Analysts have recently downgraded the revenue expectations for top artificial intelligence (AI) firms, indicating a shift in investor sentiment. While the industry has been hailed as a game-changer with immense potential, it appears that revenue generation may take longer than previously anticipated.
Rishi Jaluria, a managing director at RBC Capital Markets, suggests that analysts are waking up to the realization that many AI firms may not achieve substantial revenue until 2025. He asserts that the initial enthusiasm surrounding AI has somewhat outpaced the actual translation of generative AI technology into tangible profits.
Jaluria believes generative AI has the potential to transform numerous industries, comparable in impact to the advent of smartphones or the internet. However, concerns over privacy and regulation have hindered the industry’s growth. In addition, investors are still trying to gauge the true potential of this emerging technology, making it difficult to predict which companies will thrive in the long run.
Despite recent downgrades, Jaluria identifies MongoDB and HubSpot as up-and-coming AI companies that could be worth considering for investment opportunities. MongoDB, a database platform, is even competing with industry giant Oracle for market share.
Jaluria commends MongoDB for backing up its claims about generative AI with real-world results, distinguishing it from other companies. However, he maintains reservations about Palantir, a data analytics firm, stating that its claims seem unfounded and that its current stock price is not reflective of its actual value.
As the AI industry continues to evolve, investors are becoming more discerning in their assessment of revenue prospects. Despite this shifting sentiment, the potential impact of generative AI on various sectors remains significant. While some AI firms may face challenges and uncertainties, others are poised to thrive in this rapidly advancing field.
The source of the article is from the blog windowsvistamagazine.es