 8-9 at the LVCC West Level 2.
7. EPAM Systems, Inc. (NYSE:EPAM)
Number of Hedge Fund Holders: 39
EPAM Systems, Inc. (NYSE:EPAM) provides digital platform engineering and software development services, with a strong focus on AI, robotics, and virtual reality. The company offers solutions for industries like finance, healthcare, and technology, supporting AI-driven innovation through custom software, automation, and consulting.
On December 17, Barclays upgraded Epam Systems (EPAM) to Overweight from Equal Weight and raised its price target to $290 from $250. The analyst expects IT services growth to improve through fiscal 2025 as investment activity recovers. EPAM is positioned to meet returning demand due to prior investments. Factors such as easing inflation, lower interest rates, and the transition of AI projects to production are boosting demand for digital transformation work.
6. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 40
Ciena Corporation (NYSE:CIEN) provides hardware and software solutions for network traffic delivery, with a focus on AI-driven automation, multi-cloud orchestration, and network optimization.
Jefferies analyst George Notter has named Ciena (NYSE:CIEN) a “top idea for 2025,” maintaining a Buy rating with a $105 price target. Notter highlighted three factors driving the thesis: significantly underestimated AI-related traffic growth, Ciena’s position as a long-term leader in optical networking, and anticipated benefits from Tier 1 customers completing inventory reductions. The firm sees value in investing in a market leader with a forward P/E multiple of 20x, positioned to gain from ongoing AI-driven traffic expansion.
5. CyberArk Software Ltd. (NASDAQ:CYBR)
Number of Hedge Fund Holders: 51
CyberArk Software Ltd. (NASDAQ:CYBR) specializes in identity security solutions, leveraging AI for adaptive multi-factor authentication, privileged access management, and endpoint security.
Stifel analyst Adam Borg raised CyberArk’s (NASDAQ:CYBR) price target to $370 from $335 and maintained a Buy rating, reported by The Fly on December 18. The analyst sees a positive end to 2024 for the enterprise software sector, fueled by stabilizing growth, early signs of AI monetization, and favorable economic conditions, including declining interest rates. While Q1 guidance may be conservative, the firm expects top-line growth to remain strong, reflecting the positive factors in play.
4. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 58
Lockheed Martin Corporation (NYSE:LMT) develops advanced aerospace and defense technologies and has recently launched its subsidiary that focuses on delivering AI-based solutions.
On December 16, Lockheed Martin (NYSE:LMT) launched Astris AI, a subsidiary focused on delivering secure AI solutions for the U.S. defense industrial base and regulated commercial sectors. Astris AI offers access to Lockheed’s AI Factory MLOps and generative AI platforms, designed for high-assurance applications with modular, scalable, and compliant architectures.
The subsidiary also provides consulting services for AI strategy, implementation, and deployment, addressing workforce shortages in AI expertise. Astris AI combines Lockheed Martin’s advanced technologies and expertise to support secure and reliable AI adoption, emphasizing national security and innovation in the defense and commercial industries.
3. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 60
Accenture plc (NYSE:ACN) provides AI-driven solutions across various sectors, including data analytics, automation, and intelligent platforms. The company focuses on advancing human-centered AI through collaborations to drive innovation in industries like healthcare, finance, and energy.
On December 18, Accenture announced its acquisition of IQT Group, an Italian provider of engineering services for net-zero infrastructure projects. The deal will merge Accenture’s digital and AI capabilities with IQT Group’s expertise in infrastructure planning and execution, focusing on energy, utilities, and telecommunications sectors. IQT Group’s services include designing, supervising, and managing infrastructure projects for clean energy transitions, such as those supporting Italy’s National Recovery and Resilience Plan.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) provides AI-driven solutions, including GPUs, networking platforms, and software for applications in gaming, data centers, and autonomous vehicles.
A report released by consultation firm, TrendForce on December 17 states that the NVIDIA GB200 rack-mounted solution requires more time for supply chain optimization due to its advanced design specifications, including high-speed interconnects and a high thermal design power (TDP) that exceeds market standards. As a result, mass production and peak shipments are expected to begin between Q2 and Q3 of 2025.
The GB200, part of NVIDIA’s GB rack series, is designed for large cloud service providers and research institutions focused on AI and high-performance computing. The GB200 NVL72 model is expected to dominate deployments in 2025, accounting for up to 80% of total shipments. The GB200 features NVIDIA’s fifth-generation NVLink, offering superior bandwidth over the current PCIe 5.0 standard. Its TDP reaches 140 kW per rack, requiring liquid cooling solutions due to the inadequacy of traditional air cooling.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) offers AI-driven solutions across various platforms. The company’s AI technologies support cloud services, enterprise collaboration tools, and consumer products. It also invests in AI research.
On December 16, Alphabet’s (NASDAQ:GOOGL) AI research lab, DeepMind, unveiled its latest advancements in AI generation with the introduction of Veo 2 and an updated Imagen 3 model. The company released the video generation model, Veo, earlier in 2024.
Veo 2 is a cutting-edge video generation model, that delivers high-quality videos with improved realism, improved physics, and cinematic understanding, including customizable features like camera angles, lenses, and effects. It supports 4K resolution and longer video durations. Veo 2 is now integrated into VideoFX and Google Labs, with plans for expansion to YouTube Shorts. Safety measures, including SynthID watermarks, ensure outputs are identifiable as AI-generated.
Imagen 3 improves image generation by producing brighter, more detailed visuals across diverse art styles, from photorealism to abstract. It offers greater prompt accuracy and global availability in over 100 countries through ImageFX. Additionally, Google introduced Whisk, a tool that uses Imagen 3 and Gemini to remix and create unique visuals based on user-provided images.
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