20 Hidden Gem AI Stocks

3. Aspen Technology, Inc. (NASDAQ:AZPN)

Number of Hedge Fund Holders: 24  

Aspen Technology, Inc. (NASDAQ:AZPN)  provides industrial software that focuses on helping customers in asset-intensive industries worldwide. The firm focuses heavily on integrating AI to help customers in industries such as energy, chemicals, and manufacturing improve efficiency, enhance sustainability, and reduce operational risks. Their AI-powered solutions include products like Aspen Mtell, which uses predictive analytics to detect and prevent equipment breakdowns, and Aspen Fidelis, a tool for evaluating and optimizing system reliability and performance. As the AI boom increases interest in their products, the firm is targeting high-single-digit to double-digit growth in Annual Contract Value over the next few years​.

Loop Capital analyst Mark Schappel recently raised the price target on Aspen Technology, Inc. (NASDAQ:AZPN) stock to $260 from $204 and kept a Buy rating on the shares after attending the company’s Investor Day. Per the analyst, the major themes of the management’s presentation were that the company addresses a large market of $11 billion with durable tailwinds and that its customer efficiency and sustainability initiatives increasingly drive the company’s overall business, rather than just production like in the past. The note further detailed that oil/gas and chemical companies increasingly view Industrial AI as mission-critical to achieving their profitability and sustainability objectives.