20 Industrial Stocks Already Riding the AI Wave

7. Motorola Solutions, Inc. (NYSE:MSI)

Number of Hedge Fund Holders: 43   

YTD Return as of August 1: 28%

Approximate Percentage Revenue from AI: 23%

Motorola Solutions, Inc. (NYSE:MSI) provides public safety and enterprise security solutions. The company is aggressively advocating for the increased adoption of AI in large-scale safety and security systems. In May, Mahesh Saptharishi, the chief technology officer of the company, called for the integration of AI into emergency response systems, noting that AI would help reduce response times and save thousands of lives in the process. His company has invested $858 million in research and development in the past few months. These investments have focused on AI-based technologies and the expansion of a portfolio of intellectual property. This portfolio, which includes AI tools, stands at around 6,560 granted patents and almost 775 pending patents.

Jason Wrinkler, the CFO of Motorola Solutions, Inc. (NYSE:MSI), explained during the second quarter earnings call that the firm expected 12% of growth in video for the full fiscal year, enabled by new products that were using AI-enabled tools for video recording. These AI tools are available on both cloud and on-premise. Wrinkler called AI-backed video an exciting opportunity for the company in the coming months.

In its Q2 2024 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Motorola Solutions, Inc. (NYSE:MSI) was one of them. Here is what the fund said:

“Motorola Solutions, Inc. (NYSE:MSI) was a contributor to performance as the Company continued its steady execution with +10% sales growth and +20% operating earnings growth. Motorola also continues to grow its backlog due to its competively advantaged core land mobile radio (LMR) business is a critical long-term solution for emergency services around the globe. The technology behind LMR is relatively simple compared to current 5G wireless standards, but it is an extremely robust implementation that must withstand regular and even mega catastrophes to guarantee uptime to the emergency services that depend on it for communications. Motorola has unmatched competitive positioning in this core business and should be able to continue to expand value-added service offerings to LMR and drive attractive long-term growth.”