We recently published a list of 10 AI News Stories You Can’t Miss. In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands against other AI news stories you can’t miss.
OpenAI launched ChatGPT in late November 2022. Although it had zero fanfare when it was launched, the platform has grown exponentially ever since. As of today, it boasts more than 200 million users worldwide, driven by the generative AI craze that has made it a hit.
It can be safe to say that the chatbot had unofficially ushered in the AI era and a race for businesses to capitalize on it. Initially, companies started slowly by integrating artificial intelligence into their offerings to pinpoint what works and what doesn’t.
READ NEXT: 15 AI News Making Waves Right Now and 15 AI News Shaping Wall Street Today
As of today, they are taking giant leaps into the AI realm, confident of the fruits they will reap once everything is in place.
“2023 was really a year of industry and businesses wrapping their heads around AI. 2024 is the year we’re starting to see real-scale deployments of our technology”.
– James Dyett, head of platform sales of OpenAI.
Countless innovations in AI prove how the technology continues to be a strong force today. In the latest news, Enfabrica, a California-based startup that aims to make AI chips work more efficiently together at scale, recently announced that it has raised $115 million in funding and plans to release its newest chip early next year.
The startup is tackling one of the biggest technical problems that has emerged in the AI field. The problem is related to tying tens of thousands (or more) of chips together with a network. The chip company strives to allow computing chips to simultaneously talk to more parts of a network.
According to co-founder and CEO Rochan Sankar, current systems can link about 100,000 AI chips before the network slows down. Sankar says chips from Enfabrica could increase this figure to about 500,000 chips, making it possible to train even larger AI models.
“It’s become apparent in the last six to nine months that the attributes of that network really drive the capability of that (computing power), whether it’s bandwidth, resiliency or recovery from loss. All these things matter when you start running at scale.”
In other news, OpenAI has recently launched a free training course for teachers with non-profit partner Common Sense Media. The training will enable teachers to understand artificial intelligence and use it efficiently. The move comes amid OpenAI promoting a positive image of ChatGPT in education. Previously, ChatGPT had been causing a frenzy as it helped students spin-off papers, complete their homework, and even write novels.
“My goal in this role is to put AI into the hands of every student and every teacher… and also give them the skills to learn how to do it responsibly and effectively”.
– Former Coursera executive Leah Belsky.
Belsky revealed that student adoption of ChatGPT is “very, very high,” and parents are generally supportive, realizing that AI skills as essential for future careers.
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).
A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.
Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
On Monday, November 18, JPMorgan raised the firm’s price target on Palo Alto Networks, Inc. (NASDAQ:PANW) to $449 from $387 and kept an “Overweight” rating on the shares. According to the firm, Palo Alto’s platformization strategy, i.e. the company’s efforts to leverage AI within a unified platform to deliver more robust and efficient cybersecurity for customers, seems to be working. As quoted by the analyst “Code to Cloud to SOC could emerge as a competitive differentiator.” A positive sign for the otherwise soft quarter is that industry discussions are reflecting strong deal activity across the Palo Alto platform and incentives to consolidate shares seem to be working. Recent peer multiples and sustainability of free cash flow growth through fiscal 2026 are also attributable to the target increase.
Overall, PANW ranks 5th on our list of AI news stories you can’t miss. While we acknowledge the potential of PANW 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 PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.