Top 10 AI Stocks on Latest News and Analyst Ratings

8. UiPath Inc. (NYSE:PATH)

Number of Hedge Fund Holders: 29

UiPath Inc. (NYSE:PATH) is a well-known software as a service (SaaS) enterprise that develops AI-powered automation platforms to help businesses transform their operations. On December 6, Mizuho Securities analyst Siti Panigrahi reiterated their neutral stance on PATH stock, giving a “Hold” rating. One factor Panigrahi credits the hold rating to is UiPath’s potential to exceed revenue expectations in the third fiscal quarter amid a challenging macroeconomic environment. Even though the company has announced that it anticipates stabilization in its annual recurring revenue and an accelerated growth rate in its free cash flow, potential disruptions from artificial intelligence advancements are likely to impact demand for its robotic processes.

Moreover, investor apprehensions still exist about the AI disruption risk. This is despite the company achieving major achievements in product innovation and strategic partnerships, such as the SAP SolEx partnership. Ongoing investments, such as the traction of its Agent Builder, a tool for building, evaluating, and publishing AI agents, demonstrate potential. Nevertheless, the concerns about AI disruptions still exist. The company faces concerns that AI advancements could reduce demand for traditional RPA (robotic process automation) by offering more sophisticated automation solutions. Thus, the hold rating is a reflection of both positive and negative aspects.