We recently published a list of 15 Important AI News and Ratings on Investors’ Radar. In this article, we are going to take a look at where Penguin Solutions, Inc. (NASDAQ:PENG) stands against other important AI news and ratings on investors’ radar.
On Monday, the US government revealed that it would further restrict artificial intelligence chip and technology exports. As reported by Reuters, the goal behind these restrictions is to help the US advance its computing power and AI technology, while finding more ways to block China’s access. Under the new regulations, the number of AI chips exported to most countries will be capped, allowing unlimited access to U.S. AI technology for America’s closest allies. Meanwhile, a block shall be maintained on exports to China, Russia, Iran, and North Korea.
“The U.S. leads AI now – both AI development and AI chip design, and it’s critical that we keep it that way”.
-Commerce Secretary Gina Raimondo said.
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These regulations are seemingly the last efforts by the Biden administration to maintain US leadership in AI and close any loopholes in controlling the flow of AI chips. The new administration, set to take office on January 20, shares similar views on the competitive threat from China. However, President-elect Donald Trump is expected to make significant changes to the Biden administration’s stance on artificial intelligence.
“We will repeal Joe Biden’s dangerous Executive Order that hinders AI innovation, and imposes radical leftwing ideas on the development of this technology. In its place, Republicans support AI development rooted in free speech and human flourishing”.
-A manifesto from the Republican Party platform
With only a few days left until Trump takes office, the recently revealed restrictions on AI chips have been imposed on advanced graphics processing units (GPUs), which are used to power data centers needed to train AI models. Moreover, under the new rules, cloud providers will be able to build data centers by applying for global approval. Once approved, they won’t need export licenses for AI chips which will allow them to build data centers in countries that cannot import enough chips because of the U.S.-imposed quotas. However, these authorized companies must abide by stringent conditions and restrictions, such as security requirements, reporting demands, and a plan or track record of respecting human rights.
Currently, the recent regulation divides the world into three tiers. 18 countries, including Japan, Britain, South Korea, and the Netherlands, will essentially be exempt from the rules. Moreover, 120 other countries, including Singapore, Israel, Saudi Arabia, and the United Arab Emirates, will face country caps, whereas arms-embargoed countries like Russia, China, and Iran will not be allowed to receive the technology altogether.
“How effective the rule ends up being in the next 10 to 15 years is now up to the incoming team. They are well aware that ensuring a dominant domestic industry is a core element of competition with China”.
– Meghan Harris, a national security official during the first Trump administration.
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.
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).
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Penguin Solutions, Inc. (NASDAQ:PENG)
Number of Hedge Fund Holders: N/A
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 January 12, the company announced that it had entered into a strategic collaboration agreement with SK Telecom and SK hynix for the development and delivery of comprehensive AI data center (“AIDC”) solutions. The agreement was signed at the CES 2025 in Las Vegas, following SKT’s 200 million investment in Penguin Solutions.
It is anticipated that Penguin will be able to efficiently deliver AI infrastructure solutions and services to additional markets and regions through the collaboration. Penguin Solutions’ Scyld ClusterWare software will be integrated with SKT’s AI infrastructure management software to enable easier and more efficient deployments of AI. Additionally, SK hynix and SMART Modular Technologies, a product brand of Penguin Solutions, also plan to collaborate for developing innovative memory solutions.
“We are committed to solve the complexity of AI by designing, building, deploying, and managing cutting-edge solutions that enable us to support our customers on their AI journeys. This collaboration agreement reflects a shared vision of leveraging our companies’ combined strengths to deliver a broad portfolio of high-performance AI solutions to customers across the globe.”
-Mark Adams, president and CEO of Penguin Solutions.
Overall, PENG ranks 13th on our list of important AI news and ratings on investors’ radar. 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.