In this article, we discuss 11 stocks that will benefit from advances in AI. If you would like to skip the detailed analysis of these stocks, please go directly to the following link. 5 stocks that will benefit from advances in AI.
Artificial intelligence products such as automated assistants, chatbots, robotics, and even self-driving cars have been all the rage in the media in recent years, pushing cutting-edge technology industries to the forefront of global growth.according to report The global AI market is expected to contribute more than $15.7 trillion to the global economy by the end of this decade, according to professional services firm PwC. This number is more than the economic output of large countries such as China and India combined.
In the next few years, analysis According to research firm Grand View Research, the AI market is expected to grow at an impressive compound annual growth rate of 37%. China and the US are expected to lead this boom in the world of AI. AI will contribute to an increase of nearly 30% in China’s total GDP output by 2030, followed by North America at about 15%. The growing trend of AI can be seen in the context of the ChatGPT craze. This application became the fastest growing in history, reaching 100 million active users within a month of its launch.
The most promising applications of AI include wearable technology, chip market solutions, self-driving cars, automated medical procedures, and numerous other applications in the business world.Global market insights Estimate The wearable AI market is expected to reach nearly $200 billion by the end of next year. Similarly, there could be more than 8 billion digital voice assistants in use around the world by the end of this year. The global AI chip market is expected to reach nearly $100 billion in value within the next three years.
Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL) is investing heavily in AI products to take advantage of this evolution in AI. Tim Cook, his CEO at Apple Inc. (NASDAQ: AAPL), recently highlighted some of the work the company is doing in this regard during its first-quarter earnings call in early February.
“These days, we are innovating at an incredible pace. Since the introduction of Apple Silicon in 2020, we have delivered unparalleled performance and power, along with superior neural engines for artificial intelligence and machine learning. We’re proud to offer our customers this fall. This fall, we made an amazing announcement of the latest generation of Apple silicon for Mac, M3, M3 Pro, and M3 Max. These chips deliver new power and performance. Whether you’re breaking new ground and creating musical masterpieces with the latest features in Logic Pro or beating high scores in graphics-intensive games, we empower you to do more than ever before. ”
our methodology
Companies that would benefit from increased adoption of AI products and related services were selected and ranked according to hedge fund sentiment. We also discuss analyst ratings for each stock to provide readers with context for their investment choices. Hedge fund sentiment for each stock was calculated using data from approximately 900 hedge funds tracked by Insider Monkey in Q4 2023. The consensus top 10 stocks selected by hedge funds have historically outperformed the S&P 500 index by more than 140 percentage points. 10 years (Please see here for the detail). That’s why we pay close attention to this often ignored metric.
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Stocks that benefit from advances in AI
11. AeroVironment, Inc. (NASDAQ:AVAV)
Number of hedge fund holders: 15 people
AeroVironment, Inc. (NASDAQ:AVAV) designs, develops, manufactures, delivers and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and abroad. Last September, the company completed its acquisition of Tomahawk Robotics, a leader in AI-enabled robot control and integrated communication systems. The acquisition was made possible as the company has maintained quarterly sales growth of more than 40% over his nearly two years. As the demand for AI increases, the company is well positioned to benefit from a favorable environment, with contracts from foreign companies affiliated with his NASA, the US military, and the US government.
On March 5, investment advisory firm RBC Capital maintained an Outperform rating on Aerovironment (NYSE:AVAV) stock and raised its price target from $155 to $160.
15 hedge funds in Insider Monkey’s database held $199 million worth of shares in AeroVironment, Inc. (NASDAQ:AVAV) at the end of Q4 2023, compared to had 21 shares worth $192 million.
Along with Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), AeroVironment, Inc. (NYSE:AVAV) is one of the stocks that will benefit from advances in AI. .
10. UiPath Inc. (NYSE:path)
Number of hedge fund holders: 38 people
UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform offering a wide range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. The company continues to grow as the AI-powered automation solutions it provides attract interest from around the world. Earlier this month, the company announced that the Saudi government, one of the world’s wealthiest countries, will use its UiPath business automation platform to drive its national tourism strategy.
On January 12, investment advisory firm Barclays maintained an equal weight rating on UiPath Inc. (NYSE:PATH) stock and raised its price target from $21 to $23.
One of the hedge funds tracked by Insider Monkey, an investment firm based in St. Petersburg, Florida. Ark Investment Management is the largest shareholder in UiPath Inc. (NYSE:PATH) with 43 million shares worth over $1 billion.
