We recently compiled a list of 15 AI news that investors should miss. In this article, we’ll take a look at where Navitas Semiconductor Corporation (NASDAQ:NVTS) stands compared to other AI news that investors should miss.
Thanks to breakthroughs in artificial intelligence, the share of global stock markets associated with disruptive innovation is expected to increase from 16% to 60% by 2030, according to Ark Investments, an investment management firm focused on disruptive technologies. I am. With inflation turning deflationary in several sectors, the company expects its five innovation platforms – robotics, energy storage, AI, blockchain, and multi-OMIC (biological analysis) sequencing – to drive macroeconomic growth in the coming years. We believe that this will have a significant impact on the indicators.
“Interest rates are likely to be unexpectedly lower than expected, magnifying share price gains from some stocks and reinforcing the need for diversified investments in AI.” -Catherine Wood, CEO and CIO
To learn more about these developments, visit BlackRock’s 30 Most Important AI Stocks and Beyond the Tech Giants: 35 Non-Technology AI Opportunities.
One of the firm’s next-generation internet ETFs benefited from holdings in companies involved in innovative technology and outperformed broad global stock indexes in the third quarter. The fund’s year-to-date performance is 16.81%, outperforming its category by 1.59 percentage points year-to-date.
In light of this trend, technology reporter Kate Rooney, appearing on CNBC’s “The Exchange,” revealed how Wall Street is trying to profit from the AI boom by using AI itself. The new world of generative AI is starting a “hedge fund arms race,” according to Rooney. Today’s modern versions of AI are better than human traders in many ways. They learn from their mistakes and become smarter in the process, ultimately minimizing human intervention. Add to this the rise of OpenAI and Anthropic, and these “off-the-shelf” models tend to be cheaper.
Additionally, while human traders may be competent, they often get emotional and tend to make mistakes. This is why Intelligent Alpha CEO Doug Clinton believes that “lack of emotion” is AI’s strength, or “superpower.” That said, the show will discuss how hedge funds are currently turning to AI to “stay ahead of the market,” and how the use of AI will ultimately help improve decision-making on the ground. I made it clear. Companies like OpenAI and Anthropic have raised significant capital to date, but ultimately need enterprise clients to scale. Wall Street is an ideal environment because of its reliance on data and analytics.
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Intelligent Alpha has launched a first-of-its-kind ETF named after famous stock trader Jesse Livermore. This ETF uses OpenAI’s ChatGPT, Anthropic’s Claude, and Google’s Gemini to build a global stock portfolio. Companies participating in AI could gain an advantage with a price tag in the millions of dollars, according to Clinton.
“What this does is it adds intelligence to the index, which by definition is like a set of rules that are not smart. Take that emotion away from the active aspects that we are caught up in. As you know, we make mistakes and sometimes they compound. By solving these two problems, I think AI has the potential to really capture a lot of value in terms of assets flowing into these new AI-powered funds.” – Intelligent Alpha CEO
To learn more about these trends, visit Goldman Sachs’ 10 Unsexy AI Stocks and Goldman Sachs’ 10 Hottest AI Stocks.
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 ).
Close-up of individual semiconductors in the manufacturing lab.
Navitas Semiconductor Corporation (NASDAQ:NVTS)
Number of hedge fund holders: 15 people
Founded in 2014, Navitas Semiconductor Corporation (NASDAQ:NVTS) is a pure-play next-generation power semiconductor company developing ultra-efficient gallium nitride (GaN) semiconductors. Navitas has developed system designs to support the rapidly increasing power demands of AI.
Navitas Semiconductor Corporation (NASDAQ:NVTS) announced in a press release on October 18 that it is introducing IntelliWeave, a revolutionary new patented digital control technology that improves power supply (PSU) efficiency in next-generation AI data centers. did. IntelliWeave features new digital control that enables highest system efficiency with accurate current sharing, minimal phase error, and fast dynamic response. Highest efficiency is achieved with patented dual-loop and dual-feedforward interleaved control, which provides absolute zero voltage switching (ZVS) over the entire load range.
In addition, there is digital control of critical conduction mode (CRM) interleaving totem pole power factor control (PFC), which can reduce power losses by 30% compared to existing continuous conduction mode (CCM) solutions. Digital control combined with high-power GaNSafe power ICs was demonstrated on a 500 kHz GaN-based interleaved 3.2 kW CrM PFC PSU operating at 99.3% peak efficiency including EMI filter losses.
NVTS ranks 14th overall on our list of AI news that investors can’t miss. While we recognize the potential of NVTS as an investment, we believe some AI stocks are more likely to deliver higher returns and do so in a shorter time frame. If you’re looking for AI stocks with better prospects than NVTS, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: BlackRock’s 8 Best Widemot Stocks to Buy Now and 30 Most Important AI Stocks.
Disclosure: None. This article was originally published on Insider Monkey.
