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 SES AI Corporation (NYSE:SES) 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 line of electric vehicles being produced in a Massachusetts-based production facility.
SES AI Corporation (NYSE:SES)
Number of Hedge Fund Holders: 14
SES AI Corporation (NYSE:SES) is a battery company that produces AI-enhanced high-performance Li-Metal and Li-ion batteries. On January 7th, the company revealed an entirely new AI-enhanced 2170 cylindrical cell for emerging humanoid robotics applications. The cell was presented at the 2025 CES Show held at the Las Vegas Convention Center in Las Vegas, Nevada. The cylindrical cell by SES AI uses an electrolyte discovered by SES AI’s Molecular Universe effort which maps the physical and chemical properties of billions of potential molecules. These advancements in GPU and computing software stem from the collaboration between SES AI and NVIDIA, Supermicro and Crusoe announced in September 2024. They have allowed the mapping time to reduce from 8,000 years to just 2 months. The AI-enhanced 2170 cell offers enhanced low temperature, high-rate performance, high-capacity cycling stability, and reduced gassing and thermal risks, opening up opportunities for customers in humanoid robots, drones, and other applications.
“We were asked by several OEMs to find an electrolyte that would solve the gassing and poor low temperature cycling and rate performance issues they were experiencing with traditional Li-ion 2170 cells used in high-energy applications. We believe the new electrolyte we have discovered through our AI solves this issue and opens a new market for us in Li-ion 2170 cells, which are predominantly used in robotics and drone applications. The worldwide market for Li-ion cylindrical cells alone is currently estimated at $10bn in 2023 and expected to grow to $50bn by 2033 according to Allied Market Research. Using this electrolyte in our new cells as well as Li-Metal applications creates additional revenue potential we had not previously anticipated”.
– Founder and CEO Qichao Hu.
Overall SES ranks 6th on our list of the AI stocks investors shouldn’t miss. While we acknowledge the potential of SES 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 SES 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.