We recently published a list of 11 AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Hewlett Packard Enterprise Company (NYSE:HPE) stands against other AI news updates investors should not miss.
Artificial intelligence is reshaping the job market in ways not seen or heard before. Right from creating new roles in AI development, data analysis, and related fields, it’s also accelerating the automation of routine tasks and leading to job displacement in certain sectors, necessitating workforce adaptation and reskilling.
According to McKinsey Research, corporate use cases of AI could result in an additional $4.4 trillion in productivity gains over the long run. While AI has enormous long-term potential, its immediate benefits are uncertain. Nevertheless, 92% of businesses intend to boost their investments in AI over the next three years.
A good chunk of the investment is going towards recruiting and poaching talent with advanced AI skills that could be of great benefit to the business. As businesses in almost every sector adapt their hiring processes to adopt the technology, data from job ads indicates that roughly one in four U.S. IT jobs listed are for workers with artificial intelligence expertise.
Similarly, AI accounted for 36% of IT positions listed in January in the information sector, including many tech companies making significant investments in AI development and deployment. Businesses in the professional services and financial sectors, including banks and consulting firms, seek IT personnel with experience developing or utilizing AI models and algorithms.
Open IT positions are becoming more and more AI-focused in sectors that comprise a smaller portion of the tech-hiring landscape. For instance, just a small percentage of healthcare job posts are tech-related, but the proportion of new tech positions in January that dealt with AI was almost double that of a few years prior.
According to Thomas Vick, senior regional director at recruiting company Robert Half, employers are mostly seeking someone with expertise or experience integrating AI into existing positions. Between the end of last year and the release of ChatGPT in the fourth quarter of 2022, new AI-related jobs increased by 68%, while tech postings decreased by 27%, affirming how advanced technology is changing the employment landscape.
Our Methodology
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 in Q4 2024.
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).
A woman programmer in a modern office working with multiple computer servers.
Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE) is a communication company that provides technology solutions and services focused on helping organizations manage and leverage data, from the edge to the cloud, it also uses advanced algorithms and approaches to create AI solutions for unique business needs. On March 12, the company announced that Klein Computer System AG is deploying its HPE Private Cloud AI solution.
It is a major win for Hewlett Packard Enterprise Company (NYSE:HPE), given that HPE Private Cloud AI is designed to enhance customer service sales through the deployment of AI assistants and agents across various customer-facing activities. Developed in partnership with Nvidia, HPE Private Cloud AI was created to facilitate the quick and simple deployment of private AI applications, emphasizing inferencing, retrieval-augmented generation (RAG), and fine-tuning.
“Many companies treat AI as a means to increase productivity – but in reality it’s much more, it’s a transformational force which can bring their business to the next level,” said René Zierler, Managing Director Switzerland, Hewlett Packard Enterprise. “Wolfgang Klein is a true entrepreneur and visionary who recognized that HPE Private Cloud AI is a key to unlocking this potential quicker than others to achieve competitive edge. We are very happy to support Klein Computer System AG on this journey.”
Overall, HPE ranks 4th on our list of AI news updates investors should not miss. While we acknowledge the potential of HPE 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 time frame. 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
