GE Vernova (GEV) Rated Overweight: Meeting AI’s Massive Energy Demands - InvestingChannel

GE Vernova (GEV) Rated Overweight: Meeting AI’s Massive Energy Demands

We recently published a list of 10 AI News Updates You Can’t Miss This Weekend. In this article, we are going to take a look at where GE Vernova Inc. (NYSE:GEV) stands against other AI news updates you can’t miss this weekend.

The race to get ahead in artificial intelligence is compelling companies to intensify their efforts each day. In latest news, ChatGPT creator OpenAI has been considering developing its own web browser, according to a report by The Information. The report reveals that the company has spoken about the product with websites such as Redfin, Conde Nast, Priceline, and Eventbrite. Having already entered the market with SearchGPT, the move would be placing OpenAI head-to-head with Google, the company that holds the major share of the browser and search market.

READ ALSO: 10 AI News Stories You Can’t Miss and 15 AI News Making Waves Right Now 

However, the company isn’t just delving into search and browsers. According to Tech Crunch, OpenAI is also researching algorithms that can predict human being’s moral judgments. OpenAI gave a grant to Duke University researchers for a project called “Research AI Morality.” When asked for more details, an OpenAI spokesperson referred to a press release stating that the grant is part of a larger $1 million, three-year funding effort for Duke Professors working on creating “moral AI.”

As per the press release, the OpenAI-funded project aims to develop algorithms capable of “predicting human moral judgments” when moral conflicts arise in fields like medicine, law, and business. However, it isn’t clear yet whether such kind of an achievement is possible with the current levels of technology.

In other news, AI firm Anthropic is getting another funding boost. Amazon is increasing its investment in Anthropic to $8 billion, strengthening its partnership in artificial intelligence, the companies announced Friday, the 22nd.

“We’ll keep pushing the boundaries of what customers can achieve with generative AI technologies.”

– Matt Garman, chief of AWS cloud computing division.

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).

GE Vernova (GEV) Rated Overweight: Meeting AI's Massive Energy Demands lassedesignen/Shutterstock.com

GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Holders: 89

GE Vernova Inc. (NYSE:GEV) is a global energy company and a soaring AI stock driven by the demand for energy to power artificial intelligence technology.

On November 21, Wells Fargo analyst Michael Blum initiated coverage of the power-generation technology company with an “Overweight” rating and a $385 price target. This is the second-highest price target listed by FactSet, as reported by Barrons. According to Blum, GE Vernova can help meet the massive energy demands from artificial intelligence through its power generation and grid products. Blum further states that GE Vernova’s transformers, HVDC, and grid software offerings are well-positioned to benefit from growing power demand.

“As power demand grows and more distributed generation is added to the mix, aging grids will require significant investment to manage the increasingly complex and dynamic environment,” Blum said. “GEV’s transformers, HVDC [High-voltage direct current], and grid software offerings are well positioned to benefit from this growing demand”.

-Wells Fargo analyst Michael Blum

Overall, GEV ranks 2nd on our list of AI news updates you can’t miss this weekend. While we acknowledge the potential of GEV 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 GEV 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.

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