We recently compiled a list of the 10 AI News Investors Shouldn’t Miss. In this article, we are going to take a look at where Perfect Corp. (NYSE:PERF) stands against the other AI stocks.
The Biden Administration is preparing to leave office but is planning to launch an aggressive chips campaign before it goes. South China Morning Post reported that the US government may be revealing new restrictions targeting China’s black-market trade in advanced chips during Biden’s last week in the White House. The so-called “global artificial intelligence (AI) diffusion rule” will aim to limit Chinese companies’ sourcing of advanced artificial intelligence (AI) chips from unrestricted third-party countries. These changes aim to close any existing regulatory loopholes that may allow China to get its hands on powerful graphics processing units (GPUs) essential for training AI models.
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In response, Reuters reported on Tuesday, January 7th, that a technology industry group in the US has urged President Joe Biden’s administration to refrain from issuing a last-minute rule related to the control of global access to AI chips. They warn that these restrictions would harm US leadership in artificial intelligence instead. The Information Technology Industry Council, which represents companies like Amazon and Microsoft, said the rule could come out as soon as Friday. It also said that the rule could place arbitrary constraints on U.S. companies’ ability to sell computing systems out of the country, as well as abandon the global market to competitors.
While a major objective of these controls is to keep artificial intelligence from boosting China’s military capabilities, the technology group believes that it is going to do more harm than good. Previously, the South China Morning Post reported that Washington planned to issue the rule by the end of December 2024. However, the Biden administration had decidedly postponed the release due to delays in expert reviews which were a result of US government “budgetary issues”. Nevertheless, the new controls are anticipated to be released before Biden leaves office.
ITI CEO Jason Oxman has also criticized the administration’s “insistence” on issuing the rule in the final days of Joe Biden’s presidency. Here is what he said:
“Rushing a consequential and complex rule to completion could have significant adverse consequences”.
-Oxman said in the Jan. 7 letter, a copy of which was obtained by Reuters.
ITI also said that even though such rules are commendable, the letter said that “the potential risks to U.S. global leadership in AI are real and should be taken seriously”.
Ken Glueck, executive vice president at Oracle also said in a blog post that the rule “drops the Mother of All Regulations on the commercial cloud industry, regulating… nearly all commercial cloud computing globally for the first time in history.” He said that the controls “will go down as one of the most destructive to ever hit the U.S. technology industry”.
For this article, we selected AI stocks by going 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 fashion model in a stunning and stylish outfit leveraging augmented reality beauty and fashion tech.
Perfect Corp. (NYSE:PERF)
Number of Hedge Fund Holders: 9
Perfect Corp. (NYSE:PERF) is a leader in AI and AR-powered beauty technology solutions. On January 7th, the company announced that it is collaborating with MAISON DELAROM, a natural skincare and wellness brand. Together, the two will be bringing radical AI skin analysis technology to the forefront of the luxury skincare market. MAISON DELAROM has taken this initiative as part of its premium repositioning strategy and will be unveiling Perfect Corp.’s Skincare Pro for iPad, which is an AI-powered solution that can analyze up to 14 skin concerns. The technology will be available at the Maison & Objet trade show, Booth G11 in Hall 2 (Well-Being & Beauty section), from January 16 to 20, 2025. Meanwhile, the solution will become available at MAISON DELAROM’s flagship showroom in Paris starting February 1, 2025.
“Skincare Pro embodies the future of personalized beauty, allowing brands to deliver data-driven, tailored solutions to their customers. We are excited to partner with MAISON DELAROM, a house that beautifully blends nature and innovation to redefine luxury skincare”.
-Alice Chang, Founder and CEO of Perfect Corp.
Overall PERF ranks 8th on our list of the AI stocks investors shouldn’t miss. While we acknowledge the potential of PERF 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 timeframe. If you are looking for an AI stock that is more promising than PERF 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.