The rapidly evolving landscape of artificial intelligence has led to significant market developments, sparking debates about the future of the tech sector. Industry experts, including Greg Fleming, president and CEO of Rockefeller Capital Management, are examining how changes in the industry might impact investment strategies and the broader market.
Fleming recently discussed the recent tech sell-off on CNBC’s ‘Squawk Box’ and highlighted the transformative nature of AI space, which will continue to attract substantial investment. He noted that efficiency improvements in AI technology can lower costs and increase demand, but the shift towards open-source AI models raises questions about control and costs.
The growth of open-source AI is seen as a significant trend, with many companies exploring alternatives to expensive closed systems like OpenAI. Fleming also pointed out that some companies may not directly compete in AI development but could still benefit from AI integration in other areas, such as edge computing.
In our analysis, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We ranked the stocks based on hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds. Our top picks aim to outperform the market by imitating the best hedge fund strategies.
Symbotic Inc. (NASDAQ:SYM) is one such company that has gained significant attention. As a developer of automation technologies, Symbotic optimizes pallet and case processing in large warehouses, improving supply chain operations for retail companies. The company recently announced its acquisition of Walmart’s Advanced Systems and Robotics business, signing a commercial agreement to develop AI-powered automation for Walmart’s Accelerated Pickup and Delivery centers.
Walmart is funding Symbotic’s development of improved fulfillment systems, committing $520 million, including an initial $230 million payment. If performance goals are met, Walmart plans to deploy systems at 400 stores, with the option to expand further. This deal could add over $5 billion to Symbotic’s backlog and broaden its U.S. market reach.
Symbotic ranks 6th on our list of top AI stocks by hedge fund sentiment. While it has potential as an investment, we believe that other AI stocks hold greater promise for delivering higher returns within a shorter timeframe.
Source: https://finance.yahoo.com/news/symbotic-inc-sym-acquires-walmart-180631678.html