Micron Technology (MU) gets a $6.165 billion boost – what does this mean for US semiconductor energy?

We recently compiled a list of the Top 10 AI Stocks to Watch: Latest News and Reviews. In this article, we’ll take a look at where Micron Technology, Inc. (NASDAQ:MU) stands compared to the other top AI stocks to keep an eye on.

Former OpenAI chief scientist Ilya Sutskever recently claimed that a big change is on the horizon in the field of artificial intelligence. As he accepted a Test Of Time award on Friday December 13 for his 2014 work alongside Oriol Vinyals and Quoc Le, he claimed that technology will be far less predictable through logical thinking. He discussed how an idea his team explored a decade ago to scale data to new levels for pre-trained AI systems is reaching its limits. Therefore, ChatGPT had led to more data and computing power, which OpenAI introduced in 2022.

“But pre-training as we know it will undoubtedly end. While computing power grows, data doesn’t grow because we only have one internet.”

ALSO READ: 10 AI News Investors Shouldn’t Miss and 10 AI Stocks Taking Wall Street by Storm

Regarding limitations, Sutskever also suggested some ways to explore new avenues, such as generating new data through the technology itself or AI models that evaluate multiple answers before selecting the best answer for a user to increase accuracy improve. Additionally, he predicted a future with super-intelligent, self-aware AI that can think like humans and predicted that the long-awaited AI agents would eventually become a reality in this advanced age.

As such, AI leaders are now suggesting that the generative AI revolution is entering a new phase, with advanced baseline models poised to integrate reasoning and long-term thinking into AI capabilities.

“As we all know, we are at the beginning of this generative AI revolution. And we are at the beginning of a new generation of foundation models that are capable of reasoning and long-term thinking.”

Long thinking allows AI models to take more time to “think through” the results they generate for us and represents an attempt to integrate AI into System 2. System 2, a term popularized by Daniel Kahneman in his book “Thinking, Fast and Slow,” “represents a way of thinking that is slow, deliberate, analytical, and requires conscious effort.

As these capabilities continue to develop, AI is expected to expand beyond its current applications in various sectors and deeply impact areas such as medicine, research and education, as evidenced by recent advances in OpenAI and its practical benefits in accelerating scientific discovery.

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“We will have AI systems that can communicate with us more fluidly and also visualize the real world. And this combination of reasoning and multimodal capabilities will, I think, allow us to develop more powerful agent applications in the next year.”

For this article, we selected AI stocks by reviewing news articles, stock analysis and press releases. These stocks are also popular with hedge funds.

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Micron Technology, Inc. (NASDAQ:MU) is an innovative provider of memory and storage solutions. On December 10th Reuters reported that the U.S. Department of Commerce finalized a $6.165 billion federal subsidy for Micron Technology to manufacture semiconductors in New York and Idaho. The funding, one of the largest federal awards for chip companies under the 2022 CHIPS and Science Act at $52.7 billion, will strengthen Micron’s long-term strategy, investing approximately $100 billion in manufacturing in New York and $25 billion US dollars to invest in Idaho.

In addition, the department has reached a tentative agreement to provide Micron with planned financing of up to $275 million to expand and modernize its Manassas, Virginia, facility. The agreement will help the company introduce more advanced technologies in the US to boost wafer production. Additionally, the investments will help create 20,000 jobs and allow the U.S. to increase its share of advanced memory chip manufacturing to an estimated 10% by 2035.

Overall MU takes 4th place on our list of the 10 best AI stocks to keep an eye on. While we recognize MU’s potential as an investment, we believe some AI stocks are more promising for generating higher returns, and within a shorter time frame. If you’re looking for an AI stock that’s more promising than MU stock but trades at less than 5 times earnings, check out our report on it cheapest AI stock.

READ MORE: The 8 Best Wide Moat Stocks to Buy Now and the Top 30 AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider monkey.