We recently published a list of Top 10 AI News Updates You Should Not Miss. In this article, we are going to take a look at where TE Connectivity PLC (NYSE:TEL) stands against other top AI news updates you should not miss.
Leading companies across diverse industries, including electronics, IT infrastructure, surveillance, renewable energy, robotics, and cybersecurity, are heavily investing in AI and machine learning to leverage the technology for widescale innovation. In turn, companies are able to reduce operational costs, tackle workforce challenges, and transform client experiences.
For instance, in the IT infrastructure space, AI spending is expected to jump to $509.1 billion in 2027 from $175.9 billion in 2023, according to the IDC. The spending on AI platforms is expected to rise as they become increasingly important for business’s digital operations.
“Harnessing machine learning can be transformational, but for it to be successful, enterprises need leadership from the top. This means understanding that when machine learning changes one part of the business — the product mix, for example — then other parts must also change. This can include everything from marketing and production to supply chain, and even hiring and incentive systems,” said Erik Brynjolfsson, co-founder of Workhelix.
Elsewhere, PwC global chairman, Mohamed Kande, during his speech at the World Economic Forum in Davos urged people to not be afraid of AI in the workplace but embrace it as a digital colleague.
“People fear what they don’t understand, so exposing them to the technology, putting in their hands makes a big difference,” Kande said about AI, adding that doing so allows employees to view AI as a “digital colleague…You don’t fear your colleagues, you partner with them…So we are actually asking people to partner with the technology.”
For this article, 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 900 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 technician assembling a sensor on an automated assembly line.
TE Connectivity PLC (NYSE:TEL)
Number of Hedge Fund Holders: 44
TE Connectivity PLC (NYSE:TEL) designs and manufactures cutting-edge connectors and sensor components for industries including automotive, aerospace, defense, medical, and energy. The company is integrating AI into its engineering workflows to optimize product designs and accelerate product deployments in markets. TE Connectivity PLC (NYSE:TEL) also manufactures highly-engineered backplane, OTB, power, and internal cabled connectors for data centres and AI applications.
On January 23rd, Truist trimmed the firm’s price target to $163 from $165 and retained a “Hold” rating on the stock following its Q4 results. Analyst William Stein wrote that TE Connectivity PLC (NYSE:TEL) showcased robust execution with decent margins as its AI projects lifted performance. However, the brokerage was concerned about the drag on the auto business and adverse FX impacting results.
Overall, TEL ranks 3rd on our list of top AI news updates you should not miss. While we acknowledge the potential of TEL 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 TEL 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.
