We recently compiled a list of the Top 10 Hot AI Stocks Dominating Headlines. In this article, we are going to take a look at where Progress Software Corporation (NASDAQ:PRGS) stands against the other AI stocks.
While AI is transforming industries worldwide and is expected to elevate our society to new heights, Caleb Maresca at New York University shared a contrarian view in his latest study. The economist believes that transformative AI could upend economies, decimating wages and lifting interest rates to extremely high levels.
“My findings reveal that expectations of [transformative AI] can substantially affect current economic conditions even before any technological breakthrough occurs. When AI automates a job — whether a truck driver, lawyer, or researcher — the wages previously earned by the human worker don’t vanish or automatically transform into broader economic gains. Instead, they flow to whoever controls the AI system performing that job.”
-said Maresca
He highlighted that expectations of AI gutting the price businesses pay for work could massively drive interest rates by up to 16% in some scenarios. In such a situation, the cost of launching a new business or purchasing a house could increase to unaffordable levels, which could compel people to save more and spend less, creating a “form of prisoner’s dilemma in saving behavior.”
He urged people to collectively push politicians to enact policies, which ensure that the wealth created by transformative AI is shared broadly, especially if AI leads to persistently high unemployment.
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.
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).
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Progress Software Corporation (NASDAQ:PRGS)
Number of Hedge Fund Holders: 23
Progress Software Corporation (NASDAQ:PRGS) offers AI-powered digital experience and infrastructure software to help clients build, deploy, and manage AI-driven applications with ease.
On February 27th, Progress Software Corporation (NASDAQ:PRGS) announced the appointment of Ed Keisling as the Chief AI Officer. He is now responsible for leading the company’s AI strategy to enhance product portfolios with the goal of supporting clients in their AI transformation journeys. He will directly report to CEO Yogesh Gupta. Keisling most recently served as SVP of Engineering for Infrastructure Management at the company.
“Our customers rely on Progress to power and solve mission-critical parts of their business, and AI is redefining how these solutions evolve. With recent advancements in AI, the pace of innovation is accelerating, removing traditional barriers to adoption. Progress has been offering AI capabilities within its products for years and has passionate teams already focused on this space. I am excited to further develop and lead this charge ensuring our customers have the tools, processes and expertise to fully leverage AI’s transformative potential and drive even further value with our products.”
-said Ed Keisling, Chief AI Officer of Progress Software Corp.
Overall PRGS ranks 5th on our list of the AI stocks that are dominating headlines. While we acknowledge the potential of PRGS 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 PRGS 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.