10 Worst Artificial Intelligence Stocks to Buy Under $10

2) Wipro Limited (NYSE:WIT)

Number of Hedge Fund Holders: 11

Share Price As On September 19: $6.47

Wipro Limited (NYSE:WIT) is a company, specializing in IT and computer-related technologies. Its services include software architecture, business intelligence systems, data warehousing, and other related services. The company’s AI Solutions partner with companies to help them transition into intelligent enterprises.

The global demand uncertainty on discretionary technology spending, primarily in the banking, financial services, and insurance (BFSI) clients impacted the industry’s revenue visibility. Verticals other than BFSI have also not been performing as expected. For example, manufacturing is another vertical where the company’s peers have done better. All these factors continue to weigh over Wipro Limited (NYSE:WIT)’s performance.

Moreover, bears believe that Wipro Limited (NYSE:WIT)’s turnaround efforts have a limited impact on its revenue growth. Also, high attrition among the top management continues to concern long-term investors.

On the other hand, Wall Street analysts believe that there are several green shoots available in the consulting business to which Wipro Limited (NYSE:WIT) has exposure via Capco. Also, the company’s cost-optimization measures are expected to pay off in the upcoming quarters. Wipro Limited (NYSE:WIT) might benefit from increased margin expansion. This is because more automated tech solutions tend to decrease the variable costs related to each incremental sale.

Over the long term, Wipro Limited (NYSE:WIT) should benefit from switching costs and intangible assets. Notably, forays into the higher-value realm of industrial engineering should help ensure that Wipro Limited (NYSE:WIT) remains at the forefront of substantial growth trends.

As per Insider Monkey’s 2Q 2024 database, Wipro Limited (NYSE:WIT) was in the portfolio of 11 hedge funds.