This Drone Company Is 1,000% Higher Than Last Year

Hello and welcome to the Tech Stock Insider, the twice-weekly newsletter covering the biggest opportunities in the tech world.

Today, we’ll look into the latest tech news, highlight some recent movers, and investigate an under-the-radar tech stock with potential.

Luxury Assets

Bank of America, UBS, and JP Morgan are pouring billions into an asset class you’d least expect: fine art.

This $2.1 trillion market has become a powerhouse for diversification, with blue-chip contemporary art outperforming the S&P 500 by 64% since 1995.

As Wall Street bets big, the question is—will you join them?

* The content is not intended to provide legal, tax, or investment advice.

No money is being solicited or will be accepted until the offering statement for a particular offering has been qualified by the SEC. Offers may be revoked at any time. Contacting Masterworks involves no commitment or obligation.

“Net Annualized Return” refers to the annualized internal rate of return net of all fees and expenses, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. For additional information regarding the calculation of IRR for a particular investment in an artwork that has been sold, a reconciliation will be filed as an exhibit to Form 1-U and will be available on the SEC’s website. Masterworks has realized illustrative annualized net returns of 17.6% (1067 days held), 17.8% (672 days held), and 21.5% (638 days held) on 13 works held longer than one year (not inclusive of works held less than one year and unsold works).

Correlation data based on repeat-sales index of historical Post-War & Contemporary Art market prices and S&P 500 annualized return (includes dividends reinvested) from 1995 to 2024, developed by Masterworks. There are significant limitations to comparative asset class data. Indices are unmanaged and a Masterworks investor cannot invest directly in an index.

See important Reg A disclosures at masterworks.com/cd.

Semiconductors

Qualcomm Wins Legal Battle Over Chip Licensing Dispute

Qualcomm has successfully defended itself in a legal battle against Arm Holdings, overcoming allegations of breaching a licensing agreement tied to chip technology acquired in a 2021 startup purchase. The federal court trial concluded with jurors determining that Qualcomm adhered to its licensing terms when incorporating Arm’s chip designs into its processors, avoiding higher fees. However, the jury was unable to decide whether the acquired startup itself had violated the agreement, leaving that matter unresolved for now.

The case highlights the growing tensions between Qualcomm and Arm, once close collaborators, as they increasingly compete in the computer processor market. This dispute has significant implications, given the widespread reliance on Arm’s licensed chip architecture in products developed by many leading tech companies.

Arm had argued that Qualcomm should have renegotiated the startup's license agreement and even demanded the destruction of certain acquired designs. Qualcomm countered by asserting its rights under an existing general license that it believed covered the contested work.

While Qualcomm emerged from this phase of the dispute with favorable outcomes, Arm plans to seek a retrial to address the unresolved claims. This legal battle underscores the high stakes in the evolving chip market as industry leaders vie for technological dominance.

Artificial Intelligence

OpenAI Unveils Advanced AI Model to Elevate Complex Problem Solving

OpenAI is gearing up to release a next-generation artificial intelligence model designed to tackle more complex reasoning tasks with advanced capabilities. This latest development aims to strengthen its position in the AI race alongside competitors like Google and other industry leaders.

The upcoming model, named o3, focuses on solving intricate, multi-step problems by dedicating additional processing time to user queries. A smaller version, o3-mini, is also in the pipeline, with releases planned for early next year. OpenAI emphasized its commitment to safety by inviting researchers to test the models for security and ethical concerns before the official launch.

Since the debut of its widely recognized chatbot, ChatGPT, OpenAI has continuously advanced its technology, introducing models such as GPT-4 and its first reasoning model, o1. The o3 model builds on these innovations, leveraging new techniques to ensure it behaves responsibly while providing accurate and efficient responses.

As other major tech players introduce enhanced models with similar aspirations, the challenge of improving AI without significant trade-offs becomes more evident. OpenAI’s efforts to address these issues include implementing strategies to enhance reasoning and alignment, ensuring the technology adheres to ethical standards.

This announcement reflects OpenAI’s ongoing push to redefine the boundaries of AI capabilities while addressing the complexities of responsible development.

Software

Google Responds to Antitrust Ruling With Proposed Business Practice Changes

The Department of Justice has outlined potential actions to address concerns about Google’s dominance in the search engine market, including a proposal to divest key assets. In response, Google has put forward its own solutions that focus on modifying business practices rather than breaking up the company.

Google’s approach suggests revisiting agreements with browser developers, smartphone manufacturers, and wireless carriers. These changes aim to ease concerns about exclusivity deals and how they influence competition. The proposal also includes limiting the tying of licenses for its apps with preinstalled services and introducing periodic reviews for certain agreements. However, it stops short of addressing ideas like sharing its search data with rivals, a measure the DOJ believes could foster competition.

For the next few years, Google’s proposed plan would allow payment for default search engine placement while ensuring more flexibility for browsers and platforms. The company intends to implement these adjustments temporarily as discussions continue.

Despite this, Google plans to appeal the legal ruling that declared it a monopoly, while preparing an updated proposal for review before an upcoming trial. This move indicates the company’s efforts to navigate regulatory challenges without compromising its operational framework.

Technology

Most hearing aids have one processor. These bad boys have two. They process speech and noise separately.

What does this mean? It means speech gets clearer and crisper – more than ever before. Conversations and listening become effortless.

Oh, and they’re so tiny, they’re practically invisible. No wonder over 425,000 customers love them.

*This is a paid advertisement for Hear.com.

Recent Tech Movers

Duolingo (DUOL) is one of the top educational apps, showcasing millions of paid users. Its revenue streams are solid, and the company has added 50% to its share price this year alone.

Red Cat Holdings (RCAT) is a drone manufacturer that focuses primarily on government and commercial use. A 1,000% rise in 2024 and multiple contracts have helped cement the company’s place as a solid tech stock.

Uber Technologies (UBER) operates in 70+ countries around the world, offering millions of people ride-sharing or food delivery services. Shares have returned to where they were a year ago, likely leaving this stock undervalued.

Don’t Overlook This Tech Stock

Cloudflare (NET) is an IT company with a suite of products designed to help with security and performance. As cyber threats become more rampant, the need for such software takes center stage. Data compliance and AI wings further complement the company’s list of assets. Forward-thinking philosophy and innovative approach help distinguish Cloudflare from larger operations and lay the groundwork for long-term potential in the tech sector.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.

Best Regards,
—Noah Zelvis
Tech Stock Insider