We recently published a list of Analysts Are Talking About These 10 AI Stocks. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against other stocks that analysts are talking about.
Gene Munster from Deepwater Asset Management said in a latest program on CNBC that the AI hardware trade is still intact and the analyst believes DeepSeek is a net positive for the industry.
“The consensus DeepSeek has been a positive for AI. I think when it comes to the cost of AI inference, it’s going to go through the floor. Sam Altman said after DeepSeek that they expect the cost of tokens to go down 10 to 12x per year for their second-tier model. I mean, that’s basically through the floor. And I think the third piece to this, if those two happen, we get this hardware build-out, we the cost of compute or the cost of inference declining. I think you’re going to see some just profound impacts. And so I’m still bullish on this market. I think that what we’re seeing right now is a funk, and I think that we still got two great years left of this AI trade.”
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For this article, we picked 10 AI stocks currently making moves on the back of the latest news. With each stock, we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Photo by Zhuo Cheng you on Unsplash
Uber Technolgies, Inc. (NYSE:UBER)
Number of Hedge Fund Investors: 166
Andrew Arons, Founder and Managing Partner at Synergy Advisory Management Group, said in a latest program on Schwab Network that he believes Uber Technologies (NYSE:UBER) shares will hit their all-time high within the next six months.
“I think Uber stock is going to hit all-time highs. I would say probably within the next six months, we’ll see it reach all-time highs. I wouldn’t be surprised if it hits 100 this year. So yeah, I think they’re moving in the right direction. They are one of those stocks attracting a lot of money, and a lot of money is starting to flow into Uber. They’re also making some really nice partnerships, and I think that’s going to propel the stock.”
Ariel Appreciation Fund stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon (NASDAQ: AMZN), Diageo (NYSE:DEO), and Uber Technologies, Inc. (NYSE:UBER). We will discuss each in detail below
At the halfway point of the year, Uber was one of the top-performing stocks in the S&P, and we couldn’t help but kick ourselves for having spent considerable time researching the company—demonstrating gen[1]uine interest—only to never invest a dime. By year-end, however, Uber’s stock had not only surrendered all its gains but had fallen even further. So, what changed? Hype, plain and simple. Specifically, hype surrounding fully autonomous vehicles (AVs).
While we are excited by the advancements toward full autonomy and have friends who rave about their experiences with Waymo, the narrative (there’s that word again!) surrounding the inevitability of AVs has become so pervasive that it’s taken on a life of its own in markets…” (Click here to read the full text)
Overall, UBER ranks 4th on our list of stocks that analysts are talking about. While we acknowledge the potential of UBER as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.