We recently published a list of 15 AI News Updates That Investors Are Watching. In this article, we are going to take a look at where Semtech Corporation (NASDAQ:SMTC) stands against other AI news updates that investors are watching.
The chip wars between the United States and China are in full swing. After reports that the US was considering additional curbs on the export of advanced AI chips to Chinese companies, Beijing responded by saying it would take necessary actions to protect Chinese firms if the US escalated chip control measures. According to a report by news agency Reuters, when quizzed about reports that the US was planning to add 200 Chinese firms to a trade blacklist, a Chinese government spokesperson said China strongly opposes the US broadening the concept of national security, and the abuse of control measures targeting Chinese companies.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
He Yadong, a commerce ministry spokesman, said that these actions severely disrupt the international economic and trade order, destabilise global industrial security, and harm the cooperative efforts between China and the US, as well as the global semiconductor industry, per Reuters. If the US insists on escalating control measures, China will take necessary actions to resolutely protect the legitimate rights of Chinese enterprises, he added. The report adds that the US fears China using chips to strengthen military capabilities.
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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 technician looking at a circuit board of analog semiconductor products.
Number of Hedge Fund Holders: 32
Semtech Corporation (NASDAQ:SMTC) develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. On November 26, Stifel raised the price target on the stock to $65 from $58 and kept a Buy rating on the shares after the company reported a solid fiscal Q3 beat and strong fiscal Q4 outlook. New Active Copper Cable, or ACC, Copper Edge product began its production ramp for NVIDIA Blackwell platform, while the company is seeing improving business trends in other segments, the advisory told investors.
Overall, SMTC ranks 12th on our list of AI news updates that investors are watching. While we acknowledge the potential of SMTC 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 time frame. If you are looking for an AI stock that is more promising than SMTC 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.
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