We recently compiled a list of the 15 AI News and Ratings Grabbing Investor Attention. In this article, we are going to take a look at where Rubrik, Inc. (NYSE:RBRK) stands against the other AI stocks you should pay attention to.
AI initiatives by businesses across the world are attracting the attention of investors. For example, the latest developments come from Finland, where Nokia, a once powerful phone maker who has now shifted focus towards telecom equipment, recently announced that it had purchased an application programming interface (API) hub and marketplace from US company Rapid. The hub is the largest of its kind in the world and is part of a larger effort by the Finnish company to boost revenues from 5G deployments. 5G tech has been a key reason for AI growth in the past few years. 5G speeds allow faster processing of AI tasks on mobile devices.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Across the pond, AI startup CoreWeave has secured more than $650 million in funding led by top names like Jane Street, Magnetar, Fidelity Management and Macquarie Capital. The startup specializes in providing cloud-based graphics processing unit (GPU) infrastructure to artificial intelligence developers. The company is now valued at more than $23 billion. In May this year, the firm was valued at $19 billion after a funding round led by investment firm Coatue that managed to raise over $1 billion. According to venture capital firm Accel, funding of AI and cloud companies in the US, Europe and Israel is estimated to hit $79.2 billion by the end of the year.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing 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).
Stocks
Rubrik, Inc. (NYSE:RBRK)
Market Capitalization: $8 Billion
Rubrik, Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide. The cybersecurity platform of the firm uses AI and machine learning to monitor for threats and provide sophisticated data recovery. On November 12, Oppenheimer analyst Param Singh initiated coverage of the stock with a Perform rating and no price target. The advisory sees Rubrik benefiting from the rising importance of data, which is driving backup storage TAM, growing data security breaches and ransomware attacks that align with the company’s security-first approach, and the industry shift to as-a-service platforms. However, the advisory expects management to continue with its heavy investment and expects Rubrik to remain at an operating loss for the next three years.
Overall, RBRK ranks 5th on our list of the AI news and ratings grabbing investor attention. While we acknowledge the potential of RBRK 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 RBRK 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.
