We recently compiled a list of the 10 AI News and Ratings Shaking Up Wall Street. In this article, we are going to take a look at where Workday, Inc. (NASDAQ:WDAY) stands against the other AI stocks.
Technological innovations in steam power, electricity and microprocessors drove the first industrial revolution. Fast forward, artificial intelligence is the catalyst driving the fourth industrial revolution. That’s because the technology is reshaping industries at a breakneck speed. From revolutionizing the healthcare sector to addressing cybersecurity challenges to reshaping the auto industry, technology is reshaping the way of life in ways not seen before.
According to Markets and Markets, the global AI market is projected to grow at a compound annual growth rate of 35.7% to $1.3 trillion by 2030. Significant advancements in computational power and data availability are the factors expected to accelerate the growth. Similarly, revolutionary technology is giving rise to unique investment opportunities as companies compete against time to develop game-changing innovations and enhance productivity.
The $500 billion Stargate project is one such investment that sums up the enormous sums of money that companies are willing to spend to gain an edge on AI. While most of the investments are going to data centers and other infrastructures, companies are also inking deals and partnerships to secure reliable energy to power AI models and infrastructure.
The companies that provide the metaphorical picks and shovels of artificial intelligence, the manufacturers of semiconductors, servers, networking gear, and power generators—have seen a sharp increase in stock prices as a result of the spending frenzy.
The tremendous opportunity up for grabs is evident due to the blockbuster gains in the equity markets over the past two years. Major US indices are trading near all-time highs. While deep pullbacks have come into play in recent months, Dan Ives at Wedbush Securities remains bullish about the AI-driven rally.
Ives dismissed the recent tech stock sell-off caused by DeepSeek as a “tech AI head fake” and believes that investors have a “golden buying opportunity” with it. Ives claims that the fear surrounding the low-cost, high-performance model of the Chinese AI company is exaggerated and won’t affect the AI revolution’s long-term course.
“This DeepSeek tech-driven sell-off will be historically noteworthy in market history,” Ives wrote, emphasizing that it does not reflect a genuine threat to AI spending trends. “We expect more innovation in AI and LLM model costs to come down… that is ultimately a great thing for computing power, use cases, and where the tech world is going in this 4th Industrial Revolution.”
President Donald Trump has already reiterated that DeepSeek is a “wake-up call” for the U.S. tech industry, insisting the sector should be laser-focused on computing if the US is to maintain its edge on the technology.
In an attempt to keep American businesses from lagging behind their Chinese counterparts, Wall Street thinks DeepSeek’s success will encourage the US government to increase its investment in AI.
“In the near term, DeepSeek’s achievement is likely to pressure the U.S. into increased support for domestic AI development, most likely leading to increased federal investment in AI research and infrastructure,” wrote Mills of Raymond James. The firm added that it could envision the U.S. passing an AI version of the CHIPS and Science Act.
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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Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 71
Workday, Inc. (NASDAQ:WDAY) is a leading provider of solutions that help organizations manage their people and money. On January 29th, the company confirmed a strategic partnership with TechWolf, paving the way for the rollout of AI-powered skills intelligence across its global workforce. The rollout of the AI-powered tools will make it easier for employees to manage worker profiles and fuel career growth. The partnership is a testament to the power of combining AI-driven innovation with practical applications.
By using AI to identify employees’ skills from data in platforms like Jira and Salesforce, TechWolf will enhance Workday’s current skills offering. The collaboration with TechWolf should enhance Workday, Inc.’s (NASDAQ:WDAY) current skill set and give staff members more control over their professional development. It should also provide tools and insights that help them proactively upskill and reskill for success.
Overall WDAY ranks 5th on our list of the AI stocks that are shaping up Wall Street. While we acknowledge the growth potential of WDAY as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WDAY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.