May 13, 2025

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Nvidia Stock Surge, HUMAIN Launch, AI Stocks Undervalued

The AI industry has seen significant developments in recent days, with several companies making headlines. The Nasdaq Composite index has recovered about half of its losses from its peak in December, and AI stocks such as Amazon, Lam Research, and Meta Platforms are still considered undervalued. Nvidia's stock is expected to surge after its first-quarter results, driven by growing demand for AI infrastructure. Meanwhile, Saudi Arabia has launched a new AI firm, HUMAIN, to invest in artificial intelligence, data centers, and cloud capabilities. Other companies, such as Appian, Palantir, and Recursion Pharmaceuticals, are also making significant strides in the AI space. Microsoft and OpenAI are renegotiating their partnership, and Cryptonix has launched an AI trading hackathon to develop AI-powered trading systems. Additionally, SoundHound AI's stock has surged after the US and China announced a temporary reduction in tariffs, providing some breathing room for the company's business in China.

Key Takeaways

  • The Nasdaq Composite index has recovered about half of its losses from its peak in December, with AI stocks still considered undervalued.
  • Nvidia's stock is expected to surge after its first-quarter results, driven by growing demand for AI infrastructure.
  • Saudi Arabia has launched a new AI firm, HUMAIN, to invest in artificial intelligence, data centers, and cloud capabilities.
  • Appian's AI usage among customers grew by 7.9 times year over year, and revenue from its AI-inclusive tiers more than doubled.
  • Palantir's AI business is expected to drive significant growth, with the potential to soar another 285% over the next two or three years.
  • Microsoft and OpenAI are renegotiating their partnership, with Microsoft adjusting its equity stake to benefit from future AI advancements.
  • Recursion Pharmaceuticals is a high-risk but potentially high-reward investment, using AI to speed up the discovery and development of novel therapies.
  • Cryptonix has launched an AI trading hackathon to develop AI-powered trading systems and strategies.
  • SoundHound AI's stock has surged after the US and China announced a temporary reduction in tariffs, providing some breathing room for the company's business in China.
  • Meta Platforms is making big bets on AI, increasing its plans for capital spending this year to between $64 billion and $72 billion.

Nasdaq Recovery Boosts AI Stocks

The Nasdaq Composite index has recovered about half of its losses from its peak in December. Despite the recovery, there are still opportunities in the market, particularly in AI stocks. Three AI stocks that are still too cheap to ignore are Amazon, Lam Research, and Meta Platforms. Amazon's AWS segment generated $29.3 billion in revenue last quarter, up 17% year over year. Lam Research is a top manufacturer of semiconductor fabrication equipment and has seen revenue growth of 24%. Meta Platforms is making big bets on AI and has increased its plans for capital spending this year to between $64 billion and $72 billion.

Nvidia Stock Expected to Soar After Earnings

Nvidia stock is expected to surge after the company reports its first-quarter results on May 28. The AI semiconductor stock has been affected by trade war concerns, but analysts believe it will bounce back. Nvidia's strong performance and growing demand for AI infrastructure make it a promising investment opportunity. The company's revenue and earnings are expected to nearly double over the next two years, making it a valuable investment despite current market volatility.

Saudi Arabia Launches New AI Firm

Saudi Arabia has launched a new firm called HUMAIN to invest in artificial intelligence. The company will provide data centers, AI infrastructure, and cloud capabilities, as well as Arabic large language models. HUMAIN is owned by the kingdom's $925 billion Public Investment Fund and will be a key player in the country's AI strategy. The launch comes ahead of a visit by US President Donald Trump, where AI is expected to be a major topic of discussion.

Saudi Arabia Invests in AI Venture

Saudi Arabia is launching a multibillion-dollar AI venture called Humain, which will be chaired by Crown Prince Mohammed bin Salman. The company will invest in AI models and infrastructure, including Arabic large language models and data centers. Humain will be owned by the Public Investment Fund, Saudi Arabia's $940 billion sovereign wealth fund. The launch is part of the country's efforts to drive its AI strategy and comes ahead of a US-Saudi investment forum.

Appian AI Stock Could Be a Surprise Winner

Appian has evolved from a low-code software company to a process-automation company and is now making another transition to an AI company. The company's AI usage among customers grew by 7.9 times year over year, and revenue from its AI-inclusive tiers more than doubled. Appian's CEO believes that AI is the best thing that's ever happened to the process automation industry. The company's modest valuation and growing profit margins make it a promising investment opportunity.

Palantir AI Stock Could Soar Another 285%

Palantir Technologies has gained about 1,090% since its IPO in 2020, and analyst Dan Ives believes it could soar another 285% over the next two or three years. Palantir's AI business looks unstoppable, with the company's customer base shifting from less than two-thirds in the commercial sector to more than 80% in just four years. However, the company's valuation multiples are high, and investors should be prepared for some valuation compression in the near term.

Microsoft and OpenAI Reshape Partnership

Microsoft and OpenAI are renegotiating their partnership as OpenAI prepares for an IPO. Microsoft is adjusting its equity stake in OpenAI to ensure it benefits from future AI advancements. The agreement includes a contract extension to 2030, guaranteeing Microsoft rights to OpenAI's intellectual property and revenue streams. The move underscores Microsoft's commitment to AI and could lead to a potential industry boost.

Is Recursion Pharmaceuticals a Good Investment?

Recursion Pharmaceuticals is an AI-focused biotech company that has attracted attention from investors, including Cathie Wood. The company specializes in using AI to speed up the discovery and development of novel therapies. However, Recursion Pharmaceuticals has yet to send a single product to late-stage studies and is facing challenges, including regulatory changes that may impact its ability to raise capital. The company remains a high-risk option, but its AI-based operating system has potential for future successes.

Cryptonix Launches AI Trading Hackathon

Cryptonix is launching a pioneering AI trading hackathon to unite tech enthusiasts, software engineers, and AI researchers. The event will focus on developing AI-powered trading systems and strategies, with a prize pool of $100,000. The hackathon aims to harness the power of community intelligence and technological creativity to unlock next-generation trading possibilities. The top 5 finalists will receive ongoing incubation, venture capital exposure, and integration opportunities within Cryptonix's live platform.

SoundHound AI Stock Surges

SoundHound AI stock skyrocketed 22.6% after the US and China announced a temporary reduction in tariffs. The company has business in China and the tariff reduction is expected to provide some breathing room for the company. SoundHound recently announced a key deal with Chinese tech giant Tencent to integrate its voice AI capabilities into Tencent's cloud-based solutions. However, the company's long-term ability to maintain its competitive edge and justify its $3.6 billion market capitalization is uncertain.

Sources

AI Stocks Nasdaq Recovery Amazon Lam Research Meta Platforms Nvidia Stock Artificial Intelligence Saudi Arabia HUMAIN Appian AI Palantir AI Microsoft OpenAI Recursion Pharmaceuticals Cryptonix SoundHound AI