We recently compiled a list of 35 trending AI stocks with the latest news and analyst ratings. In this article, we’ll take a look at how Exscientia plc (NASDAQ:EXAI) stands compared to other trending AI stocks.
Two years after ChatGPT’s public debut, the generative AI landscape has rapidly evolved, fueling significant investment in artificial intelligence and increasing valuations for startups and big tech companies alike. This growing interest is primarily focused on cloud-based AI, where services like OpenAI’s models run on a broader data infrastructure. However, as these models become more complex, the demand for larger and more sophisticated data centers increases, creating a race among companies to build large-scale facilities. Significant investment is expected, with major companies estimating total capital spending of approximately $160 billion next year, primarily to acquire powerful GPUs and related infrastructure needed to train AI models. There is. Management even predicts that global data center investment could double to $2 trillion within the next few years. Nevertheless, the sustainability of this expenditure raises the question of whether the revenue generated from AI applications can match the high costs of development and infrastructure.
Visit Goldman Sachs’ 10 Best AI Data Center Stocks and 10 Hottest AI Stocks to read more about these trends.
Amid these challenges, new trends in edge AI are emerging. The concept involves running AI algorithms directly on personal devices such as smartphones and computers, rather than relying on centralized cloud servers. Edge AI offers many benefits, including real-time response capabilities that don’t require a high-speed internet connection, and increased privacy as user data remains on the personal device. Analysts predict that by 2027, almost 50% of smartphones will have generative AI capabilities, up from 4% today. However, there are technical hurdles to implementing edge AI. This is primarily due to existing devices lacking the necessary computing power and memory to support large-scale AI models. For example, running OpenAI’s GPT-4 model, which contains approximately 1.8 trillion parameters, is not possible on a typical smartphone today. Nevertheless, smaller, task-specific AI models are gaining attention because they require less training data and can perform better than larger, more generalized models in certain applications. . These lightweight models are often open source and designed for specific functionality, making them easier to implement on consumer devices.
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As semiconductor companies continue to innovate by increasing the processing power and memory of smartphones and PCs, the ability to run AI models on these devices is also expected to increase. Research shows that the proportion of smartphones capable of supporting large-scale AI models is likely to increase significantly in the coming years. Major chipmakers are making advances in chipset design and other technologies that allow them to create more powerful processors without shrinking circuits. For investors, the rise of edge AI could bring new opportunities and growth to the consumer electronics market, as users are likely to upgrade their devices to take advantage of enhanced AI capabilities. Analysts at UBS predict that combined smartphone and PC sales could exceed $700 billion by 2027. Ultimately, the success of edge AI will depend on developing applications that are compelling enough that consumers find it worthwhile to invest.
To learn more about these developments, visit BlackRock’s 30 Most Important AI Stocks and Beyond the Tech Giants: 35 Non-Technology AI Opportunities.
our methodology
In this article, we selected AI stocks by examining news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
A data scientist stands in front of a large monitor and presents drug discovery analysis.
Exscientia plc (NASDAQ:EXAI)
Number of hedge fund holders: 6 people
Exscientia plc (NASDAQ:EXAI) is an AI-driven pharmaceutical technology company engaged in the design and development of differentiated medicines for diseases with unmet patient needs. Back in August, NVIDIA-backed biotech company Recursion announced it would acquire rival Exscientia in an all-stock deal. NVIDIA, one of the world’s largest AI companies, has invested nearly $50 million in Recursion over the past year. According to the latest reports, the two biotech companies are currently soliciting shareholder support for a proposed merger agreement at an investor conference next month. Exscientia CEO David Hallett previously said the two companies would be able to find better medicines for patients faster and at lower cost.
EXAI is currently ranked 35th overall among trending AI stocks. While we recognize EXAI’s potential as an investment, we believe some AI stocks are more likely to deliver higher returns in a shorter period of time. If you’re looking for AI stocks with more promise than EXAI, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: $30 trillion opportunity: 15 humanoid robot stocks to buy, according to Morgan Stanley and Jim Cramer, says NVIDIA has ‘become a wasteland.’
Disclosure: None. This article was originally published on Insider Monkey.
