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In the context of rapidly evolving artificial intelligence (AI) technologies, we are examining the current landscape as it relates to Vertiv Holdings Co (NYSE:VRT), following our recent publication of the 10 AI News Stories You Can’t Miss.
The release of OpenAI’s ChatGPT in November 2022 marked a significant turning point in the AI sector. Although initially lacking widespread attention, the chatbot’s user base surged to over 200 million globally, a testament to the growing interest in generative AI technologies.
The launch of ChatGPT signaled the beginning of an intense focus on AI as businesses scrambled to harness its capabilities. Early efforts predominantly centered on integrating AI solutions gradually, allowing companies to assess their efficacy and potential applications.
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Today, we see companies making substantial investments in AI, moving toward widespread deployment of this transformative technology, driven by the promise of significant returns on their efforts.
“2023 has been a pivotal year for industries adapting to AI. We expect 2024 to be a defining moment for the extensive implementation of our technology,” stated a sector analyst.
Recent advancements highlight the ongoing strength of AI innovations. Enfabrica, a California-based startup focused on optimizing AI chip networks, has successfully secured $115 million in funding. The company aims to launch its latest chip design in the coming year.
The core challenge Enfabrica is addressing involves enhancing the connectivity of numerous chips within a network. The goal is to enable these chips to communicate more effectively and simultaneously without performance bottlenecks.
According to CEO Rochan Sankar, existing systems can efficiently link roughly 100,000 AI chips before encountering limitations. The new design at Enfabrica aspires to increase this capacity to around 500,000 chips, which would significantly advance the training of expansive AI models.
“Recent observations indicate that the characteristics of the network significantly influence computing capabilities—factors such as bandwidth, resilience, and error recovery are vital when scaling operations,” Sankar elaborated.
In related news, OpenAI has announced a free training course aimed at educators, in partnership with Common Sense Media. This initiative is designed to better equip teachers with an understanding of AI and its applications, especially in educational settings where tools like ChatGPT have sparked considerable debate over academic integrity.
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“My objective is to ensure that every student and teacher has access to AI tools while also cultivating the skills needed to use them responsibly and effectively,” remarked a spokesperson from OpenAI.
Interestingly, the adoption of ChatGPT among students has been extremely positive, with many parents acknowledging the necessity of AI skills for future employment opportunities.
For this analysis, we identified AI stocks by reviewing various news sources, stock evaluations, and corporate announcements. The stocks highlighted are particularly favored by hedge funds.
Why focus on stocks favored by hedge funds? Research indicates that mirroring the top selections of successful hedge funds can lead to superior market performance. Our quarterly investment strategy, which selects a mix of small-cap and large-cap stocks, has achieved a notable 275% return since May 2014, outperforming its benchmark by an impressive 150 percentage points (see more details here).
Vertiv Holdings Co. (VRT) Utilizes AI for Future Expansion: Investor Insights
Number of Hedge Fund Holders: 91
Vertiv Holdings Co (NYSE:VRT) stands as a prominent provider of digital infrastructure solutions, catering to data centers, communication networks, and various commercial and industrial facilities.
Mizuho recently raised its price target for Vertiv to $145 from $125, maintaining an “Outperform” rating following the company’s presentation during its 2024 Investor Day held in Atlanta. The firm discussed its financial and strategic outlook through 2029, emphasizing anticipated profit margins and organic growth. Analysts point out that Vertiv’s proprietary algorithms and momentum in AI deployment may provide a competitive edge moving forward.
Currently, Vertiv ranks 3rd on our list of essential AI news stories. While its growth potential is acknowledged as an investment, there are AI stocks that may offer greater upside potential in a shorter timeframe. For those interested in AI investments that have demonstrated promising characteristics but are valued at under five times their earnings, we recommend reviewing our findings on the cheapest AI stock.
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Disclosure: None.
Source
finance.yahoo.com