5 Best Artificial Intelligence (AI) Stocks To Buy According to Analysts

3. EPAM Systems, Inc. (NYSE:EPAM)

Number of Hedge Fund Holders: 35

Average Upside Potential Based on Analyst Ratings: 43.87%

EPAM Systems, Inc. (NYSE:EPAM) is a global provider of software development and digital platform engineering services. Their offerings include AI-enabled platforms for data collection, intelligent automation solutions, and conversational AI, which have the potential to transform the banking industry. EPAM Systems, Inc. (NYSE:EPAM) is considered as a top investment option among artificial intelligence stocks.

On February 17, EPAM Systems, Inc. (NYSE:EPAM) received a Positive rating from Susquehanna, but the firm reduced the price target of the company’s shares from $462 to $410. According to Susquehanna, while EPAM Systems, Inc. (NYSE:EPAM) has a distinct engineering culture that enables it to succeed even in challenging times, it has been impacted by broader economic conditions and faced weaker demand than anticipated from two major clients.

According to Insider Monkey’s fourth quarter database, 35 hedge funds were bullish on EPAM Systems, Inc. (NYSE:EPAM), compared to 34 funds in the last quarter. Stephen Mandel’s Lone Pine Capital is the largest stakeholder of the company. 

Here is what White Falcon Capital Management has to say about EPAM Systems, Inc. (NYSE:EPAM) in its Q3 2022 investor letter:

“Half of the portfolio had positive realized and unrealized gains for the year. Out of these, EPAM Systems and Maxar were the largest positive contributors to performance. In addition, our weight in the commodity sector, including the precious metals hedge, produced substantial positive returns.

EPAM Systems is an IT services company. We initiated a position in EPAM after it sold off when Russia invaded Ukraine. The concern was that EPAM had a large part of its workforce in Ukraine, Belarus and Russia. Until then, EPAM had been a high quality compounder whose stock price had gone up 10x in the previous 10 years. It was a strong company that had come across some temporary headwinds and our analysis (Q1 2022 letter) confirmed that the risks are manageable. We bought the stock at $210 per share in Q1 and sold about a quarter of our position in the $400-450 range in Q3. EPAM remains a top 10 position and closed the year at $330 per share.”