Latest news with #L.E.K.
Yahoo
16-03-2025
- Business
- Yahoo
Tesla (TSLA)'s AI Future in Focus as Analysts Debate Stock Outlook
We recently published a list of . In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other AI stocks that are on Wall Street's radar today. According to a new L.E.K. Consulting report, investor sentiment today heavily ties a company's enterprise value to how well they develop and execute their artificial intelligence (AI) strategies for growth. The report reveals that a company that executes its AI transformation well can expect a valuation gain of up to 19%. On the contrary, a poor, or poorly executed, AI transformation can lead to a 9% loss of value. This is according to an L.E.K. analysis based on S&P 500 profit and loss data and results of an L.E.K. survey of executives. It is to be noted that the 28% change is the average shift in a company's value due to its use of AI, while the impact could be even bigger for some. READ ALSO: and 'The old ways of delivering on strategy and innovation will no longer satisfy investor expectations because AI advancements have raised the bar on what's possible. AI strategies require targeted investment and careful implementation. Doing it right will lead to growth. But if a company swings and misses with AI, fails to swing enough or swings too much — or not at all — the value destruction could be significant.' The key, however, lies in implementing a framework with which companies can bridge the AI gap toward success. They can do this by creating and implementing an AI transformation strategy that builds value. 'Winning companies will strategically deploy AI across all potential value-creation levers. In our experience, too many companies are just focusing on AI's potential related to productivity gains. To maximize upside potential — and ultimately avoid value erosion — leaders must plan and execute AI holistically so the strategy encompasses performance, competition and unique opportunities.' According to the report, companies must discover their true differentiators and use AI to augment them further. For instance, Shopify used AI-powered features to enhance the product exploration experience for merchants and customers. As a result, the company saw a 15% jump in sales. Likewise, AI can help companies find new revenue streams by synthesizing data to create new insights, develop new business models to monetize data and even lead to unique opportunities. For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Copyright: wolandmaster / 123RF Stock PhotoTesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. Tesla stock faces a rough Monday, March 10, as UBS analysts revised their outlook, lowering the price target from $259.00 to $225.00 while retaining a 'Sell' rating. The price target revision follows Tesla's disappointing Q4 results, compelling UBS to reduce its Q1 2025 delivery forecast to 367,000 vehicles from an earlier estimate of 437,000. The firm stated that the current run-rate appears slower, but a potential surge in deliveries toward the end of the quarter could appear from increased promotional efforts. Moreover, the UBS Evidence Lab has collected data signifying that delivery times for Tesla's Model 3 and Model Y are notably low, with vehicles generally available within two weeks in key markets, reflecting on softer demand for Tesla products. On the same day, Morgan Stanley kept an 'Overweight' rating on the stock with a $430 price target. The analyst told investors in a research note that the stock is down from its December highs, and that this pullback is a buying opportunity for the 'embodied AI compounder'. Overall, TSLA ranks 6th on our list of AI stocks that are on Wall Street's radar today. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
16-03-2025
- Business
- Yahoo
Meta (META) Tests Custom AI Training Chip to Reduce Nvidia Dependency
We recently published a list of . In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other AI stocks that are on Wall Street's radar today. According to a new L.E.K. Consulting report, investor sentiment today heavily ties a company's enterprise value to how well they develop and execute their artificial intelligence (AI) strategies for growth. The report reveals that a company that executes its AI transformation well can expect a valuation gain of up to 19%. On the contrary, a poor, or poorly executed, AI transformation can lead to a 9% loss of value. This is according to an L.E.K. analysis based on S&P 500 profit and loss data and results of an L.E.K. survey of executives. It is to be noted that the 28% change is the average shift in a company's value due to its use of AI, while the impact could be even bigger for some. READ ALSO: and 'The old ways of delivering on strategy and innovation will no longer satisfy investor expectations because AI advancements have raised the bar on what's possible. AI strategies require targeted investment and careful implementation. Doing it right will lead to growth. But if a company swings and misses with AI, fails to swing enough or swings too much — or not at all — the value destruction could be significant.' The key, however, lies in implementing a framework with which companies can bridge the AI gap toward success. They can do this by creating and implementing an AI transformation strategy that builds value. 'Winning companies will strategically deploy AI across all potential value-creation levers. In our experience, too many companies are just focusing on AI's potential related to productivity gains. To maximize upside potential — and ultimately avoid value erosion — leaders must plan and execute AI holistically so the strategy encompasses performance, competition and unique opportunities.' According to the report, companies must discover their true differentiators and use AI to augment them further. For instance, Shopify used AI-powered features to enhance the product exploration experience for merchants and customers. As a result, the company saw a 15% jump in sales. Likewise, AI can help companies find new revenue streams by synthesizing data to create new insights, develop new business models to monetize data and even lead to unique opportunities. For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Photo by austin-distel on UnsplashMeta Platforms, Inc. (NASDAQ:META) is a global technology company. On March 11, Reuters reported that Meta is testing its first in-house chip for training artificial intelligence systems, a milestone move focusing on the company designing more of its own custom silicon and reducing reliance on external suppliers like Nvidia. Sources claim that Meta has started the small deployment of the chip and aims to ramp up production for wide-scale use if the test goes well. One of the two sources reporting to Reuters also said that Meta's new training chip is a dedicated accelerator. This means that the chip is designed to handle only AI-specific tasks, making it more power-efficient than the integrated graphics processing units (GPUs) generally used for AI workloads. The chip is the newest in the company's Meta Training and Inference Accelerator (MTIA) series. Overall, META ranks 2nd on our list of AI stocks that are on Wall Street's radar today. While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
