3 artificial intelligence actions at the forefront of the new wave
Sometimes new technology will change the world forever. 5,000 years ago, an unnamed Sumerian began marking clay tablets with a stylus and invented writing; a little over three centuries ago, the steam engine took its place in our lives; at the turn of the last century, Henry Ford invented the assembly line. We do not know which innovation will change the situation; but it is possible to reduce the field. And that brings us to AI.
Artificial intelligence, AI, might just be the next big idea. This is not entirely new – computer scientists and programmers have been working on “ smart machines ” since at least the 1950s – but the technology is finally coming of age, and stand-alone computers, capable of bringing together data and to make decisions in real time, no longer dream of pipe.
The implications are staggering. Hands-on AI enables machines to learn and apply that learning. AI programs rely on advanced voice and facial recognition systems and fraud detection programs, applications that rely on pattern recognition. More advanced AI is being applied to the automotive industry, where it is used to monitor automotive systems in real time – and to authorize driverless vehicles.
And this has not been ignored by Wall Street. Analysts say there are many compelling investments that can be found in this space. With that in mind, we opened up the TipRanks database and extracted three AI stocks that are state-of-the-art. Importantly, all three have moderate to strong buy consensus ratings from the analyst community and have considerable upside potential.
TuSimple Holdings (TSP)
The first AI stock we look at here, TuSimple Holdings, is deeply involved in the autonomous vehicle industry. The company is working on artificial intelligence systems that will power autonomous trucks, enabling increased efficiency and safety in the long-haul trucking industry. TuSimple has developed an advanced autonomous driving system specifically for the needs of the trucking industry; the company’s artificial intelligence is based on a long-range perception system that can spot, recognize and identify objects up to 1,000 meters away.
In another achievement, TuSimple launched an autonomous freight network last summer, through which the company will meet the challenges of the trucking industry. TuSimple’s artificial intelligence technology will enable the company’s trucks to make long-haul freight trips. The AI ââwill monitor the sensor systems to keep the truck on the road and navigate to the destination – in all weather and even in traffic conditions.
To raise capital, TuSimple staged its IPO last month, offering 33.75 million shares to the public at $ 40 a share. Of those shares, 27 million were offered by the company, with an existing shareholder putting 6.75 million shares on the market. TuSimple received the proceeds from the shares it sold directly, totaling more than $ 1.08 billion before expenses.
Writing from Canadian investment bank RBC, analyst Joseph Spak notes that TuSimple is highly speculative – but if it succeeds, the rewards will be huge.
âWe understand the concerns about verifying the technology, its adoption, and the path to revenue and profitability. But if TuSimple is successful, the equity value is significantly higher. As such, we view TuSimple as a public market venture capital investment or perhaps a biotech stock. The opportunity on the rise is huge. Evidence points (milestones, orders) along the way should increase market confidence in TuSimple’s medium-term goals and long-term desirability, thereby increasing its share price, âSpak explained.
As per his comments, Spak attributes TSP an outperformance (i.e. a buy) and sets a price target of $ 52 which suggests a 44% rise over the next 12 months. (To look at Spak’s record, Click here)
Overall, TuSimple embodies everything risk-loving investors want in the stock market. It uses advanced technology; it has positioned itself in a field which is not quite there, but which is coming; and it is one of the first to adopt. While still in the early stages of building its AI products and systems, the stock has drawn 7 reviews from analysts – 6 to buy and 1 to keep – which it earned a Strong Buy consensus rating. The shares are selling for $ 36.08 and their average price target of $ 54.70 implies a year-over-year increase of ~ 52%. (See the analysis of TSP stocks on TipRanks)
Nvidia Corporation (NVDA)
Next, Nvidia is one of the giants of the silicon microprocessor industry. It is computer chips that make all high-tech systems possible. Nvidia was the eighth-largest chipmaker last year, with more than $ 16 billion in total sales, up 53% from the previous year.
Nvidia’s main link with AI is through the automotive industry. The company has a long history of selling chips to automakers – the automotive business accounts for between 5% and 10% of Nvidia’s sales – but automakers have ordered more AI-enabled systems over the past year. Nvidia provides chips and related packages that enable an autonomous vehicle’s AI system to build perception, mapping, planning, and monitoring capabilities. Nvidia is working on moving its automotive AI systems to the data center segment; The monitoring needs of large server stacks are comparable to those of autonomous vehicles and will benefit from the application of machine learning.
Covering NVDA for Baird, 5-star analyst Tristan Gerra attributes the stock to outperform (i.e. buy) with a price target of $ 800, which implies a rise of around 45%. The bull thesis is based on “Nvidia’s strong short-term positioning in the AI ââdata center markets and longer-term opportunities in many accelerated computing applications.” (To look at Gerra’s record, Click here)
âAs Nvidia increasingly moves towards platform solutions targeting and enabling all AI markets, while diversifying its architectural offering, the company is poised to dominate the hub over time. of data. Omniverse gives us a first glimpse of a virtual 3D world in which Nvidia is at the forefront and finally giving way to a world of matrix computing. In the shorter term, GTC’s announced foray into processors will expand Nvidia’s IT TAM, âsaid Gerra.
In total, no less than 27 analysts have posted reviews on NVDA, and of these, 24 are to be bought against only 3 to be retained. NVDA shares sell for $ 550.34; the average price target of $ 682.20 implies a rise of 24% from this level. (See Nvidia stock market analysis on TipRanks)
Upstart Holdings (UPST)
We’ll end in Financial Technology, where Upstart Holdings has applied AI technology to power a lending platform. Using AI, the company aims to assess borrowers to determine actual risk levels and their creditworthiness. A better understanding of the natural hazards of lending money will allow lenders to approve more transactions, give otherwise marginal borrowers better access to capital, and save money on both sides.
Upstart boasts that its AI analytics platform has helped more than 698,000 clients acquire loans and that its model provides for 27% more loan approvals than traditional credit scoring methods. Upstart’s AI assesses 1,600 data points and enables borrowers to access funds at rates 16% lower than would otherwise be possible.
The company has been in business since 2012 and went public on NASDAQ in December 2020. The IPO saw the company make 9 million shares publicly available at $ 20 each, for a raise of 180 millions of dollars.
In March of this year, Upstart released its first quarterly report as a listed entity. The company reported $ 86.7 million in total revenue, up 39% from a year earlier. Of this total, $ 84.4 million came from user fees. For the full year 2020, Upstart saw its revenue increase 42% year-over-year to $ 233.4 million.
Among the bulls is Piper Sandler analyst Arvind Ramnani, who is impressed with both the company’s model and its prospects for the future.
âWe expect Upstart to expand its market share well beyond its primary focus of unsecured personal loan products, and its recently announced auto loans. inform their models; b) AI algorithms that have been extensively tested and refined; c) Over 10.5 million discrete redemption events that further validate data and algorithms. ability to deliver upward our CAGR of 58% (2020-2023E), in a massive market (NT $ 700 billion; LT $ 3.4 billion opportunity), âsaid Ramnani.
To that end, the analyst assigns UPST an overweight (i.e. buy), and its price target of $ 143 implies a 65% hike. (To look at Ramnani’s record, Click here)
Let’s take a look at how the rest of the street is looking at 2021 for UPST. Based on 4 buys and 2 takes, the stock has a moderate buy consensus rating. The average price target is $ 123.50, which suggests a potential upside of 34.5% from the trade price of $ 91.82. (See UPST stock market analysis on TipRanks)
To find great ideas for AI stocks that trade at attractive valuations, visit Top Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about TipRanks stocks.
Warning: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.