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Artificial Intelligence (AI) has been Wall Street’s new shiny toy in 2023, with investors clamoring to find exposure to the technology.
It’s easy to understand why, as AI provides many advantages, including reduced human error, unbiased decision-making, and the ability to execute repetitive tasks quickly.
Several companies, including Microsoft (MSFT - Free Report) , Palantir Technologies (PLTR - Free Report) , and Workday (WDAY - Free Report) , have already thrown their hats in the arena. Below is a chart illustrating the performance of all three stocks year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each one.
Workday
Workday is a leading provider of enterprise cloud applications for finance and human resources, assisting customers in adapting to a rapidly-changing world.
The company’s artificial intelligence and machine learning technologies are at the core of its platform, with goals aimed at automating repetitive tasks to improve accuracy and productivity, creating engaging experiences, and providing intelligent insights and recommendations that enhance decision-making.
WDAY next reports on February 27th. Currently, the Zacks Consensus EPS Estimate of $0.89 indicates an improvement of more than 14% year-over-year. Our consensus revenue estimate stands at $1.6 billion, suggesting a positive change of 18.6% from the year-ago quarter.
Image Source: Zacks Investment Research
Microsoft
Microsoft, a mega-cap technology giant, is one of the largest broad-based technology providers in the world. The company has gained widespread attention following announcements of its new AI-powered Bing search engine and Edge browser.
The new search engine and Edge browser are expected to deliver enhanced search results, complete answers, a new chat experience, and an overall much easier experience when exploring the web.
An important development of the announcements surrounds OpenAI; Microsoft’s new Bing search engine utilizes a next-generation OpenAI language model that’s faster and more accurate than ChatGPT.
Satya Nadella, CEO, said, “AI will fundamentally change every software category, starting with the largest category of all – search.”
The mega-cap giant offers exposure to tech paired with an income stream; MSFT’s annual dividend yield currently sits at 1%, with the company’s payout growing by more than 10% over the last five years.
Image Source: Zacks Investment Research
Palantir Technologies
Palantir Technologies constructs software for organizations aimed at effectively integrating their decisions, data, and operations. The company’s platform is widely regarded as the leading artificial intelligence software platform.
The company’s Palantir Edge AI operates in low-bandwidth and power conditions that bring AI to all Internet of Things (IoT) devices, including drones, turbines, and even manufacturing robots.
The company’s latest quarterly results came in strong; PLTR posted its first quarter of positive GAAP net income, sending shares soaring 20% the following trading session. Quarterly revenue totaled $509 million, growing nearly 18% year-over-year.
PLTR shares are up more than 55% year-to-date, crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Bottom Line
Artificial Intelligence is the hottest topic in the market. While some believe the technology could adversely affect society, many also maintain an optimistic view.
And with artificial intelligence dominating news headlines, it’s beneficial to seek out which companies have already stepped into the arena.
Image: Bigstock
Seeking AI Exposure? 3 Stocks to Consider
Artificial Intelligence (AI) has been Wall Street’s new shiny toy in 2023, with investors clamoring to find exposure to the technology.
It’s easy to understand why, as AI provides many advantages, including reduced human error, unbiased decision-making, and the ability to execute repetitive tasks quickly.
Several companies, including Microsoft (MSFT - Free Report) , Palantir Technologies (PLTR - Free Report) , and Workday (WDAY - Free Report) , have already thrown their hats in the arena. Below is a chart illustrating the performance of all three stocks year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each one.
Workday
Workday is a leading provider of enterprise cloud applications for finance and human resources, assisting customers in adapting to a rapidly-changing world.
The company’s artificial intelligence and machine learning technologies are at the core of its platform, with goals aimed at automating repetitive tasks to improve accuracy and productivity, creating engaging experiences, and providing intelligent insights and recommendations that enhance decision-making.
WDAY next reports on February 27th. Currently, the Zacks Consensus EPS Estimate of $0.89 indicates an improvement of more than 14% year-over-year. Our consensus revenue estimate stands at $1.6 billion, suggesting a positive change of 18.6% from the year-ago quarter.
Image Source: Zacks Investment Research
Microsoft
Microsoft, a mega-cap technology giant, is one of the largest broad-based technology providers in the world. The company has gained widespread attention following announcements of its new AI-powered Bing search engine and Edge browser.
The new search engine and Edge browser are expected to deliver enhanced search results, complete answers, a new chat experience, and an overall much easier experience when exploring the web.
An important development of the announcements surrounds OpenAI; Microsoft’s new Bing search engine utilizes a next-generation OpenAI language model that’s faster and more accurate than ChatGPT.
Satya Nadella, CEO, said, “AI will fundamentally change every software category, starting with the largest category of all – search.”
The mega-cap giant offers exposure to tech paired with an income stream; MSFT’s annual dividend yield currently sits at 1%, with the company’s payout growing by more than 10% over the last five years.
Image Source: Zacks Investment Research
Palantir Technologies
Palantir Technologies constructs software for organizations aimed at effectively integrating their decisions, data, and operations. The company’s platform is widely regarded as the leading artificial intelligence software platform.
The company’s Palantir Edge AI operates in low-bandwidth and power conditions that bring AI to all Internet of Things (IoT) devices, including drones, turbines, and even manufacturing robots.
The company’s latest quarterly results came in strong; PLTR posted its first quarter of positive GAAP net income, sending shares soaring 20% the following trading session. Quarterly revenue totaled $509 million, growing nearly 18% year-over-year.
PLTR shares are up more than 55% year-to-date, crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Bottom Line
Artificial Intelligence is the hottest topic in the market. While some believe the technology could adversely affect society, many also maintain an optimistic view.
And with artificial intelligence dominating news headlines, it’s beneficial to seek out which companies have already stepped into the arena.
All three above – Microsoft (MSFT - Free Report) , Workday (WDAY - Free Report) , and Palantir Technologies (PLTR - Free Report) – precisely fit the criteria.