Artificial intelligence (AI) stocks have been witnessing remarkable growth in recent times, with the AI market expected to continue expanding. Brokerage firm Goldman Sachs predicts four distinct “waves” of AI adoption. Meanwhile, KeyBanc highlights software stocks in the enterprise sector that are well-positioned to capitalize on AI and cloud efficiency. If you’re an investor looking for software stocks with significant AI potential, here are five Wall Street-approved options to consider.
1. Sprout Social (SPT)
Sprout Social provides a social media management software platform for businesses to effectively manage their social media presence across multiple platforms. With a market cap of $3.4 billion, Sprout Social has established itself as a leader in social media management.
KeyBanc analysts recognize Sprout Social’s leading position in the industry and their utilization of AI to enhance operations. Analysts have given the stock a “Strong Buy” rating, with a mean target price of $72.82, indicating a potential 22.7% upside from current levels.
2. Monday.com (MNDY)
Established in 2014, Monday.com offers a cloud-based work operating system that enables teams to manage projects, collaborate, and automate workflows. With a market cap of $11 billion, Monday.com caters to various departments and industries with its customizable platform.
KeyBanc predicts efficient growth for Monday.com, driven by pricing tailwinds. Analysts rate the stock as a “Strong Buy” with a mean target price of $239.43, suggesting a potential 5% upside from current levels.
3. Microsoft (MSFT)
As one of the most prominent players in the AI space, Microsoft needs no introduction. The multinational technology corporation, founded in 1975, offers a wide range of products and services. With a staggering market cap of $3.19 trillion, Microsoft is the most valuable public company globally.
KeyBanc’s optimism stems from Microsoft’s multiple avenues for monetizing AI. Analysts have a “Strong Buy” rating for Microsoft stock, with a mean target price of $446.35, indicating a potential 5.5% upside.
4. ServiceNow (NOW)
ServiceNow, established in 2003, is a cloud-based software company offering a platform for managing digital workflows. Their solutions help businesses automate tasks, improve efficiency, and streamline IT service management. With a market cap of $158.7 billion, ServiceNow has become a significant player in the industry.
KeyBanc emphasizes ServiceNow’s AI monetization capabilities and growth drivers apart from the AI trend. Analysts have rated the stock a “Strong Buy,” with a mean target price of $795.58, suggesting around a 3% upside. However, the street-high target price of $1,000 indicates a potential 29.7% upside.
5. SAP
SAP is a German tech giant and a leader in enterprise application software in Europe. Their offerings include enterprise resource planning (ERP), customer relationship management (CRM), database management, cloud solutions, and experience management. With a market cap of $230.4 billion, SAP holds a strong position in the market.
KeyBanc highlights SAP’s free cash flow generation and cloud transition as key drivers expected to boost the company’s share price. Analysts give the stock a consensus “Strong Buy” rating, with a mean target price of $196.20. The street-high target price of $230 suggests a potential 17.3% upside.
Frequently Asked Questions (FAQ)
Q: What are AI stocks?
AI stocks refer to stocks of companies operating in the artificial intelligence industry, where AI technologies and solutions are developed and utilized to improve various processes and operations.
Q: How can investors benefit from AI stocks?
Investors can benefit from AI stocks by capitalizing on the growth potential of the AI market. As the demand for AI technologies and solutions increases, companies operating in this sector have the potential for significant growth and can provide investors with a favorable return on investment.
Q: Are these software stocks suitable for long-term investment?
Every investor’s decision regarding long-term investment depends on their financial goals, risk tolerance, and investment strategy. While these software stocks demonstrate strong potential in the AI sector, it is advisable to conduct thorough research and consult with a financial advisor before making any investment decisions.
Sources:
Sprout Social stock: https://www.barchart.com
Monday.com stock: https://www.barchart.com
Microsoft stock: https://www.barchart.com
ServiceNow stock: https://www.barchart.com
SAP stock: https://www.barchart.com
Disclaimer: The information provided in this article is solely for informational purposes. The author does not hold any positions in the mentioned securities. Always conduct your own research and consult with a financial advisor before making investment decisions.
Artificial intelligence (AI) stocks have been experiencing significant growth, and the AI market is expected to continue expanding. Goldman Sachs predicts four waves of AI adoption, indicating the long-term potential of the industry. KeyBanc also highlights software stocks in the enterprise sector that are well-positioned to capitalize on AI and cloud efficiency. Here are five Wall Street-approved options for investors looking for software stocks with significant AI potential:
1. Sprout Social (SPT): Sprout Social offers a social media management software platform that helps businesses effectively manage their social media presence across multiple platforms. Analysts recognize Sprout Social’s leading position in the industry and their utilization of AI to enhance operations. The stock has a “Strong Buy” rating and a mean target price of $72.82, suggesting a potential 22.7% upside.
2. Monday.com (MNDY): Monday.com provides a cloud-based work operating system that enables teams to manage projects, collaborate, and automate workflows. KeyBanc predicts efficient growth for Monday.com, driven by pricing tailwinds. The stock has a “Strong Buy” rating with a mean target price of $239.43, indicating a potential 5% upside.
3. Microsoft (MSFT): Microsoft is one of the most prominent players in the AI space, offering a wide range of products and services. The company has multiple avenues for monetizing AI, contributing to its strong position in the market. Analysts give Microsoft stock a “Strong Buy” rating, with a mean target price of $446.35, suggesting a potential 5.5% upside.
4. ServiceNow (NOW): ServiceNow is a cloud-based software company that offers a platform for managing digital workflows. Their solutions help businesses automate tasks, improve efficiency, and streamline IT service management. KeyBanc emphasizes ServiceNow’s AI monetization capabilities and growth drivers. The stock has a “Strong Buy” rating, with a mean target price of $795.58, indicating a potential 3% upside.
5. SAP: SAP is a German tech giant and a leader in enterprise application software. Their offerings include enterprise resource planning (ERP), customer relationship management (CRM), database management, cloud solutions, and experience management. SAP’s free cash flow generation and cloud transition are highlighted as key drivers that can boost the company’s share price. Analysts give the stock a consensus “Strong Buy” rating, with a mean target price of $196.20, suggesting a potential 17.3% upside.
These software stocks demonstrate strong potential in the AI sector. However, investors should conduct thorough research and consult with a financial advisor to make informed investment decisions.
For more information about the stocks, you can visit the following sources:
Sprout Social stock: link
Monday.com stock: link
Microsoft stock: link
ServiceNow stock: link
SAP stock: link
Please note that the information provided in this article is solely for informational purposes and does not constitute financial advice.
The source of the article is from the blog j6simracing.com.br