5 Best AI Stocks To Buy Now

1. Autodesk, Inc. (NASDAQ:ADSK)

Market Capitalization as of September 5: $43.17 billion

Number of Hedge Fund Holders: 53

Autodesk, Inc. (NASDAQ:ADSK) is a California-based company that specializes in 3D design, engineering, and entertainment software and services. The company is foraying into AI-powered designs to improve customer experience. Natural artificial intelligence will assist with subjective aesthetic preferences, synthesize ideas, and suggest new designs. 

On August 25, Barclays analyst Saket Kalia raised the price target on Autodesk, Inc. (NASDAQ:ADSK) to $275 from $263 and kept an Overweight rating on the shares. The company’s Q2 billings and bookings were ahead of estimates as multi-year renewals started to trickle in, enabling the fiscal 2023 free cash flow guide to remain unchanged, the analyst told investors in a bullish thesis.

According to Insider Monkey’s data, Autodesk, Inc. (NASDAQ:ADSK) was part of 53 hedge fund portfolios at the end of the second quarter of 2022, compared to 50 funds in the last quarter. Ian Simm’s Impax Asset Management is the leading stakeholder of the company, with roughly 1.3 million shares worth $221.2 million. 

Here is what Polen Global Growth has to say about Autodesk, Inc. (NASDAQ:ADSK) in its Q4 2021 investor letter:

“We added to Autodesk on share price weakness. Near-term concerns have made the valuations of the company quite attractive in our view. Autodesk has consistently reported solid results, but management recently provided lower than expected guidance, noting supply chain issues, inflation squeezing its customer margins, global labor shortages, and complications from rolling and unpredictable COVID lockdowns globally. In aggregate, these issues mean that fewer client projects have been completed, despite high end market demand. Ultimately, many of these productivity pressures will likely drive the need to digitize further.

To be clear, much of the pressure on Autodesk’s share price recently was due to expectations, not a decline in the fundamentals of the business. The company continues to grow revenues at greater than mid-teens rates while simultaneously enjoying record renewal rates. While each of the noted factors present real challenges in the near term, we think the lower share price provides long-term investors an opportunity. Given the secular trend towards digitization and the ever-increasing mission-critical nature of Autodesk’s products, we are confident in the long-term investment case.”

You can also take a look at Best Cheap Tech Stocks and Best Value Stocks to Buy for the Next Decade. 

Follow Insider Monkey on Twitter