9. Rockwell Automation Company (NYSE:South Korea)
Number of hedge fund holders: 43 people
Rockwell Automation, Inc. (NYSE:ROK) provides industrial automation and digital transformation solutions. As labor shortages, war, and climate change take their toll on manufacturing, Rockwell has been highly successful in providing factory owners with AI-powered automation solutions. There are three main investment areas: autonomous mobile robots (AMR), cobotics, and generative AI.
On February 1st, investment advisory firm Citi maintained a “buy” rating on shares of Rockwell Automation, Inc. (NYSE:ROK) and lowered their price target from $351 to $330.
43 hedge funds in Insider Monkey’s database held $853 million worth of Rockwell Automation, Inc. (NYSE:ROK) stock at the end of Q4 2023, compared to 34 in the previous quarter. (equivalent to $644 million).
In its Q3 2023 investor letter, it states: times square capital managementAsset management firm Rockwell Automation, Inc. (NYSE:ROK) focused on several stocks and picked one. here The fund says:
“In the industrial space, we gravitate towards business services companies focused on automation and efficiency gains, as well as essential infrastructure services. Rockwell Automation, Inc. (NYSE:ROK) is a new addition this quarter. They provide industrial automation and digital transformation solutions. The rapid push towards automated and connected manufacturing is poised for long-term growth. It can also offset rising labor costs.”
8. Microchip Technology, Inc. (NASDAQ:MCHP)
Number of hedge fund holders: 43 people
Microchip Technology Incorporated (NASDAQ:MCHP) develops, manufactures and markets smart, connected and secure embedded control solutions in the Americas, Europe and Asia. Last September, the company announced that it would partner with Intelligent Hardware Korea to develop an analog computing platform for edge AI/ML inference. This technology results in 10-20% lower power consumption and faster processing speeds.
On February 2nd, investment advisory firm Needham maintained a “buy” rating on Microchip Technology Incorporated (NASDAQ:MCHP) stock and raised the price target from $85 to $90.
One of the hedge funds tracked by Sydney-based investment firm Insider Monkey. platinum asset management is the largest shareholder in Microchip Technology Incorporated (NASDAQ:MCHP) with 1.5 million shares worth over $141 million.
Asset management firm Weitz Investment Management highlighted several stocks in its Q3 2023 investor letter, including Microchip Technology Incorporated (NASDAQ:MCHP). here The fund says:
“During the quarter, we added a new position to the fund in Microchip Technology, Inc. (NASDAQ:MCHP). Microchip provides mixed-signal microcontrollers and A leading provider of analog semiconductors. The company enjoys favorable product characteristics that help drive high profitability, and also benefits from several longwave demand tailwinds, including growth in electronics, automation, and data communications. Although Microchip is not immune to the semiconductor cycle, its cash flow has been sustained throughout the semiconductor cycle. The multi-year outlook is strong, and the company is selling its shares at a discount. We believe we are poised to further accelerate value per share growth with increased purchases.”
7. Honeywell International Inc. (NASDAQ:Hong)
Number of hedge fund holders: 55 people
Honeywell International, Inc. (NASDAQ:HON) is a diversified technology and manufacturing company with operations around the world. The company is developing several of his AI-based products. One of the most promising products is the development of AI-powered digital assistants and human-AI collaboration frameworks that support both scaled minimum crew operations and single-pilot operations. As geopolitical tensions increase, demand for these products increases.
On March 6, investment advisory firm Berenberg upgraded shares of Honeywell International (NASDAQ:HON) to Buy from Hold and set a price target of $240.
At the end of Q4 2023, 55 hedge funds in Insider Monkey’s database held $1.6 billion worth of Honeywell International, Inc. (NASDAQ:HON) stock, compared to 60 in the previous quarter. The company was worth $2.2 billion.
6. Cadence Design Systems, Inc. (NASDAQ:C.D.N.S.)
Number of hedge fund holders: 72 people
Cadence Design Systems, Inc. (NASDAQ:CDNS) provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide.At the end of last year, the company Next-generation AI-powered OrCAD X platform. The platform features cloud scalability and AI-powered deployment automation technology. Reduce design time.
On March 6, investment advisory firm Needham maintained a “buy” rating on shares of Cadence Design Systems (NASDAQ:CDNS) with a price target of $320.
72 hedge funds in Insider Monkey’s database held $3.5 billion worth of Cadence Design Systems, Inc. (NASDAQ:CDNS) stock at the end of Q4 2023, compared to 58 companies were worth $2.9 billion.
Along with Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Cadence Design Systems, Inc. (NASDAQ:CDNS) is one of the stocks to benefit from advances in AI. It’s one. .
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Disclosure. none. 11 stocks that will benefit from advances in AI Originally published on Insider Monkey.
