3 Artificial Intelligence (AI) Stocks That Could Go Parabolic - Latest Global News

3 Artificial Intelligence (AI) Stocks That Could Go Parabolic

If you’re like me, you don’t remember much from your geometry class in high school. However, I still remember a few things – including the fascinating curve called a parabola.

As adults, we don’t come across the good old parable very often in our lives. But investors might have a chance to see geometry in action in a select group of stocks. These three artificial intelligence (AI) stocks (listed in descending order by market cap) could go parabolic with rapid price increases over a short period of time.

1. UiPath

So far in 2024, the trajectory is of UiPath‘S (NYSE: PATH) The stock more closely resembles the left side of a parabola, sloping downward. Shares of the robotic process automation (RPA) software company have fallen by a double-digit percentage.

However, this decline does not reflect major problems for UiPath. The company reported record revenue of $405 million in the quarter ended Jan. 31, up 31% year over year.

UiPath also achieved its first quarter of profitability based on generally accepted accounting principles (GAAP) since going public in April 2021.

Cathie Wood’s ARK Invest predicts that AI software could become a $14 trillion market by 2030, up from less than $1 trillion in 2022. UiPath should be in a great position to capitalize on this huge growth .

Everest Group ranked the company’s business automation platform as the best in terms of performance, market impact and vision.

UiPath’s relatively low market capitalization of around $11 billion also offers plenty of room for growth. ARK Invest sees the company as part of the “sleeping wave of AI” – promising AI companies that don’t get as much attention as the mega-giants. UiPath’s ease of use and scalability are believed to provide a competitive advantage in the AI ​​automation market.

2. BigBear.ai Holdings

AI-powered decision intelligence software company BigBear.ai Holdings (NYSE:BBAI) had already gone parabolic at the beginning of the year and had more than doubled by the beginning of March. However, the stock has since given back all of those gains and then some.

Some on Wall Street believe BigBear.ai is poised for a major run. The average 12-month price target for the stock reflects 124% upside potential, with one analyst predicting the stock price could more than triple within the next 12 months.

This optimism is not based on recent financial performance. The company’s revenue fell 21.4% year-over-year in the first quarter of 2024. BigBear.ai reported a net loss of $125.1 million for the quarter.

However, the company has gained momentum with recent contracts, including an $8.3 million extension of an agreement with the U.S. Army. The company also recently completed the acquisition of vision AI leader Pangiam.

3. Tribe

stem (NYSE:STEM) is the smallest company on this list with a market cap of just over $200 million. It is also the bottom of the group this year, down nearly 70%.

The battery systems and smart energy AI software provider reported a 62% year-over-year decline in first-quarter revenue and a sharply deteriorated bottom line.

Can Stem turn things around? That’s what several analysts think. The stock’s average 12-month price target is nearly 240% higher than the current share price. The most optimistic analyst surveyed by LSEGOwner of the London Stock Exchange, believes the stock could rise more than 8.5 times.

Stem terminated some of its less profitable contracts to focus on others with higher margins. The company expects these measures to improve profitability. The recent launch of the PowerTrack Asset Performance Management suite to manage storage, solar and hybrid energy portfolios could also accelerate growth.

There is no guarantee that this stock (or UIPath or BigBear.ai for that matter) will go parabolic. But according to Statista, the global market for energy storage systems will almost double to $506.5 billion by 2031. If Stem can capitalize on this big opportunity, the company could return to the winning ways of a few years ago.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Stem and UiPath. The Motley Fool has a disclosure policy.

“3 Artificial Intelligence (AI) Stocks That Could Go Parabolic” was originally published by The Motley Fool

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