We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Generative AI Tech Stocks to Buy as ChatGPT Gains Momentum
Read MoreHide Full Article
The meteoric rise of Microsoft (MSFT - Free Report) -backed ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability.
Generative AI is a type of artificial intelligence (AI) technology that can produce various types of content, including text, imagery, audio and synthetic data. It is driven by a large language model, which means it uses a lot of data to understand and generate conversations.
Growing demand to modernize workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to expand at a CAGR of 35.6% from 2023 to 2030.
Generative AI technology is finding application in marketing, advertising, drug development, legal contracts, video gaming, customer support and digital art, which has sparked an AI competition among the world’s biggest tech players, including Salesforce (CRM - Free Report) , Cisco Systems (CSCO - Free Report) , Baidu (BIDU - Free Report) and Adobe (ADBE - Free Report) .
As software companies integrate generative AI tools into products, their customers will spend more on software. Generative AI is expected to add an incremental $150 billion to the current global software market of $685 billion, per a Goldman Sachs report.
The increasing utilization of generative AI for spam detection, preprocessing data, image compression and noise reduction from visual data along with its continuously growing usage in medical imaging and image classification are key major factors propelling the growth of the market globally.
Year-to-date Performance
Image Source: Zacks Investment Research
Salesforce Forays Into Generative AI With Einstein GPT
Salesforce announced a generative AI push as it launched Einstein GPT, the world’s first generative AI CRM technology, which delivers AI-created content across every sales, service, marketing, commerce, and IT interaction at hyperscale. With Einstein GPT, Salesforce will transform every customer experience with generative AI.
With Einstein GPT, customers can connect real-time data from Salesforce Data Cloud to OpenAI’s advanced AI models or choose their own external model. Using large language prompts within Salesforce CRM, these customers will be able to generate content that adapts to changing customer information and needs in real-time.
Along with the launch of Einstein GPT, this Zacks Rank #1 (Strong Buy) company has also announced a $250 million generative AI fund from Salesforce Ventures, the company’s global investment arm. This fund will support the generative AI ecosystem and promote the development of responsible and trusted technology. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRM first-quarter fiscal 2024 earnings is pegged at $1.61 per share, indicating an increase of 64.2% from the year-ago quarter’s reported figure.
Baidu Unveils ERNIE Bot, the Generative AI Mastering Chinese Language
Baidu introduced its AI-powered chatbot called Ernie Bot, which is capable of solving mathematics queries, responding to questions regarding Chinese literature, and generating images and videos. Further, the chatbot has the ability to generate audio in different Chinese dialects. It is also fluent in Chinese idioms and holds expertise in business writing.
Ernie stands for Enhanced Representation through Knowledge Integration, describing it as a large language model that was introduced in 2019. This Zacks Rank #1 company plans to embed Ernie Bot into its search service first, which the company thinks will attract more users and boost market share in a profitable manner. The company intends to make the bot widely available to its intelligent driving unit and its business partners eventually. It expects more business owners and entrepreneurs to build their models and applications on Baidu’s AI Cloud.
The Zacks Consensus Estimate for BIDU first-quarter 2023 earnings is pegged at $2.21 per share, indicating an increase of 24.84% from the year-ago quarter’s reported figure.
Cisco Powers Hybrid Work Experience With AI Innovations in Webex
Cisco’s AI and machine learning offerings encompass a wide range of computing solutions for enterprises, including a focus on cybersecurity. This Zacks Rank #2 (Buy) company plans to enhance customer experience solutions, devices and its video conferencing platform Webex Suite with ML technologies, automation and generative AI features from meeting summaries to visual enhancements.
These new features include cinematic meeting experiences on Cisco devices that enable cameras to follow speakers through voice and facial recognition, automatically switching views to capture the best angle of the speaker. Other new AI capabilities in the Webex Suite include the ability to hold HD meetings that do not require HD bandwidth and smart re-lighting to automatically improve poor lighting.
For customer-facing tools such as Webex Contact Center and Webex Connect, Cisco is releasing new AI capabilities to help bring organizations actionable insights on customer interactions and make agents more efficient.
The Zacks Consensus Estimate for CSCO third-quarter fiscal 2023 earnings is pegged at 97 cents per share, indicating an increase of 11.49% from the year-ago quarter’s reported figure.
Adobe Unveils Creative Generative AI Model, Firefly
Adobe has unveiled a family of generative AI models, Firefly, focused on the generation of texts and images. According to the company, Firefly will offer more precision, speed, power, and ease in content creation. It will let users of various experience levels create high-quality images and stunning text effects.
The company has launched the beta of the first Firefly model, which is focused on commercial use. It will be integrated directly into Creative Cloud, Experience Cloud, Document Cloud, and Adobe Express workflows.
Through the beta process, this Zacks Rank #2 company will be engaging with the creative community and customers as the generative AI-backed tool evolves and begins integrating it into various applications. Adobe Express, Adobe Experience Manager, Adobe Illustrator and Adobe Photoshop will be among the first set of applications to benefit from Firefly.
