TipRanks
2 stocks of artificial intelligence leading the new wave
It is a new year and a good time to see what lies ahead. Not in the short term, but in the longer horizon. So, here’s a number to think about: $ 126 billion. This is the predicted size of the Artificial Intelligence (AI) technology market in 2025. AI, once the only province in the most mysterious branches of computer programming and coding, has become an essential part of the digital world in which we live. You can find AI everywhere. It is in our factories, controlling assembly robots and inventory systems; is in cars, monitoring power systems and driving trains – and soon, perhaps, to drive vehicles; its algorithms are behind the success of all online technology companies that have come to dominate our electronic social discourse and economics. AI is everywhere and is here to stay. Which makes it a fantastic sector to explore investment opportunities. In this context, two of the top Wall Street analysts turned their attention to AI and recommended their choices in the industry. We examined them both in the TipRanks database to see what other Wall Street analysts have to say about them. The results are interesting. C3.ai, Inc. (AI) We will start with a company that is new to public trading markets. C3ai is a corporate AI company that provides a set of services designed to build applications on a corporate scale through an efficient and low-cost process. The C3 AI Suite features configurable applications for customer engagement, energy management, fraud detection, predictive maintenance and supply chain optimization – all of which is just the beginning. C3 went public in December 2020, hitting the markets on December 9. The company had set the IPO price at $ 42 per share, but closed its first day at $ 92, with a 120% gain right away. C3 shares peaked at $ 177 on December 22nd, and are now trading at $ 133, with a net gain since the close of the first day of 44%. The company now has a market capitalization of $ 12.74 billion. It is not just the successful IPO that should get investors’ attention here. C3’s customers include prominent names such as Bank of America, AstraZeneca and Koch Industries. The company also has a strategic partnership with Microsoft, using the Azure cloud platform to deliver AI technology to the energy industry. And finally, C3 is a major Pentagon contractor and has the US Air Force, Army Aviation and US StratCom in its user base. Some Wall Street analysts consider C3’s shares to be fully valued, but others are optimistic about the shares. Among the bulls is Daniel Ives, the 5-star technology specialist at Wedbush, who evaluates IA and Outperform (ie, a Buy). Ives also gives the stock a $ 200 price target, which indicates room for a 51% rise in the next 12 months. (To see Ives’ history, click here) In his comments on the stock, Ives explains his position: “We see C3.ai as one of the most innovative business software providers of the last decade, with the company’s laser focused on convergence AI, big data and cloud computing … We believe that with a very successful $ 650 million IPO completed in December, C3 is now in clear “offensive mode” as its enhanced distribution strategy (direct sales, MSFT, Baker Hughes) is expected to put more fuel into its growth engine in 2021 and beyond. ”The bull-bear mix in AI is clear from the criticisms recorded for C3. The company received 10 ratings, divided into 4 Buy, 4 Hold and 2 Sell, making the analyst’s consensus in Hold. Meanwhile, the average price target is $ 144.89, suggesting room for 9% growth from current levels. (See analysis of AI actions in TipRanks) Liveperson (LPSN) Liveperson is known as a designer of live chat platforms and AI chatbot systems, marketing these products as front-end customer relationship tools for companies of all the types. Liveperson’s chat apps are available through web browsers, social media and on mobile devices, and the company has produced a chat AI that allows automated chatbots to optimize the efficiency of the customer service center when handling tasks routine communication. Cloud, with a human operator supervising several bots in a chat center. AI handles initial contacts using filtering questions and is able to refer more involved questions to the human agent in the loop. Liveperson offers a choice for its customers: use ready-made chatbots or use the platform and create a unique chat system. Like many technology companies involved in online marketing, the value of Liveperson was emphasized during this crazy year. ‘The stock ended 2020 with a gain of 65%. Meanwhile, revenues have increased slightly sequentially since the second quarter, with the third quarter number of $ 94.8 million being 3.4% higher than the second quarter and 26% year over year. Liveperson’s proven strength in its niche has attracted the attention of Ryan Koontz, a 5-star analyst at Rosenblatt.[We] expects LPSN to leverage its leadership position in AI to disrupt the $ 60 billion contact center software and automated job market. Despite facing new threats from larger and more established players in the corporate market, including Salesforce.com, Twilio and Oracle, we see the strong focus and more than 20 years of experience in LPSN as essential assets, ”noted Koontz. With this analysis, it is not surprising that Koontz classifies the LPSN as Purchase. Its target price of $ 73 implies a 14% rise from current levels. (To view Koontz’s track record, click here) Of course, Wall Street is in broad agreement with Koontz, as shown by analyst Strong Buy’s consensus rating and the 8 recent reviews that include 7 purchases against a single wait. The shares are selling for $ 63.97, and the average target price of $ 71.17 suggests that it has 11% room to grow. (See LPSN stock analysis at TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that gathers all the information about TipRanks stock. those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.