We recently published a list of 10 AI Stocks Making Big Moves Today. In this article, we are going to take a look at where Penguin Solutions, Inc. (NASDAQ:PENG) stands against other AI stocks making big moves today.
What is the biggest security risk in artificial intelligence? According to CPPCC member Zhou Hongyi, co-founder and chairman of internet security firm Qihoo 360, it is to fall behind.
The Chinese People’s Political Consultative Conference (CPPCC) is a political advisory body in China and a key component of the Chinese Communist Party (CCP)’s united front system.
Unlike former President Joe Biden’s stance on AI, which was supportive but cautious, current AI leaders, including President Donald Trump, and political advisors in Beijing, are against overregulation in the AI industry.
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The Trump administration has since reversed Biden’s AI executive order and launched the Stargate project, reflecting on his pro-innovation stance instead. Likewise, Beijing’s political advisors have made remarks ahead of the country’s annual parliamentary meetings, advising against overregulating artificial intelligence companies amid a growing debate about the emerging technology.
“We should neither exaggerate nor ignore security issues related to AI. Some leading AI companies in the US exaggerate the security issues of AI as an excuse for not having open-sourced products as they seek a monopoly, so the latecomers cannot catch up.”
– CPPCC member Zhou Hongyi.
Zhou cautioned that China must “correctly understand” the security risks in AI.
“Falling behind in [AI] development is the biggest security risk. We must seize this opportunity of AI to improve productivity and let everyone benefit from the fruits of the inclusiveness of science and technology”.
Zhang Yi, a senior partner at King & Wood Mallesons and CPPCC member, advised that China needs to develop its own AI rules to ensure stable development but at the same time, needs to be aware that “overly strong legal intervention might become a rope that strangles the development of AI as global competition intensifies”.
In a race towards supremacy in artificial intelligence, Beijing is working hard and has signaled that it will act cautiously on regulation of the sector. According to the Ministry of Science and Technology, legislation on artificial intelligence is going to be rolled out in an “orderly” way in response to proposals from the CPPCC.
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.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Penguin Solutions, Inc. (NASDAQ:PENG)
Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI infrastructure provider for organizations looking to build and operate state-of-the-art generative AI facilities. On March 4th, the company announced that it has expanded its ICE ClusterWare™ software platform, (formerly Scyld ClusterWare®) with multi-tenancy support, streamlined workflows, and enhanced controls. These enhancements will enable enterprises to build fully optimized AI ecosystems known as Intelligent Compute Environments.
In addition, Penguin Solutions, Inc. (NASDAQ:PENG) also announced the launch of its ICE ClusterWare AIM™ service, an advanced optimization service that leverages prediction automation to maximize performance, availability, and operational efficiency of AI infrastructure. These solutions from Penguin aim to address the challenge of underutilized GPU clusters, enabling enterprises to build compute environments that allow AI workloads to run optimally.
“AI computing demands an integrated, intelligent approach that goes beyond traditional IT infrastructure. With ICE ClusterWare software and ICE ClusterWare AIM service, we enable enterprises to build intelligent compute environments that optimize efficiency, scalability, and cost-effectiveness—ensuring AI workloads run at peak performance while minimizing operational complexity.”
-Trey Layton, vice president of software and product management, Penguin Solutions.
Overall, PENG ranks 10th on our list of AI stocks making big moves today. While we acknowledge the potential of PENG 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 time frame. If you are looking for an AI stock that is more promising than PENG 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.
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