Ray Kurzweil says "Artificial intelligence will reach human levels by around 2029." He predicts a "intelligence explosion" where AI outperforms humans by 2045.
Some disagree with Kurzweil. Even if he's wrong about timing but right about AI's path, investors have a huge long-term opportunity. AI stocks are already leading the market. But some will benefit more in the future. My top AI stock selection for now.
UiPath (NYSE: PATH) was formed in Bucharest, Romania, approximately two decades ago, pioneering AI-powered process automation. The company developed RPA and computer-vision software. It now aims "to enable automation across all knowledge work to accelerate human achievement." Unsurprisingly, AI is key to UiPath's vision.
Today, UiPath's platform uses AI extensively. Customers may quickly automate document extraction, form completion, email reading, and more. Time's Best Inventions of 2023 included the company's Clipboard AI, which automates copying and pasting to forms and apps.
Over 10,800 clients use UiPath, including FiServ and Spotify. Accenture, Cognizant, and Deloitte are its partners.
I prefer UiPath to other AI stocks Why is UiPath my top AI stock to purchase today over Nvidia and Microsoft? Size matters. With trillion-dollar market values, Nvidia and Microsoft must work harder to grow. UiPath's market worth is below $13 billion, a good size.
Other AI stocks have scale benefits also. For instance, Soundhound AI (NASDAQ: SOUN) is worth under $2 billion. The price-to-sales ratio of Soundhound is 29.4, whereas UiPath is 9.8. UiPath's fourth-quarter fiscal 2024 sales rose 31%, making that multiple even more enticing
Soundhound AI and other minor AI stocks are unprofitable. UiPath's latest quarter was profitable.
UiPath appears to have long-term growth potential. A recent survey indicated that 70% of business executives consider AI-driven automation "either very important or critical in fulfilling their organization's strategic objectives." UiPath isn't alone in addressing this fast-growing sector. However, Ark Invest is right that UiPath's technology gives it a competitive edge over its competitors.
Not to like about UiPath? Okay, UiPath isn't ideal. There's no guarantee the company will stay profitable. An economic slowdown would hurt its stock. I'd like to see UiPath's customer increase faster.
A tiny customer base generates most of the company's revenue. Still, UiPath is a rising AI leader. The growth is substantial. Not too expensive. I recommend UiPath to investors searching for an AI stock presently.
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