We recently compiled a list of the 10 AI News Stories That Are Dominating Headlines. In this article, we are going to take a look at where Conduent Inc. (NASDAQ:CNDT) stands against the other AI stocks.
Grok 3, xAI’s chatbot and ChatGPT challenger is in its final stages of development, reported Elon Musk on Thursday. The chatbot is reportedly going to be released in a week or two. Speaking at the Dubai World Governments Summit, Musk said that the chatbot outperforms all others in the market.
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“Grok 3 has very powerful reasoning capabilities, so in the tests that we’ve done thus far, Grok 3 is outperforming anything that’s been released, that we’re aware of, so that’s a good sign”.
-Elon Musk
Musk had founded xAI as a rival to ChatGPT after he left OpenAI back in 2018. When Emirati State Minister for AI Omar Sultan Al Olama asked what to expect from the upcoming Grok 3 model, Musk bragged that it was “scary smart” with “very powerful reasoning capabilities.”
A few days back, a consortium of investors led by Musk said it had offered $97.4 billion to buy the nonprofit that controls OpenAI. The move marked an attempt by the billionaire to stop OpenAI from becoming a for-profit company. He had even sued CEO Sam Altman and others in August, asking a U.S. district judge to block OpenAI’s attempt to transition to a for-profit entity.
“I think the evidence is there in that OpenAI has gotten this far while having at least a sort of dual profit, non-profit role. What they’re trying to do now is to completely delete the non-profit, and that seems really going too far.”
Musk may be bragging that his chatbot is superior to others, but Benjamin De Kraker, who worked on the human data team for Grok development, has differing opinions on the top AI models for code. According to De Kraker, OpenAI’s o1-pro, o1, and o3-mini are all tied for the top spot, while the unreleased Grok 3 is in fourth position. Only time will tell who is right.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among 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 graph with complex data points showing the company’s technological advancements in electronic tolling.
Conduent Inc. (NASDAQ:CNDT)
Number of Hedge Fund Holders: 20
Conduent Inc. (NASDAQ:CNDT) offers business process services and technology solutions to help businesses and government agencies manage critical tasks and interactions. On February 12, the company announced its fourth quarter and full-year 2024 financial results. It reported Q4 EPS of ($0.15), $0.03 below the analyst estimate of ($0.12). Meanwhile, revenue for the quarter came in at $800 million compared to the consensus estimate of $806.33 million. Its full revenue was down 4.3% compared to 2023, slightly below expectations owing to discrete drivers. Looking ahead, the company sees FY2025 revenue of $3.1-3.25 billion, versus the consensus of $3.28 billion.
The company said that it successfully divested several assets at good multiples, which allowed it to pay down debt and streamline its strategy. Improved retention and increased new business ACV quarter-over-quarter led to a strong net ARR, while the company’s commercial segment also demonstrated a solid sales year. The company has also made significant progress in leveraging artificial intelligence across its entire portfolio, achieving milestones in digital and AI solutions and garnering recognition for its services. Integrating AI, particularly in fraud detection and document automation, has allowed it to generate revenue and reduce expenses.
“We remain bullish on achieving expectations in 2025. We continue to see opportunities for a further rationalized portfolio and remain focused on delivering outstanding service to our valued client base.”
-Cliff Skelton, Conduent President and Chief Executive Officer
Overall CNDT ranks 3rd on our list of the AI stocks that are dominating headlines. While we acknowledge the potential of CNDT as an investment, our conviction lies in the belief that some 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 CNDT 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.
