xAI founder Elon Musk has raised billions in funding for his AI startup in the past few months. Recent comments from the eccentric billionaire suggest that he is planning to launch an AI-powered gaming studio through xAI that will rival the game studios that are owned by massive corporations. He made the remarks in a post on social networking platform X. The startup has ballooned in valuation over the past few years. The Grok developer recently raised $5 billion in new funding, bringing the valuation of the startup to $50 billion, according to a report by the Wall Street Journal.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Just like xAI, other AI startups are also turning heads in the venture capital world. For example, tech news platform TechCrunch reports that Pathway, an AI startup, just raised a $10 million Seed round to build live AI systems that, the company claims, think and learn in real-time as humans do. Per the report, the Pathway offering includes what it calls infrastructure components that power live AI systems, feeding on structured and unstructured data, meaning that enterprise AI platforms can make decisions on up-to-date knowledge. Customers so far include NATO and the French post office, the report adds.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing 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 warehouse automation system in operation, with robotic arms managing inventory efficiently.
Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 15
Symbotic Inc. (NASDAQ:SYM) is an automation technology company that engages in developing technologies to improve operating efficiencies in modern warehouses. The AI business focuses on automating supply chain and warehouse operations. On November 27, Craig-Hallum analyst Greg Palm downgraded the stock to Hold from Buy with a price target of $25, down from $45, citing the company’s accounting mishap and associated credibility hit. While the advisory’s long-term view remains unchanged, it sees too much uncertainty to defend the stock at this point.
Overall SYM ranks 9th on our list of the trending AI stocks on latest news and ratings. While we acknowledge the potential of SYM 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 timeframe. If you are looking for an AI stock that is more promising than SYM 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.