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Bank of America Issues Warning About Potential Stock Market Bubble


2 Artificial Intelligence Stocks Leading the New Wave

Technology is changing our world, with results visible in real time. If you grew up in the 1980s, watching reruns of Star Trek, think for a moment about fantastic gadgets that have walked off the screen and into our lives: portable communicators, portable computers, voice-activated systems, to name just a few. Scotty once even automated the starship Enterprise, so that the ship could run with just five people on board. We don’t have a Star Trek transporter, and quantum physics tells us that we probably won’t anytime soon, but autonomous technologies are changing the way we commute. Artificial intelligence systems – thinking computers, or AI – are coming into production and online, and making their mark across the whole range of the transportation experience. We are starting to see autonomous vehicles, and AI-powered support services on the roads they use. With this in mind, we’ve used the TipRanks database to lock in on two transportation-related stocks that are deeply involved in AI technology. Both have earned some praise recently from 5-star analysts, who see a double-digit growth potential for each. Cerence, Inc. (CRNC) Cerence develops AI tech as the brain behind an autonomous vehicle system. The company’s technology focuses on voice activation, allowing the creation of ‘voice assistants’ for what Cerence describes as a ‘state-of-the-art in-car experience.’ While Cerence is applying voice recognition to automotive control systems, VR tech – and its connection to AI – has been around for some years. Cerence can boast that it has installed its AI-powered voice systems in over 325 million vehicles which are already on the road. And the company has over 1,400 patents – so there are plenty more ideas in the offing. Cerence’s customers include names from across the automotive spectrum, from iconic Detroit stalwarts like Ford and GMC, to international names like Volkswagen, Toyota, and Hyundai. Cerence hasn’t avoided the newer names on the global automotive scene, either – India’s Tata Motors is a customer, as is China’s Great Wall. Earlier this month, Cerence announced its 1Q21 results, and reported results above expectations for both revenues and earnings. At the top line, the $95 million reported was a 23% year-over-year gain – and a company record. EPS came in at a solid 59 cents per share, for a 103% yoy gain. In addition to the strong earnings, CRNC shares have shown steady gains for the long haul. The stock is up an impressive 362% in the past 12 months. Among the bulls is Needham’s 5-star analyst Rajvindra Gill, who has been following Cerence, and he is impressed. “With a rebound in auto production after COVID-19 related shutdowns and Cerence’s continued success in gaining market share, Edge revenues, which are recognized on a per-unit-shipped basis, continue to rise. Management continues to see penetration rates increasing, regardless…

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