16-03-2025
- Business
- Yahoo
Broadcom (AVGO) Poised for AI Growth as Analysts Call Recent Dip a Buying Opportunity
We recently published a list of . In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other AI stocks that are on Wall Street's radar today. According to a new L.E.K. Consulting report, investor sentiment today heavily ties a company's enterprise value to how well they develop and execute their artificial intelligence (AI) strategies for growth. The report reveals that a company that executes its AI transformation well can expect a valuation gain of up to 19%. On the contrary, a poor, or poorly executed, AI transformation can lead to a 9% loss of value. This is according to an L.E.K. analysis based on S&P 500 profit and loss data and results of an L.E.K. survey of executives. It is to be noted that the 28% change is the average shift in a company's value due to its use of AI, while the impact could be even bigger for some. READ ALSO: and 'The old ways of delivering on strategy and innovation will no longer satisfy investor expectations because AI advancements have raised the bar on what's possible. AI strategies require targeted investment and careful implementation. Doing it right will lead to growth. But if a company swings and misses with AI, fails to swing enough or swings too much — or not at all — the value destruction could be significant.' The key, however, lies in implementing a framework with which companies can bridge the AI gap toward success. They can do this by creating and implementing an AI transformation strategy that builds value. 'Winning companies will strategically deploy AI across all potential value-creation levers. In our experience, too many companies are just focusing on AI's potential related to productivity gains. To maximize upside potential — and ultimately avoid value erosion — leaders must plan and execute AI holistically so the strategy encompasses performance, competition and unique opportunities.' According to the report, companies must discover their true differentiators and use AI to augment them further. For instance, Shopify used AI-powered features to enhance the product exploration experience for merchants and customers. As a result, the company saw a 15% jump in sales. Likewise, AI can help companies find new revenue streams by synthesizing data to create new insights, develop new business models to monetize data and even lead to unique opportunities. For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A technician working at a magnified microscope, developing a new integrated Inc. (NASDAQ:AVGO) is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets. One of the most notable calls on Tuesday, March 11, was for Broadcom. Bernstein reiterated the stock, along with Nvidia, as 'Outperform', stating that investors should take advantage of any dips in both stocks. 'NVDA and AVGO have been brutalized, but are looking attractive for those who can wait out the noise…' Analysts on Wall Street currently have a consensus 'Buy' rating on the stock. The average price target of $251 implies a 32% upside, however, the Street-high target of $300 implies an upside of 57.8%. Overall, AVGO ranks 5th on our list of AI stocks that are on Wall Street's radar today. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
16-03-2025
- Business
- Yahoo
Microsoft (MSFT)'s AI-Powered Azure & Copilot Drive Bullish Market Sentiment
We recently published a list of . In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other AI stocks that are on Wall Street's radar today. According to a new L.E.K. Consulting report, investor sentiment today heavily ties a company's enterprise value to how well they develop and execute their artificial intelligence (AI) strategies for growth. The report reveals that a company that executes its AI transformation well can expect a valuation gain of up to 19%. On the contrary, a poor, or poorly executed, AI transformation can lead to a 9% loss of value. This is according to an L.E.K. analysis based on S&P 500 profit and loss data and results of an L.E.K. survey of executives. It is to be noted that the 28% change is the average shift in a company's value due to its use of AI, while the impact could be even bigger for some. READ ALSO: and 'The old ways of delivering on strategy and innovation will no longer satisfy investor expectations because AI advancements have raised the bar on what's possible. AI strategies require targeted investment and careful implementation. Doing it right will lead to growth. But if a company swings and misses with AI, fails to swing enough or swings too much — or not at all — the value destruction could be significant.' The key, however, lies in implementing a framework with which companies can bridge the AI gap toward success. They can do this by creating and implementing an AI transformation strategy that builds value. 'Winning companies will strategically deploy AI across all potential value-creation levers. In our experience, too many companies are just focusing on AI's potential related to productivity gains. To maximize upside potential — and ultimately avoid value erosion — leaders must plan and execute AI holistically so the strategy encompasses performance, competition and unique opportunities.' According to the report, companies must discover their true differentiators and use AI to augment them further. For instance, Shopify used AI-powered features to enhance the product exploration experience for merchants and customers. As a result, the company saw a 15% jump in sales. Likewise, AI can help companies find new revenue streams by synthesizing data to create new insights, develop new business models to monetize data and even lead to unique opportunities. For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A development team working together to create the next version of Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. On March 11, Derrick Wood from TD Cowen maintained a 'Buy' rating on the stock with a price target of $475.00. Wood is bullish on the stock given the continuing robust demand for Microsoft's Azure AI services. After recent virtual investor meetings with Microsoft's Director of Investor Relations, Danielle Criste, it has come to light that regardless of the company's data center buildout strategy entering a different phase, the overall approach has not significantly shifted. The company is maintaining a healthy balance between AI and non-AI workloads, contributing to impressive financial results. Microsoft is experiencing strong demand for its Azure AI solutions, and it is also optimistic about the prospects for its Copilot offering. In this regard, it is actively developing new pathways for adoption and monetization of Copilot, which will enable it to capitalize on the growing demand for AI-powered solutions and services. Based on these factors, the firm is confident in the path Microsoft is taking, and believes in the potential for its sustained growth in the AI sector. Overall, MSFT ranks 1st on our list of AI stocks that are on Wall Street's radar today. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
