We recently compiled a list of the 10 AI Stocks Taking Wall Street by Storm. In this article, we are going to take a look at where UiPath Inc. (NYSE:PATH) stands against the other AI stocks.
Wall Street’s major indexes closed lower on Monday, December 9th, dragged down by a decline in Nvidia. The plunge pressured the broader technology sector, with investors also turning their attention to an important inflation report due this week.
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Investors expect the consumer price index (CPI) data set to be released on Wednesday, while the producer price index (PPI) is anticipated on Thursday, ahead of the Federal Reserve’s meeting on Dec. 17-18.
The plunge, however, seems only temporary, and technology stocks are poised to gain in the future. BlackRock anticipates that infrastructure and cybersecurity investments will “shine” in 2025. Jay Jacobs, the firm’s U.S. head of thematic and active ETFs, considers the artificial intelligence boom as a major catalyst. Jacobs said that AI companies need to build out their data centers and that keeping that data safe is also a sound investment play for the New Year.
“If you think about your data, you want to spend more on cybersecurity as it gets more valuable. We think this is really going to benefit the cybersecurity [and the] software community which is seeing very rapid revenue growth based off of this AI.”
Jacobs further stated that even though technology may seem tangible, it is also heavily reliant on physical infrastructure such as energy, materials like copper, and even real estate. These real-world components are essential for supporting the systems that are used every day. He further went on to say that it’s not just the mega-cap tech names that are winning, other semiconductor companies and other data center companies are benefiting from the rise of this theme.
In this regard, AI ETFs can play a significant role in helping investors gain targeted exposure while mitigating some of the risks associated with investing in individual AI stocks. They are a smart way for investors to invest in a theme for seeking longer-term gains.
“Identifying future winners can be very difficult – it’s not always the obvious names that make it in the long-term”.
-Ben Seager-Scott, chief investment officer at Forvis Mazars
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For this article, we selected AI stocks by going 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).
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UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 29
UiPath Inc. (NYSE:PATH) is a leading enterprise automation and AI software company that provides robotic process automation and artificial intelligence software. On December 6, the company reported its Q3 2025 results, exceeding the high end of its guidance across all key financial metrics. The results demonstrated improved execution and the value of their AI-powered automation platform. It reported a 9% year-over-year revenue increase to $355 million, with annual recurring revenue reaching $1.607 billion, a 17% rise.
The company continues to integrate AI into its automation solutions, exemplified by the launch of UiPath Autopilot™, and a strengthened relationship with SAP. The company also highlighted the launch of Agentic Automation, which has been well-received by customers and more than 1,000 organizations have registered for the private view. The same day, BMO Capital raised the firm’s price target on UiPath (PATH) to $16 from $15 and kept a “Market Perform” rating on the shares. The analyst told investors in a research note that the company had a reasonable quarter, with modest upside in key metrics as well as its new agent tools that provide incremental opportunities despite a competitive market.
Overall PATH ranks 7th on our list of the AI stocks that are taking Wall Street by storm. While we acknowledge the potential of PATH 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 PATH 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.