The Zacks Consensus Estimate for ADBE's second-quarter fiscal 2023 earnings is pegged at $3.78 per share, indicating an increase of 12.84% from the year-ago quarter’s reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Generative AI Tech Stocks to Buy as ChatGPT Gains Momentum
The meteoric rise of Microsoft (MSFT - Free Report) -backed ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability.
Generative AI is a type of artificial intelligence (AI) technology that can produce various types of content, including text, imagery, audio and synthetic data. It is driven by a large language model, which means it uses a lot of data to understand and generate conversations.
Growing demand to modernize workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to expand at a CAGR of 35.6% from 2023 to 2030.
Generative AI technology is finding application in marketing, advertising, drug development, legal contracts, video gaming, customer support and digital art, which has sparked an AI competition among the world’s biggest tech players, including Salesforce (CRM - Free Report) , Cisco Systems (CSCO - Free Report) , Baidu (BIDU - Free Report) and Adobe (ADBE - Free Report) .
As software companies integrate generative AI tools into products, their customers will spend more on software. Generative AI is expected to add an incremental $150 billion to the current global software market of $685 billion, per a Goldman Sachs report.
The increasing utilization of generative AI for spam detection, preprocessing data, image compression and noise reduction from visual data along with its continuously growing usage in medical imaging and image classification are key major factors propelling the growth of the market globally.
Year-to-date Performance
Image Source: Zacks Investment Research
Salesforce Forays Into Generative AI With Einstein GPT
Salesforce announced a generative AI push as it launched Einstein GPT, the world’s first generative AI CRM technology, which delivers AI-created content across every sales, service, marketing, commerce, and IT interaction at hyperscale. With Einstein GPT, Salesforce will transform every customer experience with generative AI.
With Einstein GPT, customers can connect real-time data from Salesforce Data Cloud to OpenAI’s advanced AI models or choose their own external model. Using large language prompts within Salesforce CRM, these customers will be able to generate content that adapts to changing customer information and needs in real-time.
Along with the launch of Einstein GPT, this Zacks Rank #1 (Strong Buy) company has also announced a $250 million generative AI fund from Salesforce Ventures, the company’s global investment arm. This fund will support the generative AI ecosystem and promote the development of responsible and trusted technology. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRM first-quarter fiscal 2024 earnings is pegged at $1.61 per share, indicating an increase of 64.2% from the year-ago quarter’s reported figure.
Baidu Unveils ERNIE Bot, the Generative AI Mastering Chinese Language
Baidu introduced its AI-powered chatbot called Ernie Bot, which is capable of solving mathematics queries, responding to questions regarding Chinese literature, and generating images and videos. Further, the chatbot has the ability to generate audio in different Chinese dialects. It is also fluent in Chinese idioms and holds expertise in business writing.
Ernie stands for Enhanced Representation through Knowledge Integration, describing it as a large language model that was introduced in 2019. This Zacks Rank #1 company plans to embed Ernie Bot into its search service first, which the company thinks will attract more users and boost market share in a profitable manner. The company intends to make the bot widely available to its intelligent driving unit and its business partners eventually. It expects more business owners and entrepreneurs to build their models and applications on Baidu’s AI Cloud.
The Zacks Consensus Estimate for BIDU first-quarter 2023 earnings is pegged at $2.21 per share, indicating an increase of 24.84% from the year-ago quarter’s reported figure.
Cisco Powers Hybrid Work Experience With AI Innovations in Webex
Cisco’s AI and machine learning offerings encompass a wide range of computing solutions for enterprises, including a focus on cybersecurity. This Zacks Rank #2 (Buy) company plans to enhance customer experience solutions, devices and its video conferencing platform Webex Suite with ML technologies, automation and generative AI features from meeting summaries to visual enhancements.
These new features include cinematic meeting experiences on Cisco devices that enable cameras to follow speakers through voice and facial recognition, automatically switching views to capture the best angle of the speaker. Other new AI capabilities in the Webex Suite include the ability to hold HD meetings that do not require HD bandwidth and smart re-lighting to automatically improve poor lighting.
For customer-facing tools such as Webex Contact Center and Webex Connect, Cisco is releasing new AI capabilities to help bring organizations actionable insights on customer interactions and make agents more efficient.
The Zacks Consensus Estimate for CSCO third-quarter fiscal 2023 earnings is pegged at 97 cents per share, indicating an increase of 11.49% from the year-ago quarter’s reported figure.
Adobe Unveils Creative Generative AI Model, Firefly
Adobe has unveiled a family of generative AI models, Firefly, focused on the generation of texts and images. According to the company, Firefly will offer more precision, speed, power, and ease in content creation. It will let users of various experience levels create high-quality images and stunning text effects.
The company has launched the beta of the first Firefly model, which is focused on commercial use. It will be integrated directly into Creative Cloud, Experience Cloud, Document Cloud, and Adobe Express workflows.
Through the beta process, this Zacks Rank #2 company will be engaging with the creative community and customers as the generative AI-backed tool evolves and begins integrating it into various applications. Adobe Express, Adobe Experience Manager, Adobe Illustrator and Adobe Photoshop will be among the first set of applications to benefit from Firefly.
The Zacks Consensus Estimate for ADBE's second-quarter fiscal 2023 earnings is pegged at $3.78 per share, indicating an increase of 12.84% from the year-ago quarter’s reported figure.