We recently compiled a list of the 10 AI News That You Should Not Miss. In this article, we are going to take a look at where Bridgeline Digital, Inc. (NASDAQ:BLIN) stands against the other AI stocks.
Generative AI Set to Capture 10% of Total IT Market by 2032
Bloomberg Intelligence projects that the generative AI market will grow at a compound annual growth rate (CAGR) of 42%, reaching $1.3 trillion by 2032, up from $40 billion in 2022. This growth is driven by demand for generative AI products, especially infrastructure for training large language models, digital ads, and specialized software. The market could generate an additional $280 billion in software revenue, with major companies like Amazon, Microsoft, Google, and Nvidia expected to benefit as enterprises increasingly move workloads to the cloud.
By 2032, generative AI is predicted to account for 10% of total IT spending, with significant revenue coming from infrastructure services, AI servers, and software. The technology is also expected to have a transformative impact on life sciences and education. However, the rapid growth of generative AI could disrupt several industries, including semiconductors, hardware, IT services, and advertising.
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Navigating the Evolving Landscape of Generative AI
In a blog post, Carrie Tharp, Vice President, of Strategic Industries, wrote that Generative AI has evolved from a futuristic concept into a vital business strategy, transforming industries by enhancing efficiency and customer engagement. Despite its growth, many organizations are still testing its applications, with a study revealing that a third of businesses are evaluating its use. Key trends include the rise of multimodal AI, AI agents, AI-powered search, customer experiences, and deepfake defense.
In retail, AI is being used for customer service, marketing, and digital commerce, with long-term goals of creating personalized experiences and AI-powered assistants. The financial services industry is leveraging AI for fraud detection, risk management, and efficiency, while healthcare uses AI to reduce administrative burdens and improve patient care. The media and entertainment industry is increasingly adopting AI to improve productivity, content personalization, and operational efficiency.
As AI becomes more sophisticated, businesses need to address challenges like deepfake defense while focusing on high-value use cases. Generative AI is no longer a novelty but a transformative tool, with businesses needing to prioritize AI strategies that align with their specific industry needs and long-term goals.
For this article, we selected AI stocks by going through 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).
A successful business professional using a mobile device to access the company’s innovative online B2B and B2C commerce solutions.
Bridgeline Digital, Inc. (NASDAQ:BLIN)
Number of Hedge Fund Holders: 3
Bridgeline Digital, Inc. (NASDAQ:BLIN) offers AI-driven marketing technology solutions, including site search, natural language processing, SEO audits, and digital experience management, serving sectors such as eCommerce, healthcare, and finance.
Bridgeline (NASDAQ:BLIN) reported its fiscal fourth-quarter and full-year 2024 financial results, highlighting growth in its HawkSearch platform. Quarterly revenue reached $3.9 million, slightly up from $3.8 million the previous year, with a gross profit of $2.7 million. Annual revenue totaled $15.4 million, down from $15.9 million, while gross profit remained steady at $10.4 million. The company signed 83 license deals in 2024, generating $2.1 million in annual recurring revenue.
HawkSearch introduced features like Conversational Search and Smart Facets, leveraging AI to improve product discovery. Partnerships with Optimizely, Moblico, and Human Element expanded HawkSearch’s reach, while customer wins included major distributors and retailers upgrading their search capabilities with AI-driven tools. Bridgeline’s CEO emphasized its strong sales pipeline and innovative AI offerings for 2025. He said:
“We begin 2025 with the largest sales pipeline in the company’s history, an AI product suite that both existing customer and new customers need, and an outstanding industry reputation from customers and analysts.”
Overall BLIN ranks 7th on our list of the AI stocks you shouldn’t miss. While we acknowledge the potential of BLIN 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 BLIN 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.
