We recently compiled a list of the 10 AI News Updates Trending on Wall Street. In this article, we are going to take a look at where Automatic Data Processing Inc. (NASDAQ:ADP) stands against the other AI stocks.
The emerging, cost-effective Chinese AI alternatives have prompted US President Donald Trump to say it is a wake-up call to Silicon Valley. He sees the launch of AI models like DeepSeek r1 and Qwen 2.5 as opportunities rather than threats, given that these innovations can help US companies drive down R&D and deployment costs.
However, the ongoing US earnings season continues to showcase strength in the AI space as companies consistently beat consensus estimates driven by revenues from AI segments.
Semiconductor manufacturers, satellite imagery, IT consultation, and cybersecurity firms continue to heavily integrate AI to reduce operational costs, introduce process transparency, offer global connectivity, and fortify data protection technologies for growth and optimal business productivity.
“The biggest lesson learned is we have to take the unintended consequences of any new technology along with all the benefits and think about them simultaneously – as opposed to waiting for the unintended consequences to show up and then address them,” Microsoft CEO Satya Nadella said at the latest World Economic Forum in Davos. “I don’t think the world will put up anymore with any of us coming up with something where we haven’t thought through safety, equity and trust – these are big issues for the world.”
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
HR management team reviewing resumes on a computer.
Automatic Data Processing Inc. (NASDAQ:ADP)
Number of Hedge Fund Holders: 49
Automatic Data Processing Inc. (NASDAQ:ADP) offers leading online payroll and HR management software and services. The company’s ADP Assist AI tool combines HR data repositories with GenAI to create an easy and smart human capital management experience. The AI tool is built on a human-centric design focusing on ethics and transparency while mitigating bias to ensure clients can access accurate information for easy payroll operations.
On January 29th, Jefferies analyst Samad Samana hiked Automatic Data Processing Inc.’s (NASDAQ:ADP) target price to $305 from $290 while retaining a “Hold” rating. The analysts said the company’s total revenue beat consensus estimates due to healthy demand trends, retention, and favorable timing in the Employer Services and PEO Services segments. The brokerage added that company results were strong and sufficient to lift share prices.
Overall ADP ranks 2nd on our list of the AI stocks that are trending on Wall Street. While we acknowledge the potential of ADP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
