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Global Economic Impact of AI: Facts and Figures

#artificialintelligence

Wall Street, venture capitalists, technology executives, data scientists -- all have important reasons to understand the growth and opportunity in the artificial intelligence market to access business growth and opportunities. This gives them insights on funds invested in AI and analytics as well potential revenue growth and turnover. Indeed, the growth of AI, continuing research, development of easier open source libraries and applications in small to large scale industries are sure to revolutionize the industry the next two decades and the impact is getting felt in almost all the countries worldwide. To dive deep into the growth of AI and future trends, an insight into the type and size of the market is essential along with (a) AI-related industry market research forecasts and (b) data from reputable research sources for insight into AI valuation and forecasting. IBM's CEO claims a potential $2 trillion dollar market for "cognitive computing").


Tokyo stocks rebound on Wall Street rise

The Japan Times

Tokyo stocks turned up Monday, getting a boost from a continued rally on Wall Street last week. The 225-issue Nikkei average of the Tokyo Stock Exchange rose 213.07 points, or 0.74%, to close at 29,161.80, The Topix index of all first section issues ended 5.73 points, or 0.29%, higher at 1,959.75, snapping its three-day losing streak. The Tokyo market got off to a strong start, after all three U.S. market gauges including the Dow Jones Industrial Average extended their gains Friday thanks to data showing improvement in consumer confidence in the United States in June. Although selling to lock in gains from the initial market spurt gathered steam in the morning, stocks gradually extended gains in the afternoon in pace with Dow futures in off-hours trading. Trading was generally lackluster with many players taking to the sidelines ahead of the U.S. Federal Reserve's two-day Federal Open Market Committee meeting from Tuesday, brokers said.


1 Artificial Intelligence Stock That Could Crush the Market

#artificialintelligence

Most stock pickers have one goal: to beat the market. Since January 2015, the S&P 500 has returned an average 13% per year, or 110% total. That's not bad, but it pales in comparison to NVIDIA's (NASDAQ:NVDA) 3,410% return over the same period. Given the chipmaker's $438 billion market cap, investors may think it's too late to buy this stock. But NVIDIA recently delivered strong first-quarter results, reminding Wall Street that it's still a growth company.


UiPath, robotic process automation startup, tops expectations in first quarterly report

ZDNet

UiPath, the robotic process automation startup that came public April 21st, this afternoon reported fiscal Q1 revenue that easily topped Wall Street's expectations, and a surprise profit where the Street had been expecting a net loss, and an outlook for this quarter's revenue that was higher as well. Despite the upbeat report, UiPath shares fell 9% in late trading. CEO and co-founder Daniel Dines called the quarter "an exceptionally strong start to fiscal year 2022." Dines noted first-quarter annualized recurring revenue, or ARR, rose over 64 percent, year-over-year, to $653 million, calling it, "a testament to our leadership position in enterprise software automation." We believe automation is the next layer in the software stack.


C3.ai stock drops on fiscal Q4 beat, in-line revenue view

ZDNet

C3.ai, the cloud-based, industrialized machine learning company that went public in December, this afternoon reported fiscal Q4 revenue and profit that topped Wall Street's expectations, and an outlook for this quarter's revenue roughly in line with consensus, but higher for the full year. The report sent C3.ai shares down 6% in late trading. CEO and founder Tom Siebel remarked, "We achieved strong business and financial results in the fourth quarter and full fiscal year, as we advance our leadership position as the enterprise AI application software pure play." "The enterprise AI software market is rapidly growing, and we see accelerating interest in enterprise AI solutions across industries, geographies, and market segments. We are aggressively investing to extend our product and technology leadership and to expand our market-partner ecosystem and associated distribution capacity. As we continue to execute on delivering high-value outcomes for customers, we are increasingly well-positioned to establish a global market leadership position in enterprise AI application software. Bottom line, performance was strong across the board and we are planning for accelerating growth in the coming year."


From Leader to Laggard: Four Areas Machine Learning is Disrupting Wall Street

#artificialintelligence

Algorithmic trading now dominates the derivative, equity, and foreign exchange trading markets. These trading strategies can be complex, but the essentials are straightforward: program a set of rules that takes market data as input and apply basic models (10 -day moving average) to generate an automated trade workflow. Over the years, these strategies have moved beyond simple time-series momentum and mean revision models to more exotic name strategies like snipes, slicers, and boxers. Evolved over decades, algorithm trading has replaced much of the manual trade order flow with faster static rules-based strategies. What was once cutting edge is now an inherent disadvantage.


Nvidia Blows Through Q1 Expectations, Raises Q2 Guidance

#artificialintelligence

Semiconductor maker Nvidia (NASDAQ: NVDA) slipped in pre-market trade Thursday, following a better-than-expected earnings report for fiscal 2022's first quarter. Shares fell $2.70, or 0.43%, to $625.30 The company, which specializes in graphics chips, earned $3.66 per share on revenue of $5.66 billion. Wall Street had pegged net income at $3.28 a share on revenue of $5.41 billion. Those results marked year-over-year gains of 103% and 84%, respectively.


Nvidia crushes Q1 earnings targets, Q2 guidance strong

ZDNet

Nvidia delivered strong first quarter financial results on Wednesday driven by massive gains in its gaming and datacenter units. The Santa Clara, Calif.-based company delivered a Q1 net income of $1.91 billion, or $3.03 per share. Non-GAAP earnings were $3.66 per share on revenue of $5.66 billion, up 84% from a year earlier. Wall Street was expecting to see earnings of $3.28 per share with $5.41 billion in revenue. Nvidia said GPU business revenue was $3.45 billion, up 81% from the year ago period.


Baidu brings in $4.38 billion in Q1, beating Wall Street expectations

ZDNet

Baidu beat Wall Street estimates for the first quarter of 2021, reporting a 25% bump in revenue of about $4.38 billion during an earnings call on Tuesday. IBES data from Refinitiv predicted a revenue of about $4.2 billion for Q1, according to Reuters, but the company has invested heavily in artificial intelligence and its cloud business, leading to a 70% year-on-year growth of its non-advertising revenue. Herman Yu, CFO of Baidu, said during an earnings call that Baidu Core saw revenue growth of 34% year over year and that the company continues to "invest heavily in sales, R&D and operations to support the rapid growth of our AI-powered business." The company has faced pressure in recent years from major rivals like Alibaba and ByteDance, forcing them to expand beyond advertising revenue and diversify with more projects in cloud services, smart transport technology, and artificial intelligence. Despite the increasing competition, Baidu still brought in $2.48 billion in online marketing revenue, a 27% jump year-over-year.


3 Artificial Intelligence Stocks Leading the New Wave

#artificialintelligence

Sometimes, a new technology will change the world forever. 5,000 years ago, a nameless Sumerian started marking clay tablets with a stylus, and invented writing; a little over three centuries ago, the steam engine took its place in our lives; early in the last century, Henry Ford came up with the assembly line. There’s no telling what innovation will prove to be game-changing; but it is possible to narrow the field down. And that brings us to AI. Artificial Intelligence, AI, may just be the next big idea. It’s not quite new – computer scientists and programmers have been working on ‘intelligent machines’ since the 1950s, at least – but the tech is finally maturing, and autonomous computers, capable of collating data and making decisions in real time, are no longer a pipe dream. The implications are staggering. Practical AI makes it possible for machines to learn, and to apply that learning. AI programs underly advanced voice and facial recognition systems and fraud detection programs, applications that depend on pattern recognition. More advanced AI is being applied to the automotive industry, where it is used to monitor automobile systems in real time – and to permit driverless vehicles. And this has not been ignored by Wall Street. Analysts say that plenty of compelling investments can be found within this space. With this in mind, We’ve opened up TipRanks’ database, and pulled three AI stocks that are on the leading edge of the technology. Importantly, all three earn Moderate or Strong Buy consensus ratings from the analyst community, and boast considerable upside potential. TuSimple Holdings (TSP) The first AI stock we’re looking at here, TuSimple Holdings, is deeply involved in the autonomous vehicle industry. The company is working on AI systems that will power self-driving trucks, allowing for greater 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 AI backs a long-range perception system that can spot, recognize, and identify objects as far away as 1,000 meters. In another achievement, TuSimple last summer launched an Autonomous Freight Network, through which the company will address the trucking industry’s challenges. TuSimple’s AI tech will allow the company’s trucks to conduct long-haul freight runs. The AI will monitor 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 held its IPO last month, offering 33.75 million shares to the public at $40 per 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 over $1.08 billion before expenses. Writing from Canadian investment bank RBC, analyst Joseph Spak notes that TuSimple is highly speculative – but that if it succeeds, the rewards will be enormous. “We understand concerns about vetting the technology, adoption and the path towards revenue and profitability. But if TuSimple succeeds, the equity value is significantly higher. As such, we view TuSimple very much like a venture investment in the public markets or perhaps, a biotech stock. The upside opportunity is massive. Proof points (milestones, orders) along the way should increase the market’s confidence in TuSimple’s mid-term targets and long-term opportunity, thereby increasing its stock price,” Spak explained. In line with his comments, Spak rates TSP an Outperform (i.e. Buy), and sets a $52 price target that suggests an upside of 44% in the next 12 months. (To watch Spak’s track record, click here) Overall, TuSimple personifies everything that risk-loving investors want in the stock market. It uses cutting edge tech; it has staked out a position in a field that is not quite here, but is coming; and it’s an early adopter. While still in early stages of building out its products and AI systems, the stock has attracted 7 analyst reviews – 6 to Buy, and 1 to Hold – giving it a Strong Buy consensus rating. The shares are selling for $36.08, and their $54.70 average price target imply a one-year upside of ~52%. (See TSP stock analysis on TipRanks) Nvidia Corporation (NVDA) Next up, Nvidia, is one of the giants of the silicon microprocessor industry. These are the computer chips that make all of the high tech systems possible. Nvidia was the eighth largest chip maker last year, with more than $16 billion in total sales, up 53% from the year before. Nvidia’s chief connection to AI is through the automotive industry. The company has long sold chips to car makers – automotive business makes up between 5% and 10% of Nvidia’s sales – but the car makers over the past year have been ordering more AI capable systems. Nvidia delivers chips and associated packages that allow an autonomous vehicle’s AI system to build perception, mapping, planning, and monitoring capabilities. Nvidia is working on transferring its automotive AI systems into 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 rates the stock an Outperform (i.e. Buy) along with an $800 price target, which implies ~45% upside. The bull thesis is based on "Nvidia’s strong near-term positioning in AI data center markets and longer-term opportunities across many accelerated computing applications." (To watch Gerra’s track record, click here) "As Nvidia increasingly moves to platform solutions targeting and enabling all AI markets, while diversifying its architecture offering, the company is poised to over time dominate data center. Omniverse gives us an early glimpse of a virtual 3D world which Nvidia is at the forefront and ultimately yielding to a matrix computing world. More near term, GTC-announced foray into CPUs will expand Nvidia's computing TAM," Gerra opined. Overall, no fewer than 27 analysts have put reviews on NVDA on record, and of those, 24 are to Buy against just 3 to Hold. NVDA shares are selling for $550.34; the average price target of $682.20 implies an upside of 24% from that level. (See Nvidia stock analysis on TipRanks) Upstart Holdings (UPST) We’ll finish in financial tech, where Upstart Holdings has applied AI technology to power a lending platform. Using AI, the company aims to evaluate borrowers to determine actual risk levels and creditworthiness. A clearer understanding of the natural risks of lending money will allow lenders to approve more transactions, give otherwise marginal borrowers greater access to capital, and provide cost savings on both ends. Upstart boasts that its AI analysis platform has helped more than 698,000 customers to acquire loans, and that its model provides for 27% more loan approvals than traditional credit-scoring methods. Upstart’s AI evaluates 1,600 data points, and results in borrowers accessing funds at 16% lower rates than would otherwise be possible. The company has been in business since 2012, and went public on the NASDAQ in December of 2020. The IPO saw the company make 9 million shares made available to the public at $20 each, raising $180 million. In March of this year, Upstart released its first quarterly report as a publicly traded entity. The company reported $86.7 million in total revenues, up 39% from one year earlier. Of that total, $84.4 million was derived from usage fees. For the full year 2020, Upstart saw a 42% yoy increase in revenue, to $233.4 million. Among the bulls is Piper Sandler analyst Arvind Ramnani, who is impressed by both the company’s model, and its forward prospects. "We expect Upstart to expand its market share well beyond its primary product focus of unsecured personal loans, and its recently announced auto loans... Key to Upstart’s AI offering is its a) inherent training data advantage backed by the >1,620 variables aggregated to inform their models; b) AI algorithms that have been extensively tested and refined; c) Over 10.5M discrete repayment events that further validate the data and algorithms. Upstart’s SaaS-based revenue model (only ~1% balance sheet loan exposure) has the ability to deliver upside to our 58% CAGR (2020-2023E), in a massive market ($700B NT; $3.4T LT opportunity),” Ramnani opined. To this end, the analyst rates UPST shares an Overweight (i.e. Buy), and his $143 price target implies an upside of 65%. (To watch Ramnani’s track record, click here) Let’s take a look at how the rest of the Street sees 2021 panning out for UPST. Based on 4 Buys and 2 Holds, the stock has a Moderate Buy consensus rating. The average price target is $123.50 suggesting a 34.5% upside potential from the trading price of $91.82. (See UPST stock analysis on TipRanks) To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: 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.