We’ve gathered some exciting news about the Top 12 Trending AI Stocks on Latest News and Ratings. In this piece, we’ll see how Cognizant Technology Solutions Corporation (NASDAQ:CTSH) compares with other AI stocks.
Donald Trump is igniting interest in AI investments. Recently, he announced a huge $500 billion initiative for the private sector after cutting back on AI regulations. Companies are racing to be part of what he calls the Stargate project. This effort highlights how urgent it is for businesses to adapt to the AI landscape.
“The Stargate Project aims to build new AI infrastructure in the U.S.,” said OpenAI, Oracle, and SoftBank in a joint statement. “It will help revitalize American industry and strengthen national security.”
This new initiative includes top AI developers like OpenAI, signaling a big push to create the data centers essential for AI models. Goldman Sachs expects AI to consume 19% of data center power by 2028, so tech companies are rushing to build and secure capacity.
Investments in AI are surging, especially in areas like machine learning and generative models like ChatGPT. Companies want to stay competitive in this ever-changing environment. However, whether these investments will yield significant returns remains uncertain.
The expense of training advanced AI models is skyrocketing, jumping from $1,000 in 2017 to nearly $200 million projected for 2024. Even though computing costs have dropped, total expenses may reach billions by 2030. By the mid-2030s, the costs for AI hardware could exceed $1 trillion.
With these rising costs, a new focus is on physical AI. Companies are now investing in robots, auto suppliers, and specialized chip makers.
AI has come a long way from basic search bots to “agentic AI,” which includes tools like research assistants and support agents. Investors are eager to explore technologies that operate in the real world—think self-driving cars, drones, and robotic nurses.
“As we approach 2025, agentic AI marks a significant shift before we fully embrace physical AI,” noted Angelo Zino, a senior equity analyst with CFRA. “Like anything, we must crawl before we walk and then run.”
This influx of investment in AI is also creating vibrant opportunities. Investors are keen to back both tech giants and emerging players in this revolutionary field.
Our Approach
To create this list of AI stocks, we reviewed news articles, stock analyses, and press releases. We also considered which companies hedge funds are investing in.
Why pay attention to hedge fund picks? It’s straightforward: mirroring the best ideas of top hedge funds has helped us outperform the market. Our quarterly strategy selects 14 promising stocks and has seen a 275% return since May 2014, significantly beating the benchmark by 150 percentage points.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) offers consulting and outsourcing services aimed at leveraging AI for business transformation. The company recently introduced its Neuro® AI Multi-Agent Accelerator and Multi-Agent Service Suite to drive the growth of AI agents.
These new capabilities will help businesses make decisions in real-time and enhance customer experiences. On January 21, Cognizant confirmed it is extending its partnership with McDonald’s to boost staff support and operational efficiencies through AI.
This strategic collaboration looks to incorporate advancements in Cloud and Generative AI, combining technological expertise with the food service sector.
Currently, CTSH ranks 10th among the trending AI stocks in news and ratings. While we see potential in CTSH, we believe that AI stocks, in general, are optimal for those looking for high returns quickly.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
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