There’s really no hiding from AI anymore. Even if you don’t work with it professionally, chances are that AI has powered your search engine use, or you’ve at least tinkered with a chatbot like ChatGPT. Beyond that, AI is behind the targeted ads that we see on social media or Google; it tracks our internet and social media use, and selects ads accordingly.
What this means for the future – of computing, of statistics, of data analysis, of marketing and advertising – hasn’t yet come fully into focus. But one thing is certain: AI is going to open up opportunities for a wide range of companies to ride the wave. Everything from digital advertisers to IoT is going to be impacted by the AI boom, and a smart investor can buy in and take advantage.
This may not be as easy as it looks, but there are paths an investor can follow into the AI landscape. First, recognize that not every company or stock out there is directly related to artificial intelligence; companies can benefit from the new tech by putting it to use, even if they don’t directly work with it or work to write the software behind it. Second, don’t necessarily look for the big-name tech firms. Plenty of AI-linked companies are out there that haven’t ‘boomed’ yet; they may offer more room for share price appreciation going forward.
The analysts at Needham are following that strategy, locating stocks that can benefit from AI – but haven’t fully priced that in. We’ve pulled up the details on two AI-adjacent stocks from the TipRanks database for whom the Needham analysts give plenty of room to run – on the order of 40% upside or better. Here are the details.
Cerence, Inc. (CRNC)
The first stock we’ll look at is Cerence, a software company with 20-plus years of innovation under its belt and a current focus directly on artificial intelligence. Specifically, the company is developing AI-powered platforms to back up new tools in mobility. Cerence’s products are geared to provide voice-activated AI assistance for drivers. The AI tools use generative learning to predict a driver’s…