We recently compiled a list of the 10 AI News Investors Can’t Afford to Miss. In this article, we are going to take a look at where Hewlett Packard Enterprise Company (NYSE:HPE) stands against the other AI stocks investors can’t afford to miss.
According to a famous Wall Street brokerage Goldman Sachs, the S&P 500 index will reach 6,500 by the end of 2025. The US economy and corporate earnings are expected to continue growing, a key factor driving the optimism behind this forecast. Another brokerage, Morgan Stanley, has made a similar prediction, stating that US earnings will continue to grow in 2025. This can be expected if the Federal Reserve cuts interest rates next year and there are signs of a stronger business cycle. The ‘Magnificent 7’ stocks, which are key tech giants leading in AI innovation, are likely to outperform the rest of the 493 companies in the benchmark index next year, Goldman notes. The outperformance, however, is only predicted to be by 7 percentage points, the slimmest margin in seven years.
READ NOW: 15 AI News Stories Shaking Up Wall Street and 15 AI News That Broke The Internet
The Latest Developments in AI
As companies increasingly leverage artificial intelligence to drive growth, the pivotal role that AI technology is playing in influencing market trends becomes increasingly undeniable. In the latest news, AI-powered search engine Perplexity is reportedly taking a jab at some of the tech giants by launching its very own shopping feature that it claims is a “one-stop solution where you can research and purchase products.”
“You can use it to research and make purchases on all things like building your library, buying electronics for throwing a party, and so on,”
-Perplexity said in a thread on X that also included a short video (below) showing the new feature in action.
The shopping tool allows users to enter queries, refine results, and includes features such as one-click checkout. Its major point of differentiation, however, is that it describes its results as “unbiased recommendations” that are powered by AI and based on in-platform reviews.
“When you ask Perplexity a shopping question, you’ll still get the precise, objective answers you expect, plus easy-to-read product cards showing the most relevant items, along with key details presented in a simple, visual format.”
In other news, Coca-Cola is facing backlash with an AI-made advertisement. Originally meant to pay homage to a classic 1995 commercial, many creatives have drawn criticism, stating that it is distasteful for the company to use AI technology to create the video instead of the work of artists. As per Forbes, the video was created by three AI studios, namely Secret Level, Silverside AI, and Wild Card, and used four different generative AI models.
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 woman programmer in a modern office working with multiple computer servers.
Hewlett Packard Enterprise Company (NYSE:HPE)
Market Capitalization: $36.07 billion
Hewlett Packard Enterprise Company (NYSE:HPE) is an American multinational technology company offering high-performance computing (HPC) systems, AI software, and data storage solutions that help run complex AI workloads.
On Monday, November 18, Citi analyst Asiya Merchant raised the firm’s price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $23 from $20 and kept a “Neutral” rating on the shares. The rating comes as part of an earnings preview for the hardware sector. According to the analyst, infrastructure demand indicators remain mixed, excluding artificial intelligence. Updates in the supply chain suggest that recovery in the general-purpose server market will continue until 2025. However, the demand increase hasn’t led to significant growth in external spending storage, as supply chain insights reveal slower decision-making.
Overall HPE ranks 4th on our list of the AI stocks investors can’t afford to miss. While we acknowledge the potential of HPE 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 HPE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
