The rise of artificial intelligence (AI) has had a profound impact on various sectors, including the stock market. Stocks of companies recognized as AI winners, such as Nvidia and Super Micro Computer, have seen remarkable growth over the past year, generating substantial returns for investors. However, the next wave of AI may come from businesses that integrate AI technology to enhance their operations and performance. This fresh perspective highlights two promising stocks, UiPath (NYSE: PATH) and Monday.com (NASDAQ: MNDY), that have already made strides in this direction.
UiPath: Harnessing the Power of AI in Robotic Process Automation
UiPath serves as a remarkable example of how AI can revolutionize a company’s business model. As a leader in robotic process automation (RPA), UiPath’s software enables organizations to automate repetitive office tasks such as document processing, interface management, and communication. By leveraging AI in all three phases of RPA – discovery, automation, and operation – UiPath aims to make businesses more efficient, as evidenced by a study revealing that 70% of surveyed executives desire AI-driven automation.
UiPath has experienced accelerated revenue growth, boasting a 24% year-over-year increase from early last year. With profitability and average annual earnings growth projected at 35% over the next three to five years, the stock presents an attractive investment opportunity at its current forward price-to-earnings ratio (P/E) of 45. The company has consistently outperformed analysts’ expectations since going public, further fueling optimism about its potential for significant gains in the future.
Monday.com: Reshaping Collaborative Work with AI
Monday.com aims to transform how employees collaborate by providing cloud-based collaboration software that acts as a comprehensive operating system for work. Instead of juggling multiple disjointed apps, users can seamlessly collaborate via real-time dashboards on Monday.com. In a bid to enhance its platform, Monday.com is incorporating generative AI, specifically developed by OpenAI and Azure, which introduces a ChatGPT-like bot capable of generating questions, task ideas, and other content.
While Monday.com has already witnessed increasing profitability, with approximately 28% of its revenue translating into free cash flow, the stock’s current market cap of $10 billion appears undervalued in comparison to other popular AI stocks like Palantir Technologies, CrowdStrike, and Nvidia. With revenue growth on par with CrowdStrike and outpacing Palantir, Monday.com presents an intriguing investment opportunity. Nonetheless, the company must continue exceeding analyst forecasts to prove its potential, and AI integration could play a significant role in achieving this goal.
FAQ
- What is robotic process automation (RPA)?
- What is generative AI?
- How does AI benefit businesses?
Robotic process automation (RPA) refers to the use of software robots or “bots” to automate repetitive tasks and streamline business processes.
Generative AI involves using artificial intelligence algorithms to create new content, ideas, or solutions based on the given data or context.
AI can benefit businesses by improving efficiency, automating repetitive tasks, enhancing decision-making processes, and unlocking valuable insights from data.
Source: The Motley Fool (https://www.fool.com/)
The rise of artificial intelligence (AI) has had a profound impact on various sectors, including the stock market. Stocks of companies recognized as AI winners, such as Nvidia and Super Micro Computer, have seen remarkable growth over the past year, generating substantial returns for investors. However, the next wave of AI may come from businesses that integrate AI technology to enhance their operations and performance. This fresh perspective highlights two promising stocks, UiPath (NYSE: PATH) and Monday.com (NASDAQ: MNDY), that have already made strides in this direction.
UiPath: Harnessing the Power of AI in Robotic Process Automation
UiPath serves as a remarkable example of how AI can revolutionize a company’s business model. As a leader in robotic process automation (RPA), UiPath’s software enables organizations to automate repetitive office tasks such as document processing, interface management, and communication. By leveraging AI in all three phases of RPA – discovery, automation, and operation – UiPath aims to make businesses more efficient, as evidenced by a study revealing that 70% of surveyed executives desire AI-driven automation.
UiPath has experienced accelerated revenue growth, boasting a 24% year-over-year increase from early last year. With profitability and average annual earnings growth projected at 35% over the next three to five years, the stock presents an attractive investment opportunity at its current forward price-to-earnings ratio (P/E) of 45. The company has consistently outperformed analysts’ expectations since going public, further fueling optimism about its potential for significant gains in the future.
Monday.com: Reshaping Collaborative Work with AI
Monday.com aims to transform how employees collaborate by providing cloud-based collaboration software that acts as a comprehensive operating system for work. Instead of juggling multiple disjointed apps, users can seamlessly collaborate via real-time dashboards on Monday.com. In a bid to enhance its platform, Monday.com is incorporating generative AI, specifically developed by OpenAI and Azure, which introduces a ChatGPT-like bot capable of generating questions, task ideas, and other content.
While Monday.com has already witnessed increasing profitability, with approximately 28% of its revenue translating into free cash flow, the stock’s current market cap of $10 billion appears undervalued in comparison to other popular AI stocks like Palantir Technologies, CrowdStrike, and Nvidia. With revenue growth on par with CrowdStrike and outpacing Palantir, Monday.com presents an intriguing investment opportunity. Nonetheless, the company must continue exceeding analyst forecasts to prove its potential, and AI integration could play a significant role in achieving this goal.
When it comes to the industry as a whole, the AI market is experiencing tremendous growth and is expected to continue expanding in the coming years. According to market forecasts, the global AI market is projected to reach $190.61 billion by 2025, growing at a compound annual growth rate (CAGR) of 36.62% during the forecast period (2020-2025).
The increasing adoption of AI across various sectors, including healthcare, finance, retail, and manufacturing, is fueling this growth. AI technology offers benefits such as improved efficiency, cost savings, enhanced decision-making processes, and the ability to extract valuable insights from vast amounts of data. As businesses continue to realize the potential of AI, the demand for AI-driven solutions and services is expected to surge.
However, along with the opportunities, the AI industry also faces challenges. One of the major concerns is the ethical use of AI, particularly in areas such as privacy, bias, and job displacement. Ensuring that AI is developed and deployed responsibly is crucial to address these concerns and build trust among users and stakeholders.
Overall, the AI industry presents exciting prospects for investors, with companies like UiPath and Monday.com harnessing AI to drive innovation and transform their respective sectors. As the market continues to evolve, it will be essential to monitor industry trends, market forecasts, and emerging issues to make informed investment decisions.
Source: The Motley Fool (https://www.fool.com/)
The source of the article is from the blog be3.sk