We recently compiled a list of the Top 8 Must-See AI News Updates Investors Probably Missed. In this article, we are going to take a look at where Nice Ltd. (NASDAQ:NICE) stands against the other AI stocks.
As the US and Asia, led by China, continue to make staggering advancements in AI, experts worry that Europe may fall behind as its extremely strict regulatory approach to AI puts it at risk of becoming a “museum.”
“I think we really need to step up in Europe…the American economy, Chinese economy have been growing far faster compared to the European economies over the last 20 years,” Sweden PM Ulf Kristersson told attendees of the Techarena event in Stockholm today. “If we don’t change that, Europe will actually become some kind of a museum compared to other parts of the world.”
“To be able to compete in the new geopolitical context, Europe needs to become a place where business and innovation can thrive. That means less regulation. That means more access to capital and talent,” Kristersson added. “As it stands now, we’ve got companies having troubles using the latest technology due to uncertainties with the European legislation, companies founded in Europe relocating to the U.S. due to the lack of access to capital. That is simply not good enough.”
Despite French President Emmanuel Macron’s $113.7 million investment in AI, which included commitments from UAE and Canadian investment funds, as well as European Commission President Ursula von der Leyen announcing that the EU would mobilize $208.6 billion for AI investments in Europe, US VP JD Vance said Europe is too focused on regulating AI rather than embracing its growth potential.
“To create that kind of trust, we need international regulatory regimes that fosters the creation of AI technology rather than strangles it, and we need our European friends in particular to look to this new frontier with optimism rather than trepidation,” Vance told attendees at the Paris Summit.
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 over 1000 hedge funds, as of 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A data scientist sitting in front of a monitor to review the performance of AI-driven digital business solutions.
Nice Ltd. (NASDAQ:NICE)
Number of Hedge Fund Holders: 28
Nice Ltd. (NASDAQ:NICE) offers AI-powered customer relationship management (CRM) software, including the CXone platform, which helps organizations enhance customer experience across diverse channels like calls, chats, and emails through automation and data analysis.
On February 20th, Nice Ltd. (NASDAQ:NICE) posted a 16% YoY jump in Q4 revenue to $721.6 million, boosted by revenue from the cloud segment. Meanwhile, fully diluted EPS for Q4 increased 24% YoY to $1.54 on the robust adoption of its AI solutions. For the full year 2024, the company’s revenues increased by 15% YoY to $2.73 billion. The company set a non-GAAP 2025 revenue guidance between $2.91 billion and $2.93 billion, considering a cloud revenue growth of 12% YoY.
“We’re pleased to report a strong finish to 2024 capped off by an exceptional fourth quarter with double digit growth in total revenue, cloud revenue and further acceleration of our industry leading profitability. Our full-year 2024 strong top-line results were fueled by a 25% year-over-year growth in cloud revenue, which reached $2 billion. Further, our leadership in CX AI was exemplified by the strong adoption of our advanced AI solutions which were included in 97% of our large enterprise CXone Mpower deals over $1 million ARR. AI is revolutionizing the CX industry, and CXone Mpower’s agentic AI is unlocking new levels of growth by delivering further efficiency and exceptional customer experiences…We will put our industry-leading platforms front and center, we will lead the CX-AI revolution and we will further scale through expansion of our ecosystem. Our decades of deep CX domain expertise, industry-leading AI platform, relentless innovation and great financial strength strongly positions us to capitalize on the opportunities ahead and accelerate into the future.”
-said Scott Russell, CEO of Nice Ltd.
Overall NICE ranks 1st on our list of the AI stocks investors probably missed. While we acknowledge the potential of NICE 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 NICE 